Succesful Investing...

Enable’s IFA’s in Bishop’s Stortford have helped numerous investors over the years but when it comes to financial markets the only thing you know for certain is that no one really knows where they are heading. This does not mean you should not use them to build your wealth but no one can tell you exactly what to do for sure. But there are some steps that seem to contribute greatly to successful investing.

Over the years and even in difficult times you need to have quite a good reason not to use a tracker fund. If there really was a way to guarantee an extra 1pc return every single year, investors would go all out to find it but many ordinary investors ignore the chance to get exactly that because they overpay for investments they could get elsewhere for less. One of the cheapest ways for investors to access a market is through a “tracker” that buys all the stocks in an index according to their size.
And there’s plenty of evidence to suggest doing this gets you a better total return in the long run.
This approach suits those who are happy to make their investment and forget about it. It will rise and fall with the market, of course, but there’s no chance they’ll languish in a badly underperforming fund.

But then there are more active managers that can boast a history of beating their market of course these bets won’t come good all the time but sometimes they can get lucky in solid companies form areas they know well and avoid overpriced, bad ones that trackers will blindly buy. It is impossible to know exactly what to do but Enable’s IFA’s in Bishop’s Stortford can help work with your attitude to risk.

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

Life Insurance...

If you have a family and are the major bread winner Enable’s IFA’s in Bishop’s Stortford agree that it is a sobering statistic that around one child in 30 loses a parent before they grow up. The grief and trauma can all too often be compounded by a loss of income causing financial crisis for the family.  Luckily life insurance is widely available and one of the cheapest ways to protect your family's finances if the unthinkable happens.

But it can be easy to pay £1,000s more than you need to over the life of the policy if you are not careful so it is wise to work out if life insurance is right for you, but also how to get it the cheapest way. There are also lots of different types of life insurance to protect an array of different things some protect a mortgage others all your dependents, while some can provide a way to mitigate inheritance tax. But the main insurance every parent, partner, or person with dependent needs to consider is called 'level term' life insurance or assurance.

With level term insurance you insure something that may happen, while you assure something that will happen. Sadly death is assured for all of us at some time, but "will you die within a set time?" is what  insurance is interested in. Level term life insurance pays out a set amount if you die within a fixed term and the pay-out doesn't vary regardless of when you die during the term.  If you are looking to make sure you have the right insurance Enable’s IFA’s in Bishop’s 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 

Source – Money Saving Expert

The interest rate balancing act

Enable’s experienced Independent Financial Advisors in Bishop’s Stortford regularly discuss the direction of house prices with clients along with the direction of travel for interest rates for borrowers and savers.

In a recent conference, the Governor of the Bank of England Mr Carney was asked about the continued rise of house prices and unsecured credit growth. He said ' he was "conscious" of those moves, although he pointed out that standards of lending in the housing market had improved and the number of distressed households had continued to go down.’

But some at the Institute of Directors (IoD) say there is a need to be vigilance, “there is genuine apprehension over asset prices, the misallocation of capital and consumer debt," said the IoD's chief economist, James Sproule, but "borrowing is comfortably below the unsustainable pre-crisis levels, but with debt once against rising there is a need for vigilance. "The question is, will the Bank look back on this unprecedented period of extraordinary monetary policy and wish they had acted sooner?” he said.

Despite these concerns, most do not see a rate rise until well into 2016. Howard Archer, chief UK economist at IHS Global Insight said: "The first interest rate hike from 0.50% to 0.75% is still most likely to happen in May 2016 - but the risks now seem to be that the increase could be later than this rather than before it. As things currently stand, an interest rate hike in the first quarter of 2016 looks unlikely."

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 - BBC news

Early UK rate rise?

Enable’s IFA’s in Bishop’s Stortford note that once again the Bank of England has held UK interest rates at the record low of 0.5%. Forecasts for the first change in interest rates since 2009 have again been pushed further into the future, as the outlook for global growth had weakened, which was depressing the risk of inflation. UK interest rates have now remained on hold for six-and-a-half years.

The Bank of England said, "the outlook for global growth has weakened since August."It blamed emerging market economies for that weakness, saying growth in those regions had "slowed markedly." While the Bank expects inflation to rise above its 2% target in two years, it says that risks "lie slightly to the downside" during that time period meaning inflation may not rise as quickly as the Bank forecasts.

BBC economics editor Robert Preston said, “Mark Carney gave what many would see as a bum steer in July that interest rates would be going up around the turn of the year. The implication was unambiguous: we should prepare for the end of the era of near-zero interest rates that has prevailed since early 2009.”

Other economists are saying that the latest reports indicate that the Bank of England remains relaxed over an interest rate rise. "That magic first rate rise has been kicked into the long grass once again. Only a few months ago, the Bank was saying that inflation wasn't picking up because of the low oil price. Now it's emerging markets. You have to wonder what their next reason will be," said Paul Diggle from Aberdeen Asset Management.

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 - BBC news

Do you have an endowment mortgage?

Enable’s IFA’s in Bishop’s Stortford have started to talk to more and more borrowers who took out an endowment mortgage towards the end of the last century that will soon be facing a shortfall at the end of their term. According to the Financial Conduct authority, the first sizeable wave of these cases is expected to appear in 2017-18, when endowments sold in the 1990s reach their peak period of maturity.

The problem is that endowment policies are failing to generate enough returns to clear the mortgage debt at the end of the term has been exacerbated by the failure of many homeowners to prepare for this very possibility. Citizens Advice has estimated that more than 930,000 borrowers on interest-only mortgages have no savings plan in place to repay their loans. Many of these borrowers will have of course built up their equity through house price growth – but moving to a full capital repayment mortgage is simply not affordable.

