Inheritance disputes

Enable’s IFAs in Bishop’s Stortford know there is nothing nice about inheritance disputes any more than divorce disputes but sadly the number of families disputing who an inheritance is left to has risen in recent times.  DIY will writing kits are full of danger and your financial estate may not go to your intended beneficiaries if you have made mistakes, so making a will with professionals and sorting out  any power of attorney issues to make sure your finances are looked after is a wise move.

With house prices continuing to rise and with the increasing complications of the modern family with second marriages and estranged children becoming more common not having an up-to-date will, or failing to plan for your old age or illness, can spark some terrible arguments. The way to ensure your finances are looked after in the way you want is to write a will and take out a lasting power of attorney.  Planning ahead it allows you to legally appoint the people you trust most to make decisions on your behalf, should you no longer wish to do so or if you become unable to make the decisions yourself.

Some of the KEY TERMS for estate planning that are important to understand are:

Administrator: The person who deals with the estate of anyone who doesn’t leave a will.
Beneficiary: any person, charity or organisation that is entitled to receive a gift from your estate.
Estate: the total sum of all assets (minus any debts) after a person dies.
Executors: The people (up to four) you name in a will to get probate and handle your estate.
Intestate: the term used when the deceased has not made a valid will.
Legacy: A gift you leave in your will, usually money.
Probate: the term used when applying for the right to deal with a deceased person’s estate.
Trust: A legal arrangement to hold money or property for someone else, usually a child.

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

Is negative inflation a good thing?

Does a decline of 0.1% in CPI really count as deflation? The last time that the UK had negative inflation, according to the Consumer Prices Index (CPI) was in March 1960. At first sight, it can seem like good news; essentials like petrol, food and transport are cheaper than they were a year ago but for those who produce the oil, or the farmers who make the milk, it’s really not good news at all.

A decline of 0.1% looks like more of a case of "negative inflation", not deflation. The only difference being that economists define negative inflation as something short-term, while deflation is longer-term. And as, Mark Carney, said the UK economy was likely to go into negative inflation "briefly." "A temporary period of falling prices should not be mistaken for a damaging spiral of deflation."

So is negative inflation a good thing? Mark Carney has said negative inflation is "unambiguously good". That is because lower petrol and food prices are good for everyone. Even the farmer gets some benefit, because he too buys food and fuel.  If we spend less on filling up our tanks and doing the supermarket shop, we have money to spend on other things. On average, we're each expected to save £140 as a result of lower petrol prices this year. So businesses from fashion stores to fun-fairs should benefit. So for the short-term making things in reality and in perception seem better than they were. Making plans for the future with the election over and the promise of a few extra pounds in the pocket all help the future look a bit brighter.  Enable’s IFAs in bishop’s Stortford are here to help you plan for a brighter financial 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

Divorcees at risk with pension reforms

As experienced independent financial advisors Enable in Bishop’s Stortford know resolving the finances after divorce can be a daunting task. Since the pension changes have come into effect this April there are concerns that thousands who thought their financial divorce was over could find themselves struggling when estranged spouses cash in policies to stop them being split evenly.

Lots of couples who divorced before the millennium signed an agreement to say that the income from a final salary pension would be shared in retirement, it was a process known as an ‘ear-marking order’ meaning a percentage of the income was ear-marked for the divorced spouse but the main earner retained control of the pension.  Divorcees who agreed to split a final salary pension pot belonging to their spouse could now find themselves penniless because of loopholes in the new pension rules, a loophole that could mean divorcees could intentionally cash in their life savings to deprive their former wives or husbands of an income in retirement.

Tom McPhail, head of pensions at investment firm Hargreaves Lansdown said: ‘This is an unintended consequence of the new pension rules. There may be restrictions on doing this but it would very much be up to the people running the scheme to decide how the rules are applied.’
Normally it is not advisable to take a final salary pension as a cash lump sum because of the huge benefits the regular income provides. Enable’s IFAs in Bishop’s Stortford can help talk through any issues relating to the new pension rules.

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

Setting up a pension for your children?

