Europe! What is happening?

We have seen much volatility in economic markets over most of 2011, partly caused by the historic problems of the Euro and the European zone. Some are predicting further recessionary pressures in various economic zones and Europe is one of them. I have provided comment on this in a previous blog in July 2011, when Greece first started to make front page news, having reached its first decade in the EU. This blog was entitled ‘There may be trouble ahead….Still!/Europe’ and this has certainly proved to be the case as we reach the end of 2011. With David Cameron declining to sign up to the detail of the proposed new treaty overnight (08/09 December 2011) where are we and Europe now….as far as we can surmise?

Although we have our own significant views on investment and asset allocation, to ensure that our recommendations, views and advice is robust, we also employ the services of Cormorant Capital Strategies Limited, to help with our processes.

I have asked them to comment and they have provided the following thoughts:

There are a number of issues I want to lay out. This is not another note on the euro-zone crisis however. To focus on that one issue would be to threaten to miss the wider trend. The wider trend I speak of is characterised by an unusually weak and protracted recovery, most evident in the UK but also apparent in our G7 friends^[1]. The euro crisis is one of three noticeable threats to the global economy^[2] and while I don’t wish to underplay its significance, ultimately I feel the greater danger to investor’s wealth is that posed by sustained low growth allied with poor credit availability.

Before I begin in earnest I really want to tell you that I think much of the gloom that I have read of late is overdone. Actually, a lot of what I have read and a lot of what I have heard from politicians and investment managers have angered me. Let’s begin by framing the discussion to come.

It is my assertion that, if there are ‘investors’ who are unable or unwilling to burden losses over what might be a period of years without selling their positions in the interim then they ought not to be invested in the capital markets (the equity and bond markets). That is not a comment I attach to a particular forecast, trading strategy or timeframe. It is a rule and it applies always, even when the prospective economic environment is benign.

The capital markets exist for one purpose – that is to bring willing lenders (or investors) and willing borrowers (or entrepreneurs) together. That process necessarily involves some risk. I say ‘necessarily’ quite deliberately. Risk is not an unpleasant side effect; it is a pre-requisite for proper functioning capital markets and try as you might there is no getting away from it. The reason any asset pays a return is that it carries risk. If anyone tells you otherwise they are either lying or they are ill-informed. The risk is of capital loss in varying degrees.

The capital markets, and by extension capitalism, work well when all participants are reasonably well informed of the risks they are taking. It is probably the most productive system of all those we have tried in the last few hundred years for allocating capital efficiently. The most recent past has seen terrible meddling in the capital markets (for ‘deregulation’ read ‘rigging’) by politicians, central banks and regulators, but that is a subject for another day. Suffice to say that what has made me most angry in the relatively short time I have worked in the field of investment management (15 + years) is the development and rapid expansion of what I can only describe as an unpleasant sub-system of the financial markets. Many investors – institutional and retail – have been enticed by the promise of high returns and low risks. It is one which Michael Lewis, contributing editor at Vanity Fair, describes eloquently as ‘a tool for maximising the number of encounters between the strong and the weak, so that one might exploit the other’.

So, those who are unwilling or unable to burden the risk of capital loss over what could be a significant period of time can stop reading – they have more pressing matters and a lot of unwinding to do. It’s that simple, there’s nothing people like me can do to prevent the risk of loss. Willing investors read on, perhaps we can mitigate a little of that risk.

I will, of course write a little about developments in the euro-zone. But, first, I want to deal with a background trend that has been developing before and will continue to affect asset prices after the euro-zone crisis has fallen from the headlines (though a continued string of EU summits will doubtless conspire to keep it on page one for many months to come). The pace of recovery from the 2008 recession is an incredibly disappointing one, one which brings with it deep risks. In my discussion of this I will draw heavily on a speech made by Martin Weale, an external member of the Bank of England’s Monetary Policy Committee, which he delivered at the National Institute of Economic and Social Research in London on 25 November. It’s a great piece of work and is available to anyone to download from the speeches page at www.bankofengland.co.uk.

‘Even before the recent problems with the euro area, most countries were experiencing a disappointing recovery from the aftermath of the recession which began in 2008. In the United Kingdom things have been particularly slow’.

To provide some background to this assertion Martin points out that, of the five UK recessions since 1920 and before 2008 the recovery period has probably not lasted longer than 49 months. That is to say that Gross Domestic product (GDP) tracked back to the level of the previous peak in a little over four years. In the international context, the International Monetary Fund estimates that the average time taken for a country to recovery from a recession is just over 27 months. That rises to around 52 months if the recession is closely associated with a banking crisis. If we take the Bank of England’s central estimate for GDP as a reasonable guess at when we might see output in the UK regain the level it showed prior to the 2008 recession (the sixth since 1920) the current recovery period will have lasted for somewhere between 66 and 72 months – five and half to six years. GDP in the UK has not, thus far, fallen as far as it did in the 1930s (7% compared with 9% then) so the current recession has not proved as deep, but certainly in terms of duration it is likely to be the worst. Personally, I think there is a good chance that we will at least flirt with another recession in 2012 which might push back the 2013 target.

Other G7 countries, most notably Canada, are well ahead of the UK on the recovery path. Only Japan (owing to the Tohoku disaster) and Italy (even before the current heightened weakness) lag the UK. For some reason, the UK has been hit especially hard. Martin and his colleagues at Cambridge University find this hard to explain. Needless to say I am unable to shed any light on the matter^[3].

Martin’s work goes on to examine the role of both productivity and consumption in his speech. I think he probably places greater weight on the role of productivity in affecting the recovery process but I want to share with you his observations about the path consumption has taken since the beginning of the 2008 financial crisis.

‘Consumption fell by more than 5% between 2008 and 2009, its largest peace-time fall since that of over 8% in 1921; unlike the early 1920s it has shown no real recovery’. Why might this be? Consumer confidence remains weak, of course, but household incomes, in the aggregate, are at least no lower than those prior to the recession.

