Many individuals dream of early retirement, wanting to escape the daily grind and have more time to enjoy life. However, achieving this goal requires careful financial planning to ensure that one does not run out of money in retirement. To ease these fears, it is essential to have a solid cash flow model and an investment strategy that supports the transition from accumulating wealth to using it in retirement. Jock, aged 53, and his wife Isla, aged 51, are currently facing this important decision. They aim to retire with a monthly income of £5,000 and are seeking guidance on whether this is a realistic goal with their current financial portfolio.

Approximately 40% of the couple’s wealth is invested in a limited company, which owns multiple rental properties valued at £1,000,000. These properties generate an annual rental income of £49,000. Jock and Isla also hold £20,000 worth of shares in NuroCHEK, a startup that has developed a concussion assessment device, through their limited company. However, the couple has taken out director’s loans amounting to £500,000 from the limited company,” Jock explains.