Retirement Planning - Roger

Wed, 30 Jan 2008 15:42:08 +0000

Roger had built a successful business. Now, his two sons had decided to be involved, and he is delighted. At 60, he is enjoying it and the shared responsibility means that he now no longer has to shoulder all the decisions himself. The business has recently bought a new building and he has managed to keep the old one and rent it out.

The business needed a cash injection. Roger decided that he would activate his pension fund. He was able to take one quarter of the fund as a lump sum – this was the cash injection his business needed. He decided to leave the remainder of the fund untouched and could use it as an income for himself in the future.

CGM Associates advised Roger on this strategy only after discussing the possible income scenarios with him in the future.

Protection - Client Story

Wed, 30 Jan 2008 15:40:44 +0000

Joe is 50. He thinks he is too old for life cover. His two children are 12 and 16. he thinks life cover on him is likely to be too expensive. However, with his younger child likely to be dependant on him for 10 more years, he and his wife want to make sure that there would be a yearly income if Joe died.

CGM were able to find an insurer who offered a competitive premium. It actually was much less expensive that they thought it would be.

The plan worked as the following examples demonstrate: if Joe died in year 2, the plan would pay out for another 8 years. If he died in year 7, then the plan would pay out for another 3 years. He is therefore less of a risk to the insuring company the longer he lives, and so the premium is lower than a ‘lump sum’. Please contact us for more information on how this Family Income Benefit works.

Sean and Peter are in business for the last two years buying and refurbishing houses. Their wives are employed elsewhere. With this in mind, if Sean were to die, his wife’s preference would be that Peter could own the company outright, and that she would instead get the financial value of her dead husband’s 50%. When we discussed this with the four of them, we agreed to put life cover in place that would allow this purchase and sale of shares if they wanted this.