Christmas is a time for giving

Our experienced IFA’s at Enable in Bishop’s Stortford and Saffron Walden know that many or our clients can be very generous towards charities, particularly at Christmas. It is also important to remember that when you do make a donation to a charity, or voluntary organisation that is registered with HMRC, that the said charity is able to claim back the tax that you have paid on the donation if you give them the right information increasing the giving. This mechanism is called Gift Aid and amounts to an extra 25p for every £1 that you give. If you give £10 to a charity and you are a basic rate taxpayer (20%), you will have paid £2.50 in tax on the gross donation (to take home £10, you will have earned £12.50 before tax). Charities are able to reclaim this £2.50 back from HMRC.

Giving a Charity Christmas present is also a good way of solving the what to buy for someone question while at the same time giving to a good cause. It is easy to give a gift to charity in someone else’s name and the options do not have to be massive but can have a huge feel good factor. £13 vaccinates 100 kids in the developing world against polio or £10 buys Christmas dinner for a homeless young person. £20 provides an hour of cancer care. £28 a drought survival kit, £40 to restore someone’s sight.

Many charities sell customisable e-card or gift cards that’ll tell the recipient what you've paid for on their behalf. Alternatively, you can just make a regular donation and if you do give direct to a charity on somebody else's behalf, make sure to use Gift Aid.



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

http://www.institute-of-fundraising.org.uk/guidance/frequently-asked-fundraising-questions/tax-effective-giving/

Drawing on your pension?

Enable’s IFA’s in Bishops Stortford are often in conversation with clients about how far their savings will stretch once they stop working. Followed swiftly by the question of how much they will need to limit their withdrawals to make sure their pension pot lasts?

These questions have taken on a great deal more importance since April 2015, when new rules came into force allowing people to cash in on their pension pots once they are over the age of 55.
One new study looks to shows how a typical “balanced” investment portfolio split between British shares and bonds would have fared over a theoretical retirement lasting up to 45 years. The study looked at hypothetical savers who retired in each year since 1900. The idea was to see how long a £100,000 pot would last, taking into account the pattern of historical returns, charges and the impact of regular withdrawals.

The recent changes in pensions have focused minds on so-called “sequencing risk”: the damage that can be wrought by taking too much income when portfolio values are low. They looked across the decades to try and assess the chances of running out of money in 20, 25, 30 years and so on drawing down £3000 in inflation linked-payments. There was a slim chance of running out of money within 20 years. But given that pension cash is now accessible from the age of 55, this only takes you up to 75, leaving a likely funding gap of 15‑20 years, given current life expectancy. Enable’s IFA’s can help you look at your savings for your retirement.



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

http://www.telegraph.co.uk/pensions-retirement/financial-planning/definitive-historic-analysis-long-will-100k-invest-last-draw/

Overpaying your mortgage

Enables’s IFA’s in Bishop’s Stotford and Saffron Walden know that the first few months in a new house can sometimes be a bit of a financial struggle as you add to the costs of moving, the new mortgage repayments and household bills. But once you’ve settled into your new home and factored in your new outgoings, you may find that you have a bit more disposable cash than you thought you would have.

It might be very tempting to book a holiday, treat yourself to a new car, or spend in some other way but perhaps it really would be better to save or invest that money for the future. One fairly straight forward way to save is to overpay your mortgage, if you can. If you overpay your mortgage you will be paying less interest overall and gaining more capital. By paying as little as £100 extra a month, you could significantly reduce the term of your mortgage. For example, if you have a £100,000 mortgage over 25 years with an interest rate of 4%, and you pay off an extra £100 a month, you could reduce your mortgage term by 6 years and save £15,534 on interest.

It is important to be aware that not all mortgages are the same, some may charge an early repayment fee, so it’s worth sitting down before you take out a mortgage or when you are reviewing your mortgage to talk through whether an overpayment charge would outweigh the other benefits.  It is also worth finding out if you can build in some flexible overpayments before you take out a mortgage so you can overpay when you can afford to and not when you can’t.

https://www.mortgageadvicebureau.com/news/TheInsandOutsofOverpayments/1241

Your home could be at risk if you do not keep up the mortgage repayments


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

REPUBLICAN PARTY AND TRUMP TRIUMPH IN USA ELECTION

“It is time for us to come together as one united people . . . it’s time!”

With these words, Donald John Trump, the 70 year-old New York-born multi-millionaire property developer and political novice, accepted his victory over ex First Lady and Secretary of State, Hillary Clinton, in the election race to become the 45th President of the United States, arguably the world’s greatest economic power.

In probably the most vitriolic and divisive presidential election campaign ever seen, culminating in the November 8th vote, the Republican candidate Trump triumphed over his Democratic foe, as the American people cocked a snook at the established political order in the ’Land of the free’.
Financial markets globally followed events minute by minute (in US East Coast time), with large falls across the board, followed later by strong recovery after more careful analysis of events (see ‘Markets’) and their likely outcomes.

