Investment Case Study
Mrs W came to us as a recommendation from an existing client. Her husband had recently died after a long battle with cancer and although he had left her well provided for she had little idea of how to go forward. She had a substantial amount of cash although was completely nervous of what to do and how best she could achieve her targets.
Her target was to achieve financial stability by receiving a regular monthly income and to have some capital growth so that overall her financial future was secure. She was very nervous that the money she had would have to last her for the rest of her life.
We set about reassuring Mrs W that her situation was not as bad as she thought and that she would be able to afford all of the things she had been used to prior to her husband‚s death. We talked through the different ways the money could be invested explaining risk and reward and how it was necessary to invest in real assets (as opposed to ordinary building society accounts) if inflation was not going to eat away at the capital she had.
After several meetings we arranged a portfolio that included several deposit accounts, Isas and several investment bonds. A large portion of money was kept in cash because of Mrs W's nervousness and trepidation about her situation.
That was over 4 years ago, since that time she has received a regular income and the capital value of her investments has risen substantially, so much so that recently she took the decision to encash a portion of money to buy a new car. She will still have far more than capital than she started with. She did not want to use any of her cash deposits to buy the car as she sees this money as her comfort blanket in case there is a stock market fall.