After the low-key Christmas that most of us had last year, many will be looking to reunite with loved ones and celebrate in style this December. But with rising energy prices, Brexit shortages, and pandemic chaos helping to hike up consumer prices, Christmas may be an expensive one.
The Office for National Statistics reports that UK inflation had surged from 3.1% to 4.2% in the 12 months to October.
This is the fastest rate increase in almost a decade, and with so many shoppers rushing to the high street in the lead up to Christmas, it seems inflation may continue to grow. According to a survey by the CBI, retailers experienced a dramatic increase in sales last month, while the UK saw its biggest Black Friday ever. Some estimates predict £9.2bn was spent over the weekend. So should we be worried?
Are interest rate rises ahead?
Those in-the-know predict the Bank of England may soon increase interest rates in an attempt to reduce the impact of inflation.
But if the last couple of years have taught us anything, it’s that nothing is certain and even the experts can get things wrong!
Many expected the Bank of England to increase rates back in November, but it postponed making any changes due to concerns over how it may affect unemployment.
And then we have the sceptics and the naysayers! Not all economists believe an interest rate rise is necessary. How much difference will it actually make? Could it be that the rise in inflation is temporary?
After all, the pandemic has had us doing a lockdown hokey-cokey for almost two years now. We’ve not long stuck our legs out the front door before we’re told to put them back in again!
This has made it hard for businesses to stay open, consumers to spend, and prices to maintain some stability.
The UK isn’t the only place to be affected by rising inflation. In November, the US recorded an annual inflation rate of 6.2%, its highest level in 31 years. Parts of Europe are experiencing similar spikes too, though it’s unclear which nations will be brave enough to increase the cost of borrowing.
So, what does all this uncertainty mean for you this Christmas and in 2022?
Borrowing could become more expensive
If interest rates rise, this could spell bad news for borrowers.
Whether you’re applying for a personal loan or a credit card, the interest rates available to you may be higher following an interest rate rise than they are currently. It can be a good idea to compare several different deals before opening a new line of credit.
Homeowners on a variable rate mortgage or those nearing the end of a fixed-rate period may see an increase in their mortgage repayments.
Hopefully, most people will only experience a small change, but there’s no harm in being prepared!
If you are able to fix, this could give you certainty over your repayments. In some cases, finding a new mortgage deal could leave you better off financially than you are now.
Give us a call if you need any help or guidance! It’s what we’re here for after all.
Saving could become more rewarding
Many people believe there’s been little incentive to save in recent years, thanks to what feels like an eternity of low interest rates.
Just a few years ago you couldn’t turn on the TV without seeing national treasure Martin Lewis praising high interest current accounts. Unfortunately, the banks became so frugal that he started telling us to switch energy suppliers instead! Now that good energy deals are few and far between, we can’t help but feel for the man.
Anyway, we digress. Generous current accounts are as rare as hen’s teeth and savings accounts aren’t any better.
If you’ve got cash in the bank, news of a potential interest rate may be music to your ears.
Could this be the start of something special? We’re hopeful that our savings might work a little harder in 2022, but we won’t hold our breath.
Investing remains essential for wealth building
If you want to build wealth for the future, investing is essential. A long-term financial plan that’s aligned to your goals is a sure-fire way to secure a comfortable retirement.
Many people have seen their stock portfolios decline in the last few days and some experts predict that uncertainty surrounding the new Omicron variant is responsible. But we’ve seen fluctuations like this many times before (remember the start of the pandemic?!) and it’s rarely a cause for concern.
Most stocks will recover, and some will continue to go from strength to strength.
Unless you need the money in the near future, step away from your laptop, and focus on having a good Christmas. At the very least, we’re hopeful it’s better than the last one!
Welcome to our latest issue. Inside, we look at a number of different topics to help you accomplish what matters most to you and your family as the festive period approaches.
