Real story Caretakers of wealth for future generations

Sarah and Daniel* are a couple in their early 40s with primary school-aged children. They are both support workers: Sarah for a tertiary institution and Daniel for local government.

Current financial situation

The couple is debt-free and own the family home worth $800,000 and a $600,000 holiday home. While they have modest work incomes, they have a broker portfolio of direct shares and bonds from inherited wealth of $4 million.

Future lifestyle goals

The couple has quite modest living needs now that they own two homes outright, and have no immediate plans to assist their children beyond education. They want to draw on their inheritance as little as possible for themselves and instead pass it on to future generations intact. They are currently saving only KiwiSaver and aim to retire at 65 with an annual income of $80,000.

How Bloomsbury helped

This inheritance is a huge burden on Sarah and Daniel. They hate talking about money and investments and would rather ignore it all.

We helped put their minds at ease by first examining their existing investments for appropriateness. We then developed a well-constructed portfolio that will grow their estate while they are working and cover their income needs now and post-retirement. We were able to increase the expected returns from their investments by $51,000 per annum.

We organised the review of their legal affairs to ensure that everything is structured to pass seamlessly to next generation if anything should happen to them, including having the right advisers to guide the children.

Result

Sarah and Daniel can get on with being ordinary kiwis without the burden of wealth. They can relax, confident in the knowledge that they will pass on an estate of a minimum of $4 million to their children and any grandchildren.

* Names have been changed to protect privacy