This is likely to be an area in which more mortgage lenders start to become involved as borrowers look to convert some or all of their mortgage balance from interest only to repayment in the next few years.  Leeds building society have been leading the way and have seen uptake from re-mortgage borrowers who are keen to make inroads into their debt on a gradual basis since launching its part capital and part interest-only mortgage product.  It is offering a way for borrowers to flexibly starting to pay down their loan in a more manageable way. Enable’s IFA’s may be able to help you find a solutions. Remember your home could be at risk if you do not keep up your mortgage or re-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 

Source – Sage Equity Release Service

Poppy Bonds

The poppy Bond is a way of saving and giving at the same time. The Coventry has continued its tradition of Poppy Bonds, supporting the Royal British Legion by issuing fixed rate bonds that donate a stated percentage of the total amount invested to the charity. The society says it has donated millions of pounds to the Legion's Poppy Appeal. The three-year fixed-rate bond has been available from October 23 and is only available for limited amount of time.

 Coventry Building Societies’ latest Poppy Bond pays 2.35pc fixed until 2018 plus 0.15pc to The Royal British Legion which is less than the market leading rate, but customers have the bonus of donating to a worthy cause.  The building society makes a donation to The Royal British Legion on overall bond balances as of December 31 2015. Since it launched this range in 2008 the Coventry Building Society has so far donated £12m to The Royal British Legion.

The account can be opened with £1 and the maximum investment is £250,000. The Poppy Bond is a no access account which means savers cannot touch their money for the three year term.  The latest Poppy Bond pays a fair bit less than the market leading fixed rate bonds however, it’s still a competitive rate and savers have the added bonus of donating to a charitable cause. If you like to give as you save Enable’s experienced IFA’s in Bishop’s Stortford can help you find a bond that could work 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 

Source - Moneywise

Loosing track of your savings

Enable’s IFA’s in Bishop’s Stortford know that many of us spend significant amounts of our lives trying to build up savings so it seems extraordinary that some savers lose track of finances after retirement according to the research for Fidelity Worldwide Investment.

The findings were drawn from a survey of more than 1,000 people, roughly two-thirds of those who were retired and a third who were still working in a full or part-time capacity. Those surveyed had some form of retirement savings on top of a state pension, although their money was not necessarily held in a pension scheme. Clearly the people surveyed had been interested in saving but it seems, as the research suggests, that savers are more likely to lose track of their finances once they are in retirement. One in five (20%) people aged over 55 who were still working did not know the value of their pension savings, this increased to 30% among those who had retired.

The study found evidence to suggest that 13% of over-55s did not know how they were going to fund essential outgoings.  Over-55s in the Midlands were found to be the most out of touch with their retirement savings, with more than one in three (35%) saying they did not know how much their combined savings were worth. Nearly a third (31%) in Scotland and a similar proportion (30%) in Wales did not know the overall value of their pension savings. People in London were the most engaged with their pension savings, with almost four-fifths (78%) knowing the value of their pots.

It may be easy to slip in to apathy as you approach retirement feeling like you do not have too many resources and clearly saving more earlier is better but Enable’s IFA’s in Bishop’s Stortford may be able to help you make the best of what you have.

Source - AOL Press Association

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 

When's the right time to pay off your mortgage?

For many paying off the mortgage is one of the things that Enable's IFA's in Bishop's Stortford  regularly see people aiming for so they can enjoy their later years.  But a study, by the Saga Equity Release Service, has recently  discovered that one in three people over the age of 50, and one in seven over the age of 70, still have a mortgage. And that on average those who still have a mortgage in their 70s will have £40,000 left to repay.

There can be lots of reasons for still having a mortgage to pay in your later years many over the years take out an interest only mortgage so at the end of the mortgage period are not in a positon to repay the debt some have tapped into the equity in their home over the years, in order to maintain a lifestyle that was maybe beyond their means hoping that house price rises would help wipe out their debt. And not everybody buys property when they are young, and gradually pays it off, life can end up being a bit more complicated and issues like unexpected debt and divorced can get in the way and mean some people have to start all over again.

The Saga research also found that a third of people over 50 had never tried to renegotiate their mortgage, so for some there could be serious savings to be made from shopping around for a cheaper deal. Enable’s IFA’s in Bishop’s Stortford might be able to help you find the right deal for you.

Remember your home could be at risk if you do not keep up your mortgage or re-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 

Source - Saga Equity Release Service

Are you confused about single tier pensions?

Enable's IFA's in Bishop's Stortford know that many of us hoped that a single tier pension would iron out confusion about state pensions and would offer a simple solution. A new study from Hymans Robertson suggests that it's not simple, and it's not that generous. They say that “in fact, most people will be worse off under the new system.”

Sue Waites, Partner at Hymans Robertson, said: "There's a widespread expectation that everyone who reaches state pension age from April 2016 will move from a basic state pension of £115 to a new flat rate of £151 per week. The reality is quite different. The transition to the new State pension brings many complications, particularly for those approaching State Pension Age. Some will be very surprised at how much they actually get."

The study suggests that fewer than half of those reaching the right age soon after 2016 will qualify. The number of people with fewer than 35 years of National Insurance contributions will be partly responsible for this. However, the big problem is the number of people who have opted out of the state second pension at some point in their career - which the government will reflect in lower state pension payments. Waites says anyone approaching their state pension age should contact the DWP, explaining: "Get in touch with the DWP to find out what you're likely to receive and avoid any unpleasant surprises."

If you want to make sure your retirement is a comfortable as you hope it will be Enable’s IFA’s in Bishop’s Stortford can help you look at the whole picture including your State pensions.

Source -Hymans Roberson

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