POST EU REFERENDUM COMMENT- JUNE 2016

Whichever way you voted, 23 June 2016 will be remembered as a momentous day in the history of not only the UK, but also Europe and beyond. After months of uncertainty and market volatility, the people of the UK voted to leave the European Union (EU) by 51.9% to 48.1%, after 43 years of membership.

The decision inevitably brought some uncertainty and confusion to the markets, sterling and the political landscape. Events will continue to unfold at a rapid rate. What is unclear is how long that uncertainty and confusion will continue.

Immediate reaction

The UK’s vote to exit the EU sent shockwaves through financial markets. After a week of positivity in the markets, the outcome came as a surprise to the City, which clearly expected a Remain vote.

David Cameron, who campaigned ardently for the UK to remain in the EU, announced that he will stand down as Prime Minister by October, following the election of a new Conservative party leader. The Prime Minister has said that Article 50, the formal request from the UK to leave the EU, will be activated when his successor is in situ, triggering two years of formal exit talks. However President of the European Parliament, Martin Schulz suggested that the UK should begin negotiations imminently.

What is clear is that voter turnout was high – 72.2%. What’s also apparent is the huge regional and generational divide. Voters in Scotland resoundingly chose to remain in the EU, so the breakup of the UK is a distinct possibility with Scotland expected to hold another independence referendum. Whoever the new Prime Minister is, they face an immense challenge to reunite the country.

The focus for investors is now on the short and long-term macro implications.

Sterling and the markets

The morning after the vote the FTSE 100 index tumbled 8.7%, paring back some of the losses later, following reassurance from the Bank of England with Mark Carney pledging to do whatever it takes to protect Britain from financial crisis. It closed just 3.15% lower at 6138.69.

Equities across the globe also fell sharply, while perceived safe haven assets – including gold – rallied. Sterling fell against its major trading currencies to touch a 31-year low, but recovered from the initial shock, the pound bouncing back 4 cents against the dollar to $1.3642.

International ratings agency Moody’s downgraded Britain’s creditworthiness to negative from stable.

European implications

Brexit brings serious implications for the EU itself. Brussels has demanded that the UK start talks to leave the EU immediately, but the ‘Leave’ camp are resisting Brussels’ call to go quickly. With the EU increasingly concerned about the potential spread of contagion to mainland Europe, meetings and discussions will be ongoing over the coming weeks and months.

Intervention of policy makers

The Bank of England’s statement offering liquidity and determination to ensure financial stability, helped soothe the markets. The reaction of central banks and policy makers will be instrumental in limiting the downside and calming fears over the economy.

The bottom line

With the result undoubtedly a surprise for the markets, we find ourselves in uncharted territory. What ‘leave’ really looks like is still unknown. The UK faces an extended period of uncertainty and market volatility, during which time it is important to maintain investment focus.

We remain composed and professional and will continue our considered, measured approach to carefully navigate these challenging investment conditions.

Volatility is an inevitable part of investing. Movements can be extreme and it is natural to feel concerned about the investment climate. It is essential to consider longer-term timescales instead of focussing too closely on short-term volatility. However concerning market fluctuations may be, it’s important to remember that we have jointly worked hard to formulate a financial plan which is in-line with your own personal requirements and will continue to do so. Financial advice is obviously key, so please don’t hesitate to get in contact with any questions or concerns you may have.

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 

Lifetime Isas should be more generous?

Enable’s IFAs in Bishops Stortford know the value of Isas for a retirement or savings plan and it is interesting to see that the man pushing forward the development of the Isa tax model to replace pensions tax relief thinks that the Lifetime Isa bonus and annual allowance should be doubled.

