What is it about buy to let?

For most financial planning Enable’s IFAs in bishops Stortford would recommend some property investments. The rapid growth in popularity of buy-to-let in recent years, fuelled in part by the failings of the pensions industry has maybe got a bit out of control and the government has been trying to curb it with the introduction of the 3% levy on stamp duty in April 2016. But the fact is that many investors remain attracted by the high yields in some parts of the country, low void periods and potential for capital growth that BTL offers.

Instead of steering clear of the market, many private landlords continue to add to their property portfolios, as reflected by the increase in the amount BTL investors borrowed to invest in property last year. The volume of BTL mortgages increased by 3% last year compared with figures for 2015, according to data released by the Council of Mortgage Lenders (CML).“2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable,” said Paul Smee, director general of the CML.

With interest rates at a record low level, competition among mortgage providers, somewhat unsurprisingly, continues to hot up, with lenders shaving percentage points off their buy-to-let mortgage rates in an effort to entice BTL landlords acquiring new properties through their doors.
 “The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business,” said Rachel Springall, finance expert at Moneyfacts. Enables IFAs might not suggest a BTL property for you but there are other ways to tap into the property markets that we are happy to talk you though.

https://www.estateagenttoday.co.uk/features/2017/2/buy-to-let-mortgages-what-opportunities-and-challenges-lie-ahead

Innovative Isas offering 12% tax-free returns?

Enable’s experienced IFA’s in Bishops Stortford have had much sympathy with Britain’s savers for a long time. Many are desperate to find ways to give their finances a boost and recently a new type of Isa offering returns of up to 12% or perhaps even 20% in future has arrived. But are rates like this simply too good to be true?

Some experts are predicting that this will be the year that a new tax-free account for peer-to-peer lending and crowd funding will shake up the savings market and bring some much-needed better news on returns. Peer-to-peer websites match borrowers (individuals or companies) with investors or lenders. They cut out the banks by putting people with money to lend in touch with those who want to borrow. This results in a so-called “innovative finance” Isa they have been around since last April, but it is only now that there are some accounts to choose between.

The selection however is still very limited, with few well-known names because many of the biggest players in the peer-to-peer lending sector are still awaiting the final go-ahead that they need in order to offer them. It is looking increasingly likely that many of these companies will end up missing out on the 2016-17 Isa season because they won’t get their full approval from the City regulator in time they are also clarity much more risky as an investment but it will be interesting to see how things develop.  But is worth remembering it is Isa time and during the current tax year you can save up to £15,240 in one type of Isa or split the allowance across two or all three types and from this April, the total amount you can save each year into all Isas will increase to £20,000.

https://www.theguardian.com/money/2017/feb/18/innovative-finance-isa-tax-free-high-returns-risky


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

Win a £75 bouquet for your Mum this Mother's Day

Enable Independent Financial Advisors in association with Margaret Kay Flowers and Wines of Bishop's Stortford are giving you the chance to win a beautiful £75 bouquet for your Mum this Mother's Day. Simply LIKE and SHARE the relevant Facebook post in order to be in with a chance to win a Margaret Kay bouquet. T's and C's do a apply, see below.

Terms and Conditions:

1. There will be only one winner of the £75 bouquet and no money equivalent will be offered 2. The winner will need to LIKE and SHARE the Mother's Day post in order to enter 3. The Entrant will need to live within a 20 miles radius of Bishop's Stortford 4. All entrants will need to be 18 or over 5. The winner will be announced on the Facebook page on Wednesday 22 March 6. All names will be put into a hat and drawn at random. 7. No members or employees of Enable Independent Ltd will be eligible to enter. 8. Entrants will need to provide their full name and address - so they will need to be able to receive direct messages through FB.

Small business red tape

A recent survey of 500 SME’s has revealed that that hurdles like HR compliance, health and safety demands and pension admin are stopping owners from growing their enterprise. On average these and other administrative tasks take an average of 10 hours out of the working week.

James Kinsella, co-founder of Instantprint, says, ‘We all know how it feels to fight the clock. There are only so many hours in the day to get everything done and SMEs are feeling the squeeze.

‘It’s interesting to see from the research that, while factors such as admin and staff management have an impact on productivity, it is the management of our hours, minutes and seconds that have the biggest effect on the running of a successful enterprise.’

