Pensioner Bonds AKA Granny Bonds are back...

Making sure you near cash savings are in the best place is something Enables experienced financial advisors in Bishop’s Stortford would always recommend. It is often the case that the NS&I offer some of the best bonds and last week the Government’s eagerly-awaited market-leading Pensioner Bonds went on sale. Inevitably the high demand created problems on the National Savings and Investments website but the popularity of the bond was not a surprise given that the one-year bond pays 2.8 % while the return on the three-year bond is 4%.

Anna Bowes of Savingschampion.co.uk. has done the comparisons and it's clear, “The rates are head and shoulders above the nearest competition, paying 51 per cent more than the average 'top five' one-year fixed rate, and 61 per cent more than the average 'top five' three-year fixed rate,” Only those aged 65 and over however are allowed to invest in these Pensioner Bonds. Even if you are 65 or over and want to invest you will only be allowed to save £10,000 in each bond. But you can put that sum into both of the bonds on offer, meaning you could save £20,000 in each of the high-paying accounts and couples are allowed to put £40,000 in between them.

This offer will not be ongoing as the Government has set a £10 bn limit on the bonds, which means, that if everyone invested the maximum £20,000, only half a million pensioners would be able to buy the bonds. It is likely that if the issue is over-subscribed the bonds will be handed out on a first-come, first-served basis. If you want to apply online is very likely to be the best way. Enables IFA’s in Bishop’s Stortford are here to talk through other options for your savings.

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 

If you already have an annuity what can you do?

Independent Financial Advisors at Enable in Bishop’s Stortford have a huge amount of experience in helping people manage their pensions but if you have already retired and have an annuity you might be wondering what’s in it for you with all the new pension freedoms due to come in this April. Pensions minister Steve Webb has come up with an idea and recently said he would like pensioners to be able to trade in their annuities for cash. The proposed changes could also create a “second hand” annuity market; other firms could bundle up individual annuities and sell them on in bulk.

 “I want to see people trusted with their own money wherever possible. I have already heard from people around the country who would like to see this change made” said Webb, “I want to see if we can get these freedoms extended to those who are receiving an annuity but who might prefer a cash lump sum.”

His argument is that up to five million pensioners are unable to access the pension freedoms set to come into force this year. He said: “As things stand, once an annuity is in payment there is very little that an individual can do if they would prefer instead to have a cash lump sum or some combination of cash and reduced income.” Under his proposed plans, once an annuity had been sold payment would be redirected from the policyholder to another account holder, probably an insurer or pension fund. Then the pension would continue to pay out until the original policyholder died.  Webb is keen to launch a consultation on the proposals and agree a Coalition plan for the reforms ahead of the general election in May. Watch this space.

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 Investment ISA’s worth it?

Enables IFA’s are great believers in passive investment and very keen to make sure you have the right risk assessment for you and your investments in place. But it is interesting to note that some investors who bought the right funds at the turn of the millennium will have at least quadrupled their money through ISA’s despite buying at the worst possible time ie the peak of the dotcom bubble say the Telegraph Money.

They recently pulled together a list of the best Isa funds since the start of 2000, a 15-year period that has seen the London stock market have some real ups and downs. Calculations by Hargreaves Lansdown, the fund shop, say that “an investor who put £10,000 into a fund that tracks the FTSE 100 index 15 years ago and reinvested the dividends would now have £15,213. But investors who put their money in one of the best-performing funds would have outstripped inflation and fared much better.”

These were the top 10 funds:
Fund name     Return since 2000
Marlborough Special Situations     580pc
First State Asia Pacific     536pc
Investec UK Smaller Companies     460pc
Invesco PRC [People's Republic of China] Equity     447pc
Aberforth UK Small Companies     445pc
First State Global Emerging Markets     411pc
Schroder US Smaller Companies     381pc
Aberdeen Emerging Markets Equity     380pc
Schroder Recovery     370pc
Jupiter Financial Opportunities     359pc

Marlborough Special Situations fund, managed by Giles Hargreave returned 580pc, according to FE Trustnet, turning a £10,000 lump sum into £68,000. Rob Gleeson, head of fund research at FE Trustnet, said it was no coincidence that the best performers were the funds that invested in the more “risky areas” - “Investors should only take as much risk as is appropriate for their objectives, but you can see from this data that the highest risk asset classes perform best over the long term.” What ever your approach to risk Enable's IFA’s in Bishop’s Stortford are here to help you talk through your investment 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

Making the most of your pension in your 50's

With more control over our pensions on the horizon your fifties could well be the best time to review your savings and investments. Around this age earnings typically peak and mortgage and other debts tend to fall even if you still have children as young adults to support.

