The night of 07 May 2015 was a long one. Waiting for the results of a General Election can be a fascinating time, with a few high profile MPs and candidates falling at the declarations across the UK. As the morning of 08 May broke, the clear outcome of the General Election was a surprise to many, especially the various pre-Poll providers whose predictions were well wide of the final result.
With the press suggesting it was neck and neck to the wire, many, including me, were surprised by the initial exit poll which provided a clear outcome. As the investigations begin as to how the real result was not closely hinted at, many are questioning the motives behind the voting pattern, with thoughts of loyalty to a political party, desire for the economy to stay on track and, conversely fear of an alternative route. Fear, along with other basic emotions, such as love and greed are powerful motives.
With the dust settling and the new cabinet posts being allocated as I type this blog, the real work for the new Government begins. I wish them every success, as it is clear the majority of the UK does, in moving the country forward.
With this in mind, what does this change mean to you, if anything at all? Will it make a change to the way you work or manage your money and financial planning? Some issues are not affected by who governs the country, such as the population naturally living longer. More time to work, possibly, but also more time in retirement. Indeed, the new 'pensions freedoms' which were a legislative change, may help manage this issue. Longer working may give more time to save, but it might also mean that as a bread-winner, you may need to protect the family for longer.
Whatever your individual circumstances, and we are all individuals, now may well be a good time as we head towards the summer to take stock of your financial planning, to review this and to make changes to meet with your plans, whether they have been changed by the General Election results or not.
The team at Chapters Financial can help you with your financial planning and any review that may well now be due. Talk to us at our Guildford or Woking offices or contact us, via our link here
Because each person is an individual, no individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Director
Chartered Financial Planner
Certified Financial Planner
ISO22222 Personal Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
Showing posts with label Review. Show all posts
Showing posts with label Review. Show all posts
Monday, 11 May 2015
Wednesday, 1 May 2013
Investment Performance & Review 2013
2013 has started with many clients seeing positive returns on their investments, pensions and other holdings. It is always good to report such positive news, with many clients that we have undertaken reviews for being pleased with the progress made. This does not mean that we will not see additional volatility into the future. However is it encouraging to see fund values increasing in many instances.
We gather information on investments from many sources to ensure and maintain a robust advice process. One source is our colleague, Stephen Williams, Managing Director at Cormorant Capital Strategies Ltd, who notes:
Output and employment have sustained a curious push-me-pull-me trend in recent months. The first quarter of 2013 was no different. On the ILO* measure (perhaps the most credible of all the different measures); unemployment has drifted higher from 7.8% of the available workforce to 7.9%. At the same time the year-on-year increase in average earnings continued to slow; it now stands at just 0.8%, a full 2% lower than general inflation. In contrast to this increasingly gloomy backdrop came a surprisingly upbeat initial estimate for economic growth at 0.3% compared with the previous quarter (or 0.6% compared with a year earlier).
According to the Office for National Statistics the first quarter, it seems, was witness to a higher rate of growth than most had come to expect. Sensible observers were expecting a marginal gain (or decline) in the order of 0.1% to 0.2%. Both the Bank of England and the Office for Budget Responsibility were predicting that a triple-dip recession would be narrowly avoided. It was broad-based expansion in the service sector that led the growth, again (0.6% contributing 0.5%). Meanwhile production was flat and construction contracted, again (-2.5% contributing -0.2%).
Of course, that we describe growth in the region of 0.3% as ‘upbeat’ is testament to the duration of the current economic malaise. A full five years on, GDP remains 2.6% below the pre-recession level. Nevertheless, there are positive signs; equity markets are buoyant and eased credit conditions has inflated house prices a little. But both of these will need to be sustained if, in the absence of a sudden and somewhat unlikely rebalanced economy, we are to see any kind of momentum toward a real recovery.
Stephen Williams
Managing Director
Cormorant Capital Strategies Ltd
*International Labour Organization
The team at Chapters Financial has spent much time over the last years with existing clients and new enquirers viewing existing holdings and making changes where appropriate to meet both their attitude to investment risk and the objective of their plan, such as capital growth or income.
If you would welcome a review then please let us know and we can arrange to meet at a suitable time to undertake any agreed changes that may be appropriate in your circumstances.
Past performance is not a guarantee of future performance. Fund values can fall as well as rise.
This Blog provides general information and should not be used as individual advice.
If you, your business or charity would like to receive individual advice on the issues of investment or pension planning , then please contact the team at Chapters Financial Limited on 01483 578800.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
The Financial Conduct Authority does not regulate Tax advice
We gather information on investments from many sources to ensure and maintain a robust advice process. One source is our colleague, Stephen Williams, Managing Director at Cormorant Capital Strategies Ltd, who notes:
Output and employment have sustained a curious push-me-pull-me trend in recent months. The first quarter of 2013 was no different. On the ILO* measure (perhaps the most credible of all the different measures); unemployment has drifted higher from 7.8% of the available workforce to 7.9%. At the same time the year-on-year increase in average earnings continued to slow; it now stands at just 0.8%, a full 2% lower than general inflation. In contrast to this increasingly gloomy backdrop came a surprisingly upbeat initial estimate for economic growth at 0.3% compared with the previous quarter (or 0.6% compared with a year earlier).