One in ten business owners has less than an hour a week earmarked for business growth, while eight per cent say they struggle to find any time at all. A third of business owners could use a hand managing their finances to save time, while 22 per cent feel that responding to customer service concerns could be streamlined. A quarter of business owners believe they could improve the efficiency of their SME by hiring more staff, while one in ten want to automate the invoicing process to cut down on financial management. Enable’s experiences Independent financial Advisors know that it is always a fine balance dividing up your working week as an SME.  We are happy to help individuals and their businesses manage their financial plans if we can.

http://smallbusiness.co.uk/battling-red-tape-growth-2536799/

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

Inequality in the family?

Enable’s IFA’s see many families who are concerned about he financial inequalities between the older generation and young families. The wealth gap between old and young may already be a well documented phenomenon in the UK but it could be set to grow even faster than expected say The Resolution Foundation.  They are concerned that higher inflation alongside persistently low interest rates and stagnant wages are going to widen the existing inequality between retired and working-age people.

Housing is by far the over riding factor in all of this but some families are adjusting, with older members increasingly likely to raise capital to give to children and grandchildren. The average income after housing costs for those aged between 25 and 34 dipped most heavily during the financial crisis, falling to a 10-year low of £18,891 in 2012; while the average income for over-65s rose sharply and is expected to increase to £22,387 this year making it on average almost £2,000 more than young workers.

According to investment company Hargreaves Lansdown, 62pc of Millennials (born between 80s and 90s) feel they are “financially unlucky”. But “baby boomers”, (born in 50s and 60s) know how lucky they are: 72pc feel their generation has been fortunate. New records are being set for the amount of equity released from homes. Last year £2.15bn was released by 27,563 people, according to the Equity Release Council and much of this borrowing comes from owners’ desire to help family, with almost half (44pc) used to help children or grandchildren, according to provider Key Retirement.

http://www.telegraph.co.uk/money/consumer-affairs/new-family-tax-older-family-members-paying-young/

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

Are there any gaps in your state pension contributions?

Enable’s IFA’s are keen to help anyone with their pension planning and despite the fact that a state pension may not be all you want to be relying on it is certainly a useful element of your retirement plan. But there have been changes in state pension provision and under the new “flat-rate” state pension you are required to have 35 years of full rate National Insurance contributions to receive the top rate, currently £155.65 a week.

It has recently come to light that thousands of people however would l not get the full amount if they have at some point been contracted out and paid a reduced rate of National Insurance. This set of circumstances is affecting s workplace “final salary” schemes and public sector workers such as teachers and nurses. But by filling in gaps in National Insurance records, you can dramatically boost state pension

But by making voluntary or “Class 3” lump sum payments you can fill in any missing years in your National Insurance record. It may mean you have to spend £4,000 to boost your state pension by £23,000 but hundreds of thousands of people are being urged to use a generous Government scheme to do just that. This guide published by Royal London, Britain’s biggest mutual company, explains how a single year of National Insurance can be purchased for around a lump sum of £733. This will boost state pension payments by around £230 a year for the rest of your life, totalling £4,600 in extra income over a typical 20-year retirement. Filing in five missing years using Class 3 contributions would cost you under £4,000 but generate nearly six times the outlay in extra state pension.

http://www.telegraph.co.uk/pensions-retirement/financial-planning/spend-4000-to-boost-your-state-pension-by-23000---heres-how/


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

First-time buyers surge

As independent financial advisors Enable like to be able to support first-time buyers to get their first foot on the property ladder.  Recently increasing numbers of first time buyers have been able to take up low cost mortgages in a slightly stalling property market to take their first stem into property suggests a recent report from the National Association of Estate Agents (NAEA).

The report says that in December 2016 first-time buyers made up almost a third of total sales which is not just a 10% increase on the previous month, but the highest number for the month of December in well over a decade. Overall, the sales agreed may have fallen despite the fact that the number of house hunters that actively registered to buy property rose to the highest level seen since 2003 but the number of properties listed for sale by estate agents in December was up slightly from November.

Mark Hayward, NAEA managing director said, “In November we saw a seasonal slowdown as typically it’s uncommon for people to buy and move close to Christmas. Yet, our December findings have completely bucked this seasonal trend,” He added: “With demand at an all-time December high and sales to first time buyers at their highest on record, 2016 closed on a positive note following several months of uncertainty.” If you are looking to try and get a foot on the housing market Enables IFAs can help you look at your overall financial planning as well as support finding the right mortgage options for you. 

https://www.propertyinvestortoday.co.uk/breaking-news/2017/1/record-numbers-acquiring-their-first-home


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/

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

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

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

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

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

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

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

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