Living together longer?

Despite the Chancellors Autumn statement saying £7.2bn will support the construction of new homes, including spending by housing associations, and a new £2.3bn Housing Infrastructure Fund established for infrastructure for up to 100,000 new homes in high-demand areas, Britain's broken housing market is still likely to see household sizes grow.  Currently in the UK more people are living under one roof than at any time in the past 17 years. More adult children live with their parents and house shares, both rented and bought, are growing. Young people are marrying later and more likely to be single and the number of under-65s who live alone has fallen by 244,000 since 2012, according to Government data.

The average property is now worth six times the average salary, according to Nationwide. This makes it out of reach to most single buyers. With house prices rising much faster than salaries unsurprisingly, young people are joining forces with parents, partners or friends to be able to reach the required level. Sharing a rent or a mortgage clearly makes it more affordable but if living with the children is not for you more parents and grandparents are finding the way to help is by handing over cash to use for deposits, or by joining a child on the title of a property so their income can be taken into account for affordability. Some parents and grandparents are even releasing money from their own homes in order to be able to help.

As with most large scale financial transactions there are tax and legal issues that need to be considered. Parents might find they incur an extra three percentage points of stamp duty if they help a child buy because of the surcharge introduced in April this year. Enables IFAs in Bishops Stortford can help you with the detailed financial planning required.

http://www.telegraph.co.uk/personal-banking/mortgages/first-steps-on-the-property-ladder-find-a-partner-or-a-parent/


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

Autumn statement - What changes for Taxpayers?

Keeping up to date with the current taxation system is vital to wealth management and Enable’s IFAs in Bishops Stortford like to make sure they say abreast of any change and work with client and their accountants to get things right.  In this year’s Autumn statement it is clear that those who use tax avoidance schemes will be challenged. The Chancellor said that, to tackle tax avoidance, the Government would "strengthen sanctions and deterrents" and will take further action on disguised remuneration tax avoidance schemes.

It is good to see the continued commitment to raising the tax-free personal allowance as it moves to £12,500 adding £1500 onto the tax-free amount we can earn in a year.  He also reconfirmed that the threshold for higher-rate tax would move to £50,000. After 2020 it seems these thresholds will rise in line with the consumer prices index. Continuing what was announced in the Budget, Class 2 National Insurance contributions will be abolished in April 2018, which will simplify National Insurance for the self-employed. And the National Insurance threshold for employees and employers will be aligned at £157 a week at no cost to workers.

There had been fears that those who are made redundant would have to pay tax on termination payments but the first £30,000 of termination payments will remain tax-free. But as announced in the last Budget, from April 2018 termination payments over £30,000, which are already subject to income tax, will also be subject to employers' National Insurance contributions. Subtle changes can have an impact on your financial planning so Enables IFAs are here to talk them through.

http://www.telegraph.co.uk/tax/news/autumn-statement-2016-will-better-worse/

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

Anything for savers in the Autumn Statement?

Enables’ experienced IFA’s in Bishop’s Stortford know that savers have been having a tough time and things do not look as if they are going to change radically but The new Chancellor of the Exchequer, Philip Hammond, in his first Autumn statement seemed to be acknowledging this.

For savers the Autumn Statement confirmed, as had already been announced, that the annual Isa allowance will rise to £20,000 in April next year. In addition a new savings bond launched by the Government will allow anyone over the age of 16 will be able to deposit between £100 and £3,000 in it. The bond will be open for a year and savers are expected to receive interest of 2.2pc on up to £3,000. The "Investment Guaranteed Growth Bond", launched through National Savings & Investments, will offer a "market-leading" rate, said the Chancellor. Details will be announced when the bond is launched in the spring, but the Government expects it to offer that interest rate for a term of three years.

For savers using 'drawdown' pensions however there is some less welcome news, the annual allowance for saving into a pension for those who have started to "draw down" their pension savings will be cut to £4,000 from £10,000.  The official documents said: "The Government does not consider that earners aged 55 and over should be able to enjoy double pension tax relief, such as relief on recycled pension savings, but does wish to offer scope for those who have needed to access their savings to subsequently rebuild them. The Government will consult on the detail."

http://www.telegraph.co.uk/tax/news/autumn-statement-2016-will-better-worse/

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

Historical events and the markets

Enable’s IFA’s in Bishop’s Stortford know keeping up with the markets is a challenge but with some recent British company results some are considering it a good time to consider raising UK equities allocations in some portfolios.  A key factor of which such an argument is built on is the lower level the pound has settled at globally.  This automatically makes all sales made overseas by British companies more valuable when converted into home currency. The other side of the coin, in terms of the benefits a lower pound can bring is making UK goods and services more competitively priced relative to rival offerings from other countries, which helps lift market share.

