Four of the advisers at Investment Solutions have started 2018 attaining Certificates of Excellence from VouchedFor for their ratings based on client feedback for their services. Well done to all.
Ivan Lyons' Money Matters Blog
Money Matters, covering all things financial - the economy, investments, tax, savings, and other financial news. Scroll down to read the latest blog entry or click on a subject of interest to sort by topic.
It is that time of year again, so what financial resolutions should you be making?
How about - reviewing your investments?
The past few years have seen a steady flow of changes to the tax treatment of investment income, such as the introduction of the personal savings allowance and the reform of dividend taxation.
Feel free to contact us - Your Chartered firm of Independent Financial Advisers.
“Worthy” the Snowdog is helping Santa this Christmas.
If you go to our facebook page: www.facebook.com/financialadviserworthing
and you ‘Like and Share’ the post of Worthy in his Santa outfit, you will be entered into the draw to Win a Luxury Christmas Hamper.
The draw will close on Wednesday 20th December at midday and then the winner will be notified, so they can still collect their prize before Christmas if they wish.
Good luck and Merry Christmas from all at Investment Solutions.
More than three quarters (77%) of people are not currently using a financial adviser’s services for retirement planning, according to the Aegon Retirement Confidence Survey
The festive season is nearly upon us, spending time with your family and friends at Christmas is something we all look forward to. To celebrate the most wonderful time of the year, at Investment Solutions we are offering one lucky winning recipient a £50 M&S voucher. All you have to do is answer the questions in the slip below and then send/email to us before 31st December 2017. The draw will take place on 3rd January 2018 and the lucky winner will then be contacted. Good luck!
Infrastructure holds an important place in the fabric of modern society, serving as the backbone of the world economy.
The favourable characteristics of infrastructure can be accessed in different ways, but the attractions of investing in listed infrastructure companies include liquidity, access for retail investors to invest in the asset class, and higher yield and lower volatility relative to global equities.
What are the benefits for an investor’s profile?
The predictable cashflows generated by infrastructure assets provide clear diversification benefits for investors’ portfolios. History shows that investing in listed infrastructure enhances the returns generated by an investor’s equity exposure, while reducing the overall level of risk. The importance of taking a long-term approach cannot be emphasised enough because the longer the holding period, the more pronounced the potential benefit. Past performance is not a guide to future performance.
Interested? Feel free to contact us
• 5 million over 50s plan to continue working after reaching retirement, 300,000 of whom plan to never stop full-time work
• Those turning 65 this year could contribute estimated £7bn to economy through continuing to work
Research on over 50s’ retirement plans has found that half (49%) want to continue working in some form after reaching retirement. Of these people, 43% plan to switch to part-time work, while 6% do not think they will ever stop full-time work, up from 4% in 2016.
Based on these findings, Retirement Advantage analysis shows that if half of those turning 65 this year chose to stay in work they would contribute £7bn to the UK economy - £1.6bn from those staying in work full-time and £5.4bn from part-time workers.
Contrary to popular perceptions that financial worries are what drive older people to stay in their jobs, when asked why they are considering working past state pension age the most popular reason was that they simply like working (54%). The next most common reasons include work providing a sense of purpose (53%) and to avoid boredom (52%). 42% of the over 50s said they wanted to ease into retirement gradually. Needing the extra money comes in fifth (41%), with women more likely to be motivated by this than men (46% compared to 37%).
Andrew Tully, pensions technical director at Retirement Advantage, said: ‘The idea of cliff-edge retirements are put firmly in the past as half the over 50s have no plans to fully retire when the time comes. This generation will continue to make a significant contribution to the economy in the future and employers will need to consider how best to adapt to this changing employment landscape.
‘People clearly enjoy the social aspects as well as financial benefits of work, but there is a cautionary tale in these statistics. A significant minority do not plan to ever stop working, with the number increasing over the last year. This may be perfectly reasonable for some people but it may also reflect a growing pressure to work to be able to pay the bills.’
Retirement Advantage is also warning that plans to work beyond retirement have an impact on pension savings. Research3 reveals that 37% of working people using the freedoms to access cash from their pensions have continued to pay into a pension, while 19% say their employer has. Worryingly, 67% of these people are completely unaware of the Money Purchase Annual Allowance (MPAA).
Andrew Tully continued: ‘People gradually easing into retirement by working part-time may also have taken some of their pension benefits and could find themselves falling foul of the tax rules. Our research shows there is very little awareness of the MPAA which severely restricts the amount you can continue to pay into a pension once benefits have been taken.
‘Getting professional financial advice is a crucial step to ensure your financial plans remain on track, whatever the future may hold.’