In these uncertain times, it can help to focus on the things you can control. And working out what your money’s doing for you now and where it might come from in the future can give you real peace of mind.On page 6, as another year rapidly draws to a close, many of us may already be starting to think about what resolutions we can make to improve our financial health in 2021. And even though we may resolve to improve our finances, it’s knowing where to begin that’s key.
For the first time in over a decade, the point at which people can claim a State Pension (the ‘State Pension Age’) is simple. If you have reached your 66th birthday, you can claim it. Otherwise you cannot. Men and women born between 6 October 1954 and 5 April 1960 start receiving their pension on their 66th birthday. For those born after that, there will be a phased increase in State Pension age to age 67 in 2028, and eventually age 68 from 2037. Turn to page 3 to find out more.
There is no easy way to say it – anticipating one’s death is an uncomfortable topic. Yet it is often worth pushing past the initial discomfort to pursue the potential rewards of effective wealth transfer planning. On page 4 we consider the three places your assets can go at your death: to your family and friends, to charity or to the government in the form of taxes.
At the time of publishing this issue the Coronavirus Job Retention Scheme was due to end on October 31, but has been extended for a month throughout November as Prime Minister Boris Johnson announced England is moving into a second lockdown period. In order to reflect the extension of the furlough scheme for employed workers, Mr Johnson also announced self-employed workers will be able to claim government support worth 80% of trading profits for November.
A full list of the articles featured in this issue appears on page 2.
Your life, your money, your plan
Whatever stage of life you’re at, we can guide you through the opportunities and challenges you may face. We hope you enjoy this issue, and wish you pleasant reading.
Welcome to our latest issue. As the world continues to work out how to live with the coronavirus (COVID-19) pandemic, many will agree that the new normal needs new thinking.
The pandemic has unleashed changes that seemed unthinkable only six months ago. Along with the health, safety and well-being of family, friends and loved ones, the new normal has also highlighted the need for financial guidance and support during this turbulent period.
Saving into a pension is one of the most tax-efficient ways to save for your retirement. Not only do pensions enable you to grow your retirement savings largely free of tax, but they also provide tax relief on the contributions you make. On page 10, we look at the various pension allowances that you need to be aware of and help you understand how to make the most of them.
While the number of couples divorcing has decreased in recent years, the cohort of couples deciding to split in later life is on the rise. Splitting with a spouse in your forties, fifties or even later can bring with it many complications. What’s the reason for the boom in so-called ‘silver splitters’? Turn to page 9 to find out.
Giving up the 9-to-5 doesn’t necessarily mean stopping work. On page 3, we explain why many people are now considering staggered or flexible working. It can suit some individuals who have caring responsibilities or health issues, or those thinking about retiring in the next few years.
We are living in extraordinary times right now, in the grip of a global coronavirus (COVID-19) pandemic. Families are becoming more open about their finances, with the COVID-19 crisis highlighting the need to discuss Wills and inheritance. Read the article on page 6.
A full list of the articles featured in this issue appears on page 2.
We hope you enjoy this issue, and if you require any further help or guidance, please do not hesitate to contact us – we’re here to help and support you and your family.
Welcome to our latest issue. A return to how life was at the start of 2020 is some way off. Even now that lockdown restrictions are starting to be eased, coronavirus (COVID-19) will continue to affect our lives in many ways.
Whether you have earned your wealth, inherited it or made shrewd investments, you will want to ensure that as little of it as possible ends up in the hands of the taxman and that it can be enjoyed by you, your family and your intended beneficiaries. On page 10, we look at why, without an appropriate estate plan, your family may end up spending a substantial amount of time and money battling over your assets if you pass away.
The COVID-19 pandemic has had a dramatic effect on the global economy. Around the world, economic activity has dried up. Fewer consumers are buying and fewer companies are investing. But if you take the view that inflation will start to go up in the long term, on page 6 we look at why it is worth considering whether your savings and investments could be affected. After all, you need your investments, and the income from them, to keep pace with inflation to maintain the value of your buying power.
There are lots of variables in retirement: how long people will live for, the costs of goods and services they will need, interest rates available on their accumulated savings, and so on. But once you have retired, investing is anything but straightforward. On page 4. we discuss how to avoid having insufficient income to pay your projected retirement expenses.
