Cash

With interest rates remaining low, finding a decent haven for your money can prove a mighty task. The advantages of cash investments are quite simple; most offer instant access to your money, interest is still paid and it is considered a very safe investment choice for many.

Bonds

The Government, or firms looking to raise capital, issue bonds. As an investor, when you purchase a bond you are fundamentally lending your money to the provider for an agreed period of time. In return, you receive interest on your initial investment– over the fixed term and then once again upon maturity of your investment.

Government bonds

 Bonds issued by the Government are called “gilts”.  The advantage of gilts is that they are generally considered safe investments – as the Government is unlikely to fail to pay the interest or repay any debt to investors.

Government bonds pay a fixed, regular income and a lump sum at maturity.

Historically, Government bonds tend to move in the opposing direction to shares and can be considered a good investment alternative.

However, as Government bonds pay a fixed income, the value of the income can reduce if inflation rises. Likewise, the value of gilts characteristically decreases if interest rates increase.

Corporate bonds

Corporate bonds act in much the same way as gilts – instead of the Government issuing bonds, companies issue bonds to fund their activities. Well-established and profitable companies are generally considered the safest corporate bond issuers.

Companies, which are judged more likely to default, issue bonds known as “high-yield” bonds. To entice investors, usually a higher rate of interest is promised -these are called “sub-investment grade” bonds.

However, do remember that there is the risk that a company may default on your interest payments or indeed may not be able to repay you your initial investment. Again, these bonds, are sensitive to fluctuations in interest rates and inflation, so do consider all of these factors before making an investment.

Bond funds

A bond fund is an investment in a range of bonds – reducing your reliance on the performance of either the Government or just one company. Income investors should check if charges are taken out of capital or income – as a fund that takes expenses from capital growth may be preferred.

Shares and dividends

 Income investors should consider investing in stocks that pay dividends. Essentially dividends are the investors’ share of the company profits.

Do remember that dividends can be cut if a company finds itself in need of the money and like many investments, share prices can fall in value, so do seek advice – investing across many companies comes highly recommended.

Funds and commercial property

Investing in a commercial property fund means that you can invest a smaller amount of money over a wider number of properties. However you are still exposed to the risks involved with the property market – such as a fall in property value.

There are two types of property fund:

1) A traditional property fund – which invests directly in property.

2) Company share funds within the property sector – which invest in the shares of companies in the property sector, such as hotel chains, house builders and commercial landlords.

Despite the doom and gloom, there are many investment opportunities still available in which to potentially receive a good sized income, for more information, or for further advice regarding the suitability of an investment, please contact us for guidance. We are here to help you.

 The value of your investment can fall as well as rise and you may get back less than the amount you have invested.  

Here are our first five footsteps to purchasing life insurance:

1) Start early:

Usually the younger you purchase life insurance, the cheaper the premium – should you purchase a guaranteed policy, which typically remains the same premium throughout the term. When you purchase life insurance at a younger age, you are generally considered a lower risk, so payments are usually less.

You could consider an indexed-linked policy, which keeps track of inflation – otherwise the true value of your payout could be reduced over time.

 2) Take care of your health:

If you lead a healthy lifestyle, usually life insurance premiums are lower as again, you are considered less of a risk to insurance companies. It is thought smoking can have a dramatic affect on your overall premium, therefore by quitting; you could significantly reduce your payments.

 3) Consider separate policies:

Should you and your partner have children together, it may be worth considering singular life insurance policies rather than a joint policy. Although the cost may be slightly higher, it means each person is insured and you would therefore receive two payouts, rather than just the one payout from a joint policy upon the death of the first person. This can offer more security to your dependents, should both of you die within a close proximity.

 4) Consider a trust:

If you believe your estate may be subject to Inheritance Tax upon your death, then consider investing your life insurance into a trust. This ensures that should you die, the money is not taken by the taxman but is paid out to your chosen beneficiary or beneficiaries.

 5) Tell the truth:

When purchasing a life insurance policy, it is vital you tell the truth. An insurer can conduct checks and should they discover you have stated facts deemed to be untrue; for instance, claiming to be a non-smoker when in fact you are, they may decide not to pay out.

For more information, or to talk to us regarding your insurance requirements, please call us to arrange an appointment.

The Financial Services Authority does not regulate trust advice.

In 1914, the average life expectancy in the UK was 52 years for a new-born boy and 55 years for a new-born girl. Since then, major improvements in medical care, the eradication of a number of diseases, and widespread lifestyle changes have transformed this situation. Indeed, according to a recent prediction by the Department of Work and Pensions, more than 10 million Britons alive today will live to the age of 100 or longer – more than 17 per cent of the population.

In itself, that’s a good thing, of course. But the downside of it is that many more of us will require residential care.

And that’s not a good thing – especially as a report in the Daily Telegraph [http://www.telegraph.co.uk/health/elderhealth/8329548/Thousands-more-will-have-to-sell-homes-for-elderly-care.html] on 17 February showed that more people will have to sell their homes to pay for this care.