Evidence given to a recent parliamentary select committee suggests millions of people could have lost some pension rights to some workplace pensions.
What can you do to ensure this doesn’t happen to you?
Keep up to date records of all your pensions, ideally annual statements. It’s also important to make sure pension providers and trustees have your correct address.
Review your pension provision with your adviser regularly to make sure you are on track for the retirement you want.
An estimated 8.4m people in the UK do not understand the UK’s pension death benefit rules.
A good starting point is to speak to friends or family to see if they have a relationship with a financial adviser that they are happy with. Alternatively you could use a website such as ‘Vouched For’ or ‘Check a Professional’ which will find advisers in your local area. These websites are like ‘TripAdvisor’, whereby genuine clients rate and review their financial advisers.
What should you look out for?
There are two ‘must have’ hallmarks when seeking a financial adviser - Independent and Chartered.
It is essential to find an independent adviser. Firms will be independent or restricted and by choosing an independent adviser they will be able to recommend to you products and services from the whole of the market, where as restricted advisers will have a more limited offering. It is also important to ensure the company does not have any connections to other companies - as this can create a conflict of interest, whereby you might not get the most suitable product.
Investment Solutions have done it again - we have been rated in the top 100 IFA's in the UK for the 2nd year running. It is very pleasing that given challenging conditions we are deemed as a leading IFA practice. Each & every member of the team made a significant contribution to our success and we thank them all for their endeavours. By putting clients first, acting within an ethical manner & treating clients fairly is paramount to what we do.
A Ford Sierra RS500 Cosworth that's done just 6,000 miles in three decades and is tipped to sell for £115,000
• The 1988 Ford Sierra RS500 Cosworth was sold by an exotic car dealer in 2007 for just £28,000
• Fast forward a decade and it could cost three figures when it sells at auction in Birmingham
• Just 500 were ever made and the one for sell is one of 58 that was finished in the boy racer's favourite white paint
The lucky seller will expect to make a tidy return, but we all know that for every one low mileage Cosworth there are a thousand Austin Allegro’s!
Need Independent investment or savings advice? We are here to help.
Did you know?
1 million+ pension pots have been accessed since the pension freedoms were introduced.
Need advice? We are here to help.
73% of those living as married do not have a life insurance policy. Source: Zurich
Would you welcome a life insurance review?
We are here to help.
HMRC’s latest pension freedom statistics show that over 500,000 people have withdrawn a total of £9.2bn from their pensions using the flexible rules since April 2015, with an average of three payments per person.
New research from Retirement Advantage among over 55s who have used the freedoms to access their pensions flexibly shows how people are using this money:
28% spent the cash on home improvements
26% put the money in a savings account, while 19% invested the money elsewhere
19% went on holiday
13% bought a new car
12% paid off the mortgage or other debts
………….. We doubt many Lamborghinis have been bought!
Retirement Advantage has revealed new research which shows a significant number of Gens x and y are receiving gifts from older relatives, with these ‘living inheritances’ helping out with the everyday cost of living as well as weddings, holidays and getting on the housing ladder.
The data shows 2 in 5 people (39%) aged 50 or over have helped children or grandchildren financially in the last six months, with the top five reasons for gifting being:
Birthdays 25%; university 23%; general loans 22%; paying off debt 19%; house deposit 18%.
'Living inheritances are clearly helping out cash-strapped children and grandchildren who may be struggling with the day-to-day cost of living. There are some simple rules to remember when gifting which should ensure you don’t fall foul of the tax man. The main thing to remember if you are aged 55 or over, and thinking of gifting some of your pension, is that any withdrawal over the first 25% is treated as income and will be taxed as such'.
Government website explaining the tax rules around gifting: https://www.gov.uk/inheritance-tax/gifts
Need advice? We are here to help
At present, only one-in-ten millennials is receiving financial advice, however, a third of those aged 18-34 aspire to have access to an adviser in the future.
At Investment Solutions whatever your wealth - we have solutions. We are here to help!
Positive market conditions coupled with the frozen nil-rate band have helped to significantly increase government inheritance tax (IHT) receipts this year. There are a number of ways to reduce your tax bill.
Need advice? We are here to help
The decisions people make at the start of their retirement may not fit with their future requirements later in retirement.
Second stage or mid-retirement is all about having a regular financial review in place.
Financial plans often need to adjust to meet changing circumstances and income needs.
We are here to help.
Investment Solutions are pleased to announce that our recent Art Evening raised a total of £260.34 for the Youth Adventure Trust charity.
Many thanks to all who attended, donated and to the Artists & Jewellers who were selling their goods on the night.