I’ve inherited money

but I don’t know how to manage it

Issues & Concerns

Sarah was 48, divorced with a grown up son. Her widowed father had recently passed away, leaving her his estate. This was a collection of shares, other investments and cash; as far as Sarah was concerned it was all very confusing! Sarah wanted to know how to manage it all, she needed additional income and was keen to be able give some to her son to help him sooner rather than later.

Solutions

Our first task was to collate all of the paperwork and work out exactly how much she had and where it was invested. Next we found out exactly what it was that Sarah needed both today and over the long term. We ran through a lifetime cashflow plan and modelled various scenarios. This detailed a number of possibilities including retiring early and ‘helping her son’. Using our specialist software, we could clearly demonstrate how she could live a comfortable life both before and after retirement and how much she could afford to gift, without altering her lifestyle. Our second task was to recommend a simplified and consolidated investment structure that matched Sarah’s attitude to risk and could deliver the returns needed to support her lifestyle. For Sarah, having a ‘safe pair of hands’ was extremely important, especially as she was not particularly interested in managing her financial affairs.

Results

Sarah is delighted that she no longer has large volume of financial paperwork arriving in the post
She was pleased to get her study back as we were able to help remove and shred the large mass of old documents which were no longer needed once, we had constructed a new portfolio for her.

She receives a regular income from her portfolio, which we manage efficiently with the minimum of fuss.

She gifted money to her son, which allowed him and their girlfriend to buy their first house with a relatively small mortgage. They recently married and Sarah will be a grandparent in the near future! At our recent review meeting we discussed her helping with her grandchild’s future, which we will put into place once we know the baby’s name (and whether the baby room is ‘pink’ or ‘blue’).

By Jason Lurie, Chartered Financial Planner