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Just before baby Andrew's 5th birthday, Brian is made redundant from the council, the same day that Judith is confirmed pregnant with twins. It takes eight months before he is earning again. In the meantime they live on the redundancy money as well as their savings, investments and earnings from Judith's part-time tutoring and coaching from home.

Whilst looking for employment, Brian is also pitching for self-employed consultancy work. A research project undertaken for a client six months after redundancy (paid almost three months later) reveals a gap in the market for certain types of pumps, filters and piping for use in the waste disposal industry.

He contacts a number of ex-colleagues, and eventually Brian and two others, Simon (aged 35) and Jack (aged 52), decide to go into business together to manufacture these items. Brian has 60% of the business, the others with 20% each.

They have to put up a total of £50,000 to start the business and each take out business loans secured on their own properties. All three are in good health, although Jack smokes 60 cigarettes a day.

1. Given this sudden change in direction, how do you think the advice/actions in previous phases stands up? Should anything have been done differently, with hindsight?

2. Do you know what Brian's likely redundancy entitlement would be? How do you think he should approach his investments and protection arrangements in the short-term, while he is looking for a job?

3. What would you say could be the advantages and disadvantages of Brian going self-employed?

4. What practical steps should Brian and his partners take in the areas of:

   1. Tax and National Insurance?

   2. Protection?

5. Taking account of the fact that Brian is now self-employed and Judith's changed circumstance, do you think that they should review their insurances? In what ways?

Review of previous planning

The advantages and disadvantages of self employment

Business advice

Considerations

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.