Background
James and Samantha, a successful partnership, have been operating a private dental practice for several years. With their children transitioning into adulthood and myriad financial products they’ve accumulated over time, they approached our firm with this key question.
When can they achieve the financial freedom to potentially step away from their dental practice?
Challenges Faced
- Disorganised and scattered financial assets.
- A multitude of pension policies, ISA policies, flexible savings bonds, and more.
- A pressing need to understand the real-world implications of their accumulated wealth and pensions.
Our Approach
Blueprints Financial Planning Process: We initiated our meticulous financial planning process to give them a comprehensive overview of their current financial status.
CFP Process: We applied the Certified Financial Planning process. This offered them a clear insight into how their assets would fare if they decided to retire immediately, and the lifestyle they can afford with their current assets.
Strategic Asset Movement: Recognising the potential in their assets, we advised moving their dental practice from their limited company to a small self-administered scheme (SSAS) – a UK-specific pension. This allowed them to inject funds not in their pension back into their company, addressing the mounting practice acquisition debt, especially in light of rising base rates.
Tax Relief: We capitalised on unused annual allowances from past tax years, generating a significant tax relief, which translated to thousands of pounds in savings for their company.
Life Insurance Optimisation: We ensured their life insurance policies were put in trust and shuffled existing assets to maximise life insurance opportunities.
Outcomes Achieved
- Rapid debt reduction for their business. Over £25,000 in interest payments saved per year.
- Significant tax relief, saving the company multiple thousands of pounds.
- Assisted their 26-year-old daughter in purchasing her first home.
- Gained the confidence to accept potential buyout offers for their dental practice, knowing they’re financially secure. They now enjoy the freedom of practicing dentistry out of passion, not necessity.
If you’d like to talk to us about how we can assist you in achieving financial freedom then get in touch.
Note: All names and sensitive details have been altered to protect the privacy of our clients.
