I was frustrated. I had been running a successful business for many years and I knew that I should have been saving for my retirement, but I just couldn’t afford it. I needed a strategic plan so my retirement dreams could become a reality, ensuring my family would be looked after.
I had worked with financial advisers before and I was not convinced with their skills or ethics. However, when I met with Warren at Lexington, I was pleasantly surprised. Their approach to Financial Planning was all about me and my family – not the sale of products.
Lexington provided me with the support I needed to improve my business profitability. The team helped me to increase sales by 2% and negotiated with my suppliers to reduce the cost of sales by a further 5%. These seemingly small changes greatly improved our bottom line profitability and I was able to put extra money towards my pension.
Warren looked at whether these funds could be used to repay my borrowings early. However, as this was at a favourable rate, we decided against it. We also considered paying personal bonuses or dividends, but over the long-term, my personal tax situation made funding for my retirement more advantageous.
We set up a Self Invested Personal Pension (SIPP) with a sensible asset allocation (mix of investments) weighted towards more defensive investments. I wanted to preserve my pension pot rather than grow it aggressively. This suited me, as I now don’t have to worry about unnecessary investment risk. I also enjoy that there are no surprises when it comes to my annual review.
As part of the planning process, Lexington undertook a Cashflow analysis, evaluating my income and expenditure to establish my monthly financial requirements.
Warren took time to really understand my goals, aspirations and challenges. We now meet annually and have contact throughout the year to ensure my progress is maintained. I like to bring my Accountant, who Lexington welcomes because he adds great value when business ratios are discussed.
I feel secure in the knowledge that retirement will be all that I have dreamt of. Holidays and travel are now affordable and I take comfort knowing these are factored into my personal Cashflow. I now run a more tax-efficient business and my pension is set-up in Trust to provide tax-free benefits to my family should I die before retirement.