Making sure you have enough money to retire on...

At Enable Independent we strongly believe that a flexible approach to life planning can enable you to work around economical and personal changes. This includes making sure that you have enough money to live on when you retire.

A new survey by LV (a large UK insurance broker) stated that men and women in retirement who have an income of £154 per week, are left with only £8 per week after essential living costs. They have also predicted that this situation will only get worse as the people over 50 find it harder to pay into pensions because of the rise in the cost of living. They have also estimated that £2.3 has already been lost in retirement savings as the over 50 continue to reduce their contributions.

They claim pensioners feel as though they are only left with what amounts to pocket money each week. This has forced millions of over 50’s to really rethink their retirement plans including working much longer than previously expected, 27% of over 50’s currently have no retirement plans in place.

If you are over 50 and are worried about your retirement plans, then give one of our IFAs a call and we will be able to give you impartial advice on how you can plan your retirement, and investments and possibilities that could help you to save for a securer future. 

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE. 

Government proposals to increase PPF payout to long-serving staff...

Enable Independent, IFA’s in Bishop’s Stortford are pleased to see that the Government is putting forward proposals to increase the pension payout to long-serving staff if their employer's business goes into liquidation.

Under current legislation the length of service is not taken into account if a person enters the PPF, Pension Protection Fund, the fund for members of a defined benefit scheme.

The PPF currently pays different types of levels, at the moment if someone is over the pension age who’s scheme employer goes bust they receive 100% of the money, uncapped, however if someone is under the pension age they are only entitled to 90% and the amount is capped to £31,380.

The Government plans to increase the maximum level for those receiving capped compensation to 3% for every year of service over 20 years. Under these new plans someone who would have contributed into a pension pot for 40 years would have accrued a pension of £50,000, and they would receive £45,000 rather than the £31,380 if there is insufficient funds to pay out.

Pensions minister Steve Webb stated: “People whose employer becomes insolvent can already get compensation when they retire through the PPF. But the scheme does not recognise the long service of those who were members of their pension scheme for over 20 years.

“It cannot be right that someone who has been with a company for much of their working life – and relies heavily on that for their pension income – gets the same in compensation as someone with far shorter service and who could also have other pension income to fall back on.

“I want to ensure that those who are or could be affected will in future have their long service recognised in the form of higher compensation.”

If you are currently paying into a pension scheme and would like some independent advice, why not contact your local IFA.


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

The need for more landlords and BTL lenders to offer longer tenancy contracts....

There are now over 8.5 million people who are living in rented homes across the UK, and with the average tenancy term only being 12 months, tenants are finding it hard to feel as though the property they live in feels like home.

After this period of tenancy, if the landlord wishes to carry on renting out their property, the tenant is asked whether they would like the security of extending the rental contract which normally costs in excess of £100, or face living in fear of either the rent increasing or having to leave with only two months notice.

In other countries in Europe such as France in Germany, most of the power swings over to the tenant, with normally a minimum of a three years rental contract, which gives the tenant reassurance that if they have children they can keep them in the same school, and so fourth. 

Enable Independent Advisor's in Bishop’s Stortford are very aware of the stress these short tenancies can cause for people not being able to get onto the housing ladder, so we were pleased to see that Nationwide Building Society are now trebling the maximum length of tenancy allowed to landlords, increasing the term to 36 months.

Most other buy-to-let lenders currently restrict landlords from offering any more than 12 months, so this is a great move for Nationwide, as the need for longer term contracts increase.

If you are looking to access a buy-to-let mortgage and would like to find out more about the best BTL offers in the market place, why not contact our team of Independent Financial Advisor’s in Bishop’s Stortford, as we have access to the whole market place, and are not stuck with a fixed amount of mortgage products we can offer you.

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

The average UK property price exceeds £250,000 for the first time…

Enable Independent, Independent Financial Advisors in the UK have noted that the average property price in the UK has exceeded £250,000 for the first time, according to new research.

Since George Osborne announced the Help to Buy scheme in March the average house price has increased by 1.2% taking the cost of an average home to £252,798. Prices in London have also reached a new record, with the average price of a home in the capital being £515,243.

However in other areas of the UK; including North Humberside, Yorkshire and Humberside, East Anglia and Wales property prices have continued to level out, although according to Rightmove property prices in these areas have also started to show signs of improvement.

Rightmove said that people with property in the South East will benefit the most from rising prices, as people are finding themselves pushed out of London and into the surrounding areas.

