Please note all of the characters in these stories are fictional. However all of the circumstances that have been mentioned in these stories can and have happened in the past.
Make the most of your investments
Having wealth is not always seen as a problem but not all people are financially educated and sometimes when you inherit money it can be a bit of a problem knowing where to invest your money for the best, the story of Molly illustrates this point.
At Essential IFA we can help you take the strain by planning your investments in a tax efficient way and making sure that we invest your money to match your attitude to risk which is so important in today’s world. Whether you are looking for income or growth or combination of both we have solutions that are tailored to your individual circumstances and most importantly we hear to answer your questions in simple and plain language.
Molly’s story
Molly inherited just over £500,000 from her parents’ estate after paying a considerable amount in inheritance tax. A divorcee, she had two sons who had been able to buy their own small houses with money gifted by her parents. Molly herself owned a small house with a £60,000 mortgage. She worked as a nurse and, being only 48, had no plans to retire in the near future.
Molly’s plan was to pay off her mortgage and put the rest of her capital into one savings account for convenience. Although she had no plans to remarry, she was worried about what would happen to her capital if she did remarry and this second marriage also ended in divorce.
Molly’s future without wealth management
- Molly is attracted by high interest rates offered by a foreign bank. She opens a savings account in which she deposits £300,000. Unfortunately, the bank becomes insolvent, her account is frozen and she has no access to her funds. After many weeks of stress and worry, she finds that she is entitled to compensation of just £50,000. With the help of the British Government she is now trying to recover the rest of her money.
Molly’s future with wealth management
- As soon as Molly’s comes into her inheritance, she consults an independent financial adviser. He assesses her attitude to risk and her long–term objectives, then builds a well diversified portfolio of deposit savings, National Savings, ISA and other equity linked investments. The strategy is to achieve growth and tax efficiency while she is working, with the ability to switch to income production at any time.
Please note that the value of investments can fall as well as rise. You may not get back the full value of your investment.
Past performance is no guarantee of future performance and each individual’s situation is different.