Sharper focus on money
The coronavirus crisis has drastically changed all aspects of life as we know it, but it has also brought a sharper focus on money, particularly on how prepared we are to weather unexpected financial events. We hope you find this issue useful, and if you require any further help or guidance, please do not hesitate to contact us.
A full list of the articles featured in this issue appears on page 2
Welcome to our first edition for 2020. Inside this issue, we feature articles covering a number of different topics to help you successfully grow and protect your wealth.
Whether it’s stopping smoking, losing weight, eating more healthily or getting fitter, most of us have probably made at least one New Year’s resolution, but how many of us will actually go on to achieve it? We all have different financial goals and aspirations in life, yet these goals can often seem out of reach. On page 4, if your New Year’s resolutions include giving your financial plans an overhaul, we’ve provided our financial planning tips to help you create a robust financial plan for 2020 and beyond.
Estate planning is an important part of wealth management, no matter how much wealth you have built up. It’s the process of making a plan for how your assets will be distributed upon your death or incapacitation. On page 8, we consider why having an effective estate plan in place will not only help to ensure that those you care about the most will be taken care of when you’re no longer around, but it can also help minimise Inheritance Tax (IHT) liabilities and ensure that assets are transferred in an orderly manner.
It’s a dream for many that after years of hard work, it’s finally time to travel to far-off lands and enjoy retirement without worrying about finances. With milder winters, warmer summers and the potential to get more from your pension pot, it’s not surprising that some people decide to retire abroad. On page 12, read about how, with some planning beforehand, the dream of retiring abroad can become a reality. A full list of the articles featured in this issue appears on page 2.
Financial planning advice that is tailored to your needs
Everyone has unique goals in life, and with professional financial advice and guidance tailored to your needs, we can help you get there. The start of a new year is the perfect time to discuss your financial plans. Please contact us – we look forward to hearing from you.
Welcome to our latest edition. At the time of writing this issue, Sajid Javid had resigned as Chancellor of the Exchequer with less than a month to go until Budget Day. His replacement, Rishi Sunak, will deliver the Budget on 11 March 2020. In our next issue, we’ll look at the key announcements and how they could affect your finances.
Some of the questions our clients almost always ask us are: ‘Will I be able to retire when I want to? Will I run out of money? How can I guarantee the kind of retirement I want?’ Worryingly, it’s been well documented that many Britons aren’t saving enough in their pension for their retirement. On page 08, figures published by HM Revenue & Customs (HMRC) in September 2019 show that the annual average contributions that every individual makes decreased in 2017/18 compared to 2016/17. We look at what you need to consider when saving for retirement.
The end of the 2019/20 tax year is fast approaching, and there are a number of valuable allowances and reliefs that will be lost if they are not used before the deadline. These opportunities include, but are not limited to, four important areas of tax planning that should be considered. On page 03, we’ve summarised these allowances and suggest that if appropriate to your particular situation, these areas should be reviewed before 5 April 2020.
Are you worried about leaving an inheritance to your loved ones and then having them pay tax on your legacy? No one likes to think about a time when they won’t be here, but unfortunately the reality is that some people aren’t prepared financially. Estates that pass on to a spouse, registered civil partner or charities are exempt from Inheritance Tax (IHT), even if the value of such estates is higher than the threshold limits. Estates that pass on to anyone else, including siblings, children and grandchildren, attract IHT. Turn to page 7.
A full list of the articles featured in this issue appears on page 2.
An understanding of your financial needs and aspirations
We hope you enjoy this issue. Whether you’re saving for the future, enjoying your retirement or funding care in later life, if you have any further requirements, please contact us – we look forward to hearing from you.
Welcome to our latest issue. It has been a very challenging time for many of our clients, their families, their employees and the wider business community.
During this difficult time, we hope you’re staying safe. The ongoing news of the impact of the coronavirus pandemic and how it is affecting everyone is a huge concern for us all. Understandably, people are worried about the general economic outlook and their own personal finances.
