Fear of death linked to pension habits

Enable’s IFAs in Bishops Stortford know that saving for retirement is essential but according to some research a reluctance to try and work out how long you expect to live for puts you off planning for retirement. The researchers set out to discover why so many people do not invest in annuities, which ultimately provides an income for life upon retiring.

"People need to think about how long they expect to live in order to calculate the potential payout for an annuity," said Professor Linda Salisbury, marketing professor at Boston College and co-author of the study, which will be published the Journal of Consumer Psychology. They found a fear of death negatively influences the decisions people make earlier in their lives about financially preparing for their retirement and the reluctance of people to decide how long they expect to live for when calculating their annuity payments might be a key reason for their low uptake.

"Our findings suggest there may be simple ways financial planners can reduce thoughts about death in these situations."  "There may also be strategies to help people cope with the anxiety that these thoughts might evoke," said Prof Salisbury. The researchers experimented with altering the wording in annuity brochures to see if they could influence decisions.  One annuity brochure stated that the monthly payouts would be a certain amount "each year until they died". Another said the payouts would be "each year they lived". Unsurprisingly, more people opted for annuities when they read that the payouts would last "each year they lived". Enable’s IFAs are happy to help you build up your payouts for years lived.

Source: The Independent

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.
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Pension funds ups and downs

Enable’s experienced IFAs in bishops Stortford have seen turmoil and uncertainty in the global markets before and we all know that pension funds have had a bit of a bumpy ride since Brexit but investment markets have since come back to levels higher than pre-Brexit and many funds will have picked up again although Sterling is still devalued.

“We’ve seen wild swings in the stock markets in the last few weeks, with big dips, but things have settled back to levels before the referendum.” Said Andrew Tully, pension’s technical director, from Retirement Advantage. “None of us knows what is around the corner, but when it comes to your pensions, don’t panic.  "Markets will always go up and down, but remember you are investing for the longer-term, so this should help smooth the journey.”  With more rocky times ahead there are likely to be big dips and gains to pension funds and it would be easy to be concerned by this. But

“For many pension customers the simplest answer is to stay calm and not to rush any decisions.

"Market falls only become real losses when assets are sold, so hanging on in there may be the best option, especially for those more than a few years away from retirement.”

The closer you are to retiring, the more worried you are likely to be about having enough money and making it last foe as long as you need it. Enable’s IFAs know retirees want to be able to pay the bills, enjoy their retirement and protect themselves and their family so if you want to talk through your options we are here to help.

Source: The Mirror

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.
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Post-Brexit might be a good time to look at your mortgage

Enable’s IFAs in bishops Stortford know there is much speculation over whether house prices will fall and what will really happen with mortgage interest rates. But at times like these it’s important to stay calm and maybe take a wider look at your options around a mortgage.

It is always a good idea  to review your finances every once in a while, as your personal circumstances can change as much as the world around us, so now could be as good a time as any to revisit your financial position.  Some like to review their mortgage annually which can help give a head start on any deals that are to be had, so it’s always worthwhile keeping an eye on whatever offers are circling the market.  When it comes to finding the right mortgage deal, there are still plenty of options available. Many lenders have been introducing new mortgage products with all-time low interest rates, and the mortgage price war looks like continuing.  Recently several mortgage lenders have started to decrease 10 year fixed rate mortgages which have sparked some discussion around longer-term mortgages and what advantages they might have.

If you are considering your financial position, and don’t want to change your mortgage you might just want to review what protection you have in place should your circumstances change. Regardless of the referendum results, none of us are able to predict the future so being prepared for all eventualities. Enable’s IFAs in bishops Stortford are happy to talk you through your options.

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


Source: Mortgage Advice Bureau

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 

Cultivating a savings habit

Enables IFA’s in Bishops Stortford are great believers in the value of cultivating a habit of making savings. Much financial stability can come from saving but in the current economic climate having enough money for savings has proved difficult for many families.