According to the Office for National Statistics the first quarter, it seems, was witness to a higher rate of growth than most had come to expect. Sensible observers were expecting a marginal gain (or decline) in the order of 0.1% to 0.2%. Both the Bank of England and the Office for Budget Responsibility were predicting that a triple-dip recession would be narrowly avoided. It was broad-based expansion in the service sector that led the growth, again (0.6% contributing 0.5%). Meanwhile production was flat and construction contracted, again (-2.5% contributing -0.2%).
Of course, that we describe growth in the region of 0.3% as ‘upbeat’ is testament to the duration of the current economic malaise. A full five years on, GDP remains 2.6% below the pre-recession level. Nevertheless, there are positive signs; equity markets are buoyant and eased credit conditions has inflated house prices a little. But both of these will need to be sustained if, in the absence of a sudden and somewhat unlikely rebalanced economy, we are to see any kind of momentum toward a real recovery.
Stephen Williams
Managing Director
Cormorant Capital Strategies Ltd
*International Labour Organization
The team at Chapters Financial has spent much time over the last years with existing clients and new enquirers viewing existing holdings and making changes where appropriate to meet both their attitude to investment risk and the objective of their plan, such as capital growth or income.
If you would welcome a review then please let us know and we can arrange to meet at a suitable time to undertake any agreed changes that may be appropriate in your circumstances.
Past performance is not a guarantee of future performance. Fund values can fall as well as rise.
This Blog provides general information and should not be used as individual advice.
If you, your business or charity would like to receive individual advice on the issues of investment or pension planning , then please contact the team at Chapters Financial Limited on 01483 578800.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
The Financial Conduct Authority does not regulate Tax advice
Monday, 3 December 2012
The importance of regular financial reviews
For some, pension and investment planning are both fascinating and dynamic in the way that various factors can be applied to provide the overall balance required. Others do not find this topic so consuming, although this does not alleviate the need to regularly review existing financial arrangements to ensure that they continue to meet your expectations.
In many cases, this can be viewed from two specific angles, detailed below:
The Tax Wrapper Angle
Like many issues, tax legislation rarely stands still for long, changing with budgets or possibly amended in Autumn Statements.
It will be interesting to see what our Chancellor achieves in this month’s Autumn Statement. Reviewing the tax wrapper being used (or available) in a pension or investment is worthwhile to ensure, where possible and prudent, that tax allowances are being used efficiently. Headline examples might be this year’s ISA allowance (£11,280) or annual gift allowance (£3,000) for IHT purposes, with many focussing on this later note as we approach the festive Christmas season. There are other less well known (or well used) allowances that can be overlooked, but may remain effective for you and your family’s financial planning. An example might be pension funding (usually to a limit of £3,600 gross in a year) for children. This example might seem an unusual idea, but the effects of very early pension funding for an individual can be significant.
Another great example of change in legislation, in this case in the provision of financial advice, is the ending of commission and a move to fee based advice and implementation from January 2013. This may have an effect on the way you take and pay for future advice. We have detailed this change in previous Blogs on this Chapters Financial website.
The Investment Angle
If you hold existing invested assets, you will have made decisions about the level of investment risk you are prepared to accept and confirmed your objectives for growth, income or possibly both, among many other points. The same would apply for new money being added, taking into account existing arrangements, your expectations and the diversity you expect. Investment markets and fund/ asset allocations usually move constantly, and it is possible to see past/ historic decisions of how you want an Investment Bond (as an example) to be balanced changing because of market movements. Your own circumstance and tolerance for investment risk may have changed from previous times and the current allocation may now be different from the preferred choice. You may, an example, have moved from an accumulation phase for your investments to a required income phase. This could usually be referenced at the time of retirement.
Regular Financial Review
A regular review allows the previous decisions to be considered and challenged to ensure that your existing holdings meet with your expectations and anticipated aspirations. If required, fund switches are usually easy and cheap to arrange and this planning can be used to change asset allocations to meet your on-going requirements and to reflect views of future investment opportunities.
Personal needs may have changed where capital or income may need to be released from existing holdings to meet a specified requirement and reviewing diversified holdings to see where best to release gains ( if available, possibly using tax allowances, such as the Capital Gains Tax (CGT) allowance/currently £10,600 2012/2013) is usually worthwhile and recommended.
Summary
Each client is an individual and we will provide financial planning advice on this basis. Therefore, no individual advice has been provided during the course of this Blog. The team at Chapters Financial Limited will be pleased to help you with your own individual requirements and to review and make recommendations for your existing arrangements.
