Looking after the grandchildren? Make sure you are not missing out on credits

Many families who use the services of Enable’s IFAs in Bishop's Stortford have to make sure they include childcare in their financial planning.  Many grandparents are happy to help and spend time with their grandchildren and help their children but make sure that if you have given up work to look after grandchildren you are not missing out on Government credits. 

Each year that a person misses from work takes £231 a year from their state pension, a loss of £5,800 over a 25-year retirement period so if you are not making sure you have sorted out your Government credits  it could be costing you thousands of pounds in state pension according to some new figures. There is a credit system called the "specified adult childcare credit" and it is designed to protect the pensions of grandparents who retire early to care for grandchildren so their parents can go back to work.

It is believed that more than 100,000 grandparents of working age could benefit from the scheme but a recent Freedom of Information request sent to HM Revenue & Customs has shown that only 1,298 people had claimed the credit in the year to September 2016.  Steve Webb, a director at Royal London and former pensions minister, said: "Many families rely heavily on the support provided by grandparents to enable them to combine paid work and family life.  "The fact that there is a scheme to make sure that grandparents do not lose out, by protecting their state pension rights, is a very good thing. But the scheme is not much use if hardly anyone takes it up. " Enable’s IFAs of Bishop’s Stortford are always keen to try and help the whole family with their finances.

http://www.telegraph.co.uk/pensions-retirement/tax-retirement/thousands-grandparents-missing-nanny-tax-credit-boosts-state/

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 will inflation affect the house price index?

Inflation is difficult to predict but Enable’s IFA’s in Bishop’s Stortford know it is important to keep it in sight for any financial planning. Former RICS residential chairman and London estate agent Jeremy Leaf, has recently said that in his opinion inflation has taken over from Brexit as “the biggest threat to affordability and confidence in the housing market.” His statement comes after the announcement that inflation had leapt to 1.6 per cent, the highest for 18 months in a bigger rise than had been expected. “If the cost of everything is going up, people feel poorer and less inclined to take on further debt. With the housing market it always comes down to confidence and if people see bad news, they tend to overreact, sit on their hands and do nothing” warns Leaf.

The comments were made soon after the Office for National Statistics released its figures for house price rises in the year to November suggesting that they have risen by an average of 6.7 per cent in the year to November, across the UK, which was up from 6.4 per cent a month earlier. Making the average UK house price £218,000 in November 2016 some £14,000 higher than in November 2015 and £2,000 higher than October. As is usual the biggest rises were seen in England, where prices increased 7.2 per cent in the 12 months to the end of November making the England average price is £234,000.  Leaf says, “the house price index findings are not too surprising because ... they are a little bit historic. We expect to see some moderation in price growth in future as we have already seen on the ground in the past month or so. Shortage of stock and increased nervousness is showing itself in only slightly higher prices and lower activity.” If you are trying to make plans for housing we are always happy to talk you through your options and Enable in Bishops Stortford.

https://www.estateagenttoday.co.uk/breaking-news/2017/1/inflation-bigger-problem-for-housing-market-than-brexit-claims-top-agent

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 lending in 2016 was fairly resilient but what next?

Enable’s IFA’s in Bishop’s Stortford know that 2016 was weighed down by uncertainty but towards the end of the year mortgage lending increased and even though the outlook for lending to home buyers is less bullish at the moment than it was a year ago, according to the latest report from the Council of Mortgage Lenders (CML,) the market is still proving to be resilient.

Paul Smee, director general of the CML said ‘November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change and aspirations for home ownership remain strong in the UK,’  In the report it was recorded that overall home owners borrowed £11 billion in November 2016, up 5% month on month and 2% year on year. A breakdown of the figures indicates that first time buyers borrowed £4.7 billion, up 4% on October and 9% on November last year while home movers borrowed £6.3 billion, up 7% on a month ago but down 5% compared to a year ago.  Alongside this remortgage activity reached £5.8 billion, down 5% on October but up 14% compared to a year ago while landlords borrowed £3.2 billion, up 10% month on month but down 9% year on year.