Enable's IFA’s in Bishops Stortford know this is a time to optimise savings. If you have a company pension make sure you are making the most of it many employers match contributions, often paying £2 in for every £1 paid by the employee up to a set limit.

If you have other savings and investment plans it maybe a good time to review the investment strategy of your pension fund.  Some pension funds adopt “lifestyle” techniques where assets are automatically moved into safer assets, such as bonds and cash, as you approach your expected retirement date, if your circumstances have changed this may no longer be an appropriate strategy ie if you plan to retire later, or want to keep your pension fund invested beyond retirement.

New rules giving people more freedom over how they use their pension funds mean far more people – particularly those with larger pension funds – are expected to keep their pension funds invested throughout their sixties and seventies, and simply live off the investment returns.

Traditionally, those in their fifties took a more cautious approach to investing than those in their thirties and forties. But if you are keeping funds invested for a further 20 or 30 years you can afford to take more risk with your money with the aim to generating inflation-beating returns.

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 will next years general election bring?

 Enable’s experienced IFA’s know that political change often brings fiscal change and for investments and wealth management tax management is vital. After the round of Autumn conferences all parties are promising major changes to tax, pensions, welfare and property over the next parliament.
Although it is tricky to predict what another coalition might bring these appear to be the key financial element of the key parties:

LibDems:
Wholesale reforms of pensions tax relief
Auto-escalation of pension contributions
New higher rate council tax bands
Higher taxes on investments
Raise the personal allowance to £12,500
No EU referendum unless there is major treaty change

Conservatives:
New schemes to boost home ownership and first-time buyers
Raise the personal allowance to £12,500
Raise the 40p tax band to £50,000
Hold an in/out EU referendum by 2017

Labour:
Raise new taxes from bankers’ bonuses, tobacco firms, payday lenders
Cut higher rate pensions tax relief to 20p
Introduce a fiduciary duty on all financial services staff
Reintroduce Schedule 19 stamp duty on UK funds
Reintroduce 50p income tax band on salaries over £150,000
No EU referendum unless there is major treaty change

Ukip:
Raise personal allowance to £13,500
Create new 35p tax band between £44,000 and £55,000
Scrap 50p income tax band
Leave the EU

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 is a Personal Pension - the basics?

A personal pension is exactly what it says on the tin and you can have one if you're employed but not in a company pension scheme, or you might want to have one in addition to a company pension. Or if you are self employed you may want to set up a personal pension or even if you are not working but can afford to put aside money for retirement you can have a personal pension.

You can pay a regular amount (usually monthly or annually), or a lump sum to the pension provider who will invest it on your behalf. The overall final value of your pension will depend on how much you have contributed over the years and how well the fund's investments have performed. Charges are made for setting up and running your pension and are normally deducted from your fund in the form of fund management charges.



The Annual Allowance for pension contributions is £40,000pa from 6 April 2014 this includes both employee and employer contributions. You can carry forward unused contributions from the previous three years (ie. back to 2011/2012 for 2014/15), potentially allowing contributions of up to £160,000 in a single year. HMRC has confirmed that you do not need to have made a contribution to a pension scheme in a year to be able to carry forward unused allowances – you simply need to have been a member.

For each pound you contribute to your scheme, the pension provider claims tax back from the government at the basic rate of 20 per cent. In practice, this means that for every £80 you pay into your pension, you end up with £100 in your pension pot. Enable’s IFA’s can help you decide if you want to set up a Personal 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

Robots on the horizon

Enables IFA’s in Bishop’s Stortford know it is hard to predict the future for investments but if you believe robotics are the future you might be interested to hear that EFT securities recently launched a fund to track the global robotics industry.

The Robo-Stox Global Robotics and Automation GO Units ETF has been listed on the London Stock Exchange and is the first ETF offering focused exposure to companies into robotics. It was developed by Robo-Stox, almost 40 per cent of the index’s companies are North American, with 35 per cent in Asia. Europe makes up just 22 per cent.

Robo-Stox Partners chief executive Richard Lightbound says the world is in the early stages of a “transformational new economic era” founded on robotics slowly becoming more and more part of our daily life. “After the rise of the internet age rapid advances in technology such as machine vision, motion sensors and image and voice recognition are enabling robots to perform increasingly sophisticated and delicate knowledge-based work,” he explains.  “Ageing populations and shrinking workforces will accelerate this trend.”

The annual global supply of industrial robots more than doubled to 170,000 units over the decade to 2013, according to the International Federation of Robotics.  Howie Li says “the robotics and automation industry includes heavy-duty factory lines as well as companies making automatic vacuum cleaners,” also “there are lots of sectors that will be looking at robotics, like agriculture and mining.” If you want to try and make sure your investments are linked to future trends Enables IFA’s in Bishop’s Stortford 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