The Government’s actions to help businesses and households manage the short-term economic disruption, such as interest rate cuts and rescue packages, have been positively received, but the intended consequences are yet to materialise.
The Government has created new legal powers in the COVID-19 Bill, enabling it to offer whatever further financial support it thinks necessary to support businesses. On 17 March, the Chancellor, Rishi Sunak, announced an unprecedented package of government-backed and guaranteed loans to support businesses, making available an initial £330 billion of guarantees – equivalent to 15% of the country’s GDP.
This was on top of a series of measures announced at Budget 2020. The Government announced £30 billion of additional support for public services, individuals and businesses experiencing financial difficulties because of COVID-19, including a new £5 billion COVID-19 Response Fund to provide any extra resources needed by the NHS and other public services to tackle the virus.
During these challenging times, there has also been an increase in the number of fraudulent scams. Individuals are at increased risk of being exposed to financial scams – including those involving phishing emails and cold calls – in an attempt to obtain personal or sensitive information. Be extra vigilant and do not respond to any correspondence which you are unsure about – letters, emails, phone calls, text messages, etc.
A full list of the articles featured in this issue appears on page 2.
Harnessing our expertise to meet your needs
As the COVID-19 pandemic continues, inside this issue, we look at a number of areas to consider during this difficult time. If you require any further assistance, please do not hesitate to contact us
Welcome to our latest edition. Inside this issue, we look at a number of the topical financial planning stories making the news agenda.
Creating and maintaining the right investment strategy plays a vital role in securing your financial future. But we live in the era of the 24-hour news cycle, and ‘bad news sells’. The investment world can be unpredictable, and investors currently have plenty of bad news to process, with a plethora of events making the daily and even hourly news headlines – from the US-China trade conflict and oil price volatility, to Britain's exit from the European Union. On page 6, we consider why it’s important to stay positive and focus on your investment goals.
Once we enter January, the end of the 2019/20 tax year will be just over three months away on 5 April. As this date approaches, the window of opportunity reduces if you want to make the most of valuable allowances, reliefs and exemptions that could help reduce your tax bill and make sure your finances stay tax efficient. Read the full article on page 4.
On 3 October, campaigners lost a significant legal battle against the Government's handling of the rise in women’s State Pension age. The retirement age for women has increased from 60 to 65, in line with men, and will go up to 66 by 2020, and to 67 by 2028. Nearly four million women have been affected by these changes. On page 8, we consider the impact of the High Court's decision.
Also inside this issue, we look at whether some people are ‘sleepwalking’ into retirement and how much you will need to save to afford a comfortable retirement. We assess, too, how the financial implications of divorce, added to the emotional upheaval, can be difficult to deal with. A full list of the articles featured in this issue appears on page 2.
Welcome to the latest issue. At the time of writing, the UK Government said it is ‘ready and willing’ to do a deal to leave the EU if new terms are negotiated with Brussels. But the new Prime Minister, Boris Johnson, has vowed the UK will leave the EU ‘come what may’ by 31 October – the date the UK must depart if no deal has been reached.
Even though we don’t definitively know what the impact of Brexit will be on both the UK’s and other countries’ economies, it doesn’t mean this is necessarily a bad time to invest internationally. Any well-run investment portfolio should include exposure to companies from around the world. This gives investors access to a greater range of opportunities and allows portfolios to be insulated from any shocks that could affect individual economies.
Saving for retirement is one of our greatest financial priorities, especially as life expectancy is growing and retirements are likely to last longer. It may be the case that you want to take the reins and have more control of your pension pot. Turn to page 6 to see how, for appropriate investors, one option to consider is a Self-Invested Personal Pension (SIPP).
Nobody wants to worry about how they’ll pay the bills if they become sick or injured and can’t work. But illness or injury can strike at any time and can lead to serious financial trouble. On page 12, we look at the latest government figures that report the dramatic increase in the likelihood of long-term sickness absence when we age, leading to an employment absence of four weeks or more.
