After Enable’s extremely successful and enjoyable Charity bike ride to Paris which raised £20,096.12 for Grove Cottage, the home of Bishop's Stortford Mencap we have been keeping up with the cycling and would encourage anyone else to do the same.
Cycling “addresses every aspect of physical conditioning,” explains sports scientist and former Olympian, Professor Greg Whyte. “Aerobic training (when your muscles have enough oxygen to produce all the energy they need to perform), anaerobic training (when your muscles don’t have enough oxygen, so are forced to break down sugar to get energy), strength training, endurance training – cycling’s got it all covered.” And when it comes to toning muscle, cycling really is the thing to do, “While your legs are doing most of the work, your bum is also engaged, and your core needs to work hard to stabilise your body, so you’re getting a good workout,” says Whyte. “Most people don’t think their arms are involved because they’re not moving, but they’re engaged in an isometric contraction when they’re holding you in place. So you are working muscles throughout your body.”
Better yet, you can start cycling at any level of fitness or health. “Cycling is low load-bearing, which means if you’ve been injured, are susceptible to injury or are carrying extra weight, it’s still accessible to you, and much better for you than running.”
If you start your cycling regime the added bonus is being able to enjoy an athlete’s diet, “Breakfast is the most important meal of the day,” says Søren Kristiansen, Team Sky’s head chef. “It has to fill you up and stabilise your blood sugar so you don’t crave sweet things.”
Two great ways to start the day:
Team Sky smoothie : banana, apple, blueberries, strawberries, almond milk (or regular milk), mint. Simply pop into a blender then serve.
Team Sky porridges: oat flakes, cinnamon, ginger, sliced apple. Boil in water until you get the right consistency, then serve with bananas and blueberries.
Tuesday, 23 June 2015
Where are some of the worst places to keep your money?
Do you have any money trapped in a 'dinosaur’ investment funds? Enable’s IFAs in Bishops Stortford can help you dig out any outdated funds and savings plans and get them working for you.
Estimates by Telegraph Money suggest that monies languishing in “legacy” investments could be as much as a staggering £450bn. Separate research by broker Hargreaves Lansdown arrived at a similar figure of £400bn. How would you know if you have a dinosaur in your portfolio that needs weeding out? The Telegraph listed some key areas to look at:
With-profits funds, complex savings plans, popular from the Seventies that were sold by life insurance companies as relatively low risk investments, designed to deliver steady returns over set periods. These funds however fell out of favour after returns disappeared following the stock market crash in 2000 so route them out.
Stakeholder pension funds that were launched in 2001,and billed as “revolutionary” have failed to move with times. These deals typically capped charges at 1.5pc for the first 10 years, dropping to 1pc after that. They were cheap at the time but would now be considered expensive, with the average pension fund charge standing at around 0.5pc.
Child Trust Funds (CTFs) meant that parents of every child born from 2002 were given seed money of £250 and another £250 when they turned seven, but in 2010 the scheme was closed and then replaced by Junior Isas in November 2011, which offer better interest rates and choice - make sure you know where that cash is. Enable’s IFA’s can help you sort it out.
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
Source: The Telegraph
Estimates by Telegraph Money suggest that monies languishing in “legacy” investments could be as much as a staggering £450bn. Separate research by broker Hargreaves Lansdown arrived at a similar figure of £400bn. How would you know if you have a dinosaur in your portfolio that needs weeding out? The Telegraph listed some key areas to look at:
With-profits funds, complex savings plans, popular from the Seventies that were sold by life insurance companies as relatively low risk investments, designed to deliver steady returns over set periods. These funds however fell out of favour after returns disappeared following the stock market crash in 2000 so route them out.
Stakeholder pension funds that were launched in 2001,and billed as “revolutionary” have failed to move with times. These deals typically capped charges at 1.5pc for the first 10 years, dropping to 1pc after that. They were cheap at the time but would now be considered expensive, with the average pension fund charge standing at around 0.5pc.
Child Trust Funds (CTFs) meant that parents of every child born from 2002 were given seed money of £250 and another £250 when they turned seven, but in 2010 the scheme was closed and then replaced by Junior Isas in November 2011, which offer better interest rates and choice - make sure you know where that cash is. Enable’s IFA’s can help you sort it out.