 Two recent surveys have revealed the extent to which families have lost the savings habit to cover the cost of unplanned events, such as fixing the car or paying for repairs in the home. The independent Money Advice Service, as part of its Financial Capability Survey, asked 3,500 people across the UK how they would pay for an unexpected bill of up to £300 within a week. Although 22% of them would dip into their savings (and 43% could pay with day-to-day cash), some 24% would use high-cost credit, ask for family help, or face problems.

Prof Ashton, of Bangor University, said the use of overdrafts and other loans was a much more expensive way to pay bills. Yet low interest rates are undermining any incentive to save. "We are asking young people to save in an environment where there are no Brownie points for saving," said Janette Rutterford, professor of financial management at The Open University.

Failing to divert money into savings is the result of a number of reasons, according to Prof Ashton and Prof Rutterford.  Firstly, there is no longer a savings culture in the UK that mirrors a thrifty society such as China. There is easy access to credit and confidence in the safety of savings took a hit during the financial crisis and most importantly, interest rates have been pitiful for more than seven years. Enable’s IFAs in Bishops Stortford can help you get back into the habit of saving for financial stability.

Source: The Independent

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

How to protect yourself from financial fraud...

At a time of so much uncertainty having to deal with fraud could be the final straw and Enable’s IFA’s in Bishops Stortford want to help their clients protect themselves by being well informed.  You are likely to have heard of identity fraud where criminals manage to get hold of personal information about you so they can try and open accounts in your name, set up a mobile phone contract, or try and order other goods using a false name or in the worst case scenario empty a person’s current account.

Investment fraud is another thing to look out for - this is usually where potential savers are contacted by phone or email to invest in 'unbeatable opportunities' and with high yields 'guaranteed'. These kinds of false investment are often offered in high-risk unregulated products like art or diamonds. If it looks too good to be true it probably is.

The methods used by criminals tend to involve acquiring details taken from information freely available online like addresses and dates of birth posted on social media.  Sometimes all that is needed to open an account in that person's name birthdate and address. So don’t post such details on line.

Phishing is another trick criminal use, where people are tricked into clicking on links in emails or texts they often make them look as if they are from an official source, such as Revenue & Customs, a popular shop or someone you know.  Clicking on such links can download 'malware' on to your computer or phone, this is software that lets the robbers see account numbers and passwords that have been used on that device. So make sure you only download links from sources you are really sure of.
Source: Money Matters


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 

Bank rates remains low

Back in 2009 when the Bank of England first announced an “emergency cut” in Bank Rates to 0.5pc many economists have been predicting that official interest rates would rise again within a year or two but over and over again Enables IFA’s in Bishops Stortford have seen it stay the same.

The Bank of England Governor Mark Carney had suggested that a cut was likely to come this month but the monetary policy committee again decided to hold it at 0.5pc, and the wider thinking is that a cut down to 0.25pc or even 0pc might not have any real effect as borrowing is already so low that savers have got used to tiny returns.

Some believe bank rates need to stay low so a whole generation of home owners accustomed to low mortgage repayments don’t have to struggle more to cope with higher mortgage rates.  A rush of forced sales or repossessions would hit the banks and the economy. David Hollingworth of London & Country, said about 90pc of his customers were choosing fixed-rate mortgages. "More are electing to lock in for longer."

The other factor to consider with bank rates is inflation and as inflation remains low, it is hard to see what to do, as rate rises are normally used to choke off inflation rather than stimulate it. If you want to talk through what to do as a borrower or a saver Enables’ IFAS are happy to try and help you think your financial planning through.

Source: The Telegraph


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 

Annuities hit by Brexit

Enable’s IFA’s in Bishops Stortford know the instability of Brexit will continue to impact on financial planning for some time.  And for those who are just retiring or are newly retired the amounts paid by annuity rates will be disappointing. Just Retirement and Retirement Advantage have both recently announced cuts to their annuity rates, and more companies are likely to follow.

Annuities are available for retirees and are a product that offers an income for life, they are usually bought at retirement with all or part of a person’s pension savings.  At the moment annuity returns reflect the current direction of travel in interest rates, and since Brexit they are hitting even lower long-term rates.