Enable’s IFA’s in bishop’s Stortford know that tax-efficient junior Isa’s work safely tucking away cash  in a tax-free place, with no access for parents or child and when the child reaches 18. But in practice, some parents worry their child will find other, less responsible uses for it says Adrian Boulding, pensions strategy director at Legal & General (L&G) "There's a good reason why child trust funds, the predecessors of the JISA, were dubbed 'motorbike funds'," he adds.

So what about transforming your child's longer-term financial future with a pension? Money put into a child's pension gets the same tax relief as any other pension, so the taxman will add 20% to payments, to a maximum £3,600 each tax year (£2,880 of relatives' contributions and £720 in tax relief). If you save for retirement from birth, your money has a massive 50 years of undisturbed growth. If you set up a child's self-invested personal pension or SIPP at birth and say grandparents agreed to pay £30 a month. With 20% tax relief, their contribution is boosted to £36 a month, assuming that investment produces returns averaging around 5.5% a year (after charges of 1.5% a year). By the age of 18, the grandparents would have drip-fed £6,480 into the pension fund; thanks to compounded growth, it would be worth around £13,200.

At that point, the pension passes to the child’s control and even if no further contributions were made, continuing investment growth will mean that at 65 years it would be worth £175,000.
 
If you can afford to contribute to both a JISA and a children's pension, it really makes sense to run them side by side – that way you're helping with 'near money' for the imminent costs they'll face, but also with 'far money' for retirement.

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

Holding cash in a portfolio

Enables IFA’s in Bishop’s Stortford know that few cash accounts pay a rate of interest that beats inflation – but most people like to hold some money in cash. Financial experts agree that people should put aside a minimum of three months of earnings to cover themselves in case of an emergency.  But how much cash should investors hold in their portfolio?

Philippa Gee, managing director of Philippa Gee Wealth Management says, “It will typically vary from around 2pc to 5pc depending on your requirements.” Sean McCann, chartered financial planner at NFU Mutual, points out that while savers can benefit from security in absolute terms if they hold money in cash, with interest rates still at historic lows, they are continuing to lose money in real terms. With little incentive to hold hard-earned cash in accounts offering interest rates below inflation, cash Isas can come in handy.

Changes in cash Isa rules have meant that you can swap your cash Isa into stocks and shares (though there is the possibility that you risk getting back less than you put in) and back again, depending on your circumstances, it does make your Isa more flexible. The Isa allowance has regularly been increasing and currently it stands at £15,240 which means that you can shelter more cash than ever from tax, though you do need to keep in mind that these tax rules could change again or be removed in future. As with all financial planning you have to remain flexible and Enable’s IFA’s can help you to review and keep up to date as the value of tax relief which you can benefit from will depend on your individual circumstances as well and as we know  these can change too.

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

WOW - THANKS

We have raised a total of £17,296.42, 115% of our target rising to £20,096.12 with gift Aid for our charity event organised by Enable Independent Financial Life Planners London to Paris Bike ride in aid of Grove Cottage.  What a brilliant way to celebrate Enable’s 15th Birthday, thank you so much to all who took part and all of your who donated to such a great cause. The three day 300 mile adventure organised by Enable could not have gone better and all funds raised will go to Grove Cottage, the home of Bishop's Stortford Mencap.

Grove Cottage is a great local resource could not run without funds but it also relies enormously on the passion, enthusiasm and support of local volunteers. If you are not up for cycling to Paris you might be interested in continuing to give to Grove Cottage as a volunteer.

If you volunteer at Grove Cottage - you make a real difference to real people in your local community and can have some great fun at the same time.  Grove Cottage have some volunteers who have been with them for over 30 years!  At Grove Cottage they understand that volunteering needs to work for both parties so encourage people to come along and try out the roles. The kind of jobs that volunteers are asked to do  involve mini bus driving, chaperones for mini bus pick-ups and drop-off for adult clubs,  and some more general support - all their clubs need (and love to have) volunteers.

