MTS CASE STUDIES

Young Family

family

Peter and Claire came to meet with us shortly after they got married. Peter was a Shareholder and Director in a recent business start up and Claire had recently started working as a GP in a local surgery. They owned their own house and had savings of £40,000 in Cash ISA’s. Peter also had a small pension from previous employment.

Main Objectives

  • Both wanted advice on how to invest their £40,000 savings, and how to invest future savings, as they want to generate more return than bank interest rates.
  • They plan to move to a bigger house in the next 5 years.
  • Claire was worried about the implication of being off work due to illness as she is self-employed and would have no other income.

Recommendations

  • We recommended that both move their Cash ISA’s to Stocks and Shares ISA to generate a 4-5% return per year. They also contributed their maximum ISA allowance for the year to the new stocks and shares ISA’s
  • The MTS Investment team built a portfolio of investments that would meet their investment objectives, for their Pension and ISA portfolios.
  • These assets are held on the MTS Wealth Investment Platform which allows Peter and Clare to view their portfolios at any time.
  • We recommended that Claire should take out Income Protection to cover her in the event of illness or injury preventing her from working for a prolonged period of time. The cover was calculated on the basis of her current earnings and expenditure requirements.

1st Annual Review

At their annual review a year later Peter and Claire came back to discuss the performance of their investments and whether there had been any changes to their personal circumstances:

  • Firstly they had been given the news the Claire was expecting their first child.
  • They both wanted to discuss having something in place to provide for their family should either of them pass away prematurely.
  • They were pleased with the performance of their investments and wished to contribute the maximum amount to their Stocks and Shares ISA’s again this year.
  • Peter’s business was growing well and he also decided to begin contributing to his Pension.

Overall Summary- Year 3 Annual Review

Over the three year period that we have provided advice to Peter and Claire we have helped achieve the following:

  • Their savings were invested taking a balanced level of risk, and had provided 16% return
  • We began some initial pension saving but plan to increase this later when main expenses of children and mortgage had gone.
  • We ensure that their family was protected from the risk of death of either of them or the loss of Claire’s income through illness.
  • We helped them decide on the best solution for funding the purchase of a new house and in the long term which option would result in the best financial outcome.

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