Monday 22 February 2010
New client testimonial today - Professional and Trustworthy Approach
"I have been a client of HK Wealth Managers for over 5 years and have benefited from the professional advice and management of our portfolio, such that even during the recent economic turmoil we have felt assured that we had the right financial strategy in place. Approachable, trustworthy and with high integrity".
Interest rates could be held until 2011
Interest rates could remain on hold until 2011 but are likely to rise sharply thereafter, according to Skandia.
Skandia Investment Group (SIG) says interest rates are likely to remain on hold until at least the autumn, with tighter monetary policy after the general election delaying an increase.
SIG senior fund manager Ryan Hughes thinks a cautious outlook on behalf of the Bank of England could mean rates may not even rise until next year.
"The Bank may want to wait until it has seen two quarters of above trend growth, which on its forecasts will not happen until January 2011," he says.
But Hughes thinks once rates do rise they will do so sharply.
"The current level of interest rates is the lowest on record and a long way below the 5% rate many economists think of as neutral," he says.
"While there are good reasons why interest rates may stay low relative to history for some time to come, that should not stop significant rate increases in a year or two."
In the meantime, he adds, the low interest rate environment will support the economy, equities and corporate bonds.
His comments follow the MPC's decision to keep base rates at 0.5% earlier this month.
Garry Hale
www.hkwm.co.uk
Skandia Investment Group (SIG) says interest rates are likely to remain on hold until at least the autumn, with tighter monetary policy after the general election delaying an increase.
SIG senior fund manager Ryan Hughes thinks a cautious outlook on behalf of the Bank of England could mean rates may not even rise until next year.
"The Bank may want to wait until it has seen two quarters of above trend growth, which on its forecasts will not happen until January 2011," he says.
But Hughes thinks once rates do rise they will do so sharply.
"The current level of interest rates is the lowest on record and a long way below the 5% rate many economists think of as neutral," he says.
"While there are good reasons why interest rates may stay low relative to history for some time to come, that should not stop significant rate increases in a year or two."
In the meantime, he adds, the low interest rate environment will support the economy, equities and corporate bonds.
His comments follow the MPC's decision to keep base rates at 0.5% earlier this month.
Garry Hale
www.hkwm.co.uk
Friday 19 February 2010
Sound financial advice - client testimonial provided today:
We have been clients of HK Wealth Managers for a number of years and continue to be impressed with the advice Garry provides. His ability to explain matters in a simple manner has helped us make the right financial decisions for the future. We particularly appreciate Garry’s style of advising which is to lay out the facts and let us make the decisions. He is thoroughly professional both in meetings and in his communication pre- and post-meeting. An excellent source of sound financial advice. Thank you Garry!
Thursday 18 February 2010
Shelter your money from the tax man...
The Individual Savings Account (ISA) is a rare opportunity which the Government offers you to shelter your money from the tax man. For every pound you put in, you pay no further personal tax on any profits earned and do not even have to declare its existence to the tax man. This year, you can invest up to £7,200 - or, if you are over 50, up to £10,200. However, as the year end - and then tax year end - start to creep up on all of us, you need to make sure you act or you lose this year's opportunity forever.
Of the £7,200 (£10,200), up to £3,600 (£5,100) can be invested into cash - on deposit with a bank or building society or via cash funds. The rest can be invested in the much more volatile world of stocks and shares - or a funds of stocks and shares, the latter of which will at least spread your risk a bit further given that the value is at risk in this area and it is possible you may not get back the amount you originally invest.
ISAs are available for lump sum investment but also for regular savings. Whatever you choose to do, however, the deadline is approaching and you therefore need to start planning to make sure you can take full advantage. Of course, you do not have to use the whole allowance - but if you can, or if you have investments elsewhere that could be transferred over, sheltering them within an ISA does provide a more tax efficient way to hold on to any gains you do make.
Please note: the exact tax benefits of ISAs vary depending on your circumstances and are subject to change.
Of the £7,200 (£10,200), up to £3,600 (£5,100) can be invested into cash - on deposit with a bank or building society or via cash funds. The rest can be invested in the much more volatile world of stocks and shares - or a funds of stocks and shares, the latter of which will at least spread your risk a bit further given that the value is at risk in this area and it is possible you may not get back the amount you originally invest.
ISAs are available for lump sum investment but also for regular savings. Whatever you choose to do, however, the deadline is approaching and you therefore need to start planning to make sure you can take full advantage. Of course, you do not have to use the whole allowance - but if you can, or if you have investments elsewhere that could be transferred over, sheltering them within an ISA does provide a more tax efficient way to hold on to any gains you do make.
Please note: the exact tax benefits of ISAs vary depending on your circumstances and are subject to change.
Friday 12 February 2010
The 'Truth About Money'.
The Truth About Money is to help more people, mainly business owners, professionals, successful high earners and those retired with capital, gain access to the TRUTH about money.
It’s a fact that the majority of people have no idea where they are heading financially. They may have assets, investments, and/or high levels of income, but most people have no idea what it all means, or where they are heading.
That is because the majority of financial advisers lack the necessary tools to demonstrate to clients ‘what their future looks like’ – quite simply they are guessing about their clients' future. They focus their attention on ‘products’ rather than REAL solutions that give clients what they want out of life.
More importantly, they fail to answer the BIG questions which really need answering.
Questions like:
• “When, precisely, can I afford to stop doing the things that have become a drag…and start doing the things
I really enjoy?”
• “What do I have to do to ensure I NEVER run out of money?”
• “How much do I need to earn, save or sell my business for to give me what I want out of life?”
• Exactly what level of investment return do I need to achieve my objectives?
And possibly the biggest question of all…
• “How much is enough!?”