To find out more about volunteering at Grove Cottage contact info@mencapgrovecottage.org or call 01279 656085

Conservative victory housing market views

In the light of the election Enable’s IFA’s in Bishop’s Stortford are keen to help clients understand what the housing landscape may look like.  If Labour had won they had pledged to scrap stamp duty for first-time buyers purchasing homes worth less than £300,000, which many suggested would result in boosting demand but not increasing supply, leaving borrowers “worse off” because house prices are still likely to rise. 

The Tories however have promised to expand Right to Buy to 1.3 million housing association tenants as well as introducing a Help to Buy Isa to help borrowers save for a deposit, as revealed in the last Budget. They have also pledged to build 200,000 homes for first-time buyers aged under 40 at 20 per cent discount and create a £1bn brownfield regeneration fund to unlock sites for 400,000 homes.

 “There are clearly a number of positives for the housing and mortgage market from this Conservative party victory,” says Fleet Mortgages chief executive Bob Young “not least the fact that the Tories tend to be far less interventionist than the Labour party which means they are unlikely to meddle in the housing market.”

Countrywide chief executive Alison Platt says “We anticipate this Conservative led Government to turn its attention from implementing policies that stimulated demand in the housing market to addressing the lack of housing supply. Sticking to its pledge to boost housebuilding through the provision of more affordable housing and more garden cities should prove welcome.”

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

Directors ride out for charity...

Enable’s target for fundraising is £15,000 and they are currently at £11.5K, 75% of the way to their target but would love to make sure that make the most of this epic event.  Please get involved in the Enable’s London to Paris bike ride to celebrate Enable’s 15th Birthday and to raise money for Grove Cottage - the home of Bishop’s Stortford Mencap.

More about Grove Cottage Mencap:

Enable’s IFA’s charity bike ride to Paris is all in aid of Grove Cottage which is the home of Bishop's Stortford’s Mencap, who provide social and educational activities for people of all ages with learning disabilities. Their work includes “providing high-quality, flexible services that allow people to live as independently as possible in a place they choose.”

Grove Cottage in Bishop’s Stortford provides social and educational activities for people of all ages with learning disability.  It means that they can develop their potential, avoid social isolation and find supporting lifelong friendships as well as providing respite for families.

Grove Cottage was set up in 1964 by a group of parents to provide lifelong support for their children, to offer a safe environment to engage in a variety of activities to maximise each individuals potential.  They run clubs giving support and help from 3 months to 70+ years. With play groups for pre-school, Youth Clubs, Adult Clubs, Saturday Clubs, Holiday Clubs, Performing Arts Clubs and Speech and Language Therapy.

They have over 120 active members who attend the clubs at Grove Cottage each week and it is important to remember that its not just the members attending the clubs that benefit but also the parents, carers, siblings and wider care network that gain from the respite and support available from Grove Cottage.

Enable’s target to raise for Grove Cottage is £15000 and they are currently at £11.5K, 75 % of the way to their target but can only make it all the way with your help.  Please get involved in the Enable London to Paris bike ride to celebrate Enables 15th Birthday and to raise money for Grove Cottage by following this link http://uk.virginmoneygiving.com/charity-web/charity/displayCharityCampaignPage.action?charityCampaignUrl=enablelondon2paris

On your bike for Mencap

This Friday 15th of May, Mike Cooke and Matt Baker (far left of photo), Managing Directors at Enable Independent with their support team Ian Medway,  Rebecca Izod, and Tony O’brien are getting on their bike’s along with a host of associates from: Barrows Accountants, David Lee, Nockholts, Nat West, Pellys Solicitors and Touch Creative and Jon Cooke to start an epic charity bike ride from London to Paris in aid of Grove Cottage, their local Bishop’s Stortford Mencap.

The ride is going to take 3 days, starting at London and finishing in Paris - a grueling 230 miles! The group of 16 riders are riding together the whole way with plans to arrive in Paris early afternoon on the 17th May.

Mike Cooke stated: “We at Enable decided to mark our fifteenth year of trading by giving something back to our local community via a local charity, we chose ‘Grove Cottage’ as one of our staff volunteered on a day release basis a few years ago and we got to see first-hand the amazing work that is done on limited resources.  We coupled our charity work with our passion for cycling and this challenge was born. We are also organising a further event for later in the year to thank all the people who have supported us over the years and hope to raise more money for this great cause.” 