Martin discusses a number of competing explanations that do a good job in explaining why this might be. Naturally I am going to add weight to the one I have most sympathy for… ‘…particularly at a time when incomes are weak, they [UK households] might not have access to the resources they need to maintain their spending’. It has been my contention for some time that very low real wage rises, particularly in the last decade and a half, have been supplemented by a credit grab to maintain high rates of consumption. Now that credit has been withdrawn the previous path of spending has collapsed. ‘Obviously the chance of this happening is particularly high if credit has tightened unexpectedly; it may be affecting some consumers even though, as we have noted, income in the aggregate has held up better than consumption’. Added to the mix is the expectation that both job prospects and credit availability will continue to be muted well into the future, so consumers are saving[4] to ‘build up a buffer against future shocks’ and, perhaps for some, the increased deposit required to purchase a home. This rational course of action is probably having a greater impact today because of the very low rates of saving prior to 2008 when we all thought things were only going to get better; our houses can only go up in value, our job prospects improve and banks’ credit card subsidiaries increasingly generous.

I think the problem of weak consumption is going to go on for some time. There’s a cycle here and it has worrying aspects. Weak job prospects, slow wage growth and poor credit availability are also affecting house prices. That doesn’t just have a detrimental effect on consumers; the future of many successful businesses has at one time or other been secured on an entrepreneur’s home. It’s not all bad news though. Our economy doesn’t have to rely so heavily on consumption. Indeed, the balance of aggregate demand needs to shift away from household and public consumption towards net trade and investment if we are going to see sustainable rises in prosperity over the longer term. As it stands, the Bank of England does not have a policy tool to promote such a re-balancing. But we can see strands of this thinking in their other policy actions and I hope we will see it in the policies of government too.

The Bank, for its part, is trying to support ‘aggregate demand’, not just the consumer. The Monetary Policy Committee took a collective risk in looking through a period of high inflation[5] and maintaining its loose monetary policy stance[6]. Arguably this period of high inflation, allied with low wage growth and culminating in a decline in real wages, was a painful but necessary step in the rebalancing process (making UK exports less expensive for overseas purchasers). Ultimately of course, the Bank is judged on its ability to meet the 2% inflation target in the medium term. The medium term is up now, I think. If inflation does not fall, as the bank believes it will, sharply in the opening months of 2012 then it will have lost a good deal of credibility. Personally, I think that had the bank responded to higher inflation with tighter monetary policy in the interim we would have seen a stalled recovery and conditions would have been far worse than they have been. I also think that the Bank is right and that inflation will fall sharply early next year[7]. That would go a long way to improving our lot.

If we do see a rapid decline in the rate of inflation in the early months of 2012 it should to be seen as a vindication of the Bank’s policy actions over a period of time in which it has attracted much criticism. For that matter I also think that a fall in inflation will be a pre-curser for an expanded quantitative easing package – even beyond the £275 billion which will have been laid out by the end of January 2012. The Bank is keen to hold gilt yields low, given that these are the rates of interest most likely to affect the cost of borrowing for businesses and given that credit availability to business is a terrific risk to the downside for inflation. This observation infers that now is not the time to encourage lower allocation to conventional gilts in investor’s portfolios. I make this last point because I have seen a great deal of ill-informed speculation about the relative attractiveness of gilts at this time. More on the subject of things you can actually invest in, as opposed to the slightly nebulous commentary on the macro economy, later. For now though, a little on the euro zone.

The euro-zone is on the brink of disaster, we know that because that’s what everyone says, including the chap that came to fix my TV aerial. What most commentators are not acknowledging is that there is nothing the European Central Bank (ECB) can do about it. Calls for the ECB to do more than it is doing already are naïve. Even if the ECB had a mandate which would allow it to print the trillions of euros necessary to remedy the region’s debt problems, the likely impact would be to create inflationary problems^[8] in their stead. That is why the German government is rightly opposed to such a move. What the ECB can do, of course, is help to provide liquidity in an effort to prevent another credit crunch. This is precisely what the ECB is doing, to great effect thus far. In acting in concert with the other major central banks it is working hard behind the scenes to buy time. But this is not a crisis of liquidity so much as a crisis of solvency.

Unfortunately, the 3-point plan^[9] is probably not enough. On the day that the deal was announced[10] European stock markets sighed with relief and produced terrific gains. The bond markets saw little in the way of celebration though. Spanish and Italian government bond yields (in the ten-year range) have breached 7%, though limited intervention from the ECB has brought yields a little lower. Contagion is a formidable problem. In isolation, a Greek default, orderly or otherwise, or exit from the euro does not have the potential to fatally damage the monetary union. In contrast Spain and Italy alone have funding requirements of around €800 billion in the next few years. That makes the €1 trillion European Financial Stability Fund (EFSF) look less like the firewall it was intended to be. Some would argue that the EFSF needs to be closer to €3 trillion. The fund is a long way off that amount. Worse still, if France gets embroiled and loses its AAA credit rating the loss of faith on the guarantees she has made to the EFSF will be fatal to the fund.

Only Germany has the power to progress the situation. In the meantime the euro-zone will remain on the brink of disaster until we see much closer fiscal union (requiring a treaty and amendments to the ECB’s responsibilities) or investors in Greek bonds (and other distressed euro-zone sovereign debt) take a significant and unambiguous loss. Perhaps we will see both. A full collapse and a breakup of the euro zone is, in my opinion, a far more remote possibility than it is currently believed to be, even if a Greek default is inevitable and a number of European banks are nationalised. Expect another much-hyped euro summit to be scheduled soon after the next much-hyped euro summit.

Whatever happens in Europe and whatever happens in the US, however long it takes the UK to recover there is one thing I am certain of and that is that the economies of the UK and our G7 friends will recover. The bond markets and the equity markets will signal that in time. Before then though none of us should be surprised if we see further recession. A slow and protracted recovery comes hand in hand with a greater potential for setbacks. We have not yet achieved escape velocity. Which brings me to my final point.

Equities and bonds ought to make up the bulk of an investor’s long-term portfolio^[11]. Today though, the gross redemption yield on the 10-year gilt is 2.3%, on a basket of sterling investment grade corporate bonds you might get a little over 5.0% for ten years and the annual dividend yield from the FTSE 100 is 3.6%. I calculate a prospective 10-year total return of around 7.4% per annum for the FTSE 100. On this last measure, the FTSE 100 is relatively attractively priced among the more mature markets. Other equity market aggregates, like the S&P 500 in the US, the DAX 30 in Germany or the TOPIX in Japan, do not hold the promise of returns which are sufficiently high to justify the risks they carry. It’s not a terribly enticing menu, so to speak. Almost across the board, I see risky assets which are priced higher than a level with which I would be comfortable. When asset prices are high one of three things will happen. They will go higher, go lower or stay the same. I don’t know which of those scenarios is going to play out. So, quantify your risks and ensure you’re comfortable with them.

