Case Study Details
Name Income Plan, Health & Mobility Date 07 June 2016 Categories income  lifestyle  property   Author Ethos

Income Plan, Health & Mobility

A retired lady client has been recently bereaved and her late husband dealt with all financial issues. She only has a basic State Pension and relatively modest amount of share dividends, savings interest and rental income. We identified an income shortfall of around £1,000 per month. The client had some cash savings earning low levels of interest, a house in the countryside and a small property that was a holiday let. Our client’s financial objective was to boost her income in order to bridge her income/expenditure gap.

However, we then identified that her major concern was her health and future mobility in a country home requiring a great deal of ongoing maintenance. We initially recommended a strategic plan whereby we set up a savings compartment that would meet future emergencies and capital requirements. Having identified her risk profile we then recommended a suitable investment portfolio geared to the generation of regular income. This planning resulted in halving the income shortfall from £1,000 to just £500 per month.

The next part of the strategic plan was that it would be far more practical to sell her home and to move into a smaller and easy to manage home in her nearest town. With the equity she would be able to realize we could generate additional income that would eliminate her income shortfall and generate additional funds to allow her to do some traveling and see the world. In summary we were able to resolve her income objective and to meet her lifestyle concerns.