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

Christmas is a time for giving

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

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

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



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

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

Drawing on your pension?

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

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

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



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

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

Overpaying your mortgage

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

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

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

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

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


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

REPUBLICAN PARTY AND TRUMP TRIUMPH IN USA ELECTION

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

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

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

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

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

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