Personal Planning

Family Protection

Looking after your family and ensuring that there are adequate funds to cope with the unexpected will probably be the most important part of your financial planning. Whether you are concerned with the need to provide for your family if you die or feel that your greatest risk is from illness, there is a product to meet your needs.

Illness, job loss or the death of a wage earner can plunge families into real financial difficulties. Taking a little time to assess your risks and work out how much money you would need to cover a mortgage, debts and provide your family with an income for the future, could be the most sensible thing you do today.

With all the insurance products now available it is important to seek independent advice in order to ensure protection is built to meet your needs now and in the future as your circumstances change.

Retirement

Most people recognise that it is wise to plan for their retirement. This is especially true for those who are hoping to retire before the usual Statement Retirement ages.

Putting aside a regular amount of money during your working life is probably the best method to ensure that you will have sufficient income during your retirement. Investing into a pension plan has historically been the most popular method of making these regular commitments.

The tax advantages offered by the UK Government provide the opportunity for your contributions to receive tax relief and for your pension fund to grow with virtually no tax. You are also currently allowed to draw a significant amount of your pension fund as a lump sum with no tax payable.

Pension legislation has seen many changes over the last few years and indeed is currently going through a further major change. Many clients have pension plans that have not been reviewed for many years and are therefore not benefiting from the advances that have been made in this marketplace. Seeking independent advice will allow you to have your pension assessed against the whole market and if appropriate, give you the opportunity to improve your pension.

Personal Investments

Whether you have been lucky enough to win money on the lottery, have had an inheritance from a wealthy relative or managed to build a lump sum by saving on a regular basis, your money should be wisely invested so its spending power is protected for the future.

Unfortunately, many people leave large amounts of their money sitting on deposit in banks or building societies. Although this might be seen as safe, traditionally this money has not been well protected against the rise in inflation.

It is important that your money is invested in the right place for you which means taking into account many things including accessibility, income requirements, attitude to risk, and your goals for the future. Financial institutions offer a wide range of products in which to grow your money but such choice can be very confusing. By taking independent advice your needs, desires and goals will be assessed and the most suitable investment found for you.

When considering any investment you must note that past performance is no guide to possible future investment returns. The value of your investment and the income you receive from it may fall as well as rise.

Mortgages

Getting the key to your first home is one of the greatest moments in life and there are few things more exciting than buying the perfect property for your needs. Whether you are a first time buyer starting out on the property ladder, require more space for the family or are looking for an investment property to rent, it is likely you will need a mortgage to help you make your move.

Alternatively, you may be looking to capitalise on the growth in value of your property to help you with other projects. Re-mortgaging a property to provide money for a business, home improvements or perhaps debt consolidation is now a very common occurrence.

Staying with the same mortgage company for the lifetime of your mortgage is now unusual and most people look to move their mortgage to take advantage of better rates and deals that can be obtained on moving to a new lender.

Finding the most suitable mortgage to meet your needs and circumstances can be a problem, simply because there is now a wide choice of mortgage lenders and a number of different mortgage types. Therefore it is important to seek independent advice so that you know that you are getting the best deal for your circumstances and to take away a lot of the work!

When considering any mortgage finance you must understand that this is a significant financial commitment. Loans are often subject to checks in respect of your ability to repay the debt and the value of the premises that you wish to purchase.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Inheritance Tax

Inheritance Tax (IHT) is a tax that is levied on your estate when you die and pass your estate to your beneficiaries, although normally assets passed to your spouse are exempt from IHT.

It is calculated by working out the value of all your assets and then levying the tax as follows:-

£0 - £312,000 Nil Rate Band (no IHT payable)

Over £312,000 IHT payable at 40%.

As an example if all your assets total £500,000 on your death the liability to IHT would be £75,200.

Your estate includes all of your property, investments, cash, cars etc.

In March 2006 the Government announced sweeping changes to the rules surrounding mitigation of IHT. With careful planning an IHT liability can be reduced but it is important to seek independent financial advice before it is too late as often this is more difficult to do with elderly clients.