Case Studies

Pensions (Mold, North Wales)

 

The Scope:

A new client needed advice regarding his pensions totaling over £30,000. He had heard about the new pension freedoms introduced in 2015. As he was five years away from retirement, he wanted to cash in his pensions to reduce the risk. His intention was to reinvest the proceeds into investment ISAs for himself and his wife. The client was working and earning £28,000 per annum.

 

The D&G Solution:

We assessed his risk and found him to be a cautious investor. This was at odds with the risks he was taking with his existing pension, which was invested in adventurous and underperforming funds. The client was also unaware of the tax implications of cashing in his pensions and that he would incur an income tax charge of 40% on some of the proceeds.

We recommended he switch his pensions to lower risk rated funds with a different provider that was likely to give a more consistent return. The new pension would allow him to retire and take tax free cash when it was suitable for him and draw a potential tax-free income at retirement.

By not cashing his pension now, he saved approximately £5,800 in income tax, reduced the risk he was taking with his funds and gained the flexibility to draw down on his pension when he wished.

 

 

 

Early Retirement (Mold, North Wales)

 

The Scope:

Our 58-year-old client was working for a large multi-national company and wanted to retire earlier than his employers would allow. His wife was in ill health and he wanted to spend more quality time with her over the next five to ten years. The client had been working for the same company for over thirty years but was prepared to leave and take a part time, lower paid job if he was allowed to take his company and state pensions in eight years' time.

 

The D&G Solution:

By comprehensively discussing our client's position, we established that his company pension had a high cash transfer value that would allow him to transfer his company scheme into a private pension. By flexibly drawing down on his new pension immediately, it would go some way to replacing his employment income. The Flexible Drawdown pension also allowed him to withdraw tax free cash and repay his mortgage and car loan, thereby reducing his outgoings and providing a more comfortable lifestyle for his family.

Divorce (Mold, North Wales)

 

The Scope:

A recent divorcee, our client wanted to keep her family home and manage the repayments comfortably.

 

The D&G Solution:

Our client had adult children. By granting them shared ownership and using her shared income to age 76, we were able to help her secure an affordable mortgage. Additionally, our team of IFAs was able to assist her in accessing the lump sum from her pension to further reduce the mortgage and, more importantly, the repayments.

 

 

 

Unsecured Debt (Deeside, North Wales)

 

The Scope:

Throughout the renovation of their property, our married clients had borrowed over £80,000 in unsecured finance.  They wanted to consolidate this debt into a mortgage but had been declined in the past because the high amount of unsecured finance and historic credit scores.

 

The D&G Solution:

As the couple also had an existing mortgage, our mortgage specialist was able to consolidate all the debt correctly into a re-mortgage with a rate of 2.78%. Previously, they were paying £1,529 per month on the unsecured debt and £823 on their mortgage, with thirty years remaining. Once the re-mortgage was approved, their repayments were reduced to one monthly payment of £1,059, saving them £1,292 per month. The arrangement enabled them to pay down the debt immediately.

 

 

 

Help To Buy Wales (Mold, North Wales)

 

The Scope:

Our clients were coming to the end of their existing mortgage deal and were hoping to buy a new property in 2018 throughout Help To Buy Wales.

 

The D&G Solution:

By remortgaging their existing arrangement with a lender that would allow them to move their mortgage in 2018, the couple did not have to pay the higher standard variable rate. We helped them set up an arrangement that saved them £163 per month with the added security of a five-year fixed rate, protecting them from potential interest rate rises.

D&G Independent Limited is authorised and regulated by the Financial Conduct Authority, No 585148.
D&G Independent Limited, Park House, Ffordd Byrnwr Gwair, Broncoed Business Park, Mold, Flintshire CH7 1FQ
T: 01352 754272 |  info@dandgifa.co.uk

Copyright © 2018 - D&G Independent Limited  | Privacy Policy

 

 

 

 

Pensions (Mold, North Wales)

 

The Scope:

A new client needed advice regarding his pensions totaling over £30,000. He had heard about the new pension freedoms introduced in 2015. As he was five years away from retirement, he wanted to cash in his pensions to reduce the risk. His intention was to reinvest the proceeds into investment ISAs for himself and his wife. The client was working and earning £28,000 per annum.

 

The D&G Solution:

We assessed his risk and found him to be a cautious investor. This was at odds with the risks he was taking with his existing pension, which was invested in adventurous and underperforming funds. The client was also unaware of the tax implications of cashing in his pensions and that he would incur an income tax charge of 40% on some of the proceeds.

We recommended he switch his pensions to lower risk rated funds with a different provider that was likely to give a more consistent return. The new pension would allow him to retire and take tax free cash when it was suitable for him and draw a potential tax-free income at retirement.

By not cashing his pension now, he saved approximately £5,800 in income tax, reduced the risk he was taking with his funds and gained the flexibility to draw down on his pension when he wished.

 

 

 

Early Retirement (Mold, North Wales)

 

The Scope:

Our 58-year-old client was working for a large multi-national company and wanted to retire earlier than his employers would allow. His wife was in ill health and he wanted to spend more quality time with her over the next five to ten years. The client had been working for the same company for over thirty years but was prepared to leave and take a part time, lower paid job if he was allowed to take his company and state pensions in eight years' time.

 

The D&G Solution:

By comprehensively discussing our client's position, we established that his company pension had a high cash transfer value that would allow him to transfer his company scheme into a private pension. By flexibly drawing down on his new pension immediately, it would go some way to replacing his employment income. The Flexible Drawdown pension also allowed him to withdraw tax free cash and repay his mortgage and car loan, thereby reducing his outgoings and providing a more comfortable lifestyle for his family.

 

 

 

Help To Buy Wales (Mold, North Wales)

 

The Scope:

Our clients were coming to the end of their existing mortgage deal and were hoping to buy a new property in 2018 throughout Help To Buy Wales.

 

The D&G Solution:

By remortgaging their existing arrangement with a lender that would allow them to move their mortgage in 2018, the couple did not have to pay the higher standard variable rate. We helped them set up an arrangement that saved them £163 per month with the added security of a five-year fixed rate, protecting them from potential interest rate rises.

 

 

 

Divorce (Mold, North Wales)

 

The Scope:

A recent divorcee, our client wanted to keep her family home and manage the repayments comfortably.

 

The D&G Solution:

Our client had adult children. By granting them shared ownership and using her shared income to age 76, we were able to help her secure an affordable mortgage. Additionally, our team of IFAs was able to assist her in accessing the lump sum from her pension to further reduce the mortgage and, more importantly, the repayments.

 

 

 

Unsecured Debt (Deeside, North Wales)

 

The Scope:

Throughout the renovation of their property, our married clients had borrowed over £80,000 in unsecured finance.  They wanted to consolidate this debt into a mortgage but had been declined in the past because the high amount of unsecured finance and historic credit scores.

 

The D&G Solution:

As the couple also had an existing mortgage, our mortgage specialist was able to consolidate all the debt correctly into a re-mortgage with a rate of 2.78%. Previously, they were paying £1,529 per month on the unsecured debt and £823 on their mortgage, with thirty years remaining. Once the re-mortgage was approved, their repayments were reduced to one monthly payment of £1,059, saving them £1,292 per month. The arrangement enabled them to pay down the debt immediately.

T: 01352 754272