Although the Help to Buy scheme will not be officially launched until 2013, it has created excitement amongst property investors who feel that as first-time buyers will be in a better position to buy homes, which will have a positive effect on property prices in the UK.

Some critics of the Help to Buy scheme, including the IMF (International Monetary Fund), feel that it will simply create an artificial housing bubble, making it even harder in the future for people to get onto the housing ladder. However Rightmove feels that the new scheme will help banks to access cheaper funds which they can pass onto customers.

Mile Shipside, housing market analyst at Rightmove stated: "Agents report that with Help to Buy for the wider market due in January, some buyers are pre-empting any potential scheme-induced price rises by doing a deal now."

Homeownership is still very important for younger people, but even with the launch of this new scheme most 20-45 year old still believe that they will probably not be able to get onto the housing ladder.

If you would like to find out more information about the Government’s proposed scheme, why not get in touch with our team of friendly Independent Mortgage Advisors.

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Watch out for increased charges if flying with a budget airline this summer...

Enable Independent, IFA’s in Bishop’s Stortford know that it’s at this time of year when many of us will be flying abroad to get some sun, especially after the long wet spring we have had. However people trying to save money by traveling on budget airlines might have to pay more than they anticipated this year.

International airlines made £17.3 billion just in extra charges and fees last year according to new research. Nearly 20% higher than in 2011, and more than double airlines earned from charges in 2009.

Following the recent clamp down on credit-card charges these canny airlines have managed to make up the money else where, charging even more for services such as hold baggage and people who are traveling with babies.

For most of us if we are flying away for a weeks holiday we will want to take more than a plastic sandwich bag worth of cosmetics and toiletries, plus clothes for a week and electronic goods, and at the moment the only weight allowed free is 10kg.

If a family of four each want to take a 20kg bag to France this year this will cost an extra £360, if you want to take a 15kg bag the cost will be £280 flying with Ryanair. If you fail to book your bag on-line before your fly – and make sure you do get the confirmation email, as otherwise you might find you have to pay up to £140 for 20kg bag per flight – almost as much as the contents are probably worth. For a family of four this would cost an extra £1,120 just in extra luggage.

Easy jet has also increased their baggage prices this year, from £18 to £19 for a 20kg suitcase, still less than Ryanair.

If you are traveling with children, it will now cost you an additional £60 for a flight for a child under two traveling on your lap, which is sometimes more than the cost of a flight.

The best advice we would give if you’re considering using a budget airline is to take time to research all of the additional costs before booking.


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Shake up of unemployment welfare…

Enable Independent, Independent Financial Advisors in Bishop’s Stortford noted that a think tank would like a shake up unemployment welfare in the UK, proposing an unemployment based savings scheme, backed up by guarantees from family and friends.

It says that a type of ‘lifecycle account’ where people would have to save a compulsory amount of their annual income would help to make up for the meagre unemployment benefits currently in place.

They propose that the system would work like this:

• Compulsory payment into the unemployment based savings scheme

• If a person becomes unemployed then they can use this savings scheme to make up 70% of their previous earnings

• If these savings were insufficient they would then be able to make up the amount by borrowing money from the bank for up to two years, and this borrowing would be responsible for paying the remaining balance.

• Funds later in life could be used to purchase annuity in addition to the normal state pension.

These proposals are very interesting, it is certain that the current welfare system for unemployment is not working as well as it could. However unemployment or being unable to work could be part of a life plan and should always be considered when life planning.

Life planning is a flexible approach to managing your finances, and should be adaptable to cope with the good and less fortunate times. To find out how proper life planning could help you to manage your future, why not contact our team of Independent Financial Advisors.


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Major power shift in oil production

Accelerating production of shale gas and oil in the US has led to a large increase in declared reserves. Shale gas and oil are extracted by ‘fracking’, where water is blasted at high pressure into shale rock to release deposits trapped within it.

This increase in production will have a profound impact on the US economy, as the country will move from being the world’s largest importer of oil to becoming a net exporter and by 2015 will overtake Russia, the world’s current largest gas producer.

However, fracking is not without its critics; environmentalists cite issues around excessive water usage, water contamination, the release of methane gas and unwanted seismic activity.

The influential International Energy Agency (IEA) predicts that within five years the USA will account for 30% of new global oil supplies. It also forecasts that they will be “all but selfsufficient” in their energy needs by 2035.

Maria van der Hoeven, Executive Director of the IEA, was quoted as saying: “North America has set off a supply shock that is sending ripples throughout the world.”

