Jaskarn Pawar of Investor Profile talks about how he helped a client choose the right ISA for their needs.
We had a client approach us a couple of years ago for a Pension. Their accountant had told them that a Pension would be a really tax efficient way of drawing money from their Limited company.
The accountant was not wrong, but they hadn’t done what a good financial planner would do which is to get to know the client properly before advising them.
Having had just a fairly brief chat with our client we quickly realised that a Pension was not going to be a good idea. For a start it was going to be very rushed in order to get it done prior to the end of the accounting year. Whilst possible to do, it’s never really the environment in which you make great long term decisions.
You see we quickly realised that our client was about to go through a divorce and they would either need the money for that, or at best, wouldn’t want to put it into a Pension only to have it split and getting all messy down the line.
So instead we agreed to invest some money for them using an ISA. This was perfect for them. Whilst it didn’t create the tax saving a Pension would have, it did leave things nice and flexible, while still putting some money away for long term growth.
In order to get the benefit of Pensions tax relief we still have the option of drawing those ISA savings and putting them into the Pension at any time in the future.
So, in the end we managed to get the best of both for our client by using an ISA. I’m pleased to say that the divorce has now finally all gone through, we’ve started the Pension with a lot more thought and planning, and everything is looking good.
For more about which ISA will suit your needs, contact Jaskarn Pawar on 01604 211234 or book a half hour financial advice appointment for just £40* now using our online booking service – http://investorprofile.co.uk/services/investment-surgery/