Sustainable Responsible Investments?

There are a vast range of wealth management and investment opportunities out there and Enable of Bishop’s Stortford like to make sure that they can provide as many different options as there are opinions.  Recently it’s independent financial advisors have notice that again Alliance Trust Investments have release a pair of risk profiled funds for its sustainable fund range.  The new funds have been risk rated by Distribution Technology and will be available to investors from 24 July.

The new launches are the Alliance Trust Sustainable Future Defensive Managed fund and the Alliance Trust Sustainable Future Cautious Managed fund, with both investing in a mixture of equities, bonds and cash. Both funds will be managed by Alliance Trust Investments head of socially responsible investing Peter Michaelis as lead manager. Investment managers Simon Clements and Stuart McMaster will work on the funds as co-managers.  Michaelis says: “We are launching these new funds in response to a growing demand from the intermediary market for a comprehensive range of risk profiled ethical investment opportunities. As SRI becomes ever more mainstream, IFAs are increasingly asked to recommend these types of funds.  “The range that we now offer not only adds to the choice available, but for the first time, gives advisers clarity about risk levels so that they can match their client’s preferences and requirements to the right fund.”

At Enable we understand the importance of matching clients with  the right funds with to suit their preference.  If you want to discuss further any wealth management concerns you have our IFA’s are here to help.




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

If you are thinking of Buy-to-let do the maths

Enable’s Independent Financial Advisors in Bishop’s Stortford know that many, as part of their pension plan consider buy-to –let as a good investment but make sure you have done your maths before you jump in. 

The first thing to do is to have a really good think about the cost of houses you are looking at and the rent you are likely to get. Traditionally buy-to-let lenders wanted rent to cover 125% of the mortgage repayments, although many had relaxed this in the tail-end of the boom years. Most also looked for a 15% deposit, which protects against falling prices.  After the financial crisis, many are now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals. The best rate buy-to-let mortgages usually come with large arrangement fees.

Existing investors should now be benefiting from lower rates, and the slashing of base rate down to 0.5% has done them a favour. This is especially true for many as a lot of buy-to-let deals do not have typical SVRs but a revert rate that tracks the bank rate.  However, new buy-to-let mortgage deals remain expensive in comparison to residential deals.

To compare different property's values use their yield: that is annual rent received as a percentage of the purchase price her is the maths. For a property delivering £10,000 worth of rent that costs £200,000 has a 5% yield. But you have to remember, if you are buying with a mortgage, rent-to-property price yield will not be the return you get.  If you want to look at property as part of your wealth management portfolio Enable’s IFAs are happy to talk you through your options.

Your home is at risk if you do not keep up your mortgage repayments.

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

Trading in Water?

It’s hard to imagine when we seem to be having more torrential rain and flooding in the UK that Britain, like the rest of the world, is facing a water crisis.  Some experts to predict that by the end of this decade water will actually be traded on financial markets like other finite commodities such as crude oil, or iron ore.

Globally, the problem of water scarcity is growing and by 2050, experts predict a “55pc increase in the amount of water required to meet demand from rising populations, food production and industry. To avoid serious shortfalls the world will need to invest an estimated $1.8 trillion (£1.05 trillion) over the next 20 years that could ultimately deliver $3 trillion in benefits for the global economy”, according to estimates by the United Nations.

In these kinds of circumstances markets can play an important role in the provision of future water security. The City can help to fund vital water infrastructure and the creation of a futures market to trade water that would help to create a baseline pricing mechanism against which regional water tariffs could be fairly set.  But one of the fears is that water scarcity could eventually see water-rich countries form into groups like the Organisation of Petroleum Exporting Countries (Opec) even though water isn’t a commodity that can be easily traded across borders just yet. “Water will become a commodity – but a very different commodity because it is also a basic human need. If you track economic growth and you agree that water is a vital input then it will eventually become a commodity,” said Rao-Monari.  At Enable our IFA’s like to keep an eye on the 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

Do you have a will in place?

Far too many people do not have a will in place. As part of your financial planning Enable's Independent IFA’s in Bishop’s Stortford know that where your money is going when you are gone can play a vital part in financial planning and wealth management.  It is estimated that one out of three British people die without a will. Yet if you’re married, have a partner, have children, run a business or own property, a will is a must—for at least these five good reasons:

No one wants their family and loved ones left with nothing in the event of an untimely death. A will gives them one less thing to worry about.

