David Boult – Meeting Summary 23rd May 2016

Current situation

You have no debts or liabilities in either the UK or Colombia where you are currently working.
Your assets apart from your pension funds are based in Colombia, you have a farm, which you are
working worth around £400,000, and a property that you rent out which brings in 4% yield per
annum.
Your pension funds total £195,000 approximately, spread across five different companies and you
are no longer paying into any of these pension policies.
You pay £3,000 per annum for a Health Insurance policy with AXA and £10 per month for your UK
mobile phone contract. Your other expenses total around £7,000 per annum.

You have no dependants to provide for.

Future Plans

You are 65 in February 2017 and wish achieve an annual income of between £12,000 and £15,000.

You will receive your state pension and expect to get around £9,000 per annum gross – this is
subject to UK income tax but you have a personal allowance of £11,000 in this tax year so only UK
income above this allowance in the tax year 2016-2017 will be taxed.

You want your pension funds to provide you with lump sums to make up the shortfall as and when
you require the money rather than give you a set amount of income that cannot be altered.

You may wish to buy another property in Colombia to rent out so may want to use pension funds to
achieve this.

Proposals

I propose that once you have turned 65 we amalgamate all of your pension funds into a “drawdown”
contract with Zurich.
This will give you the freedom of taking money out of the fund when you require it and in the
meantime the funds may benefit from growth.

Once we have amalgamated the funds you may wish to take your tax free cash element of your
funds which is 25% of the total funds.
The benefit of doing this is that you are not taxed on the funds and it would give you money to buy a
property as well as funds to supplement your income without incurring tax charges.

Once you have taken the tax free cash, any future funds you withdraw are subject to UK income tax
– however, do remember that you will have a personal allowance so it is only funds you take added
to your other UK income exceeding the allowance that will be taxed.

We agreed we would talk this through in more detail early next year to make sure that this still is
your preferred option and then get the amalgamation underway.
You agreed that you would pay for my advice out of the funds when we amalgamate your pension
funds rather than pay separately, my fees will come out of the funds AFTER the tax free cash
calculation to ensure you are not losing any of your entitlement to tax free cash.

I have enclosed a fee agreement for you to sign and return.