Establishing security in the here and now
Helen is 38 and a self-employed voice over artist living in London. She owns properties in Glasgow and Edinburgh that she lets out and thinks of them as her retirement plan. However, over recent years the property market has slowed and she’s now concerned about what this means for her financial future.
Helen is currently earning around £80,000 a year but apart from around £10,000 in her current account has no other savings. She’s aware that she should have more structure around her finances – she doesn’t want to fritter away her salary and she doesn’t really have a retirement plan in place, although it’s a long way off yet.
She’s also worried that her mortgages aren’t arranged as efficiently as they could be and she knows that as she’s freelance, she should really have something in place in case she becomes ill and isn’t able to work.
A family friend recommends VWM Wealth
VWM Wealth’s chief investment officer David Thomson started by asking Helen to describe her current financial situation – how much she spends a month. He also had a long discussion with Helen about her career plans and when she would like to retire. Through some thoughtful and detailed questions, David was able to find out that Helen’s real desire in life was to spend more time travelling and exploring faraway cultures.
David calculated how much Helen would need to repay her outstanding mortgages and replace her income if she became ill, and created a plan she could afford. He reviewed Helen’s mortgages and was able to arrange them on a better rate. He also discussed the likely tax implications of the profit she makes when selling one or both properties.
A long-term view
But that’s not all. Knowing what Helen truly wanted from life, David was able to work through some scenarios that showed her how much money she would need if she retired at 55. This would enable her to pursue her passion for travelling and start planning to achieve the life goals and long-term objectives she never knew she had.
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