In many cases, this can be viewed from two specific angles, detailed below:
The Tax Wrapper Angle
Like many issues, tax legislation rarely stands still for long, changing with budgets or possibly amended in Autumn Statements.
It will be interesting to see what our Chancellor achieves in this month’s Autumn Statement. Reviewing the tax wrapper being used (or available) in a pension or investment is worthwhile to ensure, where possible and prudent, that tax allowances are being used efficiently. Headline examples might be this year’s ISA allowance (£11,280) or annual gift allowance (£3,000) for IHT purposes, with many focussing on this later note as we approach the festive Christmas season. There are other less well known (or well used) allowances that can be overlooked, but may remain effective for you and your family’s financial planning. An example might be pension funding (usually to a limit of £3,600 gross in a year) for children. This example might seem an unusual idea, but the effects of very early pension funding for an individual can be significant.
Another great example of change in legislation, in this case in the provision of financial advice, is the ending of commission and a move to fee based advice and implementation from January 2013. This may have an effect on the way you take and pay for future advice. We have detailed this change in previous Blogs on this Chapters Financial website.
The Investment Angle
If you hold existing invested assets, you will have made decisions about the level of investment risk you are prepared to accept and confirmed your objectives for growth, income or possibly both, among many other points. The same would apply for new money being added, taking into account existing arrangements, your expectations and the diversity you expect. Investment markets and fund/ asset allocations usually move constantly, and it is possible to see past/ historic decisions of how you want an Investment Bond (as an example) to be balanced changing because of market movements. Your own circumstance and tolerance for investment risk may have changed from previous times and the current allocation may now be different from the preferred choice. You may, an example, have moved from an accumulation phase for your investments to a required income phase. This could usually be referenced at the time of retirement.
Regular Financial Review
A regular review allows the previous decisions to be considered and challenged to ensure that your existing holdings meet with your expectations and anticipated aspirations. If required, fund switches are usually easy and cheap to arrange and this planning can be used to change asset allocations to meet your on-going requirements and to reflect views of future investment opportunities.
Personal needs may have changed where capital or income may need to be released from existing holdings to meet a specified requirement and reviewing diversified holdings to see where best to release gains ( if available, possibly using tax allowances, such as the Capital Gains Tax (CGT) allowance/currently £10,600 2012/2013) is usually worthwhile and recommended.
Summary
Each client is an individual and we will provide financial planning advice on this basis. Therefore, no individual advice has been provided during the course of this Blog. The team at Chapters Financial Limited will be pleased to help you with your own individual requirements and to review and make recommendations for your existing arrangements.
Keith G Churchouse, Director
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899.
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899.
Monday, 17 September 2012
Half-Time! for the tax year 2012/2013....Using Annual Allowances
The tax year starts on the 06th
April each year and this is usually a busy time in UK retail financial
services. The last minute pension and Individual Savings Account (ISA/Maximum
£11,280 in 2012/2013) deposits are invested in time to use the annual allowance
before the opportunity is lost. Many also look at any potential gains that have
been made during the year to see if, where applicable, capital gains tax
allowances (£10,600) can be used.
As we approach the halfway point
of this tax year (2012/2013), we normally suggest that these annual allowances
where unused, are visited to see if now is a good time to use them up? The gain
for Chapters Financial is that we are spreading the years’ workload, but the
gain for our clients to look for opportunities that may or may not be there
when that annual tax year end rush occurs. An example might be the recent rise in equity values/markets (past performance is not a guarantee of future performance and fund values can fall as well as rise and are not guaranteed) where gains on existing Unit Trust/Open Ended Investment Companies (OEICs) may be available and could efficiently be taken to use up the current capital gains tax allowance of £10,600. If you have capital losses available that could be bought forward, these may be used at the same time, however, we would recommend that you check this addition with your Accountant before proceeding. If you have not used your ISA allowance in this tax year and a gain is taken, you may choose to re-invest some of these proceeds into an ISA, up to the maximum of £11,280 in 2012/2013. If your spouse/partner has not used their allowance, this may provide an additional tax efficient opportunity.
Reviewing pension contributions is always worthwhile (standard limit £50,000 gross contribution pa/ total employer/employee) and it is not uncommon for Director/Managers to make single top-up contributions to pensions at this time of year. This timing may also be a reflection of their business year ends.
As you can see from the notes
above, a mid-year review may well be worthwhile in looking at the opportunities
that may present themselves as we start the autumn 2012 season.
No individual advice has been
provided during the content of this Blog and Chapters Financial Limited can
help you with your tax year annual allowance planning both now and throughout
the tax year(s).
We look forward to working with you.
Keith Churchouse, FPFS, Chartered Financial Planner, ISO22222 Personal
Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial
Services Authority, number 402899.
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