This is a subject that has gone largely unnoticed by many employers so far, but as time ticks by, the issue of the proposed National Pension Savings Scheme (NPSS) (or Personal Accounts, as they are sometimes known) will become highly topical. It was proposed to start in October 2012, and this is still the case for larger employers. However, the Government has announced that the scheme would now be phased in, with smaller employers joining up over the following three years. The scheme will force both employers and employees to save for their retirement and people will automatically be enrolled, but with the right to opt out. Contributions will be set and required from both parties involved and could have an effect on future budget planning.
Churchouse Fianncial Planning Limited is Authorised and Regulated by the Financial Services Authority.
Thursday 31 December 2009
Thursday 5 November 2009
Balance and Re-balance, Has yours changed in 2009?
2009 has proved to be a volatile investment year and for some areas, such as UK Equities, this volatility has been positive, replenishing some of the falls of the previous months. This is obviously not a garantee of future performance and values can fall as well as rise. Many of the recommended investment/pension holdings recommended by Churchouse Financial Planning Limited over the years have been diversified into various areas to create a balance based around your overall attitude to investment risk.
As time moves, invariably so does the balance of your investment holdings as a whole or as individual plans. Because of this we would recommend that you review this balance on a regular basis to ensure that it continues to meet with your attitude to investment risk and your circumstances, which may have also changed over time.
You should seek independent financial advice for your individual arrangements before making any changes.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
As time moves, invariably so does the balance of your investment holdings as a whole or as individual plans. Because of this we would recommend that you review this balance on a regular basis to ensure that it continues to meet with your attitude to investment risk and your circumstances, which may have also changed over time.
You should seek independent financial advice for your individual arrangements before making any changes.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Friday 16 October 2009
Over and out for the 50 year olds in April 2010?
Pensions are not the most exciting of topics, and the general rules don’t change that much over time. You set a date for when you want to get out of the rat race and build a pot to meet the specifications you have set. For some, the age they set is 60 plus and for others it is early as 50. It is this last group that this blog focuses on.
A pension rule change is due to occur on 06th April next year (2010) where the minimum retirement age is increasing from 50 to 55. For those born around 1959 or before (to around 1956) this could cause a problem if their dream was to go early into retirement.
Many clients and enquirers have contacted us to discuss this issue to see if any changes need to be made at this point. For some, the change is to extend their expectations to 55 and beyond. For others, the changes required may be significant.
This should not be seen as individual advice and you should seek independent financial advice before making any changes to your plans. Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
A pension rule change is due to occur on 06th April next year (2010) where the minimum retirement age is increasing from 50 to 55. For those born around 1959 or before (to around 1956) this could cause a problem if their dream was to go early into retirement.
Many clients and enquirers have contacted us to discuss this issue to see if any changes need to be made at this point. For some, the change is to extend their expectations to 55 and beyond. For others, the changes required may be significant.
This should not be seen as individual advice and you should seek independent financial advice before making any changes to your plans. Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Wednesday 30 September 2009
Churchouse Financial Planning Limited is 5 years young!
Churchouse Financial Planning Limited celebrates its 5th Anniversary at the beginning of October 2009. Started by Keith Churchouse and Esther Dadswell in October 2004 in Guildford, the business blossomed into its current office in the High Street in Guildford in May 2007. Having moved to a mainly fee based advice service in 2007, business has been strong through the recession, and this is a testament to the need for quality financial advice and guidance.
Director Keith Churchouse said, ‘The last 5 years has been an interesting rollercoaster of economic attitudes, going from positive to cautious in the last 18 months and a now showing a change in mood back to investor confidence. We are delighted to have served Surrey, London, Kent and online over this time and look forward to our expansion plans over the next 5 years.
This is going to be a busy period for us with the re-launch of www.planmypension.co.uk which has been completely re-engineered over the last 12 months and should launch on the 08 October. This is an online advice service limited to the issues of investment areas of Pensions, ISAs and Annuities. This is a lower cost direct service to help internet surfers with specific areas of their financial provision. Because of this launch, we have decided to defer the celebratory party until next year as we have a further anniversary of 25 years in the profession next year. Thank you to all of our clients for their support’
The office can be contacted on 01483 578800 or at their website www.churchouse.com.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Friday 25 September 2009
Keith Churchouse is on to something with planmypension.co.uk
By Dennis Hall | 12:05:19 | 25 September 2009
It’s remarkable how writing something down really focuses the mind. I’ve been in deep thought over the past few weeks, following a blog I wrote about how the current IFA business model is basically broken and difficult to scale up. What stopped me from my navel-gazing was news that Keith Churchouse is ready to launch a new online service called planmypension.co.uk.
