Robert was introduced to Foresight by an existing client, who had previously sold his business for a significant amount.
Robert was working at a tech company that grew very quickly to a point where they had an Initial Public Offering (IPO. Robert ended up with a large shareholding and wanted to find out what his ‘number’ was – the amount that he needed to be financially independent.
We completed a cash flow analysis which calculated how much he needed become financially independent. This involved repaying his mortgage and other debts, paying for his children’s education up to and including University and being able to replace his income.
The number he needed to be financially independent turned out to be £6million and Robert encashed just over £8m of shares to provide this amount net of tax. Fortunately, this meant that he still retained a large number of shares within the business.
We arranged for him to set up a Family Investment Company and Trusts to be put in place to provide a vehicle for his investments. This gave a balance between ongoing access to the funds and tax-efficiency from both an income tax and Inheritance Tax (IHT) point of view.
We introduced the client to a large Swiss bank, with whom Foresight are strategic partners, and developed an investment proposition which enabled Robert to invest the full amount of his funds. A loan facility was put in place which enabled Robert and his wife to buy a holiday property in Spain for £3 million, funded by a loan against his investments and the remaining shares that the held, charged at Bank of England base rate plus 1.2% per annum – and denominated in Euros to ensure Robert received growth on both his portfolio and house without any currency risk.
Robert chose to carry on working for a couple of years and enjoyed his Spanish villa with his family and friends. He has since introduced several other business contacts to Foresight that are looking to sell their businesses and need help with their financial planning.
