Graham and Pauline were in their late 50’s, but looked and felt like they were in their 70’s…
They were introduced to our Inspiring Adviser (IA) because they wanted to invest some money into an ISA (a UK tax advantaged savings arrangement). They said they weren’t interested in anything else.
But, using various techniques learned from the Inspiring Advisers Coaching Programme, our IA was able to open a more meaningful conversation with Graham and Pauline, and was able to take the focus OFF financial products and instead show genuine interest in Graham and Pauline.
It turns out Graham and Pauline were running their own small business and were working 60 – 70 hours a week. In fact, Sunday mornings were spent finishing off the weeks paperwork.
Their small business was slowing killing them!
Holidays? Few and far between.
Hobbies? None.
Stress? Lots.
It’s a common problem.
After doing a great first ‘discovery’ meeting, our IA identified Graham and Pauline’s REAL objective…
It wasn’t an ISA!
It was to escape from their business and get on with their life!
And Graham’s ambition? To learn to fly “before it’s too late”.
But, sadly, their ties and commitment to their business meant that it was unlikely to happen.
On talking further with Graham and Pauline it soon became apparent to our IA that over the years substantial funds had been accumulated in various investments including pensions etc. They had been ignored for many year, and because no one had been meddling with their money it had performed quite well.
With further discussion, our IA helped Graham and Pauline identify the cost of their current and future desired lifestyle, including the cost of flying lessons. He needed to understand this in order to calculate their ‘Number’ – the amount of money they needed for the rest of their life.
In the course of discussions our IA asked about the chances of selling their business.
Amazingly, Graham and Pauline confirmed that an offer had been made in the last 12 months. However, this was turned down on the advice of their accountant. he had advised Graham and Pauline that the £2 million offered was under valuing their business and was well below the £4-5 million of potential value that could be realised in the next 5-10 years.
So..!
That’s why they were still working!
And that’s why their business was slowly killing them!
SO, our IA went back to his office, and using leading financial forecasting software, (cashflow modelling) he crunched their Number – the amount of money they needed for the rest of their life.
Here’s what he found…
Using PRUDENT assumptions (and after ‘stress testing’ those assumptions) our IA found that Graham and Pauline needed just an additional £500,000 to retire NOW! (Yes, NOW, not in 3 years’ time at aged 60!)
If the cost of flying lessons and the purchase of a light aircraft was built in they needed just £750,000, NOW!
And this was to start living the life they wanted NOW – not in 3, 5 or 10 years time!
Trouble is, they’d just turned down an offer of £2 million!
When Graham and Pauline heard the news they were amazed!
With the help of our IA, using cashflow modelling in the Financial Planning meeting, Graham and Pauline began to see what their financial future looked like on prudent assumptions. Our IA demonstrated ‘stress testing’ the assumptions so Graham and Pauline could feel confident in making decisions moving forward.
Then, with a little help from our IA, Graham then managed to get the deal back on the table and they ended up selling their business for £1.8 million.
So, thanks to our IA, they escaped from their business several years early with complete confidence and certainty over their financial future.
The stress from their business disappeared. They were free. Their lives changed.
Graham learned to fly. And both he and Pauline continue to enjoy their retirement.
Better still, they now look – AND FEEL – 10 years younger!
Above extract taken from Paul Armson’s book titled: “The 7 Habits of Financial Planners”
If you’d like to know more, give us a call or send us an email and we’ll schedule some time to chat with you.