High Income Financial Planning
Reduce tax from your high income and maximise your hard-earned money. Maintain your lifestyle, provide for your family and work towards early retirement on your terms. High income financial planning removes administration hassle and makes smart investment decisions.
What is high income financial planning?
You have a high income – you work hard and have a very comfortable lifestyle. As a high earner you also pay a significant amount in tax but rarely get time to focus on your financial planning, let alone research ways of managing your affairs in the most efficient way. You may have plans to retire or are thinking of a time when you will work less. You want to guarantee your lifestyle when that time comes and need focussed high income financial planning that ensures your wealth grows so always have enough.
- How can you deal with the tax problems that come with your high income?
- What is the earliest you can retire, if your situation changes?
- Do you have clarity on how to maximise your high income and to secure your future?
- How can you make smarter investment decisions?
High income clients we work with
We provide high income financial planning to people who earn at least £150,000 (often significantly more). We provide high income financial planning for:
- Executives of multi-national companies (Google, Amazon, Uber, financial institutions like international banks, insurance, City professionals)
- Senior professionals (doctors, lawyers, solicitors, accountants, insolvency practitioners)
- Academics (professors, senior lecturers, scientists)
- Professional athletes and creatives (actors, authors)
“You have been excellent with your assessments and explanations. You also took the time during our meetings to listen and understand my financial issues as well as looking for solutions. The computer simulations were an eye-opener. The final outcome and the written report were easy to understand and follow.”
Dr Hal Fadaly, Doctor (GP)
MAKE THE MOST OF YOUR HIGH INCOME
You know that you have a great lifestyle, but you want high income financial planning to make the most of this opportunity. There may come a time when you want a simpler life, so you need to maximise your high income while it lasts.
HIGH INCOME FINANCIAL PLANNING
We can help you every step of the way
YOUR LIFESTYLE
You want to live a good life but may have plans for other projects. You want to use your wealth and high income to provide for your family (education, property, inheritance).
TAX ISSUES
You pay a lot of tax on your high income and other benefits. This affects other areas like pensions. You want to maximise the income you keep, by minimising tax legally.
CAREER DECISIONS
You want to maximise your high income while you can but would also like to know when you can stop working. You would benefit from a sounding board for important career decisions.
SIMPLER ADMINISTRATION
You are competent, but you are busy and have other priorities. You need someone to remove the hassle, make your finances simpler and focus your attention on important issues, so you can make the right decisions.
HOW MUCH IS ENOUGH?
You have an idea of where you are financially. What you really need to know is how much is enough to live the life you want, and be sure you will never run out of money.
SMARTER INVESTMENT DECISIONS
HASSLE FREE HIGH INCOME
You are busy and do not have a huge amount of time to manage your own high income financial planning and financial assets. We can manage and grow your wealth, simplifying your options and helping you gain clarity on your future.
HIGH INCOME FINANCIAL PLANNING – KEY CONCEPTS
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Welcome to our Prosper service.
Our goal is to help you achieve your full potential using our award winning financial planning and wealth management services.
We believe that everybody deserves to live a secure and fulfilled life and this belief is what our Prosper service was built around.
The service focuses on three main areas…
CLARITY
Our Prosper service is designed to help you gain complete clarity over your present and future financial positions. We use our planning software to show how different scenarios will affect your long-term security.
FOCUS
By developing a comprehensive Financial Plan, we enable you to take control of your finances and focus on getting you to your goals as quickly as possible.
FREEDOM
With a Financial Plan in place, you can sit back and relax, safe in the knowledge that your money is being looked after by regulated experts with a track record for growth and a genuine dedication to customer care.
See what our High Income clients have to say…
WELL-BALANCED, CLEAR COMMUNICATION
“We are very happy with the service we received from Woodruff Financial Planning; Dan’s in-depth questions got to the root of what was important to us. The process and the different scenarios he took us through made us see what options were available and what was achievable. The resulting Financial Plan showed clearly what position we would be in at retirement.