It’s not even up and running yet, but has already attracted negative comments from detractors who believe that an online service for pensions will not work. I disagree. I think Keith is on to something. In fact, he’s been working on a web-based proposition for at least four years. I'm not privy to the level of success he had with the previous online service, but it clearly hasn't dented his enthusiasm.
There are a number of directional changes I can see, the first being a focus on pensions rather than an all-embracing advice service. The second is a shift from an explicit fee to something that looks like commission, which is probably the way that his target consumer would prefer to pay. Clearly, there's consumer appetite for this style of charging when dealing online, and it hasn't held back Hargreaves Lansdowne.
It’s a brave but determined move by Keith. We know that consumers will use web-based services to purchase investments, but whether this will translate into a market for pension advice has yet to be seen. I hope it does work, not just for Keith but for the rest of us too.
Wouldn't it be great if we could deal with the transactional side of our business in a more efficient manner? They said it couldn’t be done with car insurance, household insurance or travel insurance, but these are now routinely bought online, leaving the specialists in each of these fields to develop bespoke services for the higher net worth cases.
Any doubts I have about Keith's model are that it's probably undercapitalised. When reading about the money spent by other online services, it begs the question as to whether a lone IFA will be heard above all the competing chatter. Keith's no mug when it comes to social media and he probably knows how to market his message at very low cost, but will that be enough. I'm not sure.
Hats off to Keith for being a pioneer and a trailblazer: I just hope he doesn't crash and burn.
Dennis Hall is a chartered financial planner at Yellowtail Financial Planning in London
It’s remarkable how writing something down really focuses the mind. I’ve been in deep thought over the past few weeks, following a blog I wrote about how the current IFA business model is basically broken and difficult to scale up. What stopped me from my navel-gazing was news that Keith Churchouse is ready to launch a new online service called planmypension.co.uk.
It’s not even up and running yet, but has already attracted negative comments from detractors who believe that an online service for pensions will not work. I disagree. I think Keith is on to something. In fact, he’s been working on a web-based proposition for at least four years. I'm not privy to the level of success he had with the previous online service, but it clearly hasn't dented his enthusiasm.
There are a number of directional changes I can see, the first being a focus on pensions rather than an all-embracing advice service. The second is a shift from an explicit fee to something that looks like commission, which is probably the way that his target consumer would prefer to pay. Clearly, there's consumer appetite for this style of charging when dealing online, and it hasn't held back Hargreaves Lansdowne.
It’s a brave but determined move by Keith. We know that consumers will use web-based services to purchase investments, but whether this will translate into a market for pension advice has yet to be seen. I hope it does work, not just for Keith but for the rest of us too.
Wouldn't it be great if we could deal with the transactional side of our business in a more efficient manner? They said it couldn’t be done with car insurance, household insurance or travel insurance, but these are now routinely bought online, leaving the specialists in each of these fields to develop bespoke services for the higher net worth cases.
Any doubts I have about Keith's model are that it's probably undercapitalised. When reading about the money spent by other online services, it begs the question as to whether a lone IFA will be heard above all the competing chatter. Keith's no mug when it comes to social media and he probably knows how to market his message at very low cost, but will that be enough. I'm not sure.
Hats off to Keith for being a pioneer and a trailblazer: I just hope he doesn't crash and burn.
Dennis Hall is a chartered financial planner at Yellowtail Financial Planning in London
Thursday 24 September 2009
The new increased ISA allowance, 06th October 2009. Do you need a reminder?
My first blog communicated the changes in legislation that for those individuals aged over 50 to make a higher investment into ISA holdings in the current tax year.
The new allowance for stocks and shares investment increases from 06th October from £7,200 to £10,200. This will be the same from the next tax year (2010/2011) for all eligible investors from 06th April 2010. As an example, an ISA can be used to provide either tax-free income or tax free growth or a mixture of the two. From 2004, ISAs ceased to be able to recover tax deducted from UK dividend income.
It should also be noted that the cash ISA allowance is also increasing to £5,100 from £3,600 at the same time which some investors will find preferable to investing in stocks and shares. The maximum overall investment in a tax year is limited to £10,200.
Many investors have started their planning to use this new tax efficient opportunity for investment.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. This blog is not individual advice and you should speak to your independent financial adviser for advice and guidance.