Steve Williams

Managing Director

Cormorant Capital Strategies Limited

1 With the exception of Canada; on some measures she has now surpassed her pre-recession level of output.

2 Watch out for further wrangling over US debt levels and rising tension over the Iranian nuclear programme. A US default or a nuclear armed Iran are potentials as unappealing as a euro-zone meltdown.

3 Martin will not be drawing heavily on any of my works in his future works.

4 It is probably more accurate to say that they are ‘not borrowing’. If one pays off a credit card, it increases one’s net worth which is akin, in economic parlance, to saving.

5 The annual rise in the Consumer Price Index has been well above the Bank’s target range since late 2009.

6 Bank Rate, for example, has been 0.5% since March 2009

7 Though not soon enough to save my bet that inflation would be back in range by the end of 2011. You win some, you lose some.

8 It is possible for ‘quantitative easing’ to be rolled out without creating such problems – as looks to be the case in the US and UK and has certainly been the case in Japan – but it seems likely that the mix of circumstances in the euro-zone would result in too high an inflationary price.

9 (1) Greek debt restructuring of 50% rather than the previously agreed 21% (2) bank recapitalization measures and (3) expansion of the European Financial Stability Fund to somewhere between €1.2 and €1.5 trillion. Even if the plan is implemented successfully, the Greek economy faces further contraction (Moody’s Economy.com suggests another 10% on top of the 16% shrinkage already seen) with serious consequences for its citizens for many years to come. A write-down of 50% of the value of Greek bonds is intended to bring the Hellenic Republic’s debt-to-GDP ratio down to 120% by 2020. That is a level that, EU officials suppose, is fiscally sustainable but this assumption is suspect, not least because it is far from clear that 50% of Greek debt will actually be written-off.

10 27/28 October if my memory serves me well.

11 There is, of course, a powerful argument for less traditional forms of investment and I am an advocate of some. Just ‘some’ though.

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We do not necessarily agree with all the view noted in the comments above. However, it does provide a flavour of where we are up to into the Eurozone process.

Churchouse Financial Planning is not responsible for the content of external websites.

Please remember that past performance is not a guide to the future. The value of investments and any income from them can go down as well as up and you may not get back the funds you have invested.

This blog is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances.

Churchouse Financial Planning Limited can help you with your own investment planning and asset allocation, please feel free to contact us.

Keith Churchouse FPFS
Director of Churchouse Financial Planning Limited, Guildford, Surrey

Chartered Financial Planner
ISO22222 Certified Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority

Leading Surrey IFA wins Gold Standards Award/ Churchouse Financial Planning Limited

Churchouse Financial Planning Limited, Independent Financial Advisers and Chartered Financial Planners, was one of the winners of the Incisive Media Gold Standards Awards 2011 for Independent Financial Advice in London today.

Esther Dadswell and Keith Churchouse, owner-directors of the Guildford-based company, received the prestigious Award at a reception at the House of Commons.

Keith Churchouse said: “We’re delighted! The Gold Standard Awards require a complex and demanding application process and they are extremely thorough in their examination of our processes and client proposition. Having achieved the ‘Highly Commended’ awards in two previous years, we are very pleased that the continued attention to the delivery of our service has been recognised with this winners’ award. I would like to thank the team for all their hard work and diligence over the last few years in achieving this accolade.

“We have many plans for 2012, including our business name change to Chapters Financial Limited in January and the award is an excellent start to this exciting development.”

Chair of the judging panel, Deborah Benn, said: “Churchouse details an impressive set of robust processes. A very transparent and forward thinking business structure that has the client firmly in mind. Judges were particularly impressed with the firm’s industry reputation, which was described as exceptional. Qualifications, training and expertise taken extremely seriously.”

A consumer website, Trust Your Money, will shortly be launched to highlight the principles of the Gold Standard Awards. The website will inform and educate consumers on the key issues when buying financial products and services, which are the same issues that underpin the Gold Standard Awards. The site will offer Gold Standard winners the opportunity to highlight what they are doing to promote trust in financial services.

For further information contact Keith Churchouse on 01483 578800 or info@churchouse.com Esther Dadswell on 01483 578800 or Gail Goodwin on 01483 534388/07801 755477/gailgoodwin@sky.com

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

No individual advice is offered by this blog. Churchouse Financial Planning Limited is not responsible for the content of external website content.

Auto-Enrolment, NEST & Workplace Pensions? What do they mean to you?

The pension’s world is ever developing. This is nothing new and many remain apathetic to contributing to a pension, especially in these times of austerity and economic turmoil. Many have been aware that they have not been saving enough for their retirement over recent years and the situation does not seem to be improving, especially when you consider the ever rising retirement age of State Pension benefits.

However, unfamiliar terms such as Auto-Enrolment, Workplace Pension and NEST Pensions are likely to become household phrases and will affect most employers and employers over the next 5 years.

Auto-Enrolment or Workplace Pension are designed to correct these low contribution levels for those aged 22 or above, introducing mandatory pension savings arrangements through employers, unless an employee opts out. And these changes are only around the corner, with many directors and business owners already having started their planning processes, both for the implementation and for the additional cost that this will add to their overheads.

With reference to timing, full implementation and the start of large employer schemes are being introduced in October 2012 and most employers with more than 50 people in PAYE being joined into the pension arrangement by September 2014 (based on the size of the employers PAYE Scheme at April 2012). Those employers with between 1-49 people in their PAYE scheme will see a staged introduction process between the following dates: August 2014 and February 2016.

28/ 11/ 2011 News Update: Auto-enrolment will be delayed for small businesses, the Department for Work and Pensions (DWP) has confirmed. Pensions minister Steve Webb said today that auto-enrolment for small businesses would not go ahead until after the end of this parliament. Mr Webb MP said: 'Auto-enrolment will not go ahead for small businesses until the start of the next parliament,' he said. 'However this still means more than half of employers will be enrolled before the next parliament. This means the government will extend the deadline by a year for firms with fewer than 40 staff, from 1 August 2014 to 2015.

