Issue 131

PLANNING

Client story We spoke to one of our longstanding clients about his Lowes journey.

“We set up corporate pensions because they are more tax efficient within the business, as the contributions into workplace pensions can be offset against corporation tax. “We’ve also looked to max out our ISA investments every year, as they are free of income and Capital Gains Tax (CGT). “We’re also big fans of structured products. I dipped my toe with them about six years ago, investing in two of the products selected by Lowes. They gave me decent returns, which I could offset against my CGT exemption. Now I have twelve of them. The CGT advantage isn’t the same since the Government cut the exemption amount but they can be put into an ISA to get the tax benefits from that.” David puts the advice he got from his accountant to go to see an independent financial adviser amongst the best he has received. “As a business owner I’m always looking for the best way I can find to turn my finances to my advantage. Taking the decision to invest into pensions all those years ago, means that now, because of the tax allowances and compounding of investments over time, we have built up sizeable pension pots which we can take with us into retirement. “Our son has seen how well we have done from our pensions and is saving into his own. I think this is a message we should be passing on to younger generations.” Having been anti-pensions and investment, David says he is now a staunch advocate for them, and taking the right financial advice. “In terms of my personal wealth, I can say categorically, that it wouldn’t be anywhere near where it is now, if it wasn’t for the advice I’ve received from Lowes. If there is anyone sitting on the fence about asking for financial advice, I’d say do it now. And go to Lowes, without a doubt!” * David has asked to remain anonymous but we can confirm he is one of Lowes’ longstanding clients.

David has been a Lowes client for over 20 years, but initially, he admits, he was anti-financial advice. “I was dead set against it. I started my own business in my early twenties and to my mind, you made your money by working hard to build up the business and spending your spare cash. I couldn’t see the point in investing and I was, without a doubt, pension-phobic at the time. “That’s how I lived. But there came a crossover point where, because the business had been doing well, I had what I wanted – the house, the cars and so on - and I was building up surplus cash. “My accountant at the time, kept telling me that I should be doing more with the spare cash, I should be putting it into a pension, because of the tax and investment benefits – looking more to the future. She also said, if I wanted to do it properly, I should be talking to an independent financial adviser. “She recommended Lowes and I’ve not looked back. In fact, I’d say I’ve flipped 180 degrees on the views I had about pensions and investing.” David worked with Lowes Consultant Rod Molyneux on making the savings and investments that were right for him. They started with setting up corporate pensions for himself and his wife, also part of his company, as well as investments into ISAs and structured products. When Rod retired, Gershom Chan became his adviser. “What I’ve always felt about Lowes is that they are interested in who we are and what we do. Gershom and I can have a half hour chat before we even start talking about personal finances. I find that very re-assuring.” David is particularly mindful of the tax burden that can be suffered by small business owners, so saving and investing tax efficiently is important to him.

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