“Gilt yields and annuity rates have been dropping steadily over the past year. The events of the past couple of days have given new momentum to that trend.” Says Tom McPhail of Hargreaves Lansdown, “For any investor planning to buy an annuity in the immediate future, it may make sense to do so sooner rather than later. Once you’ve obtained a quote from an annuity company the terms are usually guaranteed for between two and four weeks.”

But the other-side of falling annuity rates is the impact of lower interest rates on mortgages, more and more longer-term fixed-rate mortgages are likely to emerge reflecting falls in gilt yields. To review your pension or your mortgage you might want to talk it over with one of our experienced IFA’s at Enable.

Source: The guardian

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

What of Britain’s housing market post EU referendum result?

Enable’s experienced IFA’s in Bishops Storford are here to try and help you make sense of the economic landscape so you can plan your finances. Some analysis are currently saying that while Brexit may not directly affect demand for property, there could be some complex knock-on effects for mortgage rates and the building industry, all of which could alter the long-term direction of travel for house prices.

The younger generation may well be wondering if property is still worth the investment. It has long been the case that timing matters but the right timing is also notoriously difficult to predict- on top of timing the amount you borrow and the rates you pay on the debt is crucially important.

According to modelling by online investment firm True Potential a £100,000 property bought for cash in 1985 generated a return of £540,589 – or 441pc – by 2015. Even with interest paid at the prevailing Bank of England base rate – considerably more than many savings accounts offer – a investment of £100,000 would have grown to £265,000, or £487,754 if interest was reinvested, over the three decades.

But attitudes toward property appear to be changing, David Harrison of True Potential said “People are split on whether property has been a money-maker or a costly investment,” he said. “ Property is also a very illiquid asset (this is an asset which cannot be easily sold or exchanged) with high costs and it can take a long time to see returns.” In a survey of 2,000 adults, property was picked by half as the best investment they had made over the last 30 years. But property was also the most cited “worst ever financial decision”, with a third of respondents saying it had been their biggest mistake.  These results really do highlight just how important it is to make informed decisions when buying property.

Source: The Telegraph

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.
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Osborne hits the road

Enable’s Independent Financial Advisors are glad to see that the Chancellor has set to work on building stronger economic and trade relationships with the UK’s closest trading partners.  He has recently travelled to New York for discussions with Wall Street investors on the first leg of a series of targeted ‘missions’ to key global financial and political centers.

Mr Osborne is urging leaders from some of America’s biggest investors to stick with the UK following its decision to leave the EU, offering up a golden opportunity “for them to help define an even stronger relationship with Britain.” The trading relationship between the UK and the US is pivotal: the US is the largest single destination for UK exports, and the UK is America’s largest trading partner in Europe. In 2014 UK exports to the US totalled £88 billion (17% of total UK exports) and last year, the UK was the US’s sixth largest trading partner.

George Osborne said “While Britain’s decision to leave the EU clearly presents economic challenges, we now have to do everything we can to make the UK the most attractive place in the world to do business. Britain and the US have been at the forefront of open trade in the last 200 years and pursuing a stronger relationship with our biggest trading partners is now a top priority."

The trip to the US is the first in a series with the Chancellor also leading a major trade mission to Singapore and China to discuss trade and promote investment into the UK ahead of the G20 Finance Minister’s meeting in Chengdu.

Source Gov.uk

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 

Interest rates look likely to be cut again

To try and counter the post-Brexit effect on the economy it is looking very likely that the Bank of England will cut interest rates to a new historic low earlier than expected. Bank of England governor Mark Carney had already suggested to policymakers on the Monetary Policy Committee (MPC) that an exit vote would slash rates over the summer. Economists at Hargreaves Lansdown said it was "now probable" rates will be cut on Thursday, with financial markets pricing in a reduction from 0.5% to 0.25%.

They said it might even be possible that rates may drop to zero in August as the Bank struggles to bolster flagging growth and contain the fallout of Britain's vote to leave the EU. Once again good news for borrowers, but not good news for the long-suffering UK savers.

Mr Carney also said on unveiling the Bank's Financial Stability Report that Brexit risks to the economy had started to "crystallise". Mr Carney has been quick to stress he is personally reluctant to reduce rates lower than 0.25% or into negative territory in a recent speech he said : "As we have seen elsewhere, if interest rates are too low or negative, the hit to bank profitability could perversely reduce credit availability or even increase its overall price."

