Defining the lifecycle

Understanding where you are in the financial lifecycle will help to determine your financial objectives. We categorise this lifecycle into the following headings:

• Wealth Creation: This is the phase of our life where you are building wealth, primarily through capital appreciation. This may be through building a business or ensuring a substantial amount of income that needs to be invested for capital growth.
• Wealth Management: This phase is where you have built sufficient capital to become financially independent and draw income from passive assets to have the lifestyle you desire. It does not necessarily mean retirement but places you in a position of many more choices. The emphasis from an investment prospective is likely to change to wealth management, with the probable objective of preserving your capital and generating higher levels of income in a tax effective way.
• Capital Erosion: From an IHT prospective, continuing to build your wealth in later life will only swell the coffers of HMRC. Thought will need to be given on capital erosion and enhancing your spending strategy, through defining more toys and adventures and gifting liability to IHT. We understand that life is about experience and a sense of achievement and that we should make the most of it.