Case Study Two
3rd January 2012
A client had for many years relied on the interest generated from money held on deposit, but in the current climate of ultra low interest rates was eating into capital at an ever increasing rate which was not sustainable long term. The first action point was to move the monies into better paying accounts rather than relying on the savings accounts offered by her bank, which were very low as is the norm for long term savers nowadays. By utilising the best deposit accounts available on the market, being mindful to never exceed the deposit protection scheme limit of £85,000, we were able to maximise her returns for no extra risk. It was also important to utilise her Individual Savings Account (ISA) allowance the current year, thereby securing tax free savings for the future.
The client had numerous existing Cash ISA products with her bank which were offering low returns and we improved on these by arranging to transfer to a new provider, still within an ISA.
Some monies the client was prepared to invest for the medium to long term, which in this context meant over seven years, and take a higher level of risk. We were able to invest this money in a range of asset backed investments, using professional fund managers chosen according to a rigorous selection procedure assessed using our investment criteria. The purpose was to maximise income from a mixture of dividends and interest generated from Government and corporate debt, whilst controlling risk. We were able to invest for a very low initial charge because of the terms we negotiated with the fund managers chosen.
Overall the clients income position improved dramatically.
