Case Study 1:
- Two business owner directors (50:50 owners)
- Both male mid 40's - married with young children
- Business solid and growing quite young
- Taking modest salaries for the time being
- Only small pension funding but intend to fund more aggressively in future as business grows
- Big concern now - Protection issues
- Life cover - only mortgage cover in place - no 'family protection' in place
- No 'income protection' if unable to work due to illness or injury
- Worried what would happen shareholding if either died suddenly
- As only taking modest salaries, funding these covers personally is expensive
- Set up the following covers
- Will review all in 3 to 5 years depending on how business is going
1. Company Directors Life insurance on both for €250k each
a. Cost - c€55/mth - paid by company.
2. 'Keyman' Serious Illness cover for €75,000 on each.
a. Cost - c€75/mth - paid for by the company.
3. Pension Term Life assurance as 'Family protection' on both for €500k to age 60.
a. Cost €65/mth for each, paid by company as a trading expense (12.5% corpo tax relief) but no BIK paid by directors.
4. Income protection (PHI) on each director for €36,000 (€3,000/mth) payable after 26 weeks deferred period, to age 60.
a. Cost €66/mth for each, paid by company as a trading expense (12.5% corpo tax relief) but no BIK paid by directors
Case Study 3:
- Senior business executive (shareholder of his company)
- Age 40 - married with 3 teenage children.
- Profitable business and company funding pensions €20/30k per year.
- Client aware that the next 10 years are crucial to eventual worth of his pension 'pot' in retirement.
- Several legacy pension benefits from self-employment and previous employments. Looking to consolidate all in one place.
- Very poor experience with fund managers and managed funds in past.
- Very sceptical of costs and charges involved. Wants more transparency of costs and more involvement in the pension investment decisions.
- 5% shareholding director - so ARF (ownership of pension fund) options available at retirement.
- Set up self-administered trust (SSAP) with independent Pensioneer Trustee.
- Consolidated ALL pervious pension benefits into new SSAP.
- All new contributions will enter SSAP without any charge.
- Happy with Trusted Advisor Group Multi Asset Platform (TAGMAP) and the principles of tactical asset allocation strategy.
- Opted for a Passive investment selection - offering annual fund management charge of c49 basis points.
- Agreed a 'win' bonus for Foresthill if average performance of the portfolio exceeds set target levels.
- Much happier with transparency of cost and involvement in pension investment decisions.
Case Study 2:
- Doctor – Aged 45, Married, 2 Kids
- Sole Trader with profits of €150,000 - €200,000
- Recently purchased a new home, purchase price €1 million - Loan of €750,000
- Owns a practice premises on the High Street, prime location, value of €1+ million, which includes a small site with potential for an apartment, in own name with no borrowing.
- Very large homeloan
- Not utilising significant commercial practice premises
- Cannot pay self rent for property he owns
- Split portfolio between practice and site
- Sold property to his wife for €700,000
- No Capital Gains Tax or Stamp Duty
- Now charges rent to practice
- Created tax offset for practice
- Took out large portion €300,000 off homeloan and removed short term loans
- €300,000+ remaining tax free money for investment purposes
- Diversified from property into managed funds
- To repay loan on a pension backed mortgage basis
Case Study 4:
- Female - early 30's - single
- Involved in Road Traffic Accident
- In receipt of compensation claim - €2m
- Unable to work now or in the future
- Compensation claim must pay for all expenses
- Looking for tax efficient solution to all above
- So will have no other income or retirement funding
- Medical / Healthcare / Living
- Trusted Advisor Group Multi Asset Platform - tactical asset allocation strategy
- Income need provided via allocation to Irish Government Bonds & supplemented by Canada Life Pecunias Fund
- Favourable tax status under revenue 'insurance compensation' category
- Profile of investment strategy to provide income and generate real growth in diversified fashion managing risk
- Set up half yearly review & rebalancing arrangement
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