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
Source: The Telegraph
Managing your Property portfolio
Make sure you don’t over estimate your returns by getting good advice right from the start of setting up your property portfolio. According to a recent report by Platinum Property Partners nearly one in eight landlords fail to consider any additional costs when calculating the profitability of their property portfolio, more than half do not factor in any repair costs. Its study estimated that “ the total average cost of a buy-to-let property, including letting agent fees, maintenance, repairs, marketing fees and mortgage interest, amounted to £8,359 a year.” At Enable, we can help you make sure you have done your sums properly.
We can help landlords who may be overestimating returns to be realistic, and we may be able to help your reduce some of those costs. Platinum suggest the most accurate way to measure the performance of a buy-to-let investment is by using "return on investment" or "return on equity", these methods take into account gross profit, capital gains, and the costs of running the property – including the amount spent on refurbishment. It is also sensible to cost in "void" periods, when a property is empty between tenants. The Platinum study suggested that in any one year, up to 60pc of landlords face void periods, however, only 12pc of these take this into account when assessing returns but with careful management of your properties in Chelmsford these periods can be reduced to make sure you are getting the most from your property investments.
“The buy-to-let market is a hot ticket investment at the moment for budding landlords looking to generate an income and good level of capital growth from rental property," said Steve Bolton, founder of Platinum. "This is particularly the case now that new pension freedoms have opened the gates to alternative financial plans for retirement.” But good management of those investments is vital.
Your home could be at risk if you do not keep up the 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
We can help landlords who may be overestimating returns to be realistic, and we may be able to help your reduce some of those costs. Platinum suggest the most accurate way to measure the performance of a buy-to-let investment is by using "return on investment" or "return on equity", these methods take into account gross profit, capital gains, and the costs of running the property – including the amount spent on refurbishment. It is also sensible to cost in "void" periods, when a property is empty between tenants. The Platinum study suggested that in any one year, up to 60pc of landlords face void periods, however, only 12pc of these take this into account when assessing returns but with careful management of your properties in Chelmsford these periods can be reduced to make sure you are getting the most from your property investments.
“The buy-to-let market is a hot ticket investment at the moment for budding landlords looking to generate an income and good level of capital growth from rental property," said Steve Bolton, founder of Platinum. "This is particularly the case now that new pension freedoms have opened the gates to alternative financial plans for retirement.” But good management of those investments is vital.
Your home could be at risk if you do not keep up the 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
Wednesday, 10 June 2015
Finding it hard to switch mortgage?
Enable’s IFAs in Bishop’s Stortford have noticed some new research that has found that mortgages are now the hardest financial product to switch among consumers looking for financial services in the last 12 months since new rules were brought in under the Mortgage Market Review a year ago.
The research, conducted by Gocompare.com, indicated that just 59% of people who recently switched their mortgage provider described the process as easy, a fall from 70% in July 2014 when the same survey was carried out. The difference suggests the Mortgage Market Review, which was introduced at the end of April 2014, is affecting consumers. The new system led to anyone needing a mortgage to buy a home, increase a current mortgage or re-mortgage having to pass a more stringent affordability test, while interest-only applicants need to be able to demonstrate a credible repayment plan.
Matt Sanders from Gocompare.com said ‘It is clear from our research that consumers have taken issue with the changes to the mortgage application process introduced 12 months ago. To put it into context, the recent improvements in bank account and energy switching have failed to register at all on this survey, yet mortgages have slipped 11 percentage points,’ ‘It would be fair to say that mortgages were never the most straightforward product to switch, but MMR has added an extra layer of complexity and in many cases led to delays in the process which just frustrates people further,’ ‘Even though applying for a mortgage is more complicated, there has never been a better time to shop around and with record low interest rates, the hassle of going through the checks and balances might be worth it to save some cash every month,’ he added.
If you are looking for some help to make sure you have the right mortgage for you Enable’s IFAs in Bishops Stortford are here to help.