Monday 14 September 2009
Are you sitting comfortably.....then I shall begin
A short tale of investing in 2009 so far.
For many people and organisations, such as businesses and charities, with investments (whether these are pensions, gilts, cash deposits, ISAs or stocks and shares as examples) 2009 has seen a rollercoaster of values and in some cases emotions over the last 12 months.
With the major ‘scalp’ of Lehman Brothers falling a year ago, most investment markets have seen volatility over the last year, with some values being seriously affected. However, this monetary cost does not illustrate the human cost in terms of falling lifestyles and income.
From the depths of early March 2009, when equity values were at their weakest in current times, within 6 months we have seen the FTSE100 close above 5000 points, gold reaching $1,000 dollars and Bank base rates remaining at 0.5% for over 6 consecutive months.
Many have indicated that the resurgence in the markets is due to Quantative Easing, but, dare I say, there also appears to be a renewed confidence in investing. As a note of caution, there remains a concern that we could suffer a ‘mini recession’ (a fall in production and equity markets) within the overall recession that we have all experienced. However, in this computer driven modern world that we live in, the pace of falls and recoveries seems to be far quicker than it has been in previous eras and this can surely be attributed to the speed, breadth and diversity of information that we all receive daily through our computers, televisions and radios. The speed of the delivery of information certainly allows investors the opportunity of making faster decisions and implementing their reactions.
Thinking forward, I am sure that we will see some hick ups in investment progress in the shorter term, although the ride may not be as bumpy as it has been in the last 12 months. This can only help with investor confidence. However, the prospects for investment look far better than they did 12 months ago. With the advantages of increased ISA allowances (£10,200 for the over 50’s from 06th October, available to all eligible investors from 06th April 2010) and the valuable Capital Gains Tax allowance (£10,100 in 2009/2010) it is well worth reviewing your investment strategy to ensure that you are aligned to your investment objectives for the future, whether this be for income or capital growth, or both.
For many people and organisations, such as businesses and charities, with investments (whether these are pensions, gilts, cash deposits, ISAs or stocks and shares as examples) 2009 has seen a rollercoaster of values and in some cases emotions over the last 12 months.
With the major ‘scalp’ of Lehman Brothers falling a year ago, most investment markets have seen volatility over the last year, with some values being seriously affected. However, this monetary cost does not illustrate the human cost in terms of falling lifestyles and income.
From the depths of early March 2009, when equity values were at their weakest in current times, within 6 months we have seen the FTSE100 close above 5000 points, gold reaching $1,000 dollars and Bank base rates remaining at 0.5% for over 6 consecutive months.
Many have indicated that the resurgence in the markets is due to Quantative Easing, but, dare I say, there also appears to be a renewed confidence in investing. As a note of caution, there remains a concern that we could suffer a ‘mini recession’ (a fall in production and equity markets) within the overall recession that we have all experienced. However, in this computer driven modern world that we live in, the pace of falls and recoveries seems to be far quicker than it has been in previous eras and this can surely be attributed to the speed, breadth and diversity of information that we all receive daily through our computers, televisions and radios. The speed of the delivery of information certainly allows investors the opportunity of making faster decisions and implementing their reactions.
Thinking forward, I am sure that we will see some hick ups in investment progress in the shorter term, although the ride may not be as bumpy as it has been in the last 12 months. This can only help with investor confidence. However, the prospects for investment look far better than they did 12 months ago. With the advantages of increased ISA allowances (£10,200 for the over 50’s from 06th October, available to all eligible investors from 06th April 2010) and the valuable Capital Gains Tax allowance (£10,100 in 2009/2010) it is well worth reviewing your investment strategy to ensure that you are aligned to your investment objectives for the future, whether this be for income or capital growth, or both.
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
Thursday 6 August 2009
Did Quantative Easing work for your financial Planning?
It is good to see that the stock markets of the world have shown signs of recovery from the falls that they suffered, reaching their overall lows in early March 2009.
The Bank of England, along with many central banks of the globe have continued with their Quantative Easing Programmes over the course of 2009 to help the flow of money around the markets and to try and curtail the effects of the recession. One significant point of interest is that the funds available to the Bank of England for their Quantative Easing programme are coming to an end and this initiative may cease before the autumn period. This raises the question of whether the overall process has worked in moving the economy forward and hopefully over the worst period.