Centre for Policy Studies research fellow Michael Johnson was speaking at Money Marketing’s  Retirement  Strategy Summit recently and said the new Lifetime Isa that is due to launch in April 2017 should be made more generous. He said: “The next steps we are considering with the Lifetime Isa is to potentially double the bonus rate, from 25 to 50 per cent and secondly to increase the annual allowance from £4,000 to £8,000. “Part B is then to scrap all tax relief. Part C is to scrap the lifetime allowance, because it is irrelevant to 99 per cent of the population, and replace that with the higher annual allowance and bonus. Then we should lower the age when you can open a Lifetime Isa to six-weeks-old. “Then what we are doing is pre-funding the state pension, in which case you can scrap the state pension. Because, let’s not kid ourselves, the state pension is rapidly becoming ludicrous.”

The Government had unveiled the Lifetime Isa in the March Budget when it was widely assumed bigger plans to scrap pension-tax relief entirely were being shelved because of the impending Brexit vote. Under current proposals the product is open to those under-40s who will receive the bonus up to the age of 50. It can be accessed early, without penalty, for first time house purchase. The Government is considering allowing early access for other life events. Enables’s IFAs can help you plan for your retirement.

Source: Money Marketing

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 

Financial Planning: Joint or single policies?

At any stage of your wealth management or financial planning having the right insurance is vital. When you are buying level term life insurance, you will find you can get it either as a single policy or as a joint couples policy. If you have a partner and both of you are getting life cover, a joint policy may be marginally cheaper than getting two single policies, but you need to be aware that it will usually only pay out once, on the first death.

So if you are trying to weigh up the benefits of a joint policy verses two single policies the main pro of a joint policy is that it is likely to be cheaper than two single policies. If you are married but have no dependants it is also likely to be much less hassle setting up just one joint policy compared to two single ones.  But if you have dependants you will only get one payout, usually on the death of the first policyholder whereas single policies, pay out twice to dependants.

One of the other issues can be that if you split up with your partner you may have to cancel the joint cover and buy two single policies, priced on your new age and health, which will almost certainly be more expensive. Two single policies will pay out on the death of each person, rather than just on the first death, but two singles policies are typically more expensive. If you are married with dependants and determined to stay married a joint policy may be sufficient but it is worth knowing the pros and cons.  Enable’s experienced IFAs in Bishops Stortford can help you decide.

Source: Money Saving Guide

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 

Well qualified advisors are invaluable according to LV=

The importance of well-qualified advisors is invaluable and it is good to see that LV has been raising the issue again. They say the Government should “force savers reaching retirement to take guidance if they do not have a financial adviser.” In LV=’s response to the Treasury’s consultation on public financial guidance, the mutual says low take up on advice is creating a real “mis-buying crisis.”

According to the firm’s research around half a million people retire each year without taking financial advice. It was clear in the March budget that the Government would create two new guidance bodies, responsible for pensions and money respectively, to replace the Money Advice Service and The Pension Money Advice Service (TPAS), and LV= says “the compulsory guidance, which would be funded by an industry levy, needs to be broader than pensions to include other retirement income options.”

“People are making important financial decisions without adequate support. It’s essential that all consumers are able to access affordable, regulated advice but when people can’t, or don’t, take advice we believe guidance should be compulsory. Says Managing director of life and pensions Richard Rowney. “This would further inform retirees about their options and help them make the most of their money.” “Making guidance mandatory, and increasing accessibility of advice, would be beneficial to all, as not only would individuals be better off but they would be less likely to rely on state support in retirement and would contribute more to the UK economy.”

Source:  Money Marketing

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 

DECISION DAY BECKONS FOR THE UK

On June 23rd, eligible UK citizens can make their voices heard on a major issue that has been making global media headlines and providing politicians, economists and heads of state with sound bites for over a generation. Should the UK remain within the European Union (EU) or leave and make its own way in the world?

The great uncertainty in this debate, now universally referred to in the media as ‘Brexit’, is the lack of real tangible evidence as to what a vote for either side would mean in practice. Since the inception of the EU (and its multiple antecedent monikers), no member state has ever left, so no-one can accurately predict what the outcome might be. What
is clear is if the UK does vote to leave, it will be major world political, social and economic news.

