Money makeover is a new monthly series on the Adviser Points of View website in which various people at different life stages, seek financial advice from a financial adviser for the “first time”.

The third makeover this month involves Chris and Lydia Jones from Oxford, they had a lump sum of over £100,000 which they were keen on investing for their retirement.

They approached Philip Hanley, director of Philip James Financial Services and principal adviser. He has been running his own financial planning practice, since 1994, with some £90m under advice and over 600 clients.

Lydia gives their reasons for approaching an adviser: “Two years ago, we had around £100,000 saved up in an array of ISAs and bank accounts and thought we should start looking at investing it and getting general financial advice.

“We are pretty hopeless about finance stuff so thought we should find an independent financial adviser. I did a bit of online research and found Philip. We had a chat with him and his proposals seemed reasonable. He offered us sensible advice and was willing to adapt to our wishes.”

Chris and Lydia began by asking how they could use their savings to plan for their retirement.

She says: “We began by asking Philip what retirement options were available to us with the savings we had. Philip, then, invested our savings for us with the idea that there would be an initial review after a set period of time. When we called in Philip again last year, we were fortunate enough to have: a nice redundancy pay-off from his company (which he was able to put into his company pension); the investments that Philip had made for us which had done well and a substantial inheritance from my husband’s parents in Australia.”

How to provide for our children

Chris and Lydia were also keen to provide for their three children once they retired. Lydia says: “I am planning to retire in a couple of years. My husband is working three days a week.”

They also consulted Philip on this matter. They had some existing investments of “ISAs, a few shares and pension funds,” prior to visiting Philip.

“Philip advised us to do the following, says Lydia: Invest £250,000 for longer-term growth and income if required in future years; £600,000 to be invested and transferred to a new discretionary trust for the children. Funds would be held in an investment bond to avoid trustee tax rates.

“In relation to my husband’s company pension, Philip advised us to transfer the company pension to pension accounts held on same administrative platform as our other investments, and with regards to our old investments transfer these to the same Transact investment platform.”

Both Chris and Lydia felt that Philip was very sympathetic and attentive to their needs, with regards to their retirement planning for themselves and their children. For example, they were keen to invest ethically, and Philip obliged: “Philip recommended the Balanced and Balanced Plus Ethical Portfolios.

She adds: “Philip listened to our cares and concerns. He organised our investments to fit in with our desires. We feel more comfortable about retiring than before we approached him.”

Edited by Sabuhi Gard

Further reading on this topic:

Money Makeover: How to consolidate your pension pots