Case study 1 May 2023

Keiron is in the mature adult stage. Lives in Finchley, North London with his wife, Lily and their
two children aged six and four.
He earns £85,000 and works in investment and risk management in London
Keiron and Lily moved into their house 3 years ago
- mortgage balance of £455,000
- 7 years remaining for a fixed rate at 2.9% APR
- 22 years left to pay on their mortgage
Over recent years, have built up credit card debt by overspending on their wedding and
holidays. However have always been able to manage their minimum payments.
Keiron controls the household finances.
Their credit card debt is £25,000 and has decided to transfer this all to another credit card with a
0% deal for 2 years. They both feel that the debt is manageable but feel this can be payed of
when they are older.

Last month was his birthday and he won £500,000 on a lottery ticket from his brother.
He is unsure of what do do with it so contacted a financial adviser. He transferred this moeny to
a savings account, earning 0.4% AER.
- First thought was to pay off his mortgage and credit card debts but as his interest on his
mortgage and credit cards is so low, he believes that he can make his money work
better for him if he invests it into some low to medium risk investment funds.
- He would like to invest his money until it doubles in value, before paying off his debts.

Keiron is risk-tolerant and would prefer a medium risk investment fund so that his investments
would be spread, and he would not lose all his money if one company were to fail.

Research
- inflation / interest rate changes over the last 30 years to september 2022/ funds
- What to do with spare money
- Investing or debt repayment decisions
- If there are any exceptions to the rule that you should pay off your debts first