In her message of congratulations to the President elect, Theresa May highlighted the “special relationship” between the two countries. She said that she hoped that Mr Trump’s win would mean a continuation of shared values, including “freedom, democracy and enterprise.”

She continued: ”We are, and will remain, strong and close partners on trade, security and defence.
“I look forward to working with President-elect Donald Trump, building on these ties to ensure the security and prosperity of our nations in the years ahead.”

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

PAY GROWTH PROSPECTS SUBDUED

The Institute for Fiscal Studies (IFS) have warned that the outlook for wage growth and the squeeze on pay is likely to last for over a decade.

 Their analysis of the Autumn Statement, based on figures supplied by the OBR, indicates that workers would earn less in real wages in 2021 than they did in 2008. Over the next four years, lower income families will be the biggest losers, with the poorest third likely to experience a fall in income.

Paul Johnson, director of the IFS, commented: ”We have seen no increase in average incomes so far and it does not look like we are going to get much of an increase over the next four or five years either.”

The “outlook for living standards and for the public finances has deteriorated pretty sharply over the last nine months.”

Real average earnings are forecast to rise under 5% over the next five years, 3.7% lower than the figure projected in March.

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)

Given the unexpected victory of Donald Trump in the USA Presidential election, on November 8th, the global equity markets reacted surprisingly serenely.

After an initial knee-jerk reaction south, most indices recovered well. Here in the UK, the FTSE100 had risen to 6,911 at one stage only to drop off 2.45% at the close of the month finishing at 6,783.8. The wider FTSE250 trod water, ending at 17,545.75, up a marginal 0.01%, whilst the junior AIM market slipped 0.39% to finish at 819.00.

More importantly, the American markets reacted well to Trump’s triumph with observers and investors anticipating a bullish increase in infrastructure investment. The Dow Jones gained 5.41% to 19,123.58 and the technology based Nasdaq adding 2.59% to end at 5,323.68.

Mainland Europe saw the Eurostoxx50 drift off 0.12% to 3,051.61, whilst the Japanese Nikkei225 saw a robust increase of 5.07%, closing November out at 18,308.48.

On the foreign exchanges, Sterling recovered some of the ground lost in October, rising against the greenback to $1.25 for a 2.46% monthly lift and to €1.18 against the Euro to show a 6.3% gain. The US Dollar also strengthened against the Euro to $1.06, a 3.6% rise.

Oil, as measured by the Brent Crude benchmark, had another volatile month, falling as low as $44.43 a barrel early in the month, but rebounding strongly on the last day of November to $50.47, as both OPEC and non-OPEC producers, such as Russia, finally agreed a cut in production of 1.2 million barrels per day (bpd) from OPEC and 600,000 bpd from non-OPEC producers. The Black gold now stands 35.38% higher than at the close of last year.

Gold remained unloved, given the volatility of other markets. The precious metal lost 8.13% in the month, closing out November at $1,172.89 at 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

GDP GROWTH AND BUSINESS INVESTMENT HOLD UP WELL

Research from the ONS shows that business investment following the Brexit vote was up 0.9% on the figure for the second quarter. Although this is positive news, the ONS pointed out that many of these investment decisions could have been taken before polling day. Business investment figures have held up well.

Gross Domestic Product (GDP) for the third quarter grew by 0.5%, helped by export growth and stronger consumer spending. Taken with the encouraging data on investment, these figures show the economy expanding broadly in line with its historic average.

Analysis of the data underlines the importance of the huge services sector that underpins the UK’s continued economic growth. Services increased by 0.8% in the third quarter, fuelled by the continued strength in performance of the British high street. By contrast, the manufacturing, agriculture and construction sectors are all contracting.

The Office for Budget Responsibility (OBR) has forecast that the economy will grow by 1.4% in 2017, down from the 2.2% it predicted in March. Some think it likely that the strength of the economy will diminish as inflation rises, wages stagnate and the path to Brexit becomes clearer.

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

RETAIL SALES SOAR AS WEATHER TURNS COLDER

Retail sales soared in October as the weather turned more wintry, according to the Office for National Statistics (ONS). Retail sales volumes increased 7.4% from the previous year, the figures represented the highest growth rate seen since 2002, beating Reuters forecasts of 5.3%.

 The more inclement weather favoured warmer clothing sales and the end of the month saw buoyant Halloween trade, which further boosted supermarket sales of the desired regalia. The largest contribution to growth came from non-store retail offerings, including mail order, market stalls and, crucially, internet-only retailers including Amazon.

In October, average weekly spending online was £1bn, a massive increase of 26.8% on October 2015. According to Kate Davies, Senior Statistician at the ONS, October saw: “...the strongest growth in internet sales seen in five years.”

In its monthly sales snapshot, figures from online retail body IMRG indicated that home goods also performed well last month. With spending up 24% year on year, the report highlighted: “This could have been spurred by a deteriorating pound, with people more focused on domestic home improvements rather than spending on holidays abroad – which have become a lot more expensive since the Brexit vote.”