‘Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2 million transactions and a slight increase in gross lending to £248 billion,’ said Smee. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), agreed that the market is showing signs of stability in the face of wider uncertainty but there will be winners and losers. If you want to make sure you have the best mortgage in place for you Enable’s experienced IFA’s are here to help.

http://www.propertywire.com/news/uk/home-lending-uk-remained-resilient-2016-outlook-2017-less-bullish/


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

Savings offer something

It has been a difficult time for savers but for the first time in six months there is now a four-year savings bond that pays 1.95pc. Ikano Bank has increased the rate on its three and four-year fixed-rate savings bonds. The new offerings push both products to the top of the best buy tables, with the three-year bond paying 1.75pc.

According to Moneyfacts, the last time a three-year fixed rate bond paid 1.75pc was October 7th 2016 with Al Rayan Bank and it was withdrawn the very next day. The Ikano Bank accounts can be opened online with £1,000 and managed by telephone if preferred. Customers are given 14 days to credit the account.  Interest can be paid into the account, allowing for compounding, or into a nominated account. As to be expected no access is permitted during the term.

Ikano Bank's new rates soar above Masthaven's current market leading three-year bond, which pays 1.67pc, and Vanquis Saving Bank's four-year account, which offers 1.8pc. The jump in rates follows a flurry of recent competition in the fixed-rate bond market over the past few months for the first time in more than a year.

There is some hope that the competition we are seeing from smaller providers could suggest that  the current tide could well be changing for savers, who have faced rock-bottom interest rates for years, said Andrew Hagger, founder of Moneycomms, although he said "rocketing rates" are unlikely. If you would like some help making your savings work for you Enable’s IFA’s in Bishop’s Stortford are able to help you look at all your options.



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/personal-banking/savings/four-year-savings-bond-pays-195pc-first-time-six-months/

Conquering debt in 2017

Enable’s IFA's know that before any saving can really happen you have to pay down any expensive debts. Many of us start the New Year having overspent in December and as some of those bills come more into focus it is good to take any of your debt in hand and sort it out. Once you have it in your sights it is easier to reduce.

The best place to start with sorting out debt is to know your budget and what your regular income and outgoings are.  Many of us know roughly what our out goings are but it can be good to write it down and maybe even create a household budget. When you know what you need to spend regularly on essentials you can then get a grip of avoiding debt, one of the biggest reasons for accruing  debt across all income levels is prioritizing discretionary over non-discretionary spending  in other words failing to distinguish between needs and wants.

If you are going to have a bit of a New Year cleanse of your outgoings start by looking at your credit card and debit statements, focus on any automatic payments for recurring bills and check if you still want them items such as gym memberships, streaming services or wireless plans you no longer need. At the same time focus on paying off any high interest accounts such as credit cards first.  Credit cards are typically charged at higher interest rates than other borrowing. It is important to set yourself goals that you can stick to - pay down your debt so you can start saving for the future.

http://www.ctvnews.ca/5things/conquering-your-debt-in-2017-starts-with-a-written-financial-plan-1.3228619




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 would you do with a long retirement?

Enable’s IFAs in Bishop’s Stortford know that an early retirement can look very attractive but stopping work can suddenly bring a big change of status and you can find that days that were busy with commuting, meetings and deadlines are now long and empty. Others do not find this at all and fill their time with travel, voluntary work and hobbies to make a life just as fulfilling as working.

Many people of retirement age have load more energy, current  retirees just aren’t as tired out as previous pensioners because they  are part of a generation that was great in number but with relatively few children and elderly parents dependent on them, so they were able to be pretty economically productive, by largely working less than their predecessors. According to analysis of OECD and Bank of England data by the International Longevity Centre, over their lifetimes, those retiring today have worked an average 23 hours per week, versus 30 hours for those retiring in 1970 a third less!

They have also enjoyed far better health, thanks to improving diets and medical care. Dr George Leeson, co-director of the Oxford Institute of Population Ageing at Oxford University, believes that soon 65-year-olds will be living another 35 or 40 years as the norm. 'Everything is going to change', he said. 'That life extension that we’re seeing is not time spent in frailty, they are not inactive years.'
It could mean a whole new phase of life in late middle-age, encompassing retraining and extra education. 'At the moment we tend to think of our lives in thirds,' Dr Leeson said. 'Divided roughly, we educate ourselves for a third, work for a third and are retired for a third. If you want some help talking through how you are going to operate for the final third of you life Enable’s IFAs are here to help.