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
The research, conducted by Gocompare.com, indicated that just 59% of people who recently switched their mortgage provider described the process as easy, a fall from 70% in July 2014 when the same survey was carried out. The difference suggests the Mortgage Market Review, which was introduced at the end of April 2014, is affecting consumers. The new system led to anyone needing a mortgage to buy a home, increase a current mortgage or re-mortgage having to pass a more stringent affordability test, while interest-only applicants need to be able to demonstrate a credible repayment plan.
Matt Sanders from Gocompare.com said ‘It is clear from our research that consumers have taken issue with the changes to the mortgage application process introduced 12 months ago. To put it into context, the recent improvements in bank account and energy switching have failed to register at all on this survey, yet mortgages have slipped 11 percentage points,’ ‘It would be fair to say that mortgages were never the most straightforward product to switch, but MMR has added an extra layer of complexity and in many cases led to delays in the process which just frustrates people further,’ ‘Even though applying for a mortgage is more complicated, there has never been a better time to shop around and with record low interest rates, the hassle of going through the checks and balances might be worth it to save some cash every month,’ he added.
If you are looking for some help to make sure you have the right mortgage for you Enable’s IFAs in Bishops Stortford are here to help.
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
Help to get a foot on the ladder.
Enable’s experienced IFA’s in Bishop’s Stortford have had many discussions with parents and grandparents who want to help their children get a foot on the property ladder. The property market really can be an intimidating place for first-time buyers at the moment, with prices having soared and young adults struggling to scrabble together a deposit. According to Lloyds Bank Family Savings Report, last year UK parents handed over £8.2bn to adult children to buy property, with those receiving support benefiting from an average of £13,281.
With the new pension rules in place since 6 April 2015, allowing those aged 55 or over complete freedom to access the money in defined-contribution pension pots it is now possible to take 25 per cent of your pot tax-free to help younger family members onto the ladder, but be careful – all subsequent lump sum withdrawals will be charged at your marginal rate of income tax. Sue Faiers, associate director of financial services at Smith & Williamson says, "If you had a £200,000 pension pot and wanted to stick it all into a property for your kids to live in, the danger is that £150,000 would be taxed as income."
Parents often have very real concerns about how to raise the capital, and Ms Faiers, says "If they haven't actually got funds available in cash but have investments, it's worth asking whether it makes sense to raise money from those investments or whether it makes sense to raise money against their own properties.” But if you are reliant on your investments for income it is not necessarily the best option, Enable’s IFAs are happy to talk it through.
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
With the new pension rules in place since 6 April 2015, allowing those aged 55 or over complete freedom to access the money in defined-contribution pension pots it is now possible to take 25 per cent of your pot tax-free to help younger family members onto the ladder, but be careful – all subsequent lump sum withdrawals will be charged at your marginal rate of income tax. Sue Faiers, associate director of financial services at Smith & Williamson says, "If you had a £200,000 pension pot and wanted to stick it all into a property for your kids to live in, the danger is that £150,000 would be taxed as income."
Parents often have very real concerns about how to raise the capital, and Ms Faiers, says "If they haven't actually got funds available in cash but have investments, it's worth asking whether it makes sense to raise money from those investments or whether it makes sense to raise money against their own properties.” But if you are reliant on your investments for income it is not necessarily the best option, Enable’s IFAs are happy to talk it through.
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
Monday, 8 June 2015
What would happen if interest rates went up?
It would have been hard to miss that interest rates have been at an historical low of 0.5% for some time but many are predicting that they will start to rise again from Spring 2016. According to some new research carried out on behalf of mortgage and loans provider Ocean Finance almost seven million owners could struggle to cover their mortgage repayments if interest rates rose by just 1%.
Enable's experienced IFA’s of Bishop’s Stortford think that if they do rise they are unlikely to rise steeply, however, a rise of 1% would see many borrowers with standard variable rate mortgages having to pay an additional £55 a month for every £100,000 that they owe. Once rates do start to rise some 63% of borrowers say they would, “have to cut back on all non-essential spending, such as weekends away or even meals out, to cover the additional cost.” The findings also indicated that almost a quarter of borrowers have already switched to fixed rate mortgage and a further 16% plan to take fixed rate mortgages to protect themselves against an imminent increase.