Commenting on the strength in online sales, Managing Director at IMRG, Justin Opie, commented: “...a 5-year high for basket values and the likelihood of increased site traffic as people start researching in advance of Black Friday seems to have offset any negative impact. In recent years Black Friday has become an incredibly important period for determining a retailer’s success at the peak time of year, so retailers will hope that higher basket values can be sustained over the coming few weeks.”

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

Business mortgages

Enable’s experienced IFA’s in Bishops Stortford help many individuals with their personal financial planning and many clients also manage small or medium sized businesses that sometimes form part of the plan. It is interesting to note that recently business mortgage enquiries for SMEs more than doubled on the same period from last year, according to data form the National Association of Commercial Finance Brokers (NACFB).

This increase in commercial mortgage enquiries follows the NACFB’s annual results which revealed that £5.2 billion of commercial mortgage business was written in the year ending 30th June 2016, up by more than half (55 per cent) on the previous year. Many of the applicants they say came from a range of businesses such as restaurants, bars and other consumer-facing enterprises, that could be seen as a renewed vote of confidence for the high street, inevitably London powered the growth with nearly two thirds of enquiries (64 per cent) coming from the capital.

Paul Goodman, chairman of the NACFB says that appetite for commercial mortgage finance is a good indicator of small business confidence as it shows firms are confident enough to commit to the long term. ‘Last month we saw a huge uplift in enquiries from a variety of businesses – ranging from publicans and smaller retailers to hairdressers and restaurants – so it’s starting to feel like the SME community has got over any Brexit-related nerves,’ he adds. ‘While some of those businesses will also be looking to avoid steep commercial rents, especially in the capital, the confidence to take out a commercial mortgage bodes well for the future.’

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

http://smallbusiness.co.uk/smes-unprepared-brexit-turbulence-2535512/

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

When can you draw your pension?

Making sure you have your pension in place is all part of the financial planning Enable’s IFA’s in Bishop’s Stortford like to offer.  Despite the recent confirmation of the triple lock on state pensions the government might still be preparing to increase the official state pension age to 70 for millions of people currently in their 20s. Documents produced by the Department for Work and Pensions (DWP)  indicating a “more aggressive” timetable on state pension age (SPA) increases than previously planned are being compiled according to  Steve Webb.

The current official SPA for people in their 20s is 68, though under the existing schedule it could be expected to rise to 69. The SPA is the youngest age someone can start receiving their state pension, and is due to rise to 66 between 2018 and 2020, to 67 between 2026 and 2028, and then to 68 between 2044 and 2046. Webb, a former pension’s minister who is now director of policy at mutual insurer Royal London, said: “The previous policy strikes a fair balance between expecting people to work longer and allowing people to enjoy a decent retirement.” “If the government is planning to force tens of millions of people to work to 68, 69 or even 70, then it should be transparent about its plans. This would be a huge shift and should be properly debated, not buried in a technical document seen only by specialists,” said Webb.

A DWP spokesperson said: “This work forms part of our research ahead of the first state pension age review. It’s important we have a clear understanding of how the current system is working for pensioners before we undertake the review.” If you want to make sure your pension is in place or encourage your children to put a pension in place Enable’s IFAs can help you look at the options.

https://www.theguardian.com/money/2016/nov/28/pension-age-may-be-about-to-rise-again-says-former-minister

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

Unheard of mortgage deals

Enable’s IFA’s in Bishop’s Stortford have helped many arrange their mortgages and until recently a 1.5% mortgage deal was virtually unheard of. But currently there are already two-year fixed deal at less than 1.5 per cent out there and some mortgage experts think there may be room for even lower rates. Ray Boulger of the independent mortgage consultant John Charcol believes that “falling gilt yields could result in a drop in fixed-rate mortgage pricing.”

Gilt yields represent the rate of interest paid on government bonds. Their rates in turn affect so-called swap rates, the cost of getting fixed-term funding on the money markets for lenders. Lenders are then using that fixed-term funding to be able to offer fixed-rate mortgages to consumers. So if gilt yields fall, swap rates will fall, meaning it will be cheaper for lenders to get funding, which should, in theory, lead to cheaper loans for us all.

Recently the UK 10-year benchmark gilt yield fell to an all-time low of 1.3 per cent and the five-year gilt yield fell to 0.67 per cent and the two-year to 0.3 per cent. Essentially the yield on both five- and 10-year gilts has fallen by nearly 40 basis points in the past month. “Yields have fallen so fast that mortgage lenders are now well behind the curve with their fixed-rate pricing, leaving scope for some significant rate cuts on fixed rates,” said Boulger, however, “Although this is good news in the short term for anyone wanting a new mortgage, the rapidly increasing global problems remain a major concern and could lead to lenders reassessing their appetite to lend in the medium term,” he warned. Enable’s IFAs can help you find the right mortgage at the right rates for you.

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

http://www.independent.co.uk/money/how-low-can-they-go-home-loans-edge-towards-1-a6877621.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