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Tony and his wife, 65


Isas and Sipps invested in shares, funds and retail bonds, cash, residential property


3 per cent annual income from investments, preserve capital value, make gifts to children to reduce their IHT liability, keep money for possible care costs

<p>Isas and Sipps invested in shares, funds and&nbsp;retail bonds, cash,&nbsp;residential property</p>

Tony and his wife are 65, and have two sons and two grandchildren. Tony retired four years ago after a career in corporate banking, and he and his wife each receive a final-salary pension and the state pension. The payments from these add up to £35,000 a year, and they top this up by drawing about 3 per cent a year from their investment portfolio. Their home is worth about £900,000 and mortgage-free.

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