Writing a will can save a your family a lot of money on inheritance tax. By sorting out its worth before you die, you can minimise the charge.

If you own a family business and want to avoid losing it, a will can ensure that the ownership will be passed down to whoever you want. Lack of clarity here can cause huge problems within a family, it’s worth specifying—and, if necessary, splitting—the ownership to avoid any confusion.

One reason people put off writing a will is the thought of the expense. In fact, a will is so important that you really shouldn’t let the cost deter you.

In your will, you can specify where you’d like your funeral to be held, whether you’d like to be buried or cremated and whether you want part of your estate to cover the expenses. Giving your family the peace that they done what you would have wanted.


Despite his enthusiasm for technology and his belief it will fill the advice gap, Matthew feels it will never replace face-to-face advice. He says: “Technology is just a tool. There are all the things it can arguably do to make our job better – but it can’t pick up on the nuances of what people say to you and get behind what’s been said.” Enables IFA’s would agree.

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

Too old to get a mortgage at 40?

Experienced Independent Financial Advisors of Bishop’s Stortford Enable know that a roof over your head is a vital part of anyone’s financial planning.  Recently two of Britain’s biggest lenders, the Halifax and Nationwide, have introduced new rules for customers who want to borrow into their retirement. These mortgage lenders have made it more difficult for older borrowers to secure a mortgage by requiring them to prove their retirement income from the state pension age – regardless of whether they intend to work for longer.

A borrower’s state pension age of course depends on when they were born and it is rising gradually in line with life expectancy and is expected to extend beyond 70 eventually. Borrowers aged between 37 and 45 have a state pension age of 67 and for those aged 46 to 60 it is 66.

Securing a mortgage later in life is probably going to continue to be a growing problem. Currently many people have delayed buying a home because of soaring house prices and stagnant wages during the financial crisis. The average age of first-time buyers is currently about 30, up from 25 in the early Seventies but it is expected to keep on rising – some suggest it may reach about 40 by 2025.

Many firms, have stopped issuing interest-only loans, in some cases, the only option is to move to a repayment basis. If an older borrower is unable to extend the term of the mortgage past their state pension age, for example, monthly repayments could increase many times over, making the debt unaffordable. If you want help planning your options Enables IFA’s are happy to talk.

Despite his enthusiasm for technology and his belief it will fill the advice gap, Matthew feels it will never replace face-to-face advice. He says: “Technology is just a tool. There are all the things it can arguably do to make our job better – but it can’t pick up on the nuances of what people say to you and get behind what’s been said.” Enables IFA’s would agree.

Your home could be at risk if you do not keep up your mortgage repayments. 

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

Money Tech

In every walk of life technology is simply a reality.  Clearly in Financial planning and wealth management they have a huge part to play but we came across this interesting set of tools to help you keep track of your money on a more day to day basis. Did you know about these 5 apps?

Quidco is a great app that’ll see you get paid just for checking in to certain shops! Discover cashback offers, voucher codes and meal deals for free.

RedLaser allows you to compare prices by scanning products, so you can check that you’re getting the best deal while you’re shopping. It’s free and has been downloaded by 19 million shoppers.

 MyGas allows you to search for the closest and cheapest petrol station to you. Fuel prices can differ greatly, so this free app will save you from paying over the odds when you fill up.

Fuel School can save you up to 10% on your fuel bill by using GPS to analyse your driving style and calculate your fuel efficiency. It then provides tips on how to drive more economically, saving you money on every tank. Fuel School costs 69p.

0870 costs just 69p and will save you a fortune on those annoying premium-rate numbers. You simply type in the number you need to call and the app will produce a list of local-rate numbers for the same company.

While you look after the pennies Enables IFA’s  in Bishop’s Stortford can help you look after the pounds.

Despite his enthusiasm for technology and his belief it will fill the advice gap, Matthew feels it will never replace face-to-face advice. He says: “Technology is just a tool. There are all the things it can arguably do to make our job better – but it can’t pick up on the nuances of what people say to you and get behind what’s been said.” Enables IFA’s would agree.

