Apsire Partnership Brochure - page 30

The impasse
Joe and Nicole are a young couple enjoying life. Joe, having started
a hugely successful business in his 30’s, sold it when he was just 40
for around £5 million. Since then Joe had taken the opportunity to
‘tick a few boxes on his wish list’ and was the proud owner of some
‘boys toys’ worth around £2million. Understandably they were enjoying
a few holidays and Joe had no plans towork again for some time. But
what next? Nicole particularly had some concerns about their future
spending plans.
Our cashflowmodelling tools allow us tomake assumptions and set up
scenarios to demonstratewhat is the likely outcome if youmake certain
financial choices in life. Of course, beingbasedonassumptions, it cannot
be relied on totally, but the clarity it provides is a really solid base upon
which tomake somedecisions.
Aspire quickly identified that themain problemwas that Joe and Nicole
were almost entirely living off capital. If they continued to spend at their
current rate tosupport their desired lifestyle, evenafter sellingall the ‘toys’
the money would run out in just 15 years when Joe would only be 55.
Secondly if all the spare capital was tied up in illiquid assets, it provided
no opportunity to invest in income producing assets or another company.
Joe and Nicole havemade some changes in their plans and have since
started anew venture.
real life
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