Objectives Flashcards
Additional information needed for Alan and Lydia’s Financial Objectives
Immediate objectives:
• To ensure the family has sufficient financial protection in place 12
income / capital needs Term Depenancy age Remain in family home State benefits Budget Priority Affordability of business AQ for RL PMI IPP Nomination forms done for GPP Willingness poa Willingness to earmark assets Strength of business death or CIC Cic added to existing DTA if so how much?
The level of income / capital required and the term in the event of either death or illness
• Term of any protection requirements / dependency ages of the children
• Will survivor continue to live in family house / downsize
• Do they wish to include state benefits
• Affordability / budget / priority of this objective
• The ability / affordability of AQ Pack Ltd to provide protection benefits, such as relevant life
cover, income protection or private medical insurance
• Have the relevant death benefit nomination forms been completed for their respective
group personal pension plans
• Willingness to earmark existing assets to this objective
• Willingness to establish power of attorneys
• Strength of business continuity if either Alan or Lydia were to die or suffer a serious / long
term illness
• Can critical illness be added to their current decreasing term assurance policy and if so at
what premium / cost
Additional information needed To set an appropriate remuneration strategy and establish a range of appropriate benefits from
Alan and Lydia’s new company
Amount of income When income starts Preference to vary income Budget for benefits Cashflow forecast When funds are expected into the business Views on Tax NI
• Level of income required
• Exact dates they intend to start taking income
• Preference for the ability to vary income
• Budget to be allocated for benefits
• Cashflow forecast / when do they expect funds into the business in order be able to start
any remuneration or benefits package
• Views on corporation tax vs income tax, and National Insurance contributions
Additional information needed To consider the purchase of the office they are currently renting 7
willingness use pensions, investments, cash Views on property in pension Exit strategy / plans at retirement Longer terms business plans Fees and costs How long is the lease Is the property suitable long term How long offer to buy? Able to wait longer until more established?
Willingness to use current pension policies towards this objective
• Views of holding business premises within pension
• Exit strategy at retirement / longer term plans for the business
• Willingness to use current investment assets towards this objective
• Fees and costs involved in the property purchase
• How long is the current lease
• Is the property suitable for the longer-term plans and goals of the business
• How long is the offer to purchase available for / is there a potential to defer purchase until
cashflow becomes more established / business may be able to borrow funds towards
purchase once cash flow evident
Additional information needed to meet Longer term objectives:
• To review the suitability of their current savings and investments
Performance of existing Isa cgt allowance Charges exit penalties Willingness to use future isa cgt Any losses to carry forward Willingness to transfer assets to each other Any fund’s earmarked/ sentimental Ethical importance
of their existing ISA investments
• Have ISAs been funded this year and if so to what level
• Charges / exit penalties of current investments
• Have they used their Capital Gains Tax exemptions in the current tax year
• Willingness to continue to use their ISA allowances in future tax years
• Are they carrying forward any losses
• Are they willing to hold more / transfer assets to each other to save / balance tax
• Any sentimental attachment to the monies inherited by Alan from his late uncle / desire to earmark these funds for a specific objective
• Importance of ethical preferences
Further information required to meet Longer term objectives:
• To ensure that Alan and Lydia are able to generate an adequate and tax-efficient income in
retirement 17
Income / expenditure needs at NRD Funds available Asset allocation in pensions Fund performance/ projections Safeguarded benefits PTFC Charges / cost of fund switching Past Contributions any carry forward Any life cover inc Any platform or online access Flexi access need in future Guaranteed income need? Indexed inflation proof income need? Capital needs BR19 forecast Income gap pre SPA Exit strategy/ future income at retirement from business Willingness to use existing assets, business to make pension contributions
Target income
• Fund options / range of funds available / asset allocation for Alan and Lydia’s group personal
pension plans
• Fund performance and projections
• Charges / cost of fund switching Alan and Lydia’s group personal pension plans
• Contribution history / availability of carry forward
• Any life cover included
• Any platform or online access to existing pension plans
• Requirement for flexibility of income options in retirement
• Requirements for guaranteed income / indexed income in retirement
• Anticipated expenditure in retirement
• Need for any lump sums / capital expenditure
• State pension projections and confirmation of state pension ages
• Plans to bridge the gap from retirement at 60 to state pension age
• Exit strategy for the business / plans for continuing income from the business once retired
• Affordability / willingness to use existing assets towards this objective / timescale for AQ
Pack Ltd to contribute