There will obviously be a cost to this initiative. The initial minimum contribution level is set at 1.0% per annum for employers and 0.8% per annum for employees of their earnings, with 0.20% pa tax relief added. This is effectively 2.0% pa funding of earnings at the outset, although it is proposed that this will climb to a higher total level of 5.0% pa of earnings in 2016. In addition, there is also a third proposed phase in late 2017 at a minimum of 8.0% pa of earnings onwards. Each employers and employees circumstances will be different and therefore, this blog should not be seen or used as individual advice.

More detail on these plans and changes can be found at the following website: http://www.pensionsadvisoryservice.org.uk/future-pension-reforms/auto-enrolment

As noted above, there are many requirements and some costs to this pension planning and Churchouse Financial Planning Limited, Chartered Financial Planners, has detailed these, and many of the other points further, at its website, www.churchouse.com . Alternatively, please call Keith Churchouse on 01483 578800.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority (Registration number: 402899).

Churchouse Financial Planning Limited is not responsible for the content of external websites.

Quantative Easing and falling retirement income

2011 has proved to be a volatile economic year and a testament to this manifested itself in the second introduction of Quantative Easing (sometimes referred to as QE2) in early October 2011 by the Bank of England. There are many proposed benefits for this additional cash flow, including the proposed additional funding trying to be established in this round or ‘Easing’ for small to medium enterprises (SME’s).

However, there are some other negative effects. This QE2 introduction has also seen annuity rates fall in the last week or so. This is because the price to providers to purchase Gilts (Government Stock), the financial instrument usually used to purchase an annuity and provides it with the guarantee of income, have increased. This means that annuity providers are now paying more capital to buy the same income. Therefore, as an example, the subsequent pension income provided from the capital deployed has fallen.

Those considering the purchase of pension/ retirement benefits in late 2011 have been concerned by this development and the subsequent annuity rates fall in recent weeks, along with the levels of income that can be achieved from alternative income producing plans, such as the use of the Income Drawdown proposition. This latter Income Drawdown option has also seen a change in legislation this year, reducing the maximum draw that can be taken from a new plan from around 120% of the level of an annuity purchase (GAD rate) to 100% at a new review,. As an example, for older existing Drawdown plans (many have been established for years) the mandatory five year review (new review limit is three years) can see incomes fall significantly from previous allowed maximums. This is a good example of why these types of plans should be reviewed annually.

For annuities, using our services to review the market to seek the best annuity rates (including impaired life/smokers annuity terms) using the Open Market Option (OMO) available under most pension plans (PPP/Section 32/SIPP/SSAS) can make a significant and beneficial difference in the final income that can be achieved.

Talk to us about the full range of options that are available and the income terms that can be achieved. Our website www.churchouse.com features more information on the Retirement Options available here and indicate the variety that each client needs to consider with our guidance and advice. Each client is different and therefore, this blog should not be seen and used as individual independent (IFA) financial advice.

We look forward to helping you with our retirement planning.

Keith Churchouse FPFS

Director

Chartered Financial Planner, ISO22222 Certified Fianncial Planner

Certified Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Churchouse Financial Planning Limited is not responsible for the material on the external links to websites.

For the chapters of your (financial) life

Life, like financial planning can come in chapters. From birth to the grave, life has a habit of turning, like the chapters of a book. And like different chapters in a book, they can be exciting, diverse, creative and sometimes slow. And the book you read could be the details of someone’s life or, as an example, financial chapters.

I wanted to provide some examples of how this might look. This is not an exhaustive list and you should review your own individual needs:

Birth & the early years

You might consider savings accounts (deposit savings) or even the new Child’s ISA (coming this autumn 2011) to start to accumulate cash for a child’s future benefit and use, such as education costs. Parents may also want to review their life assurance arrangements, along with their other protection arrangements (such as Medical Insurance and Income Protection) to ensure these reflect the addition to the family.

Growing up & Education

School fees planning may be on the agenda and early planning of this is vital. Relatives, such as grandparents may want to help with this cost. However, if you have more than one child in close consecutive years, you can find the burden of providing education for both significant. Also, with the recent changes to university costs, accounting for costs to a child’s age of 21/22 may be appropriate ‘Chapter’ in the planning phase.

Employment/ Own Business

You may start to consider pension funding and with the new NEST (National Employers Savings Trust) pensions on their way in the next few years, this saving may become mandatory. This may not be a priority as you look at ways of getting on to the housing market or settling down with a partner. You may also be considering starting your own family and this may introduce the need for protection in the event of death or ill health. Your employer may offer you benefits and you should check these where available.

Family

You may start your own family and the need for protection, school fees planning, pensions and mortgage costs may be upmost in your mind. Sadly also, other issues, such as divorce, may impact on your financial planning. All of these issues need careful planning if needed. This may be the time you may receive an inheritance. You may also want to make sure you have an up to date Will in place along with your spouse/partner to protect your loved ones.

Ending employment & Retirement

Some end work to start their own business (SME) or may reduce their hours before finally stopping work. This is where pension and retirement income planning become vital to ensure that expectations are managed as to what benefit will be provided from the plans that you have been saving into over the years. You (and your spouse/partner) may also be entitled to a State Pension and checking this (using a BR19 State Pension Forecast form) may be worthwhile at the start of this financial planning phase. Some also use other savings vehicles, such as ISA’s to save for their retirement and these can be tax efficient.

You may well have other issues to consider as you approach retirement, such as paying off mortgages and debt. This may be achieved by using all or part of your tax free cash from your pension when drawing income.

Again, seek independent financial advice (IFA) on this subject for your individual needs.

Post Retirement Planning

As you become settled into retirement you may want to consider inheritance tax (IHT) planning or the need for any long term care provision. As you expect, both subjects need careful planning and are not unrelated in the way you handle your finances/ assets as you grow older. Again, you might want to make sure your Will is up to date and reflects any changes in your family circumstances, such as the addition of grandchildren. You may also want to think about whether there is a future need for Power of Attorney protection to help and protect you into the future. You may want to speak to your solicitor about these points.

Summary

It is relatively easy in an article to breeze through the financial chapters of an example lifetime. Because we are all different, each person’s life chapters, financial or otherwise, will be different. However, I hope the above notes provide a flavour of the financial planning issues that you may want to consider as you travel through your life.

Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.

The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.

Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner

ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.

New Name, Continued Service

Churchouse Financial Planning has enjoyed much success over the seven/eight years it has been providing financial planning advice. We believe that this is a testament to the mutual loyalty and confidence that we share with our clients. We thank you for your continued support.

As our brand has developed, we took the opportunity to trademark the name ‘Churchouse’ in financial services in 2007. Many of our clients are aware that we have received an approach to relinquish our trademark to a new bank and this was finalised recently.

I am sure you will understand that we do not wish to compete with the bank concerned and have negotiated to change our company name from the start of 2012. At that time, Churchouse Financial Planning Limited will change its name to Chapters Financial Limited. The new website address will be www.chaptersfinancial.com

I have taken this opportunity of providing an example of the new brand here:

Please rest assured of our continued support and service, with the ownership of www.churchouse.com and our email addresses remaining in our ownership and forwarding to our new name. Contact with us via email, post and telephone will remain unchanged.

This has been an interesting and exciting development in our evolution and we will aim to tell you more about our new business name and the brand, already registered as a trademark you will be pleased to know, in the next quarter of 2011.

We look forward to working with you further as we head towards our first decade in business.

Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.

The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.

Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.


Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.

Selecting your team for your financial planning ‘World Cup’

At the time of writing this blog there is much excitement in some quarters of the community about the beginning of The Rugby World Cup, which starts this morning. For those of you that are not well versed or interested in Rugby, the hosts and favourites, New Zealand are set to face Tonga in the opening match and I am sure that a few (probably mainly male) enthusiasts will sneak away from their work desks, computers or other pastimes to watch the first game and the opening ceremony. Because of the time differences between our two nations, many games will be viewed over breakfast and much anticipation will be quenched by the starting whistle of the competition.

Although only a limited sports fan, I am aware that, like most World Cups teams, irrespective of their sporting denomination, much preparation and hard work has been spent to make sure that the best has been extracted and selected from each element of the team, its management, facilities and players to ensure that only the best is fielded for the big tournament.

The competition itself will, in its process, select the best team of the tournament, presenting it with the coveted World Cup and runners up medals to the other finalist team. This ’selection’ process will be decided through the various rounds of the games and I am sure will show who has put the work, preparation and training in to be the best. This is the same in all walks of life and is the same in the profession of financial planning.

The UK consumer has many choices when selecting their financial planning provider. Starting with the basics, a financial adviser can be tied to one provider or independent. If an independent adviser (IFA) is preferred, possibly because of the potential that additional choice could bring, they can then select to work on a fee or commission basis, or a combination of these options. To some, experience and knowledge count for many selections made, along with personality of course. As another example, over the next 18 months, the level of qualification that an adviser has will become very important. This is because of various proposed Financial Services Authority (FSA) rule changes. The qualifications bar is being raised (significantly for some) and this may see a few providers either changing their status to reduce the service they offer or possibly leaving the industry all together. A little bit like losing a round in the World Cup and not making it through to, as an example, the quarter finals.

Much of a financial advisers business offering to you, the buying public, relies on hard work, preparation and selecting the best from their facilities to make sure that you get the best from your financial planning in the ‘tournament’ that is your finances. Make sure that you select well for your financial planning and I hope that your team wins.

Churchouse Financial Planning Limited is a Chartered Financial Planning company and Independent Financial Adviser with over a quarter of a century of experience in UK retail financial services. For information, much of this journey is detailed further in Keith Churchouse’s book, Sign here, here and here! Journey of a financial adviser, available through Amazon here.

The way you chose your financial planning service will vary and no individual advice has been provided in the text of this blog.

Keith G Churchouse BA Hons, FPFS
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Director, Churchouse Financial Planning Limited, Guildford, Surrey.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Churchouse Financial Planning Limited is not responsible for the content of external webpages and their content.

Don’t panic! Don’t panic!…..Downgrading America’s Credit Rating

In the last week, equity markets have been as volatile and seen falls as significant as those last experienced in 2008, eventually bringing the downfall of Lehman Brothers in September of that year, as one of the many consequences.

The announcement by Standard & Poor’s on Friday, 05th August of the downgrade of the US’s credit rating from AAA to AA+, the first time this has fallen since 1917, is very significant. American politicians and pundits are arguing against this significant change, however, S&P note that part of the reason for the downgrade is last weeks squabbling between the political camps to agree a new US debt limit (now agreed at $16.8 trillion).

The effects of this downgrade change may not be immediate, however many are likely not to see this as a positive change, with some calling for international control of the Dollar as one of the most important central currencies. This also raises the question of what this means for clients in the UK and their investment/pension funds?

The first point to make is not to panic. Selling out of a Market after a fall will only crystallise a loss. If you don’t need to take this loss, then we would normally recommend holding tight. The falls experienced this week and the AA+ announcement, along with the other global economic events, such as the Eurozone debt crisis, has been a fast moving and, if more positive news comes through, markets can move just as quickly in a positive direction, although this is not guaranteed.

Many investments/ pensions are diversified and allocated over a range of different geographical and investment areas, giving some protection against volatility. However, because of the far reaching remit of the Dollar, this may mean that all markets see some turbulence.

We would recommend that you seek independent financial advice (IFA) for your investment and pension planning if you are concerned about the recent events and need to make changes to your fund holdings. Please note that this blog should not be seen or used as individual advice.

Churchouse Financial Planning Limited can help you with your financial planning.

Keith Churchouse FPFS
Director
Churchouse Financial Planning Limited, Guildford, Surrey.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority (FSA)

Does your family have the protection it needs…….without you?

Summer is time for family, holidays and fun….hopefully with a bit of summer weather thrown in! Many will spend time with their loved ones, caring for their required needs.

But when is the last time you looked at your family protection to really make sure they are protected…and not just on holiday.

Some clients find this a difficult subject to address because the need is only likely to arise in the event of death or Ill health, neither of which are pleasant subjects, especially when they refer to you. However, I understand that there are two things certain in life, namely death and taxes and sadly you can only normally insure against the former. What should you, your spouse/ partner and your family consider?

1. Start with any employer benefits

When did you last read your employment contract and the benefits your employer offers?

Many employers offer varying benefits, however, benefits might include, as examples:

» Death in Service Benefits, say 2/3/4 X salary in the event of your death whilst employed.