Clearly, there is much for each voter to consider before they cast their votes on the 23rd. From the EU’s perspective, if the UK votes to leave then this might pave the way for voters in other countries to stage their own similar referenda. However, it is also possible that if the UK wants to opt out, the EU may give way on a number of negotiating fronts in a bid to convince us to stay.

One thing is certain, on June 23rd, the eyes of all the world will be focussed on the UK, as this is a major political and economic issue with domestic, European, and global ramifications.

In reality, however, politicians, economists, bankers, and fund managers globally may try to confidently predict the long-term implications of the UK staying in or leaving the EU. At this point in time, nobody really knows.

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

MARKETS: (DATA COMPILED BY THE OUTSOURCED MARKETING DEPARTMENT)

Global equity markets – with the exception of the FTSE100 – continued their three-month recovery.

Having itself recorded three months of gains, the FTSE100 drifted on the last day of the month by 40 points to close down marginally 0.18% at 6,230.8. This late dip was attributed to ‘Brexit’ fears as polls indicated the leave campaign taking a small lead for the first time. The FTSE250, however, rose by 2.28% to end May at 17,184.7, whilst the junior AIM market also gained 1.62% to 739.5.

Across the pond the Dow Jones marked time, rising a nominal 0.08% to 17,787.2 as market watchers analysed the latest missives from The Federal Reserve regarding the direction and timing of any interest rate rise. The technology based Nasdaq closed the month at 4,948.05 to show a rise of 3.62%.

On the continent the Eurostoxx50 also recorded its third month of improvement, lifting 1.16% to 3,063.48, again with all eyes here on the UK’s ‘Brexit’ referendum campaigns.

The Japanese market saw the Nikkei225 recover strongly, ending May at 17,234.98 for a rise of 3.41%

The currency markets were sanguine in May with Sterling unchanged against the US Dollar at $1.45, but up 2.36% against the Euro at €1.30. The Euro also weakened by 2.63% against the greenback to $1.11.

The price of oil (Brent Crude) continued to improve as the lack of a decisive production quota policy from the Organisation of Petroleum Exporting Countries (OPEC), terrorist action in Nigeria and Canadian bush fires dampened global output somewhat. At $49.51 a barrel ‘black gold’ rose 4.47% in the month and now sits up 35.12% over the last three months.

Gold meanwhile lost its sparkle, dipping 6.01% in May to $1,215.15 a Troy ounce.

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

UK INFLATION DIPS

April saw the UK’s Consumer Prices Index (CPI) fall for the first time since September 2015 to 0.3%.

Last year was, according to the ONS, who compile the data, a year of historically low inflation, with the CPI hovering around zero.

Globally, inflation has been muted, with some Eurozone countries flirting with deflation.

Here in the UK, the main factors in the fall in CPI were a large drop in the price of air fares between February and March this year, a reduction of 14.2%. This is set against a rise of 4.5% seen in these prices in the same period last year. The cost of clothing and footwear also fell as retailers dropped prices to boost sales following April’s cold weather.

If the costs of food, energy, tobacco and alcohol are stripped out of the calculation, the so-called core inflation rate, fell to 1.2%.

Following this trend, the wider Retail Prices Index (RPI), a barometer measure still used for some future rent and pension calculations, also fell from an annual rate of 1.6% in March to 1.3% in April.

These falls in inflation, to below the Bank of England’s target level of 2%, required the Governor, Mark Carney, to write his sixth letter to the Chancellor of the Exchequer, to explain the reasons. In this he said: “The underlying causes of the below-target inflation of the past year and a half have been: sharp falls in commodity prices, the past appreciation of sterling, and to a lesser degree the subdued pace of domestic cost growth.”

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 THE JOBS MARKET COOLING OFF?

