The Lottery Winners
How can the Gambla family ensure they have a secure financial future with their winnings?
- The Gambla’s are a young family of 4.
- They have a mortgage of £100,000.
- They have credit card bills of £10,000.
- They have no other significant assets.
- They have won £1,000,000 in the works lottery syndicate.
- Pay off mortgage and debts - £110,000.
- Upgrade family car - £20,000.
- Gifts to parents - £100,000.
- Holiday of a lifetime - £20,000.
- Emergency fund - £50,000.
- Gift £30,000 into long term investment for each child.
- Invest £20,000 pa for 5 years in lower risk Venture Capital Trusts (VCTs), rolling over investment every 5 years.
- Investment portfolio - £480,000.
- Maximise ISA allowances, each year from within portfolio for Mr and Mrs Gambla.
- Whole of Life policy in trust for Inheritance Tax.
Benefits from advice given:
- Clients are debt free.
- Expenditure (mortgage/credit card) reduced - increasing net income.
- Parents able to buy their Council house.
- Children given financial head start in the future.
- Additional income from investments available if required.
- Enable maximisation of future pension contributions with higher rate tax relief.
- Can plan for earlier retirement.
- Financial security of a diversified and tax efficient investment portfolio.
- Potential IHT liability met.
- Income Tax refund of up to £6,000 pa every year from VCTs.
Talk to us now!
Call us on either - Colchester: 01206 838400 / Ipswich: 01473 259201 or
We will look to carry out a regular review of your circumstances, objectives, needs and portfolio performance to ensure all arrangements continue to be suitable and advise of any changes that may be appropriate.
This example is for illustrative purposes only, based on current legislation and tax allowances. Tax rules and regulations are subject to change.