» Medical Insurance, to cover hospital/surgery costs if needed. If you have this cover, are your family included? If not, you may be able to add this protection (at an additional cost). The type of benefit is normally treated as a benefit in kind for income tax purposes.

» How long will you be paid if you were unable to work due to ill health? Some employers offer protection of salary for a period of time, but it is worthwhile finding out how much this is. Some will only offer Statutory Sick Pay (SSP), which is currently £81.60 per week (2011/2012).

Taking all of the above into account, you can then start to plan to protect the gaps in your financial protection planning……if there are any.

This cover may be lost when you leave an employment, and you may want to consider this when looking at an alternative employment/ self-employment option.

2. Existing protection policy cover

You may also have some existing protection cover in place and this may compliment well the benefit provided from your employment, so make sure you keep the details of these plans safe and keep any policy documents safe.

Some older type plans have policy conditions that are now considered generous. If you are thinking of replacing these covers, then check the benefits covered carefully to make sure you are replicating the cover you require.

If you have a financial adviser, make sure they have a list of what covers you have to keep records correct.

3. Examples of types of protection cover

Income Protection (Permanent Health Insurance/PHI)

» Replaces part or your income if you are unable to work for a long period of time due to illness or disability, and will continue to pay out until you can return to some kind of paid work or reach retirement, whichever is sooner.

» Usually, you pay a monthly premium throughout the term of the policy and costs depends mainly on: your age, your sex, your health, your job, hobbies and lifestyle as well as waiting period, which you can choose i.e: 4 weeks up to 104 weeks.

Life Insurance

» Provides a lump sum or fixed regular income, either if you die (if whole of life policy) or if you die within a specified term (term insurance).

» Term insurance – simplest and cheapest. Known as term insurance because you choose how long you are covered for, say 10, 15 or 20 years. Different types of policies are available. Premiums are usually fixed for the whole term and some can be renewed after a certain period, say 5 years. These policies have no value at anytime and if you cease to pay premiums cover also ceases.

» Whole of life insurance – pays out an agreed sum when you die as long as you are still paying the premiums. This is usually more expensive than term insurance. With these policies part of the premium is invested now in order to fund higher life assurance premiums later to avoid passing the additional cost on to you.

We would normally recommend that any individual life cover established is placed under trust to ensure that the proceeds of any policy fall outside the deceased estate for inheritance tax purposes (IHT).

Critical Illness

» Critical illness insurance is a long-term insurance policy designed to pay a lump sum or income on the diagnosis of certain life-threatening or debilitating (but not fatal) conditions such as a heart attack, stroke, certain types/stages of cancer, multiple sclerosis and loss of limbs.

Private Medical Insurance

» All of us are entitled to free healthcare from the NHS but you may consider buying health insurance so you have a choice in the level of care you get. The cover you get varies and certain treatment is not covered i.e. if you have had problems in the past or the treatment of a chronic medical condition. It is important to research the premiums because this is a competitive market and many policies have a standard excess charge where you agree to pay the first part of any claim i.e. the first £50 or £100.

Other points to think about to ensure you and your family are fully protected

» Check the nominations on your pensions – if you have had a change of circumstance since originally setting up your pension/s i.e. marriage or divorce as examples, it would be a good idea to check who is nominated to receive your pension benefits in the event of your death, if you have nominated anyone at all.

Clearly, with the many options (as examples) I have detailed above, you can see that some careful financial planning is worthwhile in maximising the type of protection you want to consider for you and your family, whilst minimising the impact of this cover on your monthly budget. Your budget for cover will be important and you might want to consider this in advance.

This is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances. Churchouse Financial Planning Limited can provide advice and implement suitable cover to help you with your own individual protection planning.

We look forward to working with you soon.

Keith Churchouse FPFS

Director of Churchouse Financial Planning Limited Chartered Financial Planner

ISO22222 Certified Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

There may be trouble ahead….still!/ Europe

With the first decade of Greece’s membership of the European Union (EU) upon us, the member states have to be commended for their hard work and recognition of the problems that this country finds itself in. It is good to see that the powerhouses of the EU, such as Germany and France, amongst others, are able to come together and find a solution to the debt problems that are now so apparent. With financial measures now agreed, it will be interesting to see if, in implementing these changes, they will be enough to control any contagion of default to other member states that find themselves with similar, if not larger, problems such as Portugal, Ireland / Italy and Spain ( together with Greece, unfortunately referred to as PIGS).

Many questions and answers lie ahead as to whether the financial measures agreed to help the Greek economy recover in an acceptable fashion, both to other EU states and the Greek people, will work. The major concern has been that as a state, Greece produces only approximately 2% (1.9%) of the EU’s overall GDP (Gross Domestic Product), which is obviously low. Their GDP deficit was over 10% in 2010 and public debt levels as a percentage of GDP at over 140% (142% in 2010). This raises the question of what happens if another larger EU state needs a similar financial solution and rescue?

Of the other countries already mentioned, using Italy in this example, this member state produces over 12% (approximately 12.7% of the EU’s GDP in 2010) and has a GDP deficit as a percentage of national GDP (4.6% in 2010) and levels of unemployment at 8.4% (2010). Their debt level is ‘only’ 119% (in 2010) and, as a further example, this compares to 80% debt level in the UK.

Default on national debt may have the effect of making debt costs rise in the Eurozone, making it likely that it would be more expensive for all countries to borrow funds to help their economies grow. This, in turn, may slow progress for member states out of recession, which most want to avoid. Time will tell if the measures agreed last week will be sufficient to meet the demands of the economies of the EU and I am sure many complications will appear in the coming months. There are many other global states and trading areas that rely on a strong Eurozone, and this is why it is important that these measures work into the future.

This blog is for information only and should not be seen or used as individual advice. Seek independent financial advice (IFA) for your own circumstances.

Churchouse Financial Planning Limited can help you with your own investment planning and asset allocation.

Keith Churchouse FPFS

Director of Churchouse Financial Planning Limited Chartered Financial Planner

ISO22222 Certified Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority

Extracts from our Summer Newsletter 2011

There are usually some tangible times in a calendar year when financial planning is noted in client’s diaries about what they need to undertake to maintain their overall planning strategy. The first more obvious date is the end of the tax year and to use up annual tax allowances, such as pension contributions or annual contributions to cash and/or stocks and shares ISAs, to name just two. Others find that the end of the calendar year, towards Christmas, is a time to consider family and issues such as inheritance tax planning, maybe using the annual gift allowances in the process.

