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Case Study Three

An Investment Plan to generate an income for Lauren now, whilst preserving capital for her future

ISAs and Investments

After nearly 20 years together, Lauren and her husband had grown apart and their marriage eventually broke down. With her life turned upside down, Lauren faced a very different future to the one she had planned.

 

Moving on

With her two children at university, and likely to remain dependent on their parents for financial support for some time to come, Lauren started to think about how to find the income she needed for both herself and her family. She enjoyed her part time job as a Receptionist, but it wasn’t bringing in enough to meet everyday living expenses.  Thinking about her own future and feeling ready to move on to the next stage of her life, Lauren decided to sell the family home. From the sale of the house she was able to pay off her mortgage and buy a new home.  She also had some money left over which was awarded to her as part of the divorce settlement.  Lauren wanted to invest her money wisely, to provide the income she needed for her and the children, whilst building up sufficient funds for her future.

 

Planning for the unexpected

Managing such a large sum of money was a daunting prospect for Lauren, so her solicitor put her in touch with us. We spent time discussing her needs and what she wanted to achieve.  With her recent experience, she was aware that life takes unexpected twists and turns, so she wanted to put some of her money aside for emergencies – just in case she needed it. This is a sensible thing to do, and where possible we recommend having access to the equivalent of six months expenditure, which is what we put in place for Lauren.

 

Creating the right portfolio

Lauren’s moderate attitude to risk was an important factor in determining the right portfolio for her. She was keen to preserve her capital but was also willing to take appropriate risks to achieve growth over the medium to longer term. We worked with Lauren to create an investment portfolio that fits well with her age, wealth, goals, attitude to risk and income requirements. We suggested placing £15,000 into an ISA (NISA) and the remaining into a Moderate Mixed Investment Portfolio, which would produce the required monthly income whilst also being a good way to build capital growth over the longer term.

 

The solution

With a plan in place, Lauren has peace of mind knowing she will have the income she needs, whilst keeping a watchful eye on building her nest egg for the future.  Regular reviews mean that good performance of her investments might allow her to withdraw more money in the short term or reinvest any excess.  Under performance, however, might mean decreasing her income for a while and adjusting her future plan accordingly.  Lauren is now able to focus on re-building her life with the re-assurance that her finances are in good order.

 

 

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

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