Early retirement is an attractive prospect for many people but the financial implications mean that having a clear grasp of the facts is essential in making decisions on the best way forward.
Martin Brady admits he was something of a “nightmare customer” when assessing Birchwood Investment Management’s proposals for a tax-efficient early retirement strategy designed to provide an income and retain the bulk of his severance payment from Lloyds Banking Group.
As a business analyst for the group for 23 years, getting to grips with the fine detail came as second nature to Martin and the Birchwood team rose to the challenge when he put them on the spot. Martin says: “I had all sorts of questions and they provided detailed responses and in a timely manner.”
Martin was introduced to Birchwood via an advice and support programme arranged by Lloyds Banking Group after he was offered redundancy at the end of 2011.
As part of that programme, Birchwood’s Trevor Simms ran a seminar on financial planning, with the offer of a one-to-one meeting, and Trevor subsequently came to talk in more detail to Martin and his wife Teresa, a teaching assistant, at their home in West Sussex in April 2012.
Martin had already been thinking about how best to balance his finances – including his pension and severance payment – between the need to draw an income in lieu of his salary before reaching his official retirement age in a couple of years without running out of money.
He said: “In fact I had had to make a decision on the split between lump sum and pension before I spoke to Trevor. So, Trevor’s advice was based on the resultant financial situation.
“Trevor explained that by investing in a certain way, I could take an income and retain most of the capital. That was an attractive prospect and certainly got my attention.”
Trevor provided very detailed information to assist Martin and Teresa as they considered the proposition and they subsequently went ahead with an investment strategy designed to produce the optimum balance between risk and returns.
Martin officially left Lloyds Banking Group at the end of March 2012 and has been enjoying what he describes as “an extended holiday” in the months since then, with the time and opportunity to read, play the guitar and do some redecorating, although he is now considering doing some work on a consultancy basis.
He also has continued to be impressed by Birchwood’s customer service, including prompt responses to his emails, and as a result of what he describes as their “very personal service, which concentrates on your needs as an Individual” he has also passed the firm’s name on to other people.
Martin added: “Obviously, the proof of the pudding is in the eating and it is early days but, thus far, I would say the income we have been receiving (whilst preserving the underlying capital) is well in excess of what I would expect from the high street financial services vendors.”