Whilst the UK’s unemployment rate remains at 5.1%, in the latest figures released by the Office for National Statistics (ONS), the number of unemployed people was 1.69 million between January and March this year, a fall of 2,000 from the previous quarter. Senior Statistician at the ONS, David Freeman, cautioned that: “The employment rate has hit another record high, but this time the increase is quite modest.

“With unemployment very little changed, that is further evidence the jobs market could be cooling off.”

His comments were reinforced by the fact that the data showed current job vacancies have dropped to 745,000, a fall of 18,000, the largest quarterly fall since Q2 2011.

Having said that, the statistics also reveal that there are now 31.58 million people in work, which represents an increase of 44,000 from Q4 2015, the employment rate is now sitting at 74.2%. Of this total, 23.12 million were in full-time employment, an increase of 328,000 from a year earlier, whilst there were 8.46 million in part-time employment, itself an increase of 81,000 from a year earlier.

Of the unemployed, the number of those claiming unemployment related benefits to April 2016 fell to 737,800, a decline of 2,400 from March 2016 figures and 57,600 fewer than one year earlier.

On the earnings front, average earnings – including bonuses – rose 2% year-on-year. Here the ONS added that they believed the timing of 2016 bonuses had affected this figure. Meanwhile, average weekly earnings – excluding bonuses – rose by 2.1%.

The Government’s response came from Stephen Crabb, The Secretary of State for Work and Pensions, who was quoted as saying: “These are another record breaking set of figures, with more people in work than ever before and the unemployment rate is the lowest in a decade at 5.1%”.

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 

EU REFERENDUM - Will you vote yes or no to stay? - DECISION DAY FOR THE UK

On June 23rd, UK citizens can make their voices heard on a major issue that’s been making media headlines and providing politicians with sound bites for over a generation. Should we remain within the European Union or leave and make our own way in the world?

The great uncertainty in this debate, universally referred to as Brexit, is the lack of real evidence as to what a vote for either side would mean in practice. Since its inception, no country has ever left the EU, so no-one can accurately predict what the outcome might be. What is clear is if the UK does vote to leave, it will be major world news.



In or out?
Whilst the opinion polls have been contradictory for some months, one element that has been consistent is the number of people who are ‘undecided’, in some cases more than 20%. With so many voters still undecided, campaigning and news flow ahead of the vote could prove decisive. As ever, it will depend on voter turnout. Based on the demographics of previous elections, the older generation are likely to be there, but will the younger generation bother to vote?



Meanwhile, the vote continues to gain world attention; European leaders have been quick to join the debate and President Obama has made his views known. The British newspapers have entered the fray on both sides, with each title following its own agenda, making it more difficult to separate fact from opinion.


EU REFERENDUM UK BUDGET OVERVIEW


At the heart of the debate there are several core issues that both sides are focussing on EU membership and regulation
.

EU membership and regulation

The net cost of EU membership is around 0.5% of GDP (£9bn). Some argue that the real cost is higher due to increased EU regulation and jobs lost as a result of immigration. The Confederation of British Industry (CBI) believes the direct economic benefits of membership for the UK equate to between £62bn and £78bn annually.



Would the UK be better off free from, what some people believe to be, the stranglehold of Brussels red tape? This is hard to quantify. Regulation would not immediately disappear in the event of a Brexit; if the UK negotiated an agreement similar to that which Norway has with the EU, it would have cost implications and still be subject to regulation of some kind.



Trade


It’s estimated that more than 45% of our exports are to EU countries. Britain also benefits from trade deals between the EU and other trading partners. If these arrangements were terminated the impact on UK business could be significant.


Those urging us to remain highlight that the EU Single Market gives the UK access to over 500 million customers. Those advocating exit say that the UK could go it alone and establish its own trade deals. The out campaign also point to the administrative burden placed on small businesses by EU legislation and believe freeing ourselves of this would be a welcome stimulus to industry and commerce.