The research also suggests that the pressure to meet increased mortgage payments could force about 10% of home owners to consider selling their home to avoid the higher cost of their mortgage. Gareth Shilton, Ocean’s spokesperson said, ‘It’s inevitable that interest rates will rise at some point, whether that happens in Spring next year or later in the year.’ he also pointed out, ‘Many people will feel like mortgage prisoners because their circumstances have changed since they took out their loan and they’ll understandably be concerned about what a potential interest rate rise means for them,’ To discuss any changes you might want to consider to your mortgage Enable’s IFAs in Bishop’s Stortford are happy to talk you through your options.
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
Enable's experienced IFA’s of Bishop’s Stortford think that if they do rise they are unlikely to rise steeply, however, a rise of 1% would see many borrowers with standard variable rate mortgages having to pay an additional £55 a month for every £100,000 that they owe. Once rates do start to rise some 63% of borrowers say they would, “have to cut back on all non-essential spending, such as weekends away or even meals out, to cover the additional cost.” The findings also indicated that almost a quarter of borrowers have already switched to fixed rate mortgage and a further 16% plan to take fixed rate mortgages to protect themselves against an imminent increase.
The research also suggests that the pressure to meet increased mortgage payments could force about 10% of home owners to consider selling their home to avoid the higher cost of their mortgage. Gareth Shilton, Ocean’s spokesperson said, ‘It’s inevitable that interest rates will rise at some point, whether that happens in Spring next year or later in the year.’ he also pointed out, ‘Many people will feel like mortgage prisoners because their circumstances have changed since they took out their loan and they’ll understandably be concerned about what a potential interest rate rise means for them,’ To discuss any changes you might want to consider to your mortgage Enable’s IFAs in Bishop’s Stortford are happy to talk you through your options.
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
Tuesday, 2 June 2015
Investing according to your financial circumstances
Your financial circumstances will change over time, but Enable’s IFAs in Bishop’s Stortford can help you alter how you invest to suit your changing financial circumstances. Whether that is investing a lump sum as when you have built up a reserve of savings or by investing a smaller amount in a monthly savings plan it is worth taking experienced advice to find the best saving plan for you.
In order for your savings to grow in real terms over time, they need to earn a rate of return after tax that is greater than the rate of inflation. With low interest rate still in place finding a savings account that delivers a return above even the current very low inflation rates can be difficult. So it may be worth your while considering investments which have the potential to outperform inflation.
Historically, investments that carry some level of capital risk like defaulting corporate bonds, or declining share prices have ultimately rewarded their investors as a result but there is of course no guarantee of this. Barclays Equity Gilt Study 2013, a respected guide to investment returns published annually by Barclays for more than 50 years, show that since 1899, stocks and shares have a 67% chance of outperforming cash if held for two years, rising to 99% if held for 18 years. If you have a long time period in which to invest you may be happy with more risk but if you are approaching retirement you may be looking to invest more for income.
Investment portfolios can be designed to achieve different objectives as you go through life and as your attitudes change careful planning can tailor your portfolio to reflect your changing aims.
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
In order for your savings to grow in real terms over time, they need to earn a rate of return after tax that is greater than the rate of inflation. With low interest rate still in place finding a savings account that delivers a return above even the current very low inflation rates can be difficult. So it may be worth your while considering investments which have the potential to outperform inflation.
Historically, investments that carry some level of capital risk like defaulting corporate bonds, or declining share prices have ultimately rewarded their investors as a result but there is of course no guarantee of this. Barclays Equity Gilt Study 2013, a respected guide to investment returns published annually by Barclays for more than 50 years, show that since 1899, stocks and shares have a 67% chance of outperforming cash if held for two years, rising to 99% if held for 18 years. If you have a long time period in which to invest you may be happy with more risk but if you are approaching retirement you may be looking to invest more for income.
Investment portfolios can be designed to achieve different objectives as you go through life and as your attitudes change careful planning can tailor your portfolio to reflect your changing aims.