Also inside this issue, we look at how to spot the warning signs if you’re approached by a pensions scammer; consider the winners and losers under the new State Pension; and if you have accumulated a number of pension pots over the years from different employers, why consolidating them could be appropriate. A full list of the articles featured in this issue appears on page 2.
We hope you enjoy this issue. To discuss any aspects of building, growing and protecting your future financial plans, please contact us – we look forward to hearing from you.
Welcome to the latest issue. Inside, you’ll find an array of articles about how we can help you further to plan, grow, protect and preserve your wealth. As we all know, the ultimate goal money can buy is financial freedom.
Volatility fluctuates based on where we are in the economic cycle, but it is a normal feature of markets that investors should expect. From the unfathomable Brexit playbook and the continued prominence of populist ideology, to unconventional US foreign policy and the retirement of Draghi, the highly respected European Central Bank president, uncertainty prevails. On page 6, we consider why it is essential not to panic and to keep a perspective when markets are turbulent.
On page 5, we look at passing on wealth and why it is a sensitive subject, not just because of the financial complexities of it all, but also the emotion and family politics involved. Having built up their business or wealth, many families often wish to enjoy it whilst also ensuring that it is passed on to the next generation in their families. But some people find the idea of discussing passing on wealth uncomfortable.
Today, you’ve got a number of options and permutations available when it comes to what to do with your pension in retirement. But lots of choice can also mean increased confusion. Your retirement might seem like a far-off prospect, but knowing how you can access your pension pot can help you understand how best to build for the future you want. Turn to page 10 to look at your options.
Also inside this issue, we suggest the ‘Top 5’ list of tax planning areas to consider now; ask ‘Should you invest into a pension or an ISA?’; and explain how to prepare your portfolio for inflation. A full list of the articles featured in this issue appears opposite.
Want to discuss your requirements?
We hope you enjoy this issue. And to keep things in perspective, the journey of a thousand miles must begin with a single step. We think that sums up what we do very nicely. Thank you for your continued support. To discuss your situation, please contact us – we look forward to hearing from you.
At the time of writing this issue, the uncertainty around the terms of Brexit have been extended to a new deadline set for 31 October. All we can do is expect the best, prepare for the worst and capitalise on what comes.
Inheritance Tax is no longer something that only affects the very wealthy, but the good news is that there are ways to limit the amount of Inheritance Tax your family may potentially face. You worked hard to earn your wealth, so let us work hard preserving it. On page 6, we look at how you can help your family maintain its financial strength from one generation to the next.
You want to pay the minimum amount of tax legally possible. We want that for you, too. The 2019/20 tax year started on 6 April and, in general, taxpayers will have more money in their pocket after increases to allowances came into force. However, there are a few losers, in particular those selling shares and buy-to-let landlords. To find out more, turn to page 3.
Making a Will is very important if you care what happens to your money and your belongings after you die, and most of us do. On page 11, we consider why discussing your Will with beneficiaries means they are better prepared when the time comes, even though you may be nervous about raising the topic.
A full list of the articles featured in this issue appears on page 2.
Achieve your financial goals
We hope you find this issue useful. Whatever your goals in life are, careful planning and successful investing of your wealth can help you get there. If you would like to speak to us about your financial goals, please contact us – we look forward to hearing from you.
Welcome to our latest issue. Robert Kiyosaki, the American businessman and author of the best-selling book Rich Dad, Poor Dad, once remarked, ‘Making money is common sense. It’s not rocket science. But unfortunately, when it comes to money, common sense is uncommon.’ As we continue into 2019 with the uncertainties surrounding Brexit, we look to de-mystify the ever-changing landscape of the financial world.
What better place to start off than tax-efficient investing? Each tax year, we are each given an annual Individual Savings Account (ISA) allowance. The ISA limit for 2018/19 is £20,000, and anyone wishing to utilise their allowance should do so before the deadline at midnight on Friday 5 April 2019. The date marks the end of the 2018/19 tax year. It is a ‘use it or lose it’ allowance, meaning that if you don’t use all or part of it in one tax year, you cannot take that allowance over to the next year. To find out more about your ISA options, turn to page 6.