According to the November FTSE 350 ‘Profit Watch’ report from The Share Centre, the pound is trading at a 185 year low on a trade-weighted basis. Most forecasts have sterling staying lower than its pre-referendum level for a considerable time, and therefore overseas earnings are likely to make a bigger impact on company profits for some time to come. The  effect of this on company revenues has barely begun to hit home in results statements says the report due to the considerable time lag between making sales and company reporting. The Share Centre’s analysts say it will take a year or more to see the full effect.

In addition domestic economic indicators have remained relatively robust since the EU referendum, so even domestic facing companies which do not benefit from the weaker pound could deliver good numbers next few years. One good recent example comes from housebuilder Taylor Wimpey which saw its shares jump over 3% as it reported a healthy order book and upgraded profit forecasts. 

Enable’s IFA’s are always happy to talk through your investment strategies.

http://www.portfolio-adviser.com/news/1032602/pa-analysis-topping-uk-equities


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

Mortgage rates at record low

Britain's second-biggest mutual lender, Yorkshire Building Society, has recently revealed a mortgage at 0.98pc. It is the lowest rate ever offered and the deal is the cheapest nationally-available rate to anyone re-mortgaging.  The way it works is that it offers a "discounted rate" which tracks the lender's standard variable rate, currently 4.74pc, at a 3.76pc discount when  the lender's standard variable rate falls or rises, the rate will also move down or up in line. As with other low rate mortgage’s these arrangements often come with large fees,  £1,495 for the Yorkshire Building Society and early repayment during the discounted period incurs a 1pc charge.

During this year mortgage rates have been falling rapidly with the Bank Rate cut in August continuing to fuel this pattern. The Yorkshire building society is one of several lenders which have dropped their rates for high-value borrowing recently it’s available for borrowing of up to £5m.

Barclays also recently reduced its rate for mortgages between £1m and £3m from 1.85pc to 1.49pc, fixed for two years. Santander cut its five-year fixed rate to 2.09pc from 2.59pc in September for those borrowing between £250,000 and £3m.  According to comparison site Moneyfacts, the average two-year fixed mortgage rate is now at 2.34pc, down from 2.67pc this time last year.

David Hollingworth, of London and Country, said that this option would be more attractive to those borrowing a larger amount. But he added. "You've got to be careful not to be purely drawn to the fee, and you also have to keep in mind that this is linked to standard variable rate.” Enables IFAs in Bishops Stortford can help you find the right mortgage to suite your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

http://www.telegraph.co.uk/personal-banking/mortgages/lowest-ever-mortgage-rate-of-098pc/

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 

Planning to pass on your wealth

Enable’s experienced IFA’s in Bishop’s Stortford regularly discuss how to pass wealth on to the next generation with their clients. A major new study from leading economic think-thank the Centre for Economic and Business Research (Cebr) and wealth manager Brewin Dolphin has found that “adults under 44-years-old are failing to save for the short or long term.” Meanwhile, pensioners’ incomes are rising faster than the typical income for the working population due to generous final-salary pensions and the small matter of property ownership worth £1.3 trillion.

Many of the older generation hope to be able to pass on some wealth and almost 80 per cent of over-55s who plan to support their families financially expect to simply leave all or part of their assets through their will. However willing the older generations maybe to pass on their wealth, they're simply not interested in doing it right now.

