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

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

Moving gridlock

If you are trying to move you might be having trouble at the moment with the high stamp duty and a lack of supply meaning that the number of people moving house has fallen for the first time since 2011.  The figures, produced by Lloyds Bank suggest the drop coming after four consecutive years of growth suggests that fewer "second-time buyers" can afford to move to a larger property, and that older people are not downsizing.

Former Conservative Chancellor Lord Lawson recently described the stamp duty as a tax on mobility calling for Chancellor Philip Hammond to reduce it in the Budget, due to take place on 8th March.

It was the former Chancellor George Osborne who reformed the tax at the end of 2014, meaning that anyone buying a home worth more than £937,000 would have to pay a higher tax bill. The average cost of moving has also increased reaching  £11,000, with rising stamp duty costs, estate agents' and conveyancing fees.

But Lloyds figures seem to show that first-time-buyer numbers are actually up 7pc, suggesting that the slowing housing market is largely down to homeowners who are unable to move up the housing ladder. Andrew Mason, the  banks' mortgages director, said: "Whilst higher prices will have lifted equity levels for many current owners, the low availability of the ’right type‘ of homes for those looking to move up the housing ladder may have constrained market activity. "Just 2.6pc of the housing stock is currently classified as retirement housing. According to estate agent Knight Frank

If you are looking to downsize or move on Enables IFAs can help talk it through.

http://www.telegraph.co.uk/personal-banking/mortgages/housing-gridlock-homemover-numbers-fall-first-time-since-2011/

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 

Where to Save?

Enable’s IFAs know that the pain for savers appears to be never-ending. Recent figures from the Bank of England show that the rates for your average instant-access accounts have fallen to 0.15pc, so it’s hardly surprising that NS&I have also cut their rates including Premium Bonds.

But despite premium bonds prize money being cut from May 2017 from the rate for someone with average luck falling from 1.25pc to 1.15pc it still remain one of Britain's most popular savings vehicles, in which £66.7bn is invested. The complex way in which monthly prizes are distributed, with two £1m jackpots per month, and more than 2m £25 prizes paid, it means the odds of winning with any £1 bond are tricky to calculate but in total, 2,224,513 prizes of all values are currently paid per month. Dropping only slightly to 2,219,493 this May making the odds of any £1 bond winning any prize of any value will remain roughly one in 30,000.

The biggest falls in the number of prizes apply to the £25,000, £10,000 and £5,000 bands. The very smallest prizes of £25 increase from 2.1m to 2.2m. But security is the main draw of NS&I, and the main benefit of Premium Bonds, all the money invested in NS&I is 100pc protected by the Government, and bonds can be cashed at any time. However, many cite the chance to win big is what draws savers into Premium Bonds specifically but there's really is no guarantee, it’s a lottery you could win nothing at all and inflation could be eroding your cash. It's probably best to think of them as a flutter rather than aa savings account. But if you want some help finding better returns Enable’s IFAs are happy help you look at your options.

http://www.telegraph.co.uk/personal-banking/savings/premium-bond-prize-cuts-may-2017-odds-winning/

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

Why is the cost of investing falling?

Enable’s experienced IFA’s have seen the cost of investing fall dramatically over the past decade. For many sound financial planning involves talking through your options with experts as well as using technology to reduce costs and increase transparency.

Funds that used to be run by people are now largely automated and run by complex algorithms simply overseen by humans. The daily rebalancing of a typical “passive” fund that tracks the market is now almost entirely autonomous. “Active” managers, who select shares rather than follow the market however also use technology much more. For both active and passive managers, the actual process of investing has also become more efficient. And these benefits are saving investors significant amounts too.

Alongside efficiency there is more and more of a push for active fund managers to be more transparent about the fees they charge. Investors can now easily compare funds’ fees and performance online, and a recent FCA report concluded that active fund fees were too opaque and tended to “cluster” around price points. It suggested that managers should be using an “all-in” fee to make it even easier to compare costs. With more focus on fees and the under performance of many active funds there has been a move towards low-cost “passive” investment. As more money flows into passive funds, the economies of scale grow meaning that they continue to get cheaper.

Some portfolios might have higher costs if they invest in niche assets such as hedge funds who might charge a management fee, plus a performance fee. If you want to make sure you have the right cost associated with your investments Enable’s IFAs are happy to talk it through.

http://www.telegraph.co.uk/investing/funds/four-reasons-cost-investments-falling/

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

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

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/

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

Running out of pension funds

Enable’s experienced IFA’s in Bishops Stortford have supported many clients to set up pensions and have also helped to manage many pension finances. Recently, the apparently good news from The Office for National Statistics (ONS) is that there are over half a million people aged 90 or over, and more than 14,500 are 100 or more. The figures amount to a 65% increase in a decade, with the number of elderly men beginning to gain ground on the number of elderly women.  The problem is how to fund this ever increasing lifespan either as the state or as individuals. We already have more over 60s in our society than children.

Research from Aviva has found that men in Britain estimate they will live for around 15 years after they stop working (at around 65) when they’ll probably live another 19 years and women think they’ll survive another 19 years when they are actually likely to be around for another 21 years. Just three or four extra years of retirement requires around £35,000 in additional pensions savings to be able to fund that time.  Gareth Shaw, head of consumer affairs at Saga Investment Services recently said already “today’s retirees routinely underestimate how much they need to have a decent income in retirement. [Our research] found over 50s need double the amount they think to generate the kind of income that will leave them comfortably off in their later years.”

If you have worries about how you are going to fund your retirement Enable’s IFAs in Bishops Stortford can talk you through your options.

Source: http://www.independent.co.uk/money/growing-old-disgracefully-why-longer-life-is-ruining-your-wealth-a7345941.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