An effect of this will be much slower demand for Middle Eastern and other OPEC oil producers’ output and a likely reshaping of the whole energy industry. The global demand for oil is set to rise by 8% and it is anticipated that most of this increase will be met from non-OPEC producers.

From 2012 to 2018 the IEA expects US oil production to grow by 3.9 million barrels per day (bpd) and account for over 60% of predicted growth in non-OPEC production. OPEC, currently accounting for about 35% of global oil output, is still expected to lift production by 1.75 million bpd to 36.75 million bpd, some 750,000 bpd less than a previous IEA forecast.

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Markets: (Data compiled by The Outsourced Marketing Department)

Having reached impressive levels given the economic backdrop, global equity markets became nervous at times during late May as investors tried to make sense of mixed financial data. The UK stock market saw a correction on 23 May, when the FTSE100 lost 2.1% as it retreated from a 13-year high. It still ended the month up, by 2.4%, at 6,583.1, whilst the FTSE250 closed at 14,350.9, up 2.9%.

The AIM market put on 3.3% to finish at 729.9. In New York, the Dow Jones avoided major gyrations to reach a new high of 15,409.4 on 28 May. Falling back 208 points on the last day, it still ended May ahead 1.9% at 15,115.6.

The Nasdaq ended 3.8% higher at 3,455.9. European bourses had bouts of nerves that impacted the Eurostoxx50, but it managed to finish the month some 2.1% to the good at 2,769.64.

Nervousness was most acute in Japan, where a 40% rise in the Nikkei during 2013 had left Tokyo vulnerable to profit taking and price correction. A one-day fall of 7% exposed the market’s fragility, but a modest rally on 31 May helped the
battered index end the month at 13,774.5, just 0.6% lower – and still 61% higher than 12 months earlier.

The dollar strengthened on the foreign exchanges, firming 1.5% against the euro, to $1.30, and nearly 2% against sterling, to $1.52. Sterling weakened slightly against the euro, to €1.17. On the oil market, Brent crude spent most of May hovering just above $100 and closed almost 2% down, at $100.39. Gold continued to lose its glitter and, after dipping down near $1,340 mid-month, it ended 5.6% lower, at $1,388.21.

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

European Central Bank cuts rates...

In a long-awaited move, the European Central Bank (ECB) finally cut its benchmark interest rate from 0.75% to 0.5%, having had the rate on hold for 10 months despite the worsening economic health of the eurozone member states.

The ECB eventually moved, as manufacturing output shrank in April across the 17-nation bloc, including Germany.

Unemployment also reached an all-time high, with inflation at a three-year low. Also, the Purchasing Managers’ Index (PMI) for the eurozone fell to 46.7 in April, against 46.8 in March. Even in Germany their PMI fell to 48.1 in April, from 49.

Chris Williamson, Chief Economist at Markit, which collates the PMI data, said: “There is nothing here to suggest that manufacturing will turn the corner and stabilise any time soon, putting greater onus on policymakers to act quickly to reinvigorate growth.”

However, market reaction to the ECB’s move was positive, with the euro strengthening against the US dollar for a time and hope building that the lower interest rates would reduce borrowing costs for the wider economy, thus boosting economic growth.

There have been fears that lower interest rates have not - to date - helped the weaker eurozone countries, such as Greece, Spain, Portugal, Italy and Ireland. Some of these countries, together with France, have called for a relaxation of the austerity measures already put in place, which they believe have stifled growth in their region.

Expressing a sentiment echoed by Italian Prime Minister Enrico Letta and French President Francois Hollande, the European Council President Herman Van Rumpuy called for a strategy that would promote growth and create jobs. He was quoted as saying: “Taking these measures is more urgent than anything. After three years of fire-fights, patience with austerity is wearing understandably thin.”

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Bank of England turns bullish on economy...

Bank of England Governor Sir Mervyn King, in his last economic growth forecast before retirement in June, turned slightly bullish and predicted that UK Gross Domestic Product (GDP) would grow by 0.5% during the current second quarter of 2013. He said: “Today’s projections are for growth to be a little stronger and inflation a little weaker than we expected three months ago. The economy is likely to see a modest and sustained recovery over the next three years. That’s the first time I’ve been able to say that since before the financial crisis.”

However, there was a caveat, that the recovery would “remain weak by historical standards.” This reflects Sir Mervyn’s further comments that: “This hasn’t been a typical recession and it won’t be a typical recovery. Nevertheless, a recovery is in sight.”