Inward investment


Both sides acknowledge that in the short term, the uncertainty created by the referendum will slow inward investment. The financial services industry could suffer with some international operators potentially looking to relocate if we leave. Out campaigners suggest that divorced from poorly-performing European economies, the UK could reinvent itself as a strong and independent financial centre that would attract worldwide investors.



Stock markets and interest rates


Some of the recent stock market volatility is likely to be attributed to the uncertainty surrounding the forthcoming referendum – stock markets inherently don’t like uncertainty. So, any movement of investments in anticipation of a result could prove counterproductive. Sterling could be weakened by an exit, impacting on UK investments. However, as the majority of the FTSE 100 companies are multi-national businesses and derive their earnings globally, the impact of an out vote may not be as significant as some predict.


If the UK votes to leave, the Bank of England may consider cutting interest rates. Mark Carney has approached UK banks and questioned whether their balance sheets could absorb a rate reduction. The Bank has warned the outlook for financial stability in the UK has worsened ahead of the referendum, commenting that the upcoming vote was “the most significant near-term domestic risk.” The out campaigners maintain that following a short period of transition the UK economy will be back on track.



Fund manager Neil Woodford has concluded that an exit would not have serious consequences in the longer-term, predicting a ‘nil sum game’. He believes that “the fundamentals of the economy will be relatively unmoved,” and the vote would have a marginal effect on his investment strategy, given that the major companies in which he invests often have “absolutely nothing to do with the UK economy.”



Employment


The government predict that in excess of three million jobs directly linked to EU exports could be put in jeopardy by a vote to leave. Exiting the EU would put the economy at risk, deter investment and have implications for the Britons working in other EU member states. Those advocating leaving believe that new employment would automatically be created in an economy freed from the constraints of Brussels bureaucracy, coupled with the new freedom we would have to create our own trade deals with countries like the US, China and India.



Sovereignty and status


Much of the discussion on this topic focuses on Britain’s role in the world. Those who want us to remain in the EU believe that leaving would mean that we’d no longer exert any real influence in Europe or internationally. The exit campaign paints a different picture, seeing the UK as a truly independent nation, in control of its own borders and establishing itself as a major world power in its own right.



Immigration


This issue has been at the heart of the debate. Immigration has increased due to the expansion in the number of EU member states, and the attractiveness of the UK’s standard of living.


Whilst there are an estimated 2.4m EU citizens living in the UK, around 2.2m Britons live and work in EU countries, making net immigration lower than some reports suggest. Out campaigners argue that a leave vote will allow the UK to regain control of its borders.



Mixed views


The International Monetary Fund (IMF) recently downgraded its global growth forecast, referencing Brexit uncertainty as a contributory factor. It believes that “a British exit from the European Union could pose major challenges for both the UK and the rest of Europe. Negotiations on post-exit arrangements would likely
be protracted, resulting in an extended period of heightened uncertainty that could weigh heavily on confidence and investment, all the while increasing financial market volatility.”


The Prime Minister supports this view commenting: “The IMF is right – leaving the EU would pose major risks for the UK economy. We are stronger, safer and better off in the European Union”. Leave campaigners have rejected the IMF’s views, accusing it of downgrading the UK’s forecast at George Osborne’s request.


According to the CBI, a leave vote would constitute a ‘serious shock’ for the British economy. Their research warns of a cost of up to £100 billion to the economy and the loss of close to one million jobs by 2020.



What lies ahead?


Clearly, there is much for each of us to consider before we cast our votes on the 23rd. From the EU’s perspective, if the UK votes to leave then this might pave the way for voters in other countries to stage their own referenda. It’s possible that if the UK wants to opt out, the EU would give way on a number of fronts in a bid to convince us to stay.



On 23rd June, the eyes of the world will be focused on the UK; this is a major global issue with both domestic and global ramifications.

 In reality, however confidently politicians, economists and fund managers may predict the long-term implications of staying in or leaving the EU, nobody really knows.

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 

Keeping hold of your premium bonds?

