Case Study – Professional Athlete

Summary

Profile & Summary

A 27-year-old professional footballer, married with two young children, who had no definitive plan for financial life after football. Recommended to Fourtress Group by a close friend who is an existing Fourtress Group client, he wanted to create a passive income for when he retires.

Initial Financial Plan

The plan was to create a property portfolio that would give an annual passive income of around £60,000. This had to be accessible in the next 8-10 years and offer the potential for strong capital growth.

Initial Financial Picture

Homeowner with a small mortgage left to pay
£80,000 in savings
Only other investment – small employers’ pension

Investment

£80k

Investment Goal

£60,000 per year

Timeframe

8 - 10 years

Challenges

Trust

Our client found it hard to trust people as he had received some poor financial advice in his early twenties and lost all the money he had invested. Since then, he has been solely concentrated on reducing his family's mortgage debt as he knows he is in control of it.

Time

The footballer has to remain committed to his profession to maximise his earning potential but coupled with a young family, he didn't feel he could commit the necessary time to research and implement a successful investment portfolio. Fourtress Group put a plan in place for him.

Knowledge

No one had ever taught our client how to successfully handle money, nor had they discovered the necessary resources to find out for themselves. He felt he didn’t have the financial education needed to confidently start investing.

Overwhelmed

Our client felt overwhelmed due to the differing opinions that were offered by various people on how he should invest his money. He felt like everyone he spoke to professed to be an expert, but on reflection, none of them were.

Solutions

Fourtress Group Strategy...

We initially set goals on the amount of passive income our client wanted to achieve when his football career finished and showed him how this was possible. We identified three key stages to reach his goals and put a plan in place that Fourtress Group could implement and execute on his behalf, allowing him concentrate on his profession.

What the Fourtress Group did...

We strategically designed and set a plan in motion for our client. A portfolio had to be built quickly which meant buying multiple properties simultaneously. This allowed the time required to build equity levels, whilst lowering the loan to value on their portfolio. Fourtress Group took care of every aspect of the plan from setting up a company for our client, right through to negotiating and completing on purchases, organising finance options, carrying out renovations, finding tenants and managing the properties.

Future

The Result

The client is now 31 years old and four years into his Fourtress Plan. He and his wife own 14 properties which all achieve a high level of rental income. The client built his portfolio quickly by using savings and taking advantage of the equity in his own home as deposits. They now have the number of properties Fourtress Group initially planned for and the rental income is paying down the debt.

Over the next few years, we will monitor our client’s portfolio carefully, constantly looking at possible opportunities whilst monitoring his personal circumstances. We are fully on track to achieve the passive income target of £60,000 per year.

Property No.

Portfolio Value

£1.65m

Restrospective

With the time frame and capital available, we were able to build our client’s portfolio quickly allowing us more time for the debt to be paid off.

At the end of his football career, he will have excellent levels of equity in his portfolio and his desired passive income.

“We know first-hand that in professional sport it’s daunting to look beyond your playing days. We took the fear of the unknown away by creating & actioning an attainable financial plan for our client, which gave him the confidence that his family’s finances are in trusted hands.”

Dave Edwards – Fourtress Group