Case Study – Business Owner

For business owners, often the issue can be knowing when is the right moment to exit from their business. Will they still have enough income to live on? Will they miss the challenge of running their own business?

In this example, we show how the Your Plan process can help you, as a business owner, make informed choices about the life you really want.

We’ve been working with a husband and wife team, who are successful dentists, having built up and sold a group of practices in England before they moved to Northern Ireland six years ago.

They then also built up three practices here before they merged these into a Joint Venture with another client, a diverse private medical group that we had introduced them to, with the intention of forming a larger Corporate Dental Group.

At this time they had their financial advice with another firm, although we had carried some tax planning out for them, after being introduced to them by their accountant.

In 2014, the couple asked us to take on the management of all their finances. This was when we introduced them to our Your Plan proposition, including the cash flow process. As we worked through this with them, they freely admitted that for once they felt that their future was now clear, and that they actually felt more in control of it. As part of this we reviewed their pension and were able to show them that they didn’t need to pay any more into it. Instead, we suggested they opted for Fixed Protection and were able to demonstrate that the higher level of a Pension Commencement Lump Sum was a more useful option for them.

The clients received an offer in 2015 to sell the Dental Group. We met a number of times to model how this may affect them and their financial future. They were concerned that, even though it was a large sum of money, the drop in earnings at a time when they still needed a significant income, having a teenage family, was a major factor. They also had substantial expenses to consider. We ran over various scenarios, modelling how income could be generated for them and how they might allocate the capital sum by paying off debts on properties, in order to retain some income and be able to invest for the future. The couple were also able to cut back on some expenses by reducing protection where it was no longer needed whilst redirecting other expenses to protection needs that weren’t covered.

To cut a long story short, as a result of the financial modelling we had done with them, the couple decided to sell. After a detailed review of their Risk Tolerance, we also got them to reduce the risk they were taking on their current investments. Protecting what they had now had become more important. We also encouraged them to review their Life Planning so that they could take some time out to spend with their teenage family when they needed them most.

Keen not to lose sight of the entrepreneurial spirit in them both, we have also set aside a sum of money for future reinvestment into a new business venture, without the obligation for it to generate income to meet their current and future expenses.

Being in control of their financial planning in this way enabled this particular couple to make far-reaching decisions in terms of their lifestyle.

This was a great example of the Your Plan process giving people real freedom in terms of their financial choices.