The push for a redistribution of wealth has been raised before, including controversial proposals to encourage older homeowners to downsize. But this latest study suggests, that gifting and investing one "silver pound" today could end up being worth three times as much to grandchildren as inheriting a one off lump sum later thanks to the effects of compound interest and investment returns.  “The harsh reality this country faces is that the outgoing Baby Boomer generation will be the last to enjoy a comfortable retirement unless urgent action is taken now,” says Liz Alley, divisional director of financial planning at Brewin Dolphin. “We are calling for older people to fundamentally rethink how and when they pass on their wealth to younger relatives. The solutions we are proposing today are based on earlier and regular gifting as part of a strategic financial plan, rather than focusing on a one-off inheritance. This could help set grandchildren up for life as well as reduce inheritance tax.” If you want to look at how you plan to pass on your wealth Enable’s IFA’s can help.

http://www.independent.co.uk/money/could-baby-boomers-be-the-answer-to-the-nations-savings-woes-a7393281.html


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)

October reflected contrary investor sentiment in global equities with the UK’s FTSE100 gaining just short of 1% (0.8%), ending October at 6,954.22, whilst mid-month falling just 6.48 points short of its all-time high. The wider FTSE250 managed to slip by 1.83% to 17,544.2 and the junior AIM market seeing just a small lift of 0.38% to 822.2.

Possibly reflecting the uncertainty surrounding the forthcoming Presidential elections, the American markets turned negative with the Dow Jones finishing October at 18,142.42, down 0.91% and the technology based Nasdaq losing 2.31% to close at 5,189.13.

Over in Japan, the Nikkei225 staged a recovery from its recent downward trend, gaining an impressive 5.93% to close out the month at 17,425.02, whilst in Europe the Eurostoxx50 also fared well, finishing at 3,055.25, for a lift of 1.77%.

Once again, Sterling was unloved on the foreign exchanges losing a further 5.43% in the month against the US Dollar to $1.22 and 3.48% against the Euro at €1.11. Against the greenback, the world’s most widely held reserve currency, Sterling has fallen now by 17.01% since the turn of the year, primarily as a result of the ‘Brexit’ economic uncertainty. Meanwhile, the US Dollar improved 1.79% against the Euro to $1.10.

Oil, as measured by the Brent Crude benchmark, had another volatile month, touching $52.67 at one point in October, on hopes of an OPEC production ceiling, but the price fell away at the close of the month to finish at $48.30. Gold investors stayed away in October with the precious metal slipping to $1,276.71 a troy ounce to record a loss of 2.98%, although it is still up 19.06% since the turn of the year.

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 RISES TO 1%

The UK’s Consumer Prices Index (CPI) rose by 1% in the year to September, significantly higher than the 0.6% rise recorded in the year to August, according to the latest figures released by the ONS. The CPI last reached 1% in November 2014.

The main factors for this increase were a rise in the price of clothing, hotel accommodation, motor fuel and gas prices, which were unchanged following their fall last year. Partially countering these increases were a fall in air fares and food prices, as supermarket price wars persist.

The impact of Sterling’s depreciation will continue to affect our domestic inflation as the cost of imports will rise accordingly. The world’s worst performing currency of 2016, Sterling is now worth 20% less against the US dollar than it was prior to 23 June. Not only affecting the price of fuel and finished goods such as imported fashion items and food and drink but all the raw materials used to produce anything from motor cars to fridges are also adversely affected.

The majority of economic analysts, both domestic and international, believe that inflation is therefore on a rising trend that will soon eclipse the Bank of England’s target level of 2%, some anticipate a CPI level of around 3% by the end of 2017.

One group of the population that is somewhat sheltered from this prospect is pensioners. They are reassured by the current triple-lock mechanism introduced by the Government that guarantees their state pension will rise each year by whichever measure of the inflation rate, average earnings or 2.5% is greater.

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 ECONOMY EXPANDS 0.5% IN Q3

Recent data from the Office for National Statistics (ONS) estimates that the UK economy expanded by 0.5% in Q3 2016. Although slower than the 0.7% growth rate experienced in the second quarter, this was stronger growth than many analysts estimated, reducing expectations of an interest rate cut at the Bank of England’s next Monetary Policy Committee meeting on 3 November.

The ONS commented: “The pattern of growth continues to be broadly unaffected following the EU referendum. There is little evidence of a pronounced effect in the immediate aftermath of the vote.”

Philip Hammond, the Chancellor of the Exchequer, was reported to comment that the GDP figures demonstrated the resilience of the UK economy, adding: “We are moving into a period of negotiations with the EU and we are determined to get the very best deals for households and businesses.

“The economy will need to adjust to a new relationship with the EU, but we are well-placed to deal with the challenges and take advantage of the opportunities ahead.”

The economy was supported by a robust performance from the services sector, which grew by 0.8% between July and September. The strongest part of the service sector was transport, storage and communication, growing 2.2% in the period; the fastest rate for seven years.