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

http://www.thisismoney.co.uk/money/pensions/article-4025794/What-40-year-retirement.html

Planning your retirement

Enable’s IFAs in Bishop’s Stortford know that worries about pension provision can keep people awake at night but the best way is to face the situation and find out where you stand with your pension.

Before you worry too much or doing anything radical you need to take stock and see what provision you already have. Many people have a mixture of entitlements to the three main types of pension: one provided by the state which is based on your NI records. Under the new system which came into force in April 2016 the full state pension is worth £155 a week, which amounts to just over £8,000 a year. To receive this full amount you will need to have 35 years of NI payments, but you can top-up missing years and buy extra income. Some will also have a “final salary” plan (which is a guaranteed income based on your salary and length of service with a company) and then there is the “defined contribution” (which is a simple pot of savings but with no guarantees attached).

If you don’t know about all your possible pensions make a list of all the companies you have worked for to date and if you don’t know what the pension provisions were you can use the Government’s free Pension Tracing Service . Once you know what you have your investment strategy really depends on what you plan to do with your pension, you might want take the entire pot as cash, buy an annuity, or go into “drawdown” which drip feeds you cash leaving the lump sums to grow. Pension companies can tend to make broad assumptions, based on your age and other factors that might be at odds with your goals so make sure you get some good advice. Enables IFA’s in Bishops Stortford are always happy to talk through your pension plans with 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

http://www.telegraph.co.uk/pensions-retirement/financial-planning/five-steps-pension-perfection-2017/

Where are buy-to-let mortgages heading?

Several of Enable’s clients in Bishop’s Stortford have residential property included in their financial plans and if you are a smaller landlord there could be good news buy-to-let mortgages are predicted to fall in 2017 for ordinary landlords, but they may get more expensive for professional landlords with large portfolios.

Mortgage broker John Charcol is predicting a buy-to-let mortgage rate war in the so-called 'vanilla' end of the market, (landlords with just one or two properties) as a wave of tax and regulation changes drive the big high street lenders to drop rates for smaller scale landlords with lots of equity, who they consider lower risk. 'I definitely believe that we may well see a bit more competition in the very vanilla section of the buy-to-let market said Simon Collins, of mortgage broker John Charcol, says: 'Whether this will lead to higher pricing in the complex end of the market is really yet to be seen but the whole buy-to-let market is undergoing a real sea change.'

Tougher lending rules that have applied from 1 January have been forced on lenders by the Bank of England. These mean that the vast majority of buy-to-let mortgages will only be approved if the landlord can demonstrate their rental income would cover their mortgage payment by a ratio of 145 per cent if their mortgage rate went up to 5.5 per cent. This is a significant jump from the recent norm applied by lenders, of 125 per cent rental coverage at a lower rate.

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




http://www.thisismoney.co.uk/money/buytolet/article-4048980/Buy-let-mortgage-rates-predicted-fall-2017.html

Promise yourself some Financial Planning in 2017

Enable’s IFAs in Bishops Stortford know that financial planning is really important and the sooner you address it the better. It is also an ongoing process that will help you make sensible decisions about money so that can help you achieve your goals in life it is so much more than just having help buying financial products like a pension or an ISA.

Part of the picture of financial planning might also involve planning for what happens if you get ill or if you are no longer able to care for you family.  It is important to have an appropriate will in place to protect your family, and there are other ways of thinking about how your family will be able to manage without your income should you fall ill or die prematurely, through insurances.

We can all choose to spend our money differently, but a good financial plan involves thinking about what you want for your life and forming your own plan. The best place to get started is to work out some life goals some might be short term goals some medium or long term goal, it can help to write them down. Then it is worth assessing your assets and liabilities and taking a long hard look at your current financial situation asking yourself how close you are to achieving any of your goals.  Once you have a clearer idea of what you want you can then work on a “route map” for achieving your different goals this is where one of Enable’s IFAs might be able to help you implement your plan. If you already have a solid financial plan we can help you monitor your plans an annual review is always a good idea.

