We were approached by a successful entrepreneur in her mid-40s, who had spent the past ten years building a lucrative brand agency.
Many people choose our discretionary management service, where we construct and then manage a portfolio on your behalf.
Whether seeking to preserve and grow wealth or meet specific spending needs, such as school fees, our investment experts offer regular and lump-sum investment solutions tailored to your objectives.
Investing successfully today requires foresight to navigate risks, as well as imagination to seek out new opportunities in global markets. We believe in the value of managing assets on a proactive basis, with a diversified approach incorporating multiple asset classes, regions and strategies. Our investment framework brings together our outlook for the global economy with expertise in asset allocation, investment selection and portfolio construction.
You can access our investment process and expertise in a way that suits you. Many people choose our discretionary management service, where we construct and then manage a portfolio on your behalf. Alternatively, via our Advisory service you can make the final decision on your investments with advice provided by our investment experts. Those with the time and confidence to invest directly in the markets without advice, may prefer our execution only services.
Whichever route is right for you, the Kleinwort Hambros Wealth Planning team can help you take full advantage of the tax reliefs and allowances available to you.
Building up ISA and SIPP portfolios for an entrepreneur with limited income
Before starting her business, the client was employed by a marketing firm where she and her employer contributed to a workplace pension. She had also established a cash ISA, which she invested in regularly using her annual bonus.
Since resigning from her job and starting her business, the client had not contributed to or reviewed her pension or ISA. When initially starting her business, she did not have the disposable income to make such contributions. As her firm has grown and become more successful in recent years, she has not had the time to examine her personal finances.
The client met with one of our wealth planners to review her circumstances, with a particular focus on growing her wealth by using tax efficient structures.
We reviewed her existing pension and ISA and found the pension offered a limited range of investments and income drawdown options at retirement, whilst the cash ISA only generated a small amount of interest.
We advised establishing a Self-Invested Personal Pension (SIPP) where the client could benefit from a diverse investment portfolio managed on a discretionary basis by one of our investment managers. Upon retirement, the SIPP also offers greater flexibility as to how she can draw from her pension. We calculated the client’s unused pension contribution allowance and, taking affordability into account, advised an appropriate amount she could contribute to the SIPP – both as an initial lump sum and on an ongoing basis.
We also advised establishing a stocks and shares ISA, which would be managed by one of our investment managers in line with the client’s attitude to investment risk. We calculated that she could afford to utilise her full ISA allowance in the current and forthcoming tax years. The underlying investment portfolios in both the SIPP and ISA are unencumbered by capital gains and income tax.
How can you grow your wealth using tax efficient structures?
Any services and investments may have tax consequences and it is important to note that the Kleinwort Hambros Group does not provide tax advice. The level of taxation depends on individual circumstances and such levels and bases of taxation can change. You should seek professional tax advice to understand any applicable tax consequences.