Sedulo Wealth Management; 3 months down the line

Sedulo Wealth Management has now been running for 3 months and is well and truly up and off the ground.

It’s been enjoyable meeting all clients and contacts that I have come across so far and now is an ideal time to reflect and share with you some of the work that has benefited our clients.

Client Case 1 – Providing for dependents
I have found that life cover (and the need to provide for dependents) has been a concern for many clients.

As an in-built safety mechanism, people generally do not want to think about the worst case scenarios that life can spring. As such they do not give real consideration as to whether their dependents will be adequately provided for, usually with the repayment of the mortgage being deemed the only necessary cover.

This was particularly true for one client who expressed a concern that the potential sale proceeds of the business upon his death would not be sufficient to provide an adequate lifestyle for his spouse and children. As part of our fact-finding discussions, he realised that his family would only have enough to exist rather than his children going through university and them achieving other life objectives. His choice; pay the life cover personally after suffering tax and national insurance, or arrange a policy through his limited company as a one-person death in service policy. Here’s a comparison; for £500,000 worth of cover over a term of 18 years, the premium would be £44 a month. Paying this personally, the actual cost including tax and national insurance would be £69.29 per month. However, putting this policy through the company resulted in a net premium of £35.32 after corporation tax; a saving of 49%.

Client Case 2 – Workplace pensions
Workplace pensions (or auto-enrolment), is a topic which has generated mixed opinions. It’s not about having a pension in place for your employees; it’s about the employer complying with their 218 duties. When we have told businesses what is involved and (more importantly) required from them, this area has become a great concern.

We have helped a number of our clients recently with auto-enrolment. When it comes to complying with workplace pension legislation, the solution for every business and their workforce is different despite the duties being the same. One key area which we have helped is analysing the age demographics and pay structure of the different categories of staff to identify which route is the most suitable in terms of costs and administrative burden.

In our short time since launch, we have already successfully designed, planned and implemented a scheme for a client and are actively progressing with other cases at this moment in time.

Because every client is unique and we deal with all client types, our work has varied across a wide spectrum. From pension planning to specialist tax relief investments, no two clients are ever the same; as they say, variety is the spice of life!

This blog post was written by Paul Lindfield, Director of Wealth Management for Manchester independent financial advisors, Sedulo Wealth Management
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