Financial curveballs
Emma Parkes
Church House Investment Management
Addiction and recovery
Emma Parkes , relationship manager at Church House Investment Management , looked after a married couple whose young adult son had been in and out of rehab for drug addiction . “ They had sent him to a famous clinic in America in a last-ditch treatment attempt ,” she explains . “ This clinic said that , for his recovery to work , he needed to be in control of his whole life , including his finances . “ The parents came to us because they wanted to remove him from their family business succession planning and hand him full control of his £ 150,000 portfolio . “ It was a big gamble for them because he obviously hadn ’ t proved himself to be terribly responsible , but they ’ d tried everything . His addiction was a huge life-changing event for them all .” Parkes has been working with him ever since , guiding him through the investment process . They have spent a lot of time discussing investment risk , as his high-octane approach didn ’ t seem like a sensible option given the instability in his life . In the end , they went for a balanced mandate that paid a small amount of income . “ The growth , disciplined attitude to taking income , and capital distributions he was receiving from family trusts meant that the pot doubled in five years ,” says Parkes . “ This allowed him to put down a deposit on a house and set up a business . While he did have a few wobbles early on in his recovery , he is now doing well , but sadly the stress of the situation contributed to the end of his parents ’ marriage .”
Issue 88 - October 2022 / 47 /