Each client is different and has different objectives, therefore, this blog article should not be seen or used as individual advice.

Summer is a time when many relax a little and enjoy the sun and the warmth (or sometimes rain!) of the season. Many find this season a good time to review their financial planning, and I have provided a few notes below to give a prompt or two, if needed.


Proposed Financial Ombudsman Service award increase to £150,000

The Financial Services Authority (FSA) has been consulting on a proposal to increase the Ombudsman service award limit from £100,000 to £150,000, with a planned start date of 1 January 2012. The FSA made this proposal in order to prevent a decline in the consumer protection afforded by the award limit in real terms. This is to take account of the effects of inflation, which have certainly been more prevalent in recent times.

Following the consultation, the FSA plans to proceed with this increase, along with streamlining of their processes. They plan that these changes will maintain and contribute to increased confidence in financial services.

Implementation of Retail Distribution Review (RDR) End 2011

Some of you may know that the Financial Services Authority (FSA) has been working hard on the way that financial services is distributed in the UK. There has been some press on this topic and this is likely to grow over the coming months. The FSA’s work has taken much time and research, including consultations, and the final changes have been proposed and are likely to form the new regime starting at the end of 2012. As Chartered Financial Planners, we are well placed to meet these new requirements and to be able to continue to provide you with independent financial advice into 2012 and beyond.

One way we have demonstrated our commitment to providing high quality financial advice is to continue to be assessed for the British Standards ISO22222 Personal Financial Planning. My last assessment was in mid June 2011, my fourth year, and was passed successfully. At the end of June, I also studied and passed the Chartered Insurance Institutes Long Term Care exam, called CF8.

We will endeavour to keep you posted on the key changes that may affect you into the future once they are finalised.

Summary

I hope you have a great summer and I, and the team at Churchouse Financial Planning Limited, look forward to helping you with you financial planning over the rest of 2011 and into the year of the Olympics, 2012.

If you would like to review your asset allocation, investment planning, retirement or pension planning then please let us know and we can arrange a meeting to consider your current needs and aspirations.

If you would like to be added to our newsletter mailing list then please contact us for more information.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Keith G Churchouse FPFS

Director, Churchouse Financial Planning Limited, Guildford, Surrey

ISO 22222 Certified Financial Planner

Deliberate Asset Deprivation?

It sounds like a game show and I am sure the term has got your attention, although for some it is not amusing.

I have been studying the Chartered Insurance Institutes (CII) text for long term care, sometimes referred to as CF8 and passed this test recently. This considers the principals of why this topic should be considered, the conflicts that may arise from other financial planning issues, such as inheritance tax planning (IHT), and some of the solutions that may be considered on their own or in combination with a few arrangements. All very interesting and thought provoking, creating a lot of opportunity to prepare and care for those needing this type of advice and help.

As you can guess, the costs of long term care can be significant and the provision provided by the state once an individual’s assets have been eroded can be low. It may also reduce the choices available to you. Provision from the state will only start after an individual’s assets fall below a current level if £23,250 (2011/2012). And yes, your house value does count towards this (although it may be disregarded in the first 12 weeks of care).

It is this threshold that may encourage some to consider gifting away assets to a level where the cost of care will be met by the state, rather than at the cost of the family. As you can guess, any assessment for care costs will take this into account.

If a gift from the individual’s estate is made within 6 months of the need for care, the gift is likely to be disregarded and added back into the assets of the individual for the assessment. Gifts made prior to this 6 month period may also be included if there was no obvious purpose to the gift being made. Inheritance tax planning may be a fair reason, but the gift away may be challenged if it is believed that the gift was made as a deliberate asset deprivation strategy.

There are a few example cases to reference these challenges and the way gifts (in the specific situations) were treated in each case and these are listed here:

R v. N and E Devon ex parte Coughlan (1999)

Beeson v. Dorset County Council (2001)

Grogan v. Bexley NHS Care Trust (2006)
As you can see from the content of this blog, each case is different and each client and there requirements are different. Therefore, this article should not be seen as individual advice.

As always, I would recommend that you seek independent financial advice (IFA) for your circumstances and requirements.

Keith Churchouse FPFS
ISO 22222 Certified Financial Planner
Chartered Financial Planner

Churchouse Financial Planning Limited, Guildford, Surrey
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority

Making money lasts as long as you do!

I took a short break from work recently and flew to the sunshine of far away shores. I understand that you need a break every now and then and I managed to smuggle my smart phone into my hand luggage along with an iPad to make the rucksack a mobile office to keep in touch and up to date. All very sad really!

On the gantry to the plane a well known global bank plasters the Walls with thought provoking comments accompanied by related and usually visually dramatic pictures, smothered with their logo. One of these comments read ‘Two thirds of people who have lived over the age of 65 are alive today’. I had to stop (much to the annoyance of the fellow passengers behind me!) and go back again to read this staggering fact. Could this be really true? And if correct, what are the consequences of such longevity?

Making your money last as long as you do is a pre-requisite to overall survival, although we do have the state system to rely on if things don’t go according to plan. However, with the austerity cuts that have been agreed but, in some instances, not instigated yet, relying on the state may not provide you with the minimums you require.

There are also the conflicting demands on your money and assets. You may want to leave as much as is possible to your family on death to save inheritance tax (IHT), but then you might feel that your children have had enough and, to use an acronym, be SKI-ing (Spending the Kids Inheritance-ing). Each will make their own choice.

Questions that need to be asked might be will you have enough income in retirement? Will your retirement spending change when you get there? You might have always wanted to do ‘X’ or ‘Y’ and with some tax free cash in your pocket, your mortgage repaid (hopefully) and the state pension kicking in, now is the time to do it. Think carefully about this. Relating this to the gantry headline referred to earlier, this could just be the third phase of your life (childhood/education, work, retirement, etc). And how long will this last? 20 years? 30 years? Each another chapter of your financial life. Who knows, but planning for this lengthy phase early is vital to make sure that these golden years really are just that, golden.

Have a look at your finances and your financial planning strategy for both know and the future. Then seek independent financial advice (IFA) from a well qualified adviser who can help you plan for this future time. I am sure it will be worthwhile.