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

Investment trends of 2016/17

Who would have thought it despite Brexit and Donald Trump becoming president of America the markets have been surprisingly buoyant. Who could have predicted that the Dow Jones would end the year at near 20,000? If you’d bought Germany’s DAX index at its 2016 low (back in February), you’d now be up more than 30%. And the FTSE 100 being at a record high of 7,142? As ever with the markets it is never plain sailing but that was mostly due to turmoil in China at the start of the year.

According to money week two of the biggest investment events of 2016 were the end of the commodities bear market. And then there was the return of rising interest rates as the financial sector started to recover dramatically after a big plunge in 2015. After all the Brexit fear it seems that the markets have got a grip. Perhaps they realised that if Brexit was the worst thing that could happen to the global economy, then things weren’t all that bad.

But will all of this continue into 2017? You ask. It was a long bear market, so it would be surprising for things to turn too bad again too quickly in the commodities market.  But interest rates, are harder to predict perhaps they will rise rapidly? It kind of depend more on what politicians do next, will they really start spending? Or will we see another deflationary scare before too long? Britain however is likely to see inflation this year as the effects of the weak pound feed through. If you want to talk through what to do with your investments Enable IFAs are here to help.

http://moneyweek.com/two-big-investment-trends-shaped-2016-but-can-they-survive-in-2017/



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

Another year to wait for your state pension?

Enable’s IFA’s of Bishop’s Stortford noted that at the end of last year it was reported up to 30 million people could be forced to wait an extra year before receiving a state pension under new plans being considered by Government.  If you want to make sure you are making the best of your pension savings we can help you look at your figures.

The government squeeze could form part of another major state pension age review which could force people retiring after 2028 to work longer, threatening to shrink the retirements of all adults currently aged 22 to 54. The plans could save the Treasury around £240 billion by shaving an extra 12 months off their state pension entitlement. The final results of the wider state pension review will be published next May and are expected to recommend younger generations should work beyond the age of 70.   The Government has committed to reviewing the State Pension age every 6 years.

Plans for the wider state pension review have been afoot since 2013 but this latest change will have far-reaching consequences if it goes ahead. There does not seem to have been much protest maybe people never believed the State Pension promise anyway, or maybe it is just too far away to worry about. But if you are worrying about what your pension might look like it is never too early to talk to our experienced independent financial advisors at Enable.

http://www.telegraph.co.uk/news/2016/11/21/30-million-55s-will-have-work-extra-year-getting-state-pension/

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

Property Investment in Europe?

Enable's experienced IFA’s in Bishop’s Stortford know that most wealth management packages involve an element of commercial property and according to a report from investment firm Fidelity International, investing in commercial real estate in Europe is set to continue to produce positive yields in 2017. 

It says that the European Central Bank’s quantitative easing programme has continued to encourage a transfer of capital from the periphery to the core Eurozone, and this capital is chasing high quality real assets in core Europe, especially Germany. Overall, European real estate markets have delivered strong returns in recent years and, although the cycle is maturing, it is far from over. Neil Cable, Fidelity International’s head of European real estate explained that in the strongest markets of Europe, especially Germany, values have been steadily increasing for the past couple of years, and this is likely to continue well into 2017.

‘Real estate fundamentals are expected to remain positive, and while QE is in place, we believe the weight of capital will extend the European, excluding the UK, investment cycle. We expect capital growth from yield compression in core Eurozone to continue, albeit at a slower pace, with prime yields likely to fall to a new accepted threshold of around 3%,’ said Cable. ‘As we approach 2017, investors should retrain their focus on the underlying income in their property investments, understand the quality of the tenant companies paying the rents, and ensure good diversity of lease length and tenant type.,’ he said.

If direct property investment is not for you making sure some commercial property is part of your broader portfolio is what Enables’ IFAs in Bishops Stortford can help you think through.

http://www.propertywire.com/news/europe/commercial-property-investment-europe-set-continue-positive-yields-2017/

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