Consolidation is the point at which the notion of retirement seems closer than it once did and some key changes will affect how wealth can be best managed moving forward.

A peaking income is likely as executive level positions are reached or profit is extracted from a well-established and successful business. Combined with reducing expenditure, owing to children becoming financially independent and a continued reduction in mortgage liabilities means that despite persistent high levels of taxation, there are significant saving and investment opportunities.

In addition, already accumulated capital assets are likely at their strongest point thus far in the financial journey, which can take many forms such as a business value, property wealth, company shares, personal investments, retirement plans and cash holdings.

Wealth Planning Considerations in the Consolidation Phase

During the consolidation phase, risk management is essential in creating the right balance between protecting already accumulated wealth, whilst continuing to grow and secure ones position ahead of retirement and longer term objectives.

The consolidation of existing wealth can strengthen one’s financial position, for example the reviewing of personal investments to ensure risk, diversification and contribution levels are appropriate, and structuring the procceds of a business sale allows for better control over risk and planning projections.

Cash flow planning becomes a useful tool at this stage of the wealth planning process, aiming to achieve the optimal balance between continued saving, spending levels, taxation and risk management is adhered to leading up to decumulation in retirement.

It is common for those in the consolidation phase to receive considerable inheritances, left as a legacy by close family members. These need to be effectively incorporated into a wealth management plan to importantly avoid repeat levels of inheritance tax.

Are you in the Consolidation phase?

• You have a maturing family, with children becoming independent.
• You’re a senior professional or business owner, with a very strong annual income.
• You remain a higher or additional rate tax payer
• You have accumulated capital assets across property, business, pensions & investments.
• You have considered planning your retirement or business exit.*

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

*Exit strategies may include the referral to a service that is separate and distinct to those offered by St. James's Place.