The Bank has unveiled a series of measures to help limit the Brexit blow, relaxing banking rules to boost their lending firepower by up to £150 billion and pledging to pump in at least £250 billion if needed to calm markets in the immediate aftermath of the Brexit decision. Enables IFA’s in Bishops Stortford are here to help you plan financially as a saver or a borrower.

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 Independent

Maintaining a diverse investment portfolio

At times of uncertainty further change is not usually the best option.  Enable’s IFA’s in Bishops Stortford have seen the best strategy for weathering change is diversification. We can never be sure of what the market will do at any moment, so the importance of a well-diversified portfolio in any market conditions should always be remembered.

Diversification is not a new concept and in general, a well-diversified portfolio combined with an investment horizon of three to five years can weather most tricky times. Spreading your wealth in part in Equities and investing in securities that track various indexes usually make good long-term diversification investments for your portfolio. By adding some fixed-income solutions, you are further hedging your portfolio against market volatility and uncertainty.  Some say it pays to be more of a lazy investor if you invest money on a regular basis it helps smooth out the peaks and valleys created by market volatility. But just because you have your investments on autopilot does not mean you should ignore the forces at work its good to remain in tune with overall market conditions.

But it also pays to take a long-term view of the markets, time and time again it has been shown that investing with a long-term yields greater returns. There can be times, when sharp market drops alert investors to risks in their portfolios. This is usually not the best time to make changes but Enable’s IFA’s can talk you through your options if you are worried.

Source: Motley fool

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 eroded by hidden charges

A year-long study by the Transparency Task Force (TTF) has recently uncovered that more than 100 charges are being levied on pensions eating away the value of funds by more than a third. TTF's chairman, said: “The shocking news is that we have uncovered more than 100 types of costs and charges being routinely applied to pensions and investments, many of which are being hidden from the consumer, which is just plain wrong.”

Earlier studies have already suggested that undisclosed costs could combine with the annual management charges declared on pension statements to consume a third of the value of a pension fund over its lifetime. But the TTF research has now suggested the losses could be even higher, because it has allegedly discovered yet more hidden charges. Andy Haldane, the Bank of England’s chief economist, has said “I consider myself moderately financially literate – yet I confess to not being able to make the remotest sense of pensions.”

The Association of British Insurers said pension providers were strongly in favour of making costs transparent and explaining them “in a meaningful and comparable way". The Investment Association, representing UK investment managers, issued a statement saying: “It should be noted that, when it comes to the costs that come with investing on the markets, asset managers play a major role in reducing these for investors by pooling their savings together and achieving significant efficiency savings that they would not be able to enjoy if they simply traded in markets independently.”  If you want to talk through the cost of your pension Enable’s IFA’s in Bishops Stortford are here to help.

Source: The Independent

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 

FTSE 100 resilience

Whichever way you voted in Brexit Enable’s independent financial advisors in Bishops Stortford would have expected some volatility in the markets through this period. And the FTSE 100 has indeed suffered but then leapt to its highest level since 2015.  Just a week after the referendum it’s trading was around 6,577 the highest level since August 2015.

Returning financial confidence, after the initial shock of the outcome, had been growing all week despite one of the most volatile weeks since the 2008 financial crisis. And the Bank of England Governor Mark Carney managed to inject some extra confidence into markets by promising Britain was tough enough to deal with the transition period. He also heavily hinted interest rates are set to be cut in the next couple of months to provide extra stimulus to the economy. It is expected the Bank's base rate will be cut from 0.5 per cent to 0.25 per cent in August.

Connor Campbell, financial analyst at Spreadex.com, said:  "Considering we are exactly a week on from the Brexit referendum, and subsequent market panic, the fact that the FTSE has climbed all the way above 6500 for the first time since last August is staggering.”

The index may have been propelled to this 10ish month high by the governors promise of stimulus, including a rate cut but the impact such news has had on the value of sterling may not be such good news. If you are concerned about your financial planning we are here to advise.

Source: The Express

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