As suggested above, we are all different, and will have differing views, requirements, aspirations and needs. Therefore, this blog should not be seen as individual advice.

Churchouse Financial Planning Limited, a Surrey based Chartered Financial planners, can help you with your financial planning as an independent financial adviser.

We look forward to helping you soon.

Keith Churchouse, FPFS

ISO22222 Certified Financial Planner

Chartered Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

The only way is up! Inflation increases

I have often jested with clients that there are three levels of inflation. These are the rate the Bank of England suggests, the alternative and usually higher rate that you pay at the till for your groceries every week and the higher rate that you pay for such things as school fees/care costs.

With inflation currently spiking so significantly, these previous ‘jests’ may wel become Ill advised, especially with Sir Mervyn King, Governor of the Bank of England, suggesting that inflation may well peak above its current level of 4.5% (CPI May 2011) at a rate above 5.0%. Personally, I think this may be undershooting the final highs, but this is conjecture.

What does this mean for your finances, other than seeing your fuel bills rising sharply and any salary increases falling short of the increase figures mentioned above? With the possibility of Bank base rates increasing (an historic favoured tool of the Bank to control inflation), many may also see borrowing costs, such as that for mortgages, increasing in the next 12 months. This possible future increase is likely to see family budgets squeezed even further, if and when they happen.

But what of those who are approaching retirement? Many will know that increases in salaries are usually higher than CPI (Consumer Prices Index) and this difference is unlikely to be enjoyed in retirement. This may make your retirement planning even more important because the cost of protecting against the effects of inflation when buying an annuity are far higher than when buying an annuity on a level income basis. Some clients have calculated, that in their opinion, this ‘cost’ is not worth the loss of initial income. However, others see this decision differently and opt for some form of protection against inflation, using a fixed increase or using and index, such as CPI or RPI (Retail Prices Index). Each choice will offer a differing income, dependent on the individual circumstances. Some prefer to use alternative vehicles for their retirement income, such as income drawdown facilities. However, the effects of inflation still need to be considered when thinking about the real purchasing power of your money, both now and into the future.

Financial planning is about considering the choices that you want to provide for, both now and into the future. Inflation and its effects are going to have an impact on these choices. Each of us is different and this article should not be seen as individual advice.

Speak to an independent financial adviser (IFA) about your needs and aspirations for your future requirements.

Keith Churchouse FPFS

ISO 22222 Certified Financial Planner

Director & Chartered Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.

Summer Financial Planning/Attitude to Investment Risk

There are usually some tangible times in a calendar year when financial planning is noted in clients diaries about what they need to undertake to maintain their overall planning strategy. The first more obvious one is the end of the tax year and to use up annual tax allowances, such as pension contributions or annual contributions to cash and/or stocks and shares ISA, to name just two. Others find that the end of the calendar year, towards Christmas, is a time to consider family and issues such as inheritance tax planning, maybe using the annual gift allowances in the process. Each client is different and has different objectives.

Summer is a time where many relax a little and enjoy the sun and the warmth (or sometimes rain!) of the season. This is a good time to review one of the less calendar bound aspects of financial planning which is investment risk and your attitude to risk at your life stage and overall financial strategy, if you have one.

We have detailed investment risk on our website for many years and this is detailed on the Churchouse Financial Planning Limited website here: www.churchouse.com/risk.php

However, this in itself raises a few additional questions about investment risk and these may reflect changes in your circumstances, such as your age, overall strategy, family circumstances or wealth.

• When is the last time you reviewed your attitude to investment risk?


• With your personal thoughts complete, when did you last link these thoughts to your investment choices of the past?


• Has a change in your circumstances, such as receipt of an inheritance changed your overall attitude to investment risk?


• How will you allocate your investment risk profile across your overall funds? Many clients allocate a proportion of their funds towards the lower end of the risk scale to protect against unforeseen expenses and capital requirements. This in itself may allow other investments to be placed at the other end of the selected scale.


• Do the investment choice decisions of the past now reflect your current thinking?


• Do you have any ethical/ ecological restrictions for your investments and does the current asset allocation reflect this? If uncertain, you may want to look at the website: www.eiris.org which provides independent investment research into the environmental, social, governance and ethical performance of companies.


• If required, how is the performance of your funds, such as pensions, unit trusts (OEICS),ISA’s, trusts, investments, portfolio’s, savings and alike benchmarked against a model index, using indices such as APCIMS? APCIMS is the Association of Private Client Investment Managers and Stock Brokers and their website is http://www.apcims.co.uk/


• How often should you be reviewing your attitude to investment risk? 6 monthly or annually, as examples?

These are only examples of what you may want to consider. You may have other points that will determine your attitude to risk, however, this blog hopefully probes further into your overall planning strategy to provide the potential to get the most from your investments and pensions as your life and wealth management develops. Whatever you decide to undertake this summer, don’t forget to review your financial planning.

We are all different and therefore, this article should not be seen or used as individual advice. Seek Independent Financial Advice (IFA) for your circumstances.

Churchouse Financial Planning Limited is not responsible for the content of the external websites noted in this article.

Keith Churchouse, FPFS
ISO22222 Certified Financial Planner , Chartered Financial Planner
Director of Churchouse Financial Planning Limited

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate taxation advice.

Churchouse Financial Planning Limited commended in Financial Adviser Life & Pensions Awards 2011.

I had the pleasure of being invited to join Melanie Tringham, Features Editor at Financial Adviser, the team and their guests to the FT Financial Adviser Life and Pension awards in Savile Row in London on the afternoon of 11^th May 2011.

A great and entertaining event was had by all and the lunch was delicious. Following this, the various industry and adviser awards followed with many excellent results. It is great to see our profession thriving with innovation to continue to show both its excellence and competitive edge.

Churchouse Financial Planning Limited was commended in the Small IFA Firm category and I was delighted to collect a certificate on behalf of the company. I am delighted that our business and the team has been recognised for its hard work and continued professionalism. Thank you to Financial Adviser for the accolade, noted below:

I would like to send a heartfelt congratulations to all those that received accolades yesterday and also many congratulations to the whole team at Financial Adviser for an excellent event.

No advice has been provided in this article.

Keith Churchouse, Director of Churchouse Financial Planning Limited, Guildford, Surrey

Chartered Financial Planners