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

Money and Digital Social Media

Enable's Independent Financial Advisors in Bishop’s Stortford have long seen the benefits of using social media as a communications tool for engaging with our clients.  Seeing another advisor using it to full advantage is really interesting, Pete Matthew’s involvement in social media started “almost as a hobby” and he says was never intended to make a name for himself as a pioneer of social media within the advice sector, but he is now reaping the rewards of podcasting and video blogging.  “I’ve got clients all over the country, some of which I haven’t yet met, which is a reflection of getting clients from podcasting. I will meet those clients but, at the moment, we are doing everything by Skype.” He believes “ 99 per cent of people don’t need to see an adviser but, of course, everyone benefits from advice.”  “The mechanics of financial planning are easy” he says. “But for many people, taking control of their finances is hard and to achieve” this, he feels is where some clients need a nudge to make the right decisions, which involves the adviser demonstrating their skills.”
Matthew points out that there is often a trigger that leads people to seek advice, for example, they may be buying a house or getting a divorce. “But the skill of the adviser is broadening that to pull out needs people didn’t know they had.”

Despite his enthusiasm for technology and his belief it will fill the advice gap, Matthew feels it will never replace face-to-face advice. He says: “Technology is just a tool. There are all the things it can arguably do to make our job better – but it can’t pick up on the nuances of what people say to you and get behind what’s been said.” Enables IFA’s would agree.

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

ISA allowance went up on 1st July 2014...

As many of you already know investors and savers now have a ‘new’ ISA allowance of £15,000 to invest since 1 July 2014. Effectively the new ISA allowance if for the current 2014/15 tax year so if you have already used some of your ISA allowance for this tax year, you will have to deduct that amount from the £15,000 allowance to se how much more you can use within the tax efficient wrapper until April 2015. The other new thing to consider is that you can use all the £15,000 allowance for just cash, or stocks and shares, or any mixture of both. Previously if you had an ISA allowance of £11,880 as an ISA allowance only £5,940 could be saved within a cash ISA.

Investors can also transfer freely between a cash ISA and a stocks and shares ISA or vice versa, while previously investors could only transfer from a cash ISA to a stocks and shares ISA, and not the other way around. There is now no difference between a cash ISA and a stocks and shares ISA, there is now just one allowance. The new rules also apply to all ISAs, even those taken out in previous years.
So all existing ISAs became new ISAs from July 1st, without the investor having to do anything.
Platforms have responded to Budget changes to the ISA regime by improving rates on cash and introducing new cash savings products. FCA rules published last month bar platforms from offering unbreakable term deposits of more than 30 days. If you want to look at maximising the tax efficiency of your savings Enable’s IFAs in Bishops Stortford are here to help.

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

How to predict emerging markets?

Enables IFA’s in Bishops Stortford like to be able to help people invest wisely.  Trying to predict the future is nigh on impossible but following emerging markets is one of the things most people associate with stocks and shares. Indeed they are part of the history of finance- predicting who the emerging market performers will be. One experienced investor Dr Mark Mobius has recently reflected on what he thinks the future will bring. Mobius runs the Templeton Emerging Markets Investment Trust and the Templeton Global Emerging Markets fund.

Mobius suggests that ‘emerging markets are in a sweet spot’ at the moment, as they enter the ‘recovery phase’ following the underperformance of 2013. Mobius notes that investors ‘have realised that there are other sources of liquidity in the world’ than the US Federal Reserve, with Japan in particular just at the start of its own asset purchasing programme.  He continued that investors in the US and the Eurozone have begun to increase their exposure to emerging market assets this year saying developed markets have only outperformed emerging markets  two of the past ten years.

Of the more established emerging markets, he feels that Brazil, which has been lagging for some time, could be transformed by the 2014 World Cup and the 2016 Olympics. But when pressed, he felt that the significant economic growth will come from countries that are, at present, much less remarked upon, or which are at present frontier markets – i.e. at a much earlier stage of economic development than the present, more established emerging markets.