We couldn’t think of anything else they could have done to make the process any easier. With well-balanced, clear communication we would definitely recommend Woodruff Financial Planning to ease you into retirement with confidence.”
Kevin & Sharon Gaughan, Halstead, Essex
“You keep things simple, explain things clearly, and do not use jargon.”
“You are always on hand to answer questions promptly.”
“You have a personalised and very knowledgeable service. We trust your advice.”
“It is good to be able to speak to someone rather than an impersonal approach.”
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of our clients say our advice is easy to understand
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of our clients say they trust us to look after their best interests
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of our clients say we are responsive to their questions
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of our clients say we care about their needs
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of our clients would recommend us to a friend
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of our clients say they get value from our service
Click below to learn more about how our Prosper service works
OUR PROCESS
Designed with you in mind.
The discovery meeting allows us to find out about you and also helps you to decide if you want to work with us. We ask a series of questions to understand what’s important to you, and what your primary goals are for the future. We use visualisations to explain the Financial Planning process so you can evaluate how it could benefit you. We send you a Service Proposal to explore the issues from this meeting and explain how our service will work for you.
In the fact find meeting we gather the data we need to understand your finances. We conduct a comprehensive data analysis of your income, expenses, assets, and liabilities, so we can examine current and future spending patterns. We need comprehensive details to fully evaluate your position so we can plan for your future. We help you to make sense of your money and fill in any gaps in your data. We will follow up with further queries to your product providers.
Your financial plan examines your current finances, based on reasonable assumptions about the future. We assess possible gaps in your planning you might not consider, so you can be in a more secure position. We compare the current position with different scenarios, so you will immediately see the benefits of any improvements we have recommended. This is a highly collaborative and interactive stage and puts you at the centre of your financial decisions.
Your financial plan will give you a series of recommendations to improve your financial security, and also work towards a better lifestyle. With a clear financial plan in place to achieve your goals, we can implement an investment management portfolio or arrange any appropriate financial products to meet any needs we identify. We'll do the administration so you can sit back and relax as we work hard to help you achieve the life of your dreams.
REVIEWING YOUR PLAN
You will receive regular contact from us with investment valuations every 3 months (although you also get access to our portal for daily valuations if you prefer). You will be offered at least one annual meeting to review your Financial Plan and investment portfolio, making the necessary adjustments for your current circumstances so that you remain on track to achieve your goals. We'll also update you with tax data, and make sure you use tax allowances as early as possible for maximum benefit.
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Financial Planning with High Income
High income: This FREE Mini Guide is perfect for you have a high income and want to understand the financial planning issues you should consider and also how to appoint the right financial planner.
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High Income Financial Planning – your questions answered
What is high income financial planning?
High income financial planning has a particular emphasis on your needs. We help you to gain clarity on your current position, and show you where your finances are going if you continue working in your high income profession, business, or specialist employment. We work with many high income financial planning clients. This might include top business executives, high earning professionals like partners in law firms or accountancy practices, barristers, business owners, doctors, academics, sports people or creatives like actors and musicians.
High income financial planning for business owners helps you to focus your attention on the best way forward, and show you how to maximise your resources; this of course includes your high income. This might mean minimising tax, maximising your lifestyle while you have high income, or planning for retirement. Our ultimate aim is financial freedom for you the high income professional. Read about our Prosper service for high income professionals.
Financial planning tips for high earners
Financial planning for high earners is often focussed on saving tax – after all, you are likely to pay tax at the very highest rates. The starting point is that you should claim all available tax allowances. It is surprising how many high earners fail to do this, often because they are busy, or just do no know that these allowances are available. The first allowance you should use is your pension allowance – £60,000 per tax year, and up to £180,000 using carry forward. After that, you have £20,000 available for saving into an ISA – double this is you are married. High earners can use other allowances such as your savings allowance and the dividends allowance. You might also benefit from your capital gains tax annual exempt amount. Once these allowances are exhausted, consider using tax-efficient investments such as Venture Capital Trusts (VCTs).
