Although the following case study relates to an actual example, where we have helped our clients by providing solutions to their financial problems, the names and figures have been changed for confidentiality purposes.

Neil’s background

Neil approached Rachel as he had recently sold a buy-to-let property and wanted to use the money and have it out of sight out of mind. Neil was saving diligently into his employer pension but beyond that, had no experience of the stock market and the tax allowances available.

The planning process

After going through Rachel’s analogy of a solid financial plan, Neil agreed with Rachel that his main goal was to plan for the mid-term as this was the gap in his current approach. This was key as Neil was not focused solely on retiring but wanted more flexibility and access to his money in his life pre-retirement.

Rachel showed Neil some examples of the devastating impact of inflation and what may happen over time to his money if it were left in the bank. Neil also had strong ethical views and so Rachel explained the Environmental, Social and Governance (‘ESG’) approach used in some of the investments she works with.

Neil’s plan

Rachel agreed with Neil that the immediate task was to create an emergency cash pot in an account separate from his daily living one. This then left a balance of £100,000 from the property sale to put towards the mid-term planning. Neil agreed with Rachel that using a Stocks & Shares ISA and an ISA Feeder would be a good approach to allow maximum flexibility over the mid-term. As Neil had not used his ISA allowance in the tax year the maximum £20,000 (at the time of writing) could be used and the balance of £80,000 added to an ISA Feeder which would still be invested and would be swept up into the ISA at the beginning of each new tax year using the full allowance available at the time until all the investment was within the tax efficient ISA structure.

Neil was therefore using the tax allowances available to him most efficiently and was invested in an ethical approach which he agreed and felt comfortable with. He was able to request reports on the progress of the ESG approach each quarter.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. Equities do not provide the security of capital which is characteristic of a deposit with a bank or building society.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances. 

The advice provided to Neil was given after a full evaluation of their specific needs, circumstances and requirements. The solutions provided would not be suitable for most investors and the information provided does not constitute advice.