14 March 2019

Case Study: Richard

Entrepreneur Richard describes himself as a risk positive investor but admits that financial planning hasn’t always been as high on the agenda as it perhaps should have been.


Now in his mid-40s, he is keen to explore ways to maximise returns and explore the various financial options open to him. After benefitting hugely from house price increases over the years and managing to hang on to properties along the way, Richard and his wife Sally have a small rental property portfolio that in a good year provides an income after expenses of around £30k a year. But they wonder if they are missing a trick when it comes to making the most of their property investments, particularly in the light of changes to tax rules affecting landlords?

Having been self-employed for most of his professional life, Richard only recently started paying into a private pension and he is keen to maximise pension allowances. But with a house build project on the horizon, he is reluctant to tie up capital. What should his strategy be to give him the best returns but with the flexibility to access money at relatively short notice?

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At the same time, although he is currently preoccupied with saving for school fees, Richard is also looking ahead to the prospect of the children going to university and wants advice on the best way to set them on the road to financial independence. Despite his own tardiness in setting up a pension, all three children already have pensions that the couple pay into on a monthly basis. Is this the most tax efficient way to set them up for the future, they wonder? Would gifting them a deposit on a first property make more sense and what are the tax implications of doing so?

Richard has a relatively small share portfolio and enjoys dabbling in the markets via online trading platforms but has never sought any professional advice when it comes to his investments.


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1945-1960s