Over time, with life expectancy and the cost of living rising, it could mean that some retirees are at risk of running out of pension income in later life. On page 4, we consider what you can do to make sure that you have a big enough pension to meet your needs for your entire retirement.
This time of year is your last chance to get your tax affairs in order before the end of the 2018/19 tax year. On page 12, we’ve provided a summary of some key tax and financial planning areas which may be appropriate to certain taxpayers and should be considered prior to the end of the tax year.
Some people may believe that since they have reached their 60s and ‘retired’, the hard work is over. But there are probably another three or four decades ahead, so it’s not the time to be without expert professional financial advice. Turn to page 3 to read the full article.
At the time of writing, the UK Government is still in negotiations with the European Union over the terms of its planned withdrawal on 29 March 2019. The challenges facing the UK economy are unclear. On page 10, we look at some potential financial scenarios. We hope you enjoy this issue. A full list of the articles featured in this issue appears on page 2.
Ready to make your next big decision?
Whatever your next step is in life, we’ll help you make your next big decision easier by getting the most out of your finances. To discuss your situation, please contact us – we look forward to hearing from you.
In this New Year edition, the start of 2019 is the optimum time when you may be thinking about resolutions and plans for the year ahead and beyond. It’s a good time to start planning your tax affairs before the end of the tax year on 5 April. And as you think about 2019 and your goals for the coming year, we’ll help to start you off on the right financial footing. Turn to page 4 to find out more.
As part of our continuing look at tax-efficient saving and investing, on page 6, we shine a spotlight on some of the different options available. Whether you consider yourself a savvy investor or a financial novice – and no matter what, why or how you want to save and invest – an Individual Savings Account (ISA) could help make your money work harder for you.
You may want to keep an element of control when passing on your assets. You may want your money to be used for a particular reason, such as paying for school or university fees or for a first property deposit. Or you may just want to make sure your money stays within the family. On page 11, we explain how intergenerational planning will help.
Plus, women will now start to qualify for the State Pension at the same age as men, currently set at 65. On page 3, we look at how the move to equalise male and female pension ages began 25 years ago and has been gradually phased in.
We hope you enjoy this latest edition and find it valuable. A full list of the articles featured in this issue appears on page 2.
Welcome to our latest edition and our customary collection of articles designed to help you create and protect your wealth to be able to experience life to the full.
As a parent, guardian or grandparent, you’ll want to provide the best future for your children or grandchildren that you can. Christmas is an excellent time to encourage children to start thinking about the value of money. Many children have hundreds of pounds spent on them at Christmas, but could that money be put to better use? Turn to page 4.
Although the current tax year does not end until 5 April 2019, tax planning shouldn’t be a mad March rush. Now is the perfect time to get a head start on your tax planning resolutions to enhance your own, your family’s or your company’s tax-efficient plans for the future. On page 3, we have set out some tax tips and actions that may be appropriate to certain taxpayers.
Throughout our lives, we will have many different lifestyle and financial goals that we would like to achieve. Although we all have different goals, there are some key goals that we’ll have in common, especially when it comes to retirement. What do you want from your investments? Supplementing your income? Building your retirement pot? Read more on page 6.
A pound saved is a pound earned. But thanks to inflation, over time, the value of the pound saved could be much less than when it was earned. One cannot ignore the corrosive impact of rising prices on investments. On page 11, we look at ways investors can easily fail to prepare for the risk of inflation eroding the purchasing power of money, especially in a low-inflation environment.
A full list of the articles featured in this issue appears on page 2 – we hope you enjoy them.
We don’t know what the future holds, but a little preparation goes a long way when it comes to planning for the future. We hope you enjoy this latest edition. If you want to discuss any of the topics featured, we’re here to help. To review any area of your financial plans, please contact us