It’s hard to know where to save your money at the moment as rates are so poor and even investing in premium bonds with the chance of a big win is no longer worth it.  It used to feel like a way to save tax-free and support the country’s finances in 100pc safety but as the rate is cut again to a paltry 1.25pc the 21 million people with over £60 billion saved should maybe cash in.

The rate of return of course only describes the mean average return, indicating that for every £100 paid in to bonds, on average £1.25 a year is be paid out but not to everyone. With £1,000 saved you’ve a less than 1 in 3 chance they’ll beat a 1.45pc savings account, even with £50,000 in it’s at best 1 in 6. Alongside the falling rate the other factors that used to appeal are no longer quite so special. Since 6th April when the new personal savings allowance (PSA) launched all savings interest is automatically paid tax-free so the premium bonds tax advantage has gone. Also the unique safe haven Premium bonds have enjoyed as they were operated by NS&I and Treasury-owned keeping capital as safe as it gets has changed.  These days all UK regulated savings accounts are protected up to £75,000 per person, per institution, by the Financial Services Compensation Scheme and the maximum you can put in premium bonds is £50,000.

Premium Bonds are certainly not as good as they used to be, but ultimately it’s only worth re-allocating your cash if there’s something better out there.  If you want to try and find the best place to save your money Enable’s IFA’s can help look at the options.

Source: Money Saving Expert

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

Pension penalties curbed

Enable’s IFA’s in Bishops Stortford are pleased to see that it has recently been revealed that savers who want to tap into their pensions will no longer be hit with enormous penalties, the regulator had revealed fees will be capped at one per cent. Earlier this year Chancellor George Osborne pledged to change the law so savers using new freedoms to access their pension cash early would not be stung by the huge fees that could gobble up to 20 per cent of their nest eggs.

The Chancellor and Prime Minister quickly announced that fees would be curbed, but said that it was not up to government but rather the financial regulator to determine the level of the cap. So Christopher Woolard, director of strategy and competition at the FCA, said: 'Together with the ban on exit fees in future contracts, we are proposing a one per cent cap on exit charges in existing contracts to ensure people can access their pension pots without being deterred by charges.

'This is an important step so people feel able to access their pension savings should they wish to.'

Consumer groups welcomed the news. Alex Neill, Which? Director of Policy and Campaigns, said: 'It's right that the FCA is bringing in this cap on pension exit fees. People shouldn't be unfairly penalised for accessing their money. 'This announcement is a good first step and the regulator must now turn its attention to other charges people face when trying to make the most of the pension freedoms.' If you are looking to make the most of your pension pot Enable’s IFAs in Bishops Stortford might be able to help.

Source: This is Money


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

Share a mortgage with your Grandma?

Enables experienced IFA’s in Bishops Stortford can see that for some to secure a mortgage relying on the grandparents might be the only way could be the only way. One lender ‘One Family’ have followed Nationwide in its plans to introduce intergenerational mortgage schemes, lenders are even keen to help grandparents share a home loan with a younger relative.

Those sixty somethings, who, paid around £12,000 for a first home in the 1970s, might now be living out their later years in a property worth considerably more but even if you are sitting on a fortune in property it is difficult as a grandparent to see a grandchild paying often as much as half their wages if not more on a not so salubrious dwelling.  With this mind, the new One Family mortgage allows grandparents to secure a mortgage against the value of their own property for the first time home of a grandchild, with the younger lender paying the instalments. Not many other details have been released about these ‘you-and-your-gran’ deals, but they might really work for some families.

One might need to accept that, if granny was going to risk her security to help you get a mortgage, she might want answers to these questions: how you’d be treating the house once you owned it and who would be living there? How will you pay the monthly instalments especially if you don’t want to take that dull job because you’re determined to follow your dreams? But when needs must it might be a way of bring a family closer Enable’s IFA’s can help you look at all your mortgage options.

Source: The Independent

ssued 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