Service sector growth was offset by the steepest fall in construction since Q3 2012, with the industry dropping 1.4% between July and September following a sharp slowdown in new housebuilding. Manufacturing output contracted by 1%, while production and agriculture declined by 0.4% and 0.7% respectively.

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

Inheritance skipping a generation

Recently the housing minister Gavin Barwell has been urging grandparents to disinherit their children in favour of their grandchildren in an attempt to try to rebalance the distribution of wealth in favour of younger people. Enable’s IFAs in Bishops Stortford can see that many families are already doing this to some extent, a generations plan how best to help younger generations.

In many cases it is also about passing money down well before death. As with all gifts of any size, provided the giver survives seven years, there is no inheritance tax to pay.

The simplest way to help grandchildren is often to help them buy a house by giving them the money for the deposit the property is then  in the grandchild’s name, and the mortgage is their responsibility. But despite the benefits of this some 'Pensioners don't trust their children or grandchildren' says Angela Murfitt. “There’s a view among the older generation that it’s a very generous thing to give grandchildren £200 a year, regardless of the fact that there is £1 million sitting in the bank,” said Murfitt, a financial planner with clients are in their seventies and almost all likely to face an inheritance-tax bill. “It can make perfect sense to give money away,” she said. “But it’s a moot point when it comes to writing the cheque. People don’t want to lose control over their own assets.

If the straightforward handing over of cash is not for you there are plenty of other solutions which help bridge the inter-generational wealth gap and Enables IFAs in Bishops Stortford are happy to talk you through your options for helping the next generation.

Source: http://www.telegraph.co.uk/personal-banking/mortgages/the-new-bank-of-mum-and-dad-we-live-in-dads-buy-to-let/

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

Firework insurance - is your home insured?

Bonfire Night this year falls on a Saturday and many of us will be planning a fireworks party but Enables experienced IFAs in Bishops Stortford recommend checking your home insurance policy carefully if you are a home fireworks display enthusiast.  It is always sensible to make sure any accidents at a bonfire party don’t happen but you wouldn’t want them burning a hole in your pocket as well.

According to insurer esure, about 2.8 million people a year plan to hold a bonfire party at home but research from Churchill Home Insurance reveals almost two million British homes have been damaged as a result of a firework, with each incident costing an average of £307 to put right. An Allianz representative said: "Most household buildings and contents policies will provide cover if your property or possessions are damaged by a bonfire or a stray firework. However, people with a non-standard property, such as a home with a thatched roof, may have additional restrictions on their policies and policyholders should check with their insurance company."

It will also be in the small print of most household policies there will be a ''duty of care'' clause, essentially it would mean that you would have to prove you took proper precautions when lighting a fire or setting off fireworks. Claims would be affected, for example, if you used petrol to light your fire, or set off fireworks too close to your property.

It is also wise to have some idea of what the cover limits are on your policy. Any damage to a neighbour's property would be initially covered by the neighbour's insurance, but if the neighbour could show that you had been negligent in causing the damage, then would your policy cover it? Enables IFAs can help you make sure you have the right cover 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

Passing on your pension

Making sure we have a pension in place for our later years is key to many financial plans and Enable’s IFA’s in Bishops Stortford like to help make sure you have a pension in place to meet your needs. Some of us are also concerned to be able to pass on a pension particularly to a partner but most pensions can actually be inherited by anyone when you die - and pensions can still be tax efficient where an inheritance liability is likely to apply to the owner's estate.

The way you take your pension however will affect how it can be used by your beneficiaries. If you have already purchased an annuity with your pension money typically meaning that you receive an income for life the death benefits will depend on the type of annuity you selected. If you choose a guaranteed period of payment, the annuity will continue to be paid for the agreed term even if you die before that. If you bought a "joint life" annuity, your spouse will continue to receive the payments at the chosen level until they die.

If you select a "capital protected annuity" or "value protected" annuity, your beneficiary will inherit a lump sum, your pot minus any annuity payments you took before you died. Pension cash which has not yet been spent on an annuity will remain outside of your estate for inheritance tax purposes.

As part of you financial planning you need to complete a nomination form with the pension company to specify who you would like to receive the benefits on your death and what proportion. Enable’s IFAs are happy to help with any pension planning.

Source: http://www.telegraph.co.uk/money/special-reports/how-can-i-ensure-my-family-gets-my-pension-when-i-die/

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