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
Pros and Cons of negative inflation…
Enable’s IFAs in Bishop’s Stortford are always having conversations about understanding the effects of inflation. Talking about negative inflation, it is not such good news if you are a borrower, for example if your fixed monthly repayment is £500 and in an era of negative inflation, when your wages might even go down, this could mean your £500 becomes a larger proportion of your salary, so paying it off becomes harder. When inflation is high the opposite is true, as your salary rises, your borrowing becomes a smaller proportion of your spending, making it more manageable to pay it back. Governments with large deficits experience the same thing so some inflation has to be a good thing.
Deflation can also affect interest rates as the longer that inflation is below the Bank of England's target the longer it will be before a rise in interest rates can occur. But the longer we have zero or negative inflation, the more likely it is that the next move in interest rates could be down, rather than up. Mark Carney is convinced that negative inflation is unlikely to last and has said that the CPI should pick up "notably" towards the end of the year. As a result of that, experts are now predicting that interest rates will rise in the summer of 2016.
One thing to be clear about however is that negative inflation does not mean negative returns on index-linked savings certificates. The return on Index-linked national savings certificates is based on the Retail Prices Index (RPI) measure of inflation, not CPI. Even if RPI became negative, the return on index-linked certificates would not fall below zero. Similarly, pensions linked to inflation are unlikely to be affected.
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
Deflation can also affect interest rates as the longer that inflation is below the Bank of England's target the longer it will be before a rise in interest rates can occur. But the longer we have zero or negative inflation, the more likely it is that the next move in interest rates could be down, rather than up. Mark Carney is convinced that negative inflation is unlikely to last and has said that the CPI should pick up "notably" towards the end of the year. As a result of that, experts are now predicting that interest rates will rise in the summer of 2016.
One thing to be clear about however is that negative inflation does not mean negative returns on index-linked savings certificates. The return on Index-linked national savings certificates is based on the Retail Prices Index (RPI) measure of inflation, not CPI. Even if RPI became negative, the return on index-linked certificates would not fall below zero. Similarly, pensions linked to inflation are unlikely to be affected.
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
Pensions have had a lot of bad press?
In recent years pensions really have had a lot of bad press and Enable’s IFAs in Bishop’s Stortford agree with Patrick Connolly of Chase De Vere "that much of the public has a negative perception of pensions," he also says, "this is often based on little more than sentiment, comment from friends and family and press articles they have read which might not be particularly relevant to them."
In addition "This perception isn't helped by the constant meddling from politicians meaning that pension legislation seems to be constantly changing, which doesn't exactly create confidence in the pensions industry."
It is clear that savings vehicles like ISAs and Buy-to Let can be used to help save for retirement but for the vast majority of people they are quite likely to not be as effective as a pension, which is specifically designed for the purpose. Alongside this it is important to remember the tax implications of other sources of retirement income. Income tax could be liable on your rental income as much as it is on your pension income but at the end of the day when you want to sell you could face huge capital gains tax bills. You also need to consider Inheritance Tax as much as you may want to leave property to family members it is one of the least tax efficient assets to pass on.
ISAs of course have tax advantages, all money held in an ISA grows free of income tax and when you cash it in there in no Capital Gains and they are more flexible than pensions too so you can access your money at any time. However that tax relief up front, combined with the benefits of compound growth over the long term can still give pensions the edge.
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
In addition "This perception isn't helped by the constant meddling from politicians meaning that pension legislation seems to be constantly changing, which doesn't exactly create confidence in the pensions industry."
It is clear that savings vehicles like ISAs and Buy-to Let can be used to help save for retirement but for the vast majority of people they are quite likely to not be as effective as a pension, which is specifically designed for the purpose. Alongside this it is important to remember the tax implications of other sources of retirement income. Income tax could be liable on your rental income as much as it is on your pension income but at the end of the day when you want to sell you could face huge capital gains tax bills. You also need to consider Inheritance Tax as much as you may want to leave property to family members it is one of the least tax efficient assets to pass on.
ISAs of course have tax advantages, all money held in an ISA grows free of income tax and when you cash it in there in no Capital Gains and they are more flexible than pensions too so you can access your money at any time. However that tax relief up front, combined with the benefits of compound growth over the long term can still give pensions the edge.
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
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