If you would like to help the team to raise money for Mencap please follow this link:

http://uk.virginmoneygiving.com/fund/enablelondon2paris

Have you got income protection?

At a moments of uncertainty like the week before a general election, and with the echoes of the most recent financial crisis still ringing in our ears it could be prudent to pause and consider your own personal levels of income protection.

There are different types of Income Protection perhaps the two most common Income protection policies are;  Short-term Income Protection policies, which are otherwise known as Accident, Sickness and Unemployment (ASU) products - they will generally only pay out for one or two years and then there is Long term Income Protection, which  will usually provide a regular income if you are unable to work due to illness or disability until you are able to return to work, or until the end of the policy term.

You will probably have heard of some of the short term policies like PPI or payment protection Insurance or MMPI mortgage payment protection insurance.  PPI is generally used to meet the cost of a specific debt where as MPPI will only cover the cost of mortgage payments for a specified time. There are also other Short Term Income Protection policies that do not need to cover a specific debt.

Long term Income Protection, however, will usually provide a regular income if you are unable to work due to illness or disability but it will generally not cover you if you are made unemployed or redundant.  With Long Term Income Protection cover, there are commonly two types, 'own occupation' and 'working tasks' and they can be quite complex.  Enables IFA’s in Bishops’ Stortford can help you make sure you have the right protection in place for your income.

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

Going it alone on your mortgage?

Experienced mortgage brokers like Enable’s IFA’s in Bishops Stortford play a key role in the mortgage market, with two-thirds of home loans sourced via an intermediary, but with the growth of the internet and many financial consumers being much better informed is it wise to go it alone when arranging a mortgage?

It is great to be informed, but it is wise to note that broker expertise extends far beyond the basic information and some experts believe that consumers’ increased knowledge, whether of how the market works or the true cost of a deal, may in fact be a façade.  Santander head of intermediaries Brad Fordham says: “With the dawn of the internet, headline rates are more widely visual. But the true cost of those rates with booking fees and early repayment charges is still not clear and myths around mortgages still exist.”

Cherry Mortgage & Finance broker Matthew Fleming-Duffy says: “As much as you could re-wire your own house, install double-glazing or even conduct open-heart surgery using information sourced from the internet, you can also manage your own finances. “But sourcing the correct financial solution for yourself can be a potential minefield and, based on the high level of misinformation and personal opinion generally found on the internet, can be very costly if you get it wrong. “

Financial intermediaries like Enable’s experienced IFA’s are specialists in personal finance. You may look to arrange a mortgage only once every few years but a mortgage adviser is probably arranging a dozen mortgages, or more, each month and can bring that experience to help you find the best deal for 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

Is it wise to put your pension into a buy-to-let?

At the turn of the year it was reported that almost half of all London retirees 47 per cent were planning to use their pension pots to invest in buy-to-let property. And a Bank of Ireland study showed that 29 per cent of retirees nationwide were looking to use the new freedoms that have just come into effect to buy property and generate rental income in retirement. In total it was estimated that nearly half of all Britons who are not landlords are interested in trying to enter the buy-to-let boom within the next two years.

That is a huge number of people but despite such widespread interest, the Bank of Ireland also found that some 30 per cent of potential landlords did not understand the tax implications of rental income. Bank of Ireland UK mortgages commercial director Mark Howell said: “Our research has identified a massive knowledge gap in the area of buy to let mortgages, which is particularly concerning as the market is currently experiencing growth. “It’s important that people seek financial advice on tax matters before making big financial decisions or investments, like buying a property to let.”

It is important to clearly understand the tax implications of a buy to let if your take for example £100k out of a tax sheltered environment like a pension and then invest in something liable to Capital Gains Tax and Inheritance tax in turn making it more of an illiquid asset. Whilst BTL may work for some, the tax and cost implications of BTL can be worrying and it has to be remembered that the BTL market is significantly less regulated than the pension market. Enable’s IFA’s can help you look at what is right for your individual pension investments.

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