The most important thing is to partner with a financial planner who understands high earners. Take a look at our Prosper Service. It was designed to help busy people like high earners, who want to maximise their future.
What are the challenges for high income financial planning?
High income financial planning usually deals with 2 main challenges: time and tax. Most high income clients are busy people – after all, you do not become a high earner by luck. Most high income financial planning clients are extremely busy; they are very capable, but often financial planning falls behind due to work and family pressures. We find that having a trusted financial planner to work with you can mean tat you focus your attention and resources in the most efficient way. Financial planning does not have to take lots of time, provided you are efficient with your decisions.
Tax is another major challenge for high income financial planning. You are an easy target for tax, and you probably pay the worst rates, especially for income. Financial planning aims to recoup some of this tax by taking smart decisions. Often you can reclaim tax by investing in the right way. You should also aim to grow your assets in tax-free ways whereever you can.
How much do you need to earn for high income financial planning?
High income financial planning focusses on those who earn the top 10% or even 5% of income. Typically, that starts at £100,000, but many of our high income financial planning clients earn much more than that. Many high income financial planning clients have large earnings, with large bonuses on top. This typically puts you into the 45% income tax band. You might have high income, and with that comes very high tax. You do not necessarily have high net worth or assets. High income financial planning aims to get you to build enough assets so that one day you can stop earning and spend more time doing what you want with your time.
What are the tax problems with high income financial planning?
High income financial planning has an emphasis on saving your tax. You are likely to pay massive amounts of tax on your high income. This will mean you probably lose out at various stages. This means the loss of child benefit, the personal allowance, the reducing of interest allowances, the loss of pension allowances. You get taxed at the highest income tax rates. Our high income financial planning aims to help you to keep more of your income, and prepare for the future sensibly. Alongside high income financial planning you will also need to prepare for higher taxes in other areas such as investments, rental property, and savings.
Investing and high income financial planning
High income financial planning helps you to manage your investments efficiently. You are already taxed highly on your earned income, and it can be easy for this high tax to apply to your investments too. High income financial planning helps you to invest wisely, and tax-efficiently, using allowances such as your pensions, ISAs, savings, dividends, and capital gains.
Pensions and high income financial planning
Weirdly, pensions are often overlooked for high income financial planning. This is especially useful when you receive large bonuses, possibly towards the end of a tax year. High income financial planning should help you to maximise the income you keep by placing it in tax-efficient plans like pensions, which could be very useful in later life. There are complex tax calculations to perform each tax year, and we can help with this.
Is high net worth financial planning the same as high income financial planning?
High income financial planning is related to high net worth financial planning, but they are not exactly the same. Clearly, those with high income are often those with high net worth, but not always so. If you need high income financial planning, you might not yet have a high net worth. Your high income may provide you with a good lifestyle, but tax and expenses may mean that you have not yet built up assets into a high net worth. High income people often have high liabilities, which can hod back their creation of assets. High income financial planning focusses on how to make the most of your income, avoiding tax and preparing for the future.
How do high earners avoid tax?
It is getting more difficult for high earners to avoid tax, especially as you are taxed at the worst possible rates in your income. High income financial planning tries to use all available allowances so you can shelter as much as possible from tax. This typically includes using income tax allowances where possible, paying into pension plans and ISAs. We might also examine opportunities to use more specialist tax planning for high income such as Venture Capital Trusts. In our experience, most people who come to use for high income financial planning do not use their available allowances properly. We focus on taking the tax planning opportunities each and every year. Over time, this adds up to spectacular tax savings for high earners.
Read what our clients think of our service...
See what sets us apart from other independent financial advisers...
Unit 5, Park Lane Business Centre, Park Lane, Langham, Colchester, Essex CO4 5WR
A DIFFERENT APPROACH
We focus on so much more than just your financial planning. We aim to help you reach your full potential, achieve your goals and help you live the life of your dreams.
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