The countries that he specifically cited as being likely to drive ‘the next generation of emerging market growth’ are Vietnam, Nigeria and Saudi Arabia.  Mobius cited these countries as having ‘good growth rates' at present. He acknowledged that positive GDP growth does not always translate into good performance for individual equities in those countries, ‘but a good company has a better chance in a high-growth country than in a low-growth country.’ In addition to growth, these countries also have ‘lower levels of debt, higher foreign currency reserves and booming consumer growth’, which offer investors a reduced level of risk relative to other emerging markets.

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

Thinking of off shore wealth planning?

Enable’s Independent Financial Advisors in Bishop’s Stortford sometime fine that some of their older clients can find themselves wanting to make significant financial gifts to their grandchildren or other young relatives.  When the gifts are large, both familial feelings and estate planning considerations really need to come into play. The difficulty is that making large gifts can also lead to tax and other complications.

Should you be considering a gift of at least £50,000 it might be worth considering a Bare Trust. Ideally such a large gift should go into something like a Bare Trust because of the inheritance tax advantages. The income tax position in such a fund is simple and tax-efficient, especially if the donor is not the parent. But like Junior Isa’s, a Bare Trust can open up the potential danger of 18-year-olds getting their hands on too much cash too soon.  

There are plans that uses a combination of the design of the investment vehicle and the structure of the trust to stop children getting their hands on too much money too quickly and allows the family to enjoy the benefits of a bare trust without necessarily providing the early access for the child.  In them the gift counts as a PET and the funds are in offshore bonds, so until encashment they have the same tax profile as an Isa (soon to be New Isa). The profits could well be subject to income tax (unlike a Jisa or Isa), but planning might well help minimise that. If you are looking to make any large gifts Enables IFAs can help you manage the process.

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 if interest rates were 5%?

Just last week the outgoing Bank of England deputy governor Sir Charlie Bean said that interest rates could return to 5 per cent “within the longer term” when he was being interviewed on Sky News.  He suggested interest rates could rise towards the 5 per cent mark, which traditionally was considered “neutral”.: “I would not want to say it will be back there in ten years, but it might be reasonable to think that, in that very long term, you would go back to 5 per cent, but it is probably quite a long way down the road.” Previously Bank governor Mark Carney had told the BBC that 2.5 per cent is likely to become the “new normal” level for base rate by 2017; a forecast Bean says is “sensible.”

One way of making sure you know what you will be paying for your mortgage is by using a Fixed rate mortgages as the name suggests, a fixed rate mortgage has an interest rate that is fixed for an initial term - say 2, 5 or even 10 years. This means your monthly mortgage payment will remain the same over the period, giving you certainty and allowing you to budget for a major item of expenditure. At the end of the fixed rate period, the mortgage usually transfers to the lender's variable rate - although it makes sense to shop around at this point to secure the best deal.

Enables IFA’s are here to help you look at the best mortgage options available to suit your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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

Extending or moving?

Whatever you are trying to do with your home enables IFA’s in Bishops Stortford are here to talk you through the options.

Extending? Your location, and the level of demand for your type of home, could make a big difference to the financial implications of extending versus moving. "In high-value areas like London it can be worthwhile digging under the house to add a basement, but in other parts of the country it won't be worth it," says Helen Brunskill of Brunskill Design Architects.

Moving? The costs involved in building an extension are undeniably substantial, and going through building work can be wearing. Brendan Cox, managing director of estate agents Waterfords, based in Fleet, Surrey, believes buying is a better option. "It's not always sensible to extend," says Cox.. "Take a modern three-bedroom detached house on a large estate in Fleet, worth around £300,000. If you extended by around 300 square foot (about 28 square metres), that might cost you around £50,000 to £60,000. And at the end I would say it would be worth around £350,000, so at best, it's cost-neutral. Unless you are sure you are going to stay for a long time, it might not make sense."

Comparing the costs of moving and extending your house is not an easy task and unless you have the cash to pay upfront how realistic either option is could come down to one thing: the mortgage lenders. You will need a substantial amount of equity in your property before you can consider borrowing more. David Hollingworth of London & Country mortgage brokers says.

"The bottom line is that borrowing is very difficult, full-stop," he says "In principal, lenders will apply the same tests and rules whether you are borrowing to move or to extend. At a push, it might be easier to refinance to extend your own property, as buying incurs costs which might impact the size of your deposit."

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP YOUR MORTGAGE REPAYMENTS.

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