Money Monday – 'Truth' – the Prestwood Financial Planning tool

A case study which focuses on the use of ‘Truth’ – the Prestwood Financial Planning tool, in a scenario of helping a dentist to understand what his ‘number’ is: Dr X was in his late 50’s, working 50 – 60 hours a week running his dental practice, Sunday mornings were spent finishing off the week’s paperwork, his business was slowly killing him. Holidays? Few and far between. Hobbies? None. Stress? Lots. Dr X ran a 3 surgery practice, fully private in an affluent West London post code. The practice’s details were:- •Three Surgeries •Fully Private Practice •Fee Income of £750,000 •Income had been steady around this level for the last 4 years. He was contemplating selling his practice and already had an offer on the table, which was turned down on the advice of his accountant (as the £450,00 offered was not near the £850,000 of potential value that believed the practice was worth). His Lawyer introduced him to us and after getting to know more about him, we identified his real requirements: to escape from his practice and get on with his life. We also found out his ambition: He wanted to learn to fly ‘before it was too late’. On talking with us, it soon became apparent that substantial funds had been accumulated in various investments including pensions etc. More important, we helped him identify a desired lifestyle and then helped him to calculate his ‘number’ – the amount of money he needed for the rest of his life. So, we went ahead and created our financial model and here’s what we found. Dr X needed just an additional £500,000 to retire NOW, not in 3 years’ time at aged 60. If the cost of flying lessons and the purchase of a light aircraft was built in he needed just £750,000 NOW. And this was to start living the life he wanted NOW. With our help, and the help of his Corporate Lawyer, he managed to get the deal back on the table and ended up selling his practice for £700,000. Dr X continues to enjoy his retirement and now looks – AND FEELS – 10 years younger. Patrick Murphy Charted Financial Partner CFPcm, FIFP, FPFS 70 St Mary Axe London, EC3A 8BE Tel – 020 3102 4085 Email – Patrick.Murphy@zen-wealth.com www.zen-wealth.com