Tim and Ellen came to us for investment advice. They had received some inheritance money a year or so earlier and had up until now been keeping the money in cash. They wanted to invest the money to get a good return and then use the portfolio to help supplement their retirement income.
They are both directors of their own limited company providing consultancy services. They were hoping to retire in five years’ time if possible. They knew they would need to take some risk with the money, but as this cash was a large proportion of their liquid assets, were quite nervous about doing so.
It became clear during our conversations that neither Tim nor Ellen were very sure about their financial position, particularly in terms of their retirement. They were hoping to retire in five years but weren’t sure if that would be possible.
We took a step back from their initial investment-focused enquiry and arranged a planning meeting with them. We used a cashflow modelling scenario to project their current position into the future, using a set of prudent and cautious assumptions. It became clear that once their State Pensions and Tim’s MOD pension kicked in, they could maintain their current standard of living, including accounting for inflation, without even needing Tim’s personal pension or the proposed investment portfolio. However, it would be another 12 years until all of these pensions were in payment, so if they were to retire in five years’ time, there would be a gap to fill.
We formulated a plan to use Tim’s pension pot during this gap period. It would strip down the pension fairly quickly, but as Tim wouldn’t have any taxable income during this gap, he could take the majority of it without paying any income tax at all. Once the other pensions kicked in and covered all of their normal expenditure, they would still have their investment portfolio for enjoying retirement and travelling the world as they intended to.
Next, we reviewed Tim’s pension. The risk profile wasn’t appropriate for him, the portfolio wasn’t being monitored or adjusted and he wouldn’t be able to take the pension benefits in the way we were planning to. We recommended a switch to a new provider; this resolved all of these issues and even reduced the costs.
Once we had a plan in place and knew when the investment portfolio money would likely be accessed, we were able to provide the investment advice as initially expected. We spent a good amount of time explaining how investments work, the link between risk and reward and how each portfolio on the risk scale might behave in good times and bad. Tim and Ellen understood all of this, but were still a little nervous. We therefore agreed to invest half of the money now and gradually add the remaining money over the next year or two. This didn’t have too much effect on their overall plan and made them both much more comfortable.
Our research determined that Tim and Ellen could retire now if they wanted to. It would mean making some adjustments to their spending, but they would still enjoy a comfortable retirement. Their plan is still to work for another five years, but they are now in control and don’t need to worry about work.
Tim and Ellen are now fully aware of their financial position; they have taken control of their retirement plan and have suitable financial products in place to enable to it.
We meet with them each year for an annual planning meeting to make sure they remain on track.
“As a freelance photographer, finances in life can be precarious. Never able or inclined to delve into the world of stock markets or areas other than the standard offer from banks and building societies. I was recommended to Annetts and Orchard, who around 2004 started to advise me and handle any monies that I had available. We are not talking about vast sums, so don't be put off. Their professional but friendly way of doing business has kept me on a very happy footing since and never once have I felt badly advised - not the case with some friends of mine. Always with their client in mind my portfolio of funds has grown at a rate far higher than any individual could hope for. Retirement with a solid financial background is an area I could only have dreamt of. I would have no hesitation in recommending Annetts & Orchard, the sooner you start the better life will be.”
A client since 2004
“I would like to thank Annets & Orchard for helping me review my pension policies and for your honest advice of how I should reinvest my ISA when it reaches maturity. I thank you especially for helping to rearrange my Critical Illness and Life Assurance policy. You made a very sensitive subject a lot less painless with your professionalism, friendliness and understanding of my changed circumstances. You also have a good sense of humour, which helps as most of the things we had to sort through were quite heavy going for me.”
A client since 2013
“I have used Annetts & Orchard for the last five years. During this time, they have assisted me with a first-time mortgage and more recently a mortgage for my new house, as well as home insurance for both. House buying is extremely stressful, but I felt that this was one less thing I needed to worry about. Annetts & Orchard found the best product for me and the whole process from start to finish was as seamless as possible. I would not hesitate in engaging their services again in the future.”
A client since 2010
“I have been with Annetts & Orchard since 2008: I needed mortgage advice, and they were recommended to me by a trusted colleague. As my personal circumstances developed and my financial needs have changed over the years, the team have advised me on a range of pension and investment issues, and I feel I now have a solid financial plan in place. What I value is how Annetts & Orchard take the time to understand my needs and explore different solutions with me - I feel in control of my financial future but with the support and guidance of experts.”
Dr P Hornsby, Wokingham
A client since 2008
“I wanted to send a private message to say that, for what it is worth, I have worked for hundreds of companies over the last seven years whilst here - the biggest compliment I can give you and your company is that if someone came to me to ask for a recommended company for advice, you would be top of the list by a long, long way.”
A professional connection
“I was recommended Annetts & Orchard by a colleague who found their helpful and professional approach both useful and reassuring. I have certainly also found this to be the case. Looking to invest savings while ensuring a safe future for my family, I find that the team make uncomplicated and appropriate suggestions. They are never pushy and most importantly listen. I am very comfortable leaving them to handle my investment portfolio.”
A client since 1998
“My husband had just died aged 50 and I required a sympathetic and professional approach. I couldn't have asked for a better team. They were knowledgeable, efficient and kind. Without a doubt they helped reassure me and reduced my stress. Since 2011, the team have been attentive and willing to discuss any concerns I may have. The investment choices have done well for me. I would highly recommend them to anyone requiring financial advice.”
A client since 2011
"Annetts & Orchard have provided excellent financial advice and support to my 97-year-old aunt for some time. By providing sound financial help and making the investments on our behalf, we were freed from the worry and burden of decision making. I can therefore thoroughly recommend Annetts & Orchard, as I have seen for myself the excellent service they have provided to my aunt over a number of years."
A client since 2008
Annetts & Orchard is a trading name of Annetts & Orchard Ltd. We are authorised and regulated by the Financial Conduct Authority. You can find Annetts & Orchard Ltd on the FCA register (FCA number 820272) by clicking here. Registered in England & Wales (11503291).
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