Setting up a business: daring to make a fresh start

Up to now, Karin S. (51) has made her way successfully through life. After her journalism degree, she quickly worked her way up from a PR assistant to head of communications at a multinational company. Her words carry considerable weight with senior management. And thanks to her friendly manner, she has been able to build up a wide professional network over the years – also in other industries.

Things are also running smoothly in her private life: she lives with her family in a detached house with a view of the lake. After 24 years of marriage, she and Philipp (49) still seem like newly-weds. And everything is going as planned with their children: Jonathan (22) has started his history studies and Jessica (19) will soon complete her training in architectural drafting, graduating with a with a vocational baccalaureate.

I'd like to make my culinary dream a reality, without gambling with my financial security.

Both children live at home, but they increasingly stand on their own two feet. Jessica gets by on her apprentice wage, while Jonathan works a side-job as a waiter. Philipp has already significantly cut back on his working hours as a freelance tax advisor so he can take care of the children and give Karin the time for her career.

Anyone who knows Karin well knows that she has one more thing she wants to try that doesn't allow her to rest, despite her previous successes. She's been a keen cook since she was young, and comes alive when she hosts guests. She dreams of starting a new culinary experience, which she hopes will excite people across all of Switzerland. Karin has already swapped ideas with contacts and businesspeople from the food industry and can rely on considerable know-how and support. She has already devised an initial business plan, that shows how the concept could be expanded across multiple sites.

Karin can also count on her partner’s support. “I’ve always loved your cooking. You’re sure to appeal to a broad range of tastes,” Philipp smiles, and encourages her: “The children have grown up, and you’re perfectly equipped to build up a business like this. Let’s try our luck!”

Both Karin and Philipp have structured their finances according to the UBS Wealth Way advisory approach for years. UBS Wealth Way offers the ideal framework for planning your financial future – holistically, so that nothing is forgotten. It defines three key strategies: liquidity,longevity and legacy and tailors them to your short- and long-term life goals.

What does this professional reorientation – a leap into self-employment – mean for Karin and Philipp financially? “We need to rethink their liquidity strategy,” the client advisor explains. Instead of a monthly income, Karin will receive irregular income from the business in future. Philipp will also have to accept losses, as he wants to actively lend a hand in the realization of the business. But to enter the market, they first of all need investment.

The good news: “They have saved up financial reserves. And because their finances are structured according to UBS Wealth Way, it’s easy to adjust them to fit new scenarios,” the client advisor says. On the one hand, she completes a detailed liquidity plan. On the other, she connects Karin and Philipp with specialists from UBS’s network for startups, with whom they can discuss what it takes to found a company and plans for growth.

After a comprehensive analysis, the couple will draw their start-up capital from various sources: Karin will have half of her pension fund paid out and sell her shares in her previous employer. In addition, both Karin and Philipp will contribute liquid assets to the project to create a new gastronomical experience. To be on the safe side, the business plan takes into account a longer dry spell until the project reaches the break-even point.

We want to pass our values on to our children.

As Karin is withdrawing part of her pension savings early, the client advisor specifically addresses the longevity strategy. She enlists a financial planner who, together with Karin and Philipp, takes a close look at the options regarding pillar 3a, vested benefits accounts and pension funds.

“The earlier you get your pension planning on track, the more room to maneuver you’ll have,” the advisor explains. This is because the legal framework, pension fund regulations, taxes and personal situation all come into play, which is why there is no one-size-fits-all recipe.

What about the legacy strategy? Even though they’re both still in their prime, Karin and Philipp discuss this with their client advisor. Family is close to their hearts. “We want not only to pass on our values to our children, but also to support them financially,” Karin states. For example, she would like to give her offspring an advance inheritance or support them in buying a home if they want to start a family.

“That’s a lovely idea. And it's also realistic if we plan it together with our pension expert,” the client advisor says.

This information is helpful to Karin. She is looking forward to making her dream a reality. “We’ll check if the UBS Wealth Way plan is still a good fit in a year,” the client advisor concludes.