The Italian Job
The Situation
Keith had decided that at the age of 55 he wanted to buy a property in Italy in order to spend more time with his Italian girlfriend. The problem was that on his first visit to Collingwood Mourton Associates he was already 51. That only gave him 4 years, and the only capital he had available was £80K split between 3 pension funds….
What Collingwood Mourton Did
We immediately reviewed the existing pension funds and ascertained that their performance could at best be described as mediocre. We needed to simplify the funds and maximise their performance if Keith stood any chance of achieving his dream Italian home within 4 years.
We also needed to find Keith an alternative investment route to stocks and shares. With only 4 years to substantially grow the pension fund the stock market would be just too risky for this kind of short term investment.
We amalgamated Keith’s pensions into one self-investable pension pot. Then, after some careful homework we uncovered a Stirling Mortimer Property Fund that ticked the boxes in terms of investment potential;
- short term investment of 2 – 4 years only
- guaranteed minimum return of 15% return after 2 years
- history of previous projects returning up to 145% to investors
The Outcome
We recommended that Keith invest his £80K split between two Stirling Mortimer property projects, one in Spain and the other in Portugal.
With a guaranteed return of 15%, Keith can expect a minimum return on his £80K of £12,000 within two years. With two years left before his 55th birthday, there is still time for further interest to accrue before his final cut off date.
However, if this project performs in line with the previous property fund, the return could be much, much more. This would boost the whole pension fund - and 25% of the final amount is allowable as a tax free sum. We’ll keep you posted on the outcome…
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