Exceptional Property Investments

Planning for a Richer Retirement!

Legal Disclaimer & Warning

This presentation contains information only which is the personal opinion of Rod Thomas. It is not advice, a recommendation or invitation to invest. Projections in this presentation are approximate and based on the criteria specified which may or may not turn out to be accurate.

Avantis Wealth Ltd is not licensed or regulated by the Financial Conduct Authority and does not provide financial or pension advice. We strongly recommend that you seek appropriate professional advice before entering into any contract.

The value of any investment can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.

Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the Financial Conduct Authority or covered by the Financial Services Compensation Scheme. You will not have access to the Financial Ombudsman Service.

Personal information in any pension review is a matter of record and is provided by an IFA from our panel, who are regulated by the Financial Conduct Authority. Any requirement for pension or investment advice will be passed to a regulated IFA.

Access to some investments is restricted to certain categories of investor as determined by FCA regulations in respect of NRRI (Non readily realisable securities). It will be necessary to ascertain your classification prior to providing an investment memorandum for these investments.  

Agenda• Pension failure• Improving pension performance• Property as your pension• F.R.E.S.H investment strategy• Pension freedoms• Taking control – improving the outcome• Next steps

You are not alone!So many stories about

retirement and income crisis…Why?

“Too poor to retire: The over-55s with no pension, no savings, just massive debts”

Investment failure

Asset allocation for many pension funds

Equities (Shares)

Sam Smith, CEO, Finncap: Rollercoaster year will be driven by uncertainties6,800 FTSE prediction

Shares – Nikkei 225

Fixed interest securities

Best rates!*120 day notice account – 1.75%

3 year cash ISA – 2.20%10 year Government Gilts – 1.95%

* May 2015

Fees & charges

Fees & charges

80%

Life expectancy

We are living longer. If you retire at 65…▸ Man: 83 year = 18 years in retirement

▸ Woman: 86 years = 21 years in retirement

Annuity rates

Joint life, RPI, 5 year guarantee – 2.8%!£100,000 buys you £233

monthly

Annuity = No fund!Whatever the value…

£50,000£200,000

£1,000,000‘Lost’ to insurance company

InflationTime 20 yearsInflation rate 3%Money now £100Money value in 20 years

£55

What happened to your pension?

Review pension report

Keys for a brighter future?

Step OneImprove

investment (& therefore pension)

performance

Step TwoFlexible pension

scheme

Fixed Interest

Property

Alternatives

Equities / Funds

Reward

Risk

Four investment classes

Why property investment?

Property – many reasons• Security

• Lack of volatility• Certainty

• Non-correlated assets

• Diversification• Compound growth

• High returns

Pension availability for selected investments

Potentially excellent returns• 8% to 12% net

• Don’t confuse with ‘gross’

What Property Investment?

Sector?Residential or Commercial…

Shops, Offices, Warehouses, Factories, Student property, Self-storage

Serviced offices, Garages, Surgeries Car parks, Burial plots, Waste recycling plantsPower stations, Hotels, Conference facilities

Resorts, Care homes

Participation?Direct or Indirect…

Indirect…Lend money alongside other investors. Collectively hold

security over assetsLoan Note or Bond

Direct…Own Freehold or Leasehold title

Full title or fractional

What is Avantis Wealth focus?

Residential Commercial

Direct Indirect

F.R.E.S.H Investment strategy

Residential - direct

Residential – indirectCommercial – directCommercial - indirect

Fixed returns X Regular, high income X Exit predefined X Security Hand’s off X Typically 8% to 12% net pa

Investment Portfolio• Typically 15-20 investments available• Different objectives / attitude to risk /

sectors / locations• Some investments restricted to qualifying

investors

Information only, not an invitation to investPension investors – referred to IFA

Historic Building Restoration

Europe

• 10% to 12% net • 2 – 5 years

• From £10,000

Self-Storage UK

8% - 12% net (+ capital growth)6 years

From £5,000

Car Parking space - Dubai

• 8.58% average - income guaranteed• Buy 20% BMV - potential capital growth

• Exit any time• £27,000

Growth through compound interest

Step OneImprove

investment performance

Step TwoRight investment

vehicle (pension?)

Flexible pension schemes

SIPP, SSAS, QROPS, Group Pension Plan

(not all are suitable!)

Pension Freedoms

New freedoms – really?

Must buy an

annuityLimited

investments

No flexi-access

drawdown

Can’t access cash

Annuities are dead (almost)

Long live drawdown!

Own & control 100% of fund (DC schemes)

Transfer Final Salary scheme to defined

contribution

Except non-funded Government

schemeStatutory right to

transfer

Own your fund (drawdown only)

•Withdraw all•Withdraw some now• Rainy day fund• Supplement income over time• Leave as Legacy•WARNING – TAX CONSEQUENCES

Legacy for generations

Exempt from IHT!

What does your future look like?

Potential increase in income and value of

fund?

Next Steps

Benefits of a new approach

Take control Wider investment options Higher growth before retirement Higher income after retirement Ownership of fund for you and/or legacy for

generations

What future will you choose?

Contact UsTelephone: 01273 447 299

[email protected]

THANK YOU