Select financial service targets retirees

GA-Select has launched a new division to offer financial advice to licensees facing the twilight years.

Select Investments is de-signed to provide advice on tax and investments to licensees about to retire.

Managing director Graham Allman said: "A big quandary seems to be the issue of what to do with the asset - the pub - in order to provide income in retirement."

Allman added that maintaining the freehold and selling a lease isn't always the best option.

"The capital value of the business only increases as a multiple of rent, not the capital asset gain. So in a pub with a rent of £40,000, times a multiplier currently around 12, the investment value is £480,000.

"But a business that can afford a rent of £40,000 pa should be showing a healthy net profit of £80,000 pa."

Allman said that - in line with the market - this is multiplied by eight to get the freehold value - in this case, a more robust £640,000.

"A substantial difference of £160,000," he said.

Select Investments also aims to offer comprehensive advice on inherit tax, capital gains tax and income tax.

"Not many people know, but inheritance tax is currently 40% of any amount over £285,000," said Allman.

"In addition, there is the option to review investment and asset-planning following the sale of the business, leading to structured retirement planning - be it to provide university funding for grandchildren or to enjoy retirement without worrying about money."

GA-Select has teamed up with a reputable group of independent financial advisers, and Select Investments will be up and running in the new year.