Across the UK, average annual care home fees already exceed £25,000 (in the Home Counties, this figure is likely to top £45,000). Although the State pays for some of this care, it is means-tested: as a result, up to 20,000 pensioners a year already have to sell their homes to finance residential care.

What the Telegraph report showed is that unannounced cuts in funding by the government will effectively reduce the level of savings above which pensioners must meet their own fees. The result: more and more of us will both live longer and need care which will have to be paid for by selling our homes.

You may well not relish this prospect – especially if you want to pass your home on to your children. But there are things you can do about it. Regular savings and investments, particularly into tax-efficient vehicles such as ISAs and pensions, can build up considerable sums over the years. These sums might help you avoid having to sell your home to meet care costs.

At Welbeck Independent [http://welbeckgroup.co.uk/our-services/independent], we are experts in financial planning and wealth management. We can also search the entire financial services market to find the plans and products that are right for you.

So if you’d like us to help you make more of your money, talk to us today.

However, setting up a B&B business is a serious commitment and there are many rules to follow, therefore it is important to conduct thorough research. Primarily you need to consider whether a career within hospitality is truly suited to you. You will be inviting strangers into you home and you may have to work very long hours, so it is not suited to everyone.

If you have doubts, it may be worth “testing the water” by renting out a spare room first. Under the “Rent-a-Room” scheme you are free to offer guests a spare room and earn £4,250 per year tax-free. However, if you are confident that running a B&B is what you would like to do, firstly you need to contact you local council, even if you are not making any structural changes to your property, you may still need to fill in a “change of use” application form. If your B&B will be your primary home and you have no more than six paying guests at one time, you may not need to complete one, however some authorities differ, so it is important you make necessary enquiries.

If you do wish to make structural changes to your existing house, or wish to build an extension, you may need to apply for planning permission. Building regulations are often changing and vary depending which county you reside in, so do check with your local planning office.
You will also:
• Need to comply with health and safety rules
• You will have to comply with fire safety legislation and have a gas safety assessment
• If you are planning to offer food to your guests, you will need to register with your local environmental health department and be trained in food hygiene
• You should also contact your mortgage lender as you may need to switch to a commercial mortgage if your home is to be used as a business premises
• You should contact your insurer; if you are running a smaller scale B&B you may not need to change your home insurance policy, however if it is a larger business you may need business insurance
• Consider specialist insurance; this can include public liability should a guest or employee have an accident

It does not give a quote for cover, for that you need to contact us, but it does indicate some potential shortfalls in your present cover.

With regard to cost, the good news is that most people in reasonable health are surprised at how affordable cover is, so please do ask us to quote.

What you should also think about is whether or not you have other existing life cover, and find out how much, and other what circumstances it might pay out. For example many employers provide life cover to staff – in terms of a lump sum in the event of death, and / or an income of some type for the surviving spouse/family.

Tax planning may be of particular interest in the following situations:

• individuals who are higher rate or top rate taxpayers for income tax purposes;

• individuals with a net worth of more than £325,000 seeking to divest themselves of assets or otherwise plan for inheritance tax purposes;

• individuals seeking to extract capital from their businesses;

• individuals contemplating disposals of assets which may realise a large capital gain;

• businesses seeking to increase after-tax returns for owners.

Each person’s circumstances will be unique and we will always advise that you take independent tax advice in relation to any tax solutions that we introduce to you. However, we can advise you generically and provide you with a range of ideas which might suit your individual circumstances.

To start, we suggest an informal, obligation-free, exploratory meeting on a strictly confidential one-to-one basis, to discover what your current circumstances are and the possible options open to you. Investing half an hour of time could prove to be one of the best investments you ever make.

More Info:- Welbeck

Once we know about you, your current requirements, your future plans and your aspirations we are much better-placed to assess exactly what you need in terms of financial planning. We can then advise on all the appropriate options available to you – both now and in the future.

For information or advice on Estate Planning, Income Protection, School Fees Planning, Wills, Pensions, Protection, Regular Savings, Investments and Inheritance Tax Planning contact – Welbeck

The study suggested there is a current lack of trust in the pension system since their investment return decreased because of low interest rates caused by the global recession. Many feel the current pension system is far too complicated which in turn deters them from saving enough, or indeed, at all.

However, due to the increase in life expectancy, saving adequately for retirement has never seemed more important. The automatic enrolment into workplace pension schemes starting next year is hoped to encourage more employees to save towards their pensions – although this will not encourage everyone, many employees will not meet the minimum income criteria for the automatic enrolment – there is also the fear that those that do, may “opt-out”, disregarding the possibility of a poor standard of life in retirement.

The study declared that over the past ten years the proportion of employees, whether male or female, saving into a pension, has fallen substantially and it suggested employees would only start to save in to a pension if there was an overhaul of the current pension systems; making them concise and clearer to understand whilst also delivering a better deal.

This report, which will be presented to the Pensions Minister, has highlighted the need to create a far greater, more dependable pension system in order to encourage employees to save. Times have changed and a radical reform seems essential to prevent many millions of our population living their retirement in poverty.

Contact:- Welbeckgroup