The ‘time to put myself first’ plan.
I spent the last 20 years
living the corporate life.
I wanted to spend the next
20 years living my life.
Helen, 52
Global Brand Director
Kids, work, kids, work, kids, work – that was my life.
The kids had finally flown the nest, but I was still flying long haul on business. I started thinking it was time to focus on a few Non-Executive Director roles as well as my love of painting.
And then the corporate restructure was announced….
The ‘time to put myself first’ plan.
I spent the last 20 years
living the corporate life.
I wanted to spend the next
20 years living my life.
Helen, 52
Global Brand Director
Kids, work, kids, work, kids, work – that was my life.
The kids had finally flown the nest, but I was still flying long haul on business. I started thinking it was time to focus on a few Non-Executive Director roles as well as my love of painting.
And then the corporate restructure was announced….
A Double Dilemma
I jumped at the chance of redundancy. It finally gave me the opportunity to put myself first. However, I knew my income would take a hit if I focussed solely on being a Non-Executive Director, especially at the start.
So, I found myself facing a double dilemma.
Did I have enough assets to step back from
full-time employment, and what was the best way
to tap into my assets to subsidise my
income when fully retired?
- I had unexercised share options, but I wasn’t sure if
I should exercise the options or not?
- I also had a company pension, which with hindsight,
had been underfunded. So, I wondered whether I
should take this early? - And I also had substantial cash savings, but how
could I get a better return without putting them at
too great a risk?
A Double Dilemma
I jumped at the chance of redundancy. It finally gave me the opportunity to put myself first. However, I knew my income would take a hit if I focussed solely on being a Non-Executive Director, especially at the start.
So, I found myself facing a double dilemma.
Did I have enough assets to step back from
full-time employment, and what was the best way
to tap into my assets to subsidise my
income when fully retired?
- I had unexercised share options, but I wasn’t sure if
I should exercise the options or not?
- I also had a company pension, which with hindsight,
had been underfunded. So, I wondered whether I
should take this early? - And I also had substantial cash savings, but how
could I get a better return without putting them at
too great a risk?
The Biggest Decision of my life
I’d found myself on a business flight
doing an audit of all my assets on
the back of a napkin.
I started to make a plan to exercise my share options
and access my cash savings. Then when the time
was right, I would take the redundancy package
and access my pension fund.
And then I thought this is ridiculous. It’s the biggest
decision of my life, I need to talk to a financial adviser.
So, when I got back to Ireland, I asked friends for recommendations. I kept getting the same answer;
‘talk to Goodbody.’
The Biggest Decision of my life
I’d found myself on a business flight
doing an audit of all my assets on
the back of a napkin.
I started to make a plan to exercise my share options
and access my cash savings. Then when the time
was right, I would take the redundancy package
and access my pension fund.
And then I thought this is ridiculous. It’s the biggest
decision of my life, I need to talk to a financial adviser.
So, when I got back to Ireland, I asked friends for recommendations. I kept getting the same answer;
‘talk to Goodbody.’
The Goodbody Advice
Let the pension grow.
Helen was only 52 and still had plenty of time to earn money, even if the transition to Non Executive Director roles was less financially secure.
Given Helen’s ambitions she faced two dilemmas.
How best to use her assets to subsidise lower earnings during her remaining
working years and how best to provide for her retirement?
Helen's Cash on Deposit
€1,500,000
Helen's Cash on Deposit
€1,500,000
Helen's Share Options
€1,000,000
Helen's Share Options
€1,000,000
Helen's Company Pension
€700,000
Helen's Company Pension
€700,000
Helen had thought of accessing her pension early to supplement her drop in income.
However, once we reviewed her assets we pointed out this would be a costly mistake. Helen could
transfer her pension fund to a PRSA and continue to make tax efficient contributions to it.
Investment returns in the PRSA would grow tax free.
If her cash on deposit was invested wisely, she could afford to leave her pension
to grow and maximise the tax benefits in later life.
This observation sat at the heart of the exit plan we devised for Helen.
The Goodbody Advice
Let the pension grow.
Helen was only 52 and still had plenty of time to earn money, even if the transition to Non Executive Director roles was less financially secure.
Given Helen’s ambitions she faced two dilemmas.
How best to use her assets to subsidise lower earnings during her remaining
working years and how best to provide for her retirement?
Helen's Cash on Deposit
€1,500,000
Helen's Cash on Deposit
€1,500,000
Helen's Share Options
€1,000,000
Helen's Share Options
€1,000,000
Helen's Company Pension
€700,000
Helen's Company Pension
€700,000
Helen had thought of accessing her pension early to supplement her drop in income.
However, once we reviewed her assets we pointed out this would be a costly mistake. Helen could
transfer her pension fund to a PRSA and continue to make tax efficient contributions to it.
Investment returns in the PRSA would grow tax free.
If her cash on deposit was invested wisely, she could afford to leave her pension
to grow and maximise the tax benefits in later life.
This observation sat at the heart of the exit plan we devised for Helen.
Goodbody’s approach to wealth
planning is just like painting,
they start by filling in the big shapes
and then add the detail.
Goodbody’s approach to wealth
planning is just like painting,
they start by filling in the big shapes
and then add the detail.
The three point exit plan.
Our plan to enable Helen to step back from full-time corporate life
focussed on three key actions:
1. Let the Pension grow
If Helen continued to make contributions from her Non-Executive Director earnings, at age 65 the value
of her pension would be close to the €2.15 million pension limit which would allow her to maximise
her tax-free lump sum entitlement. This would provide her with ample funds for later life.
2. Put the cash to work
Instead of taking her pension early to supplement her income, we recommended Helen invest
the majority of her cash on deposit in a diversified portfolio suitable to her age and risk profile.
This would deliver both income and growth, whilst maintaining an acceptable level of liquidity.
3. De-Risk The share options
One of her biggest assets was her biggest risk. On paper her share options were worth €1 million but
that value was linked to the fortune of a single business. So, we recommended starting the process of
exercising the options and reinvesting the proceeds in a diversified portfolio.
The three point exit plan.
Our plan to enable Helen to step back from full-time corporate life
focussed on three key actions:
A Final Thought From Helen
My corporate life was full of
important plans. There were business plans, marketing plans, media plans and project plans. I look back now and realise I was missing the most important plan of all – my plan.
A Final Thought From Helen
My corporate life was full of
important plans. There were business plans, marketing plans, media plans and project plans. I look back now and realise I was missing the most important plan of all – my plan.
What’s your plan?
Please contact us if you think your life could be enriched by a financial plan.