Inflation has been stubbornly high – though it eased in April – having remained above its 2% target since 2009, and the BoE believes it will not return to this optimum level until 2015 or later. So, it has held back on its quantitative easing programme, as any expansion of it now could increase inflationary pressure.

Sir Mervyn added: “Monetary policy alone, however, cannot solve all our problems. There are limits to what can be achieved by general monetary stimulus in any form.”

Commenting on the BoE stance, the Chief Economist of the British Chambers of Commerce, David Kern, said: “We accept that growth is likely to remain positive, but we believe that the speed of the recovery will be somewhat slower than the Governor indicated.

“The grim eurozone data also shows that our exporters will face obstacles over the year ahead. We also think that the inflation outlook is slightly worse than the report suggests, and future falls in 2013 and 2014 will not happen as quickly.”

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Help to Buy scheme is boosting new home sales...

The Help to Buy scheme due to support 74,000 sales over a three year period is due to run out much quicker, due to a high demand.

Recent figures from the Home Builders Federations show that the scheme has already boosted sales of new build home, after it was announced in this year’s budget.

The Help to Buy scheme currently only available on new builds, offers home buyers the chance to access 80% LTV on properties up to £600,000 as the government currently pay the 20% deposit required on an interest-free loan for a five year period.

Hundreds of developers are now registering to sell their properties through the scheme, as the Help to Buy scheme has already been much more popular than previous schemes.

Home Builders Foundation executive chairman Stewart Baseley told the FT: “The equity loan scheme helps consumers overcome the deposit barrier and as a result the scheme will undoubtedly lead to an increase in house building – already we are seeing companies revise their projected build levels as a direct result of the scheme. This in turn will create jobs and deliver an economic boost.”

If you would like to find out more about the Help to Buy scheme, then why not contact Enable Independent, your local IFA in Bishop’s Stortford.

Source: Financial Times


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

What you need to know to become a landlord…

At Enable Independent, IFA’s in Bishop’s Stortford we know that if you are trying to get into the buy-to-let industry, you will need to treat it like a business, so you must make sure that your investment adds up.

To be able to get into the buy-to-let market you will need about 25% deposit, this will ensure you are able to access a mortgage at the best rates available.

Typically most landlords choose to take out an interest only mortgage, as repayments are cheaper, and they plan to sell the house at the end of the term of the mortgage to pay off the loan. However this might not be the best option for you, and a discussion with an IFA (Independent Financial Advisor) such as Enable Independent is probably a good starting point.

Make sure that the figures add up, the mortgage lender will need to make sure you can afford the BTL mortgage, so make sure the projected rental income is high enough. Get some advice from a local estate agent, they will be able to give you advise on properties that could offer the best rental return.

On top of the mortgage arrangement fees, if you buy a property over £125,000 you will need to pay stamp duty, to see the latest stamp duty current thresholds visit the HMRC’s stamp duty page, valuations, surveys and legal work.

Once you have purchased your buy-to-let you will need to consider the cost of advertising through a lettings agent.

Make sure you have a reasonable buffer, just incase your property stays empty or you need to redecorate, the average rent void per year is 20 days according to the Association of Residential Letting Agencies.


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Hundreds of property owners are investing in the buy-to-let market…

Enable Independent, IFA’s in Bishop’s Stortford are not surprised that landlords have been experiencing high returns on their investments, due to rising rents, low interest rates and high demand. Bearing this in mind hundreds of existing homeowners are investing in the UK’s buy-to-let market for the first time. 


It’s a very different story from the property boom at the beginning of this century, when would-be landlords were trying to get onto the housing market, among steep property rises. Many investors at that time lost out, as in some cases they spent more than the value of their homes and got tied into high interest rate mortgages.

Investors are becoming landlords for an array of different reasons now, from holding onto their property whilst moving to a new home home, and then renting out the old home, to simply being lured by bargains. 

In the South East house prices are starting to rise at their fastest rate for six year, and returns on buy-to-let investments have never been so appealing.  According to a new survey the average rental yield is now 5.3%, where as other investment options are offering a much lower rate of return.

One in five family households are living in rented accommodation, and to rent a house in the South there is normally a waiting list of 10 or more people, so if you would like to find out more about how you can become a landlord, give one of our team at Enable a call, and we will be able to give you independent advice as well as accessing buy-to-let mortgages from across the market place.

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.