UBS Wealth Way

Stepping back from work: off to new horizons

Until recently, Rolf’s life revolved around his dental practice. Now he wants to gradually step away from his business and explore the seven seas. To do so, he needs to get his private finances on track.

Image: Getty

Even as a youngster, Rolf Z. (56) was enthusiastic about biology and natural sciences. As he was especially fascinated by the wonders of the human body, he later studied medicine – with a specialization in dentistry. At 34, Rolf opened his first dental practice. Over time, he discovered he was not just blessed with great dexterity but also with a good head for business. He completed an additional degree in business administration and began to open further practices at several locations in German-speaking Switzerland. For the last nine years, Rolf concentrated exclusively on the management and positioning of his dental practice.

Success also means commitment

Rolf doesn’t just owe his success to his market sense. To this day, he continues put a lot of work into optimizing his dental practice. He can often be found there long after the rest of his employees have gone home.

Aside from his business, Rolf has another passion: sailing. The waves, wind and vast ocean hold a magical sway over him. He obtained his sailing license a long time ago, but only has the opportunity to hoist the sail a few days each year. He and his wife Valerie (55) have long dreamed of an extended sailing tour of the world's oceans. Their son is grown up, meaning nothing stands in the way of their dream anymore – other than their responsibility for the company.

Bea, one of my site managers, knows the market just as well as I do. My life’s work is in good hands.

For a while now, Rolf has been toying with the idea of slowing down at work. He has already made a plan to gradually step away from his professional life. He would like to reduce his working hours to 80 percent by the time he is 60, and to 60 percent two years later – then to retire before the official retirement age.

“Bea will be able to successfully run the business without me,” he tells himself. In fact, Rolf has already introduced site manager Bea (44) to all areas of the business – and spoken to her about his succession. His life’s work will be in good hands. His son (23) is studying architecture and has no interest in running the company.

How can I cut back gradually?

But can Rolf afford to partially step back from his work or take early retirement without having to sacrifice his standard of living and future wishes? And what options are open to him in terms of company succession, and do they fit his hopes for the future?

“Our client advisor has always supported us in realizing our ideas, and often opened us up to new perspectives,” Rolf remembers, referring to his trusted “sparring partner,” as he calls him. Together with him, Rolf and his wife already created a UBS Wealth Plan a few years ago.

UBS Wealth Way: think about your finances in three dimensions

UBS Wealth Way is a holistic advisory approach to individually shaping your financial future. It defines three key strategies – liquidity, longevity and legacy – which are tailored to your short- and long-term life goals. This systematic approach fits Rolf’s entrepreneurial thinking well.

Liquidity for today

Maintain your lifestyle

You always have enough liquidity to maintain your current lifestyle, e.g., for:

  • Entertainment and vacations
  • Tax payments
  • Safety margin

Longevity for tomorrow

Achieve personal goals

You use your wealth for the long term to preserve your assets whilst achieving all your life goals, e.g., for:

  • Retirement security
  • Expenses for health and long-term care
  • Purchase of a second home

Legacy for others

Transfer wealth to future generations

You define what is important to you and how you want to help future generations or society, e.g., with:

  • Gifts for your family
  • Philanthropy
  • Wealth transfer to future generations

The desired change of course to Rolf's life means his UBS Wealth Plan also needs to change. Though your income decreases with partial retirement, your expenses may even increase if you travel. “This is why it’s even more important to plan your liquidity” explains the client advisor.

For a more detailed view, the client advisor consults a UBS financial planner. According to the specialist, when taking partial retirement, it is possible to avoid a gap in OASI provision and to continue to pay into your pension fund. For both liquidity and tax reasons, she advises staggered withdrawal of pension assets: “We’ll discuss your pension planning in detail today, so you can go into early retirement with no worries.”

Company succession: many factors come into play

For the client advisor it’s clear: the company succession must be planned sufficiently far in advance. When carrying out this transaction, financial, accounting, taxation and family aspects all need to be taken into consideration. The proceeds could then provide the foundation for a longevity or legacy strategy. With a tailored investment solution, you can finance your retirement, insure your family and even cover the odd sailing trip.

Structured consulting approach: UBS Wealth Way

Our proven consulting approach links your current life situation to your short- and long-term goals. Wealth planning comprises three key strategies: liquidity, longevity and legacy.

Assets mean responsibility – not just for yourself

Ideally, enough money will be left over to design a long-term legacy strategy. “My parents supported me financially when I started my career as an entrepreneur,” Rolf remembers. “That’s why it’s important to me to also leave something behind for the next generation.”

When the sea is choppy, we need to check if we’re still on course.

“We're looking forward to heading off to new shores,” Rolf and Valerie say at the end of their consultation. “But we should take stock of our situation on an annual basis and ensure your finances are still on course. If there are any changes, we need to adjust our sails accordingly,” the client advisor adds.

A compass for your finances

As an entrepreneur, Rolf knows that challenges and opportunities can change rapidly. He is all the more relieved that his UBS Wealth Plan can always be adapted to his circumstances – even in stormy times.

Wealth Way. The approach to your financial serenity

Benefit from the structured advisory approach to your wealth.

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