We spent time with Paul and Sue establishing what was important about money to them, understanding their attitude to risk, how much retirement income they needed and when they were likely to need it. Sue, in particular, had clear social and ethical views as to how their money should be working for them. This was an important consideration, as well as the fact that both Paul and Sue were relatively cautious and didn’t want their investments to be too ‘high risk’. We also found that the couple had almost identical portfolios made up of only a few funds. By concentrating their investments in this way, Paul and Sue were unwittingly increasing the overall risk to their investments, especially from a down-turn in the market.
We addressed this by making sure Sue’s investments were socially and ethically focused to fit with her investment beliefs, recommending more diversified ISA portfolios to ‘spread the risk’, and making sure the majority of assets in Paul’s pension were lower risk funds to help provide the income they need, but with less risk of the capital being used up.
With our help, Paul & Sue have the peace of mind they know where the additional income they need comes from and without placing too much stress on their capital. They can enjoy the retirement they dreamed of, safe in the knowledge that their money is in the right place doing the right job. With our help they have reduced their overall risk and have a much better understanding of where their money is invested and why. Regular reviews ensure that their investments stay on track and in line with their personal objectives and needs. These reviews also help Paul and Sue make informed decisions about when to withdraw their money to provide the additional income they need, whilst keeping a watchful eye on the future and planning for their retirement income.