Many are also predicting that the continued level of low bank base rates is unlikely to continue and that these are likely to rise in 2010. It is also muted by many pundits that inflation may also rise at the same time. Any rise in base rates may well be a welcome relief to deposit savers and correspondingly disappointing news for those with variable interest rate borrowings. I have commented on this below. With these changes ahead, financial planning continues to be a vital commodity for household economies.
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
The Bank of England, along with many central banks of the globe have continued with their Quantative Easing Programmes over the course of 2009 to help the flow of money around the markets and to try and curtail the effects of the recession. One significant point of interest is that the funds available to the Bank of England for their Quantative Easing programme are coming to an end and this initiative may cease before the autumn period. This raises the question of whether the overall process has worked in moving the economy forward and hopefully over the worst period.
Many are also predicting that the continued level of low bank base rates is unlikely to continue and that these are likely to rise in 2010. It is also muted by many pundits that inflation may also rise at the same time. Any rise in base rates may well be a welcome relief to deposit savers and correspondingly disappointing news for those with variable interest rate borrowings. I have commented on this below. With these changes ahead, financial planning continues to be a vital commodity for household economies.
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
Friday 3 July 2009
Forestalling Update/Special Pensions Allowance
Following my last Blog on the Special Allowance, there has been an update following various lobby of the Government about the £20,000 limit.
Lobbying is continuing over the definition of what should be allowed as an ‘average’ contributions in the past 2/3 years, as an example, taking into account quarterly contributions. I will endeavor to keep you posted, although it appears that the £20,000 ceiling will stay in place.
It is interesting how pensions legislation and the pressures on employers to save for their employees are seeing other effects in the pensions industry, such as the closing of many final salary pension schemes (Defined Benefit Schemes), with the favouring of Money Purchase/Group Personal Pension options as alternatives.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Lobbying is continuing over the definition of what should be allowed as an ‘average’ contributions in the past 2/3 years, as an example, taking into account quarterly contributions. I will endeavor to keep you posted, although it appears that the £20,000 ceiling will stay in place.
It is interesting how pensions legislation and the pressures on employers to save for their employees are seeing other effects in the pensions industry, such as the closing of many final salary pension schemes (Defined Benefit Schemes), with the favouring of Money Purchase/Group Personal Pension options as alternatives.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Thursday 2 July 2009
Investing for Charitable Trusts in the current economic climate
The legal responsibilities of Trustees (whether they be for a Charitable Trust or for other entities, such as occupational pensions) have increased significantly over recent years. For Trustees to Charities this is evidenced by the Trustee Act 2000 that came into force on 01 February 2001. This legislation was introduced to keep pace with the evolving investment market, following the previous legislation in 1961, referred to as the Trustee Investment Act (1961). The new act, amongst other points, introduced new powers of delegation, new powers for the appointment of agents and introduced appropriate safeguards for the operation of the new powers including a duty to take proper advice in relation to investments and a statutory duty of care. This is detailed further on the Charities Commission page CC14, section E, 61.
This guidance has become all the more relevant in the current economic climate and taking independent financial advice is vital to protect the interests of the Trust and provide protection to the Trustees. This can include advice on where assets are invested, including cash, Government stock and equities, if this is right for the Trust.
It is also important that any existing investment decisions are reviewed on a regular basis to ensure that they remain prudent in the current volatility.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
This guidance has become all the more relevant in the current economic climate and taking independent financial advice is vital to protect the interests of the Trust and provide protection to the Trustees. This can include advice on where assets are invested, including cash, Government stock and equities, if this is right for the Trust.
It is also important that any existing investment decisions are reviewed on a regular basis to ensure that they remain prudent in the current volatility.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
Friday 12 June 2009
Look out for Special Annual Allowance in your proposed pension contributions
This is an interesting one and follows on nicely from our my last blog.
Some clients have started to enquire if it is possible to offset the proposed income tax increase to 50%. I have detailed the points for this in the previous blog.
However, there is a new special annual allowance of £20,000. This will be applied to any savings made that exceed the normal pattern of your contributions. Savings over and above the £20,000 level will be taxed at 20% for 2009/2010 and 2010/2011. Although not yet finalised, on the introduction of the 50% higher rate tax level, this special tax charge may increase to 30%.
More details can be found in the HMRC document entitled: PENSION SCHEMES: LIMITING TAX RELIEF FOR HIGH INCOME INDIVIDUALS
SPECIAL ANNUAL ALLOWANCE.
This can be found here: http://www.hmrc.gov.uk/budget2009/pensions-technical-1550.pdf
Planning for pensions is key to ensure that the contributions that you make are as effect as possible.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority
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