Developing an effective investment strategy

13th June 2017

Peter and Linda, were 74 and 71 years old, married with two grown up children:

Mortgage: None

Income: Sufficient for their needs

Investments: Substantial, although scattered and complex

Their situation

Peter and Linda are both retired and enjoy a comfortable lifestyle. Following long and rewarding careers they have accumulated substantial assets.

Unfortunately, they’ve never had any form of coherent strategy for their investments. This means that their assets are scattered over many portfolios with different providers. In some cases, the couple have no idea of their value having not reviewed them for more than 10 years.

They are keen to travel while they still can, but are reluctant to do so until they are clear about their financial position.

They are interested in examining inheritance issues, but want to maintain maximum flexibility given the potential of their own care costs in the future.

Peter and Linda are seeking a trusted adviser to untangle their investments, produce a cohesive strategy, offer advice and then manage their portfolio for them going forward.

The Otter solution

We had discussions with Peter and Linda to fully understand their aspirations and plans. We also spent time understanding their risk appetite so as we could better match financial instruments to their requirements.

We then set about the not insignificant job of pulling together details and valuations on all of the couples existing investments. Using all the information we gathered, we helped Peter and Linda fully understand their financial situation.

It was clear that the couple were taking more capital risk than they intended, and together we decided which investments fitted their desired strategy, and which ones should be swapped for something more appropriate.

Following this process, we have significantly consolidated and de-risked the couple’s portfolio giving them peace of mind that they are fully back in control.

Using our sophisticated financial planning software, we worked through cash flow scenarios that gave them the confidence to make significant ‘gifts’ to their children now, without sacrificing their long-term security.

Peter and Linda are now more comfortable than they’ve been for a long time and they understand their financial situation. They have an adviser they trust to help manage their affairs and they are travelling more than ever!

We continue to meet with Peter and Linda on a six-monthly basis to assess their position and are always available to answer questions or queries at any time.

This is a real situation based on real clients of Otter Financial Services. We’ve changed names for data protection reasons, but if you’d like to speak to any of our clients, just let us know and we’ll put you in touch.