These are questions that need answering, and answering fast. Life is not a rehearsal.
The good news is HK Wealth Managers Ltd are advisers that can answer these questions.
They are financial planning professionals who use a special financial planning tool called truth™. It’s designed to tell you the truth about money. Pure and simple.
Making YOU the Centre of Attention
We put the focus back on you – on your goals, on your aspirations. Through a process called Lifeplanning™ we help you identify what’s important to you, the things that you want to achieve in your lifetime. Then we carry out a financial planning analysis. Not only are the details of your income, outgoings, assets and liabilities considered, but resources that may become available to you in your lifetime. This gives an accurate measure of your net worth and current and future financial situation. We help you estimate the cost of the life you want to enjoy in years to come.
We use truth™ software to put the two together. It produces a dramatic picture, which spells out the reality of your financial future. Suddenly you see it, understand it, and believe it. You and HK Wealth Managers Ltd can then model realistic “what if” scenarios that will demonstrate the different outcomes you can create. Many clients have found they can retire years earlier when they are armed with the truth about money. Others learn how they can spend more now and still be financially secure for the rest of their lives. Other clients identify what they need to sell their business for to be financially independent.
Finally, if your financial plan indicates that you need financial or investment products, then HK Wealth Managers Ltd are able to offer advice to identify products suited to your needs.
Whatever your situation, HK Wealth Managers Ltd can help take the guesswork out of your planning and help you make more sense of your money. To find out the Truth About Your Money contact HK Wealth Managers Ltd today – www.hkwm.co.uk.
Garry Hale AIFP, Dip PFS
Owner of HK Wealth Managers Ltd
It’s a fact that the majority of people have no idea where they are heading financially. They may have assets, investments, and/or high levels of income, but most people have no idea what it all means, or where they are heading.
That is because the majority of financial advisers lack the necessary tools to demonstrate to clients ‘what their future looks like’ – quite simply they are guessing about their clients' future. They focus their attention on ‘products’ rather than REAL solutions that give clients what they want out of life.
More importantly, they fail to answer the BIG questions which really need answering.
Questions like:
• “When, precisely, can I afford to stop doing the things that have become a drag…and start doing the things
I really enjoy?”
• “What do I have to do to ensure I NEVER run out of money?”
• “How much do I need to earn, save or sell my business for to give me what I want out of life?”
• Exactly what level of investment return do I need to achieve my objectives?
And possibly the biggest question of all…
• “How much is enough!?”
These are questions that need answering, and answering fast. Life is not a rehearsal.
The good news is HK Wealth Managers Ltd are advisers that can answer these questions.
They are financial planning professionals who use a special financial planning tool called truth™. It’s designed to tell you the truth about money. Pure and simple.
Making YOU the Centre of Attention
We put the focus back on you – on your goals, on your aspirations. Through a process called Lifeplanning™ we help you identify what’s important to you, the things that you want to achieve in your lifetime. Then we carry out a financial planning analysis. Not only are the details of your income, outgoings, assets and liabilities considered, but resources that may become available to you in your lifetime. This gives an accurate measure of your net worth and current and future financial situation. We help you estimate the cost of the life you want to enjoy in years to come.
We use truth™ software to put the two together. It produces a dramatic picture, which spells out the reality of your financial future. Suddenly you see it, understand it, and believe it. You and HK Wealth Managers Ltd can then model realistic “what if” scenarios that will demonstrate the different outcomes you can create. Many clients have found they can retire years earlier when they are armed with the truth about money. Others learn how they can spend more now and still be financially secure for the rest of their lives. Other clients identify what they need to sell their business for to be financially independent.
Finally, if your financial plan indicates that you need financial or investment products, then HK Wealth Managers Ltd are able to offer advice to identify products suited to your needs.
Whatever your situation, HK Wealth Managers Ltd can help take the guesswork out of your planning and help you make more sense of your money. To find out the Truth About Your Money contact HK Wealth Managers Ltd today – www.hkwm.co.uk.
Garry Hale AIFP, Dip PFS
Owner of HK Wealth Managers Ltd
Wednesday 10 February 2010
Monday 8 February 2010
pension tax loophole warning
Could the basic pension contribution allowance be the next target in the Government’s plans to cut pension relief?
This could be an obvious target for a Government looking to raise income.
Currently, those who do not pay tax can make a contribution of up to £2,880 a year and receive tax relief on it, grossing the money up to £3,600.
However, the loophole is often used by the wealthy, who give money to a spouse or child who can then make a pension contribution and receive an additional £720. This loophole could soon be closed.
There is a situation right now where the Government has no money to fund its projects, and they will be on the lookout for loopholes like this.
Because the exemption is mainly used by the wealthy and their close relatives, the removal of the basic pension contribution allowance is unlikely to be noticed by the majority of voters, and could even be seen as further taxation of the rich.
Would this change to basic pension contribution allowance send out the wrong message on pension saving yet again?
Would it send out a message that long-term saving is not a priority for the Treasury, at a time when we should be encouraging people to save for the future.
This could be an obvious target for a Government looking to raise income.
Currently, those who do not pay tax can make a contribution of up to £2,880 a year and receive tax relief on it, grossing the money up to £3,600.
However, the loophole is often used by the wealthy, who give money to a spouse or child who can then make a pension contribution and receive an additional £720. This loophole could soon be closed.
There is a situation right now where the Government has no money to fund its projects, and they will be on the lookout for loopholes like this.
Because the exemption is mainly used by the wealthy and their close relatives, the removal of the basic pension contribution allowance is unlikely to be noticed by the majority of voters, and could even be seen as further taxation of the rich.
Would this change to basic pension contribution allowance send out the wrong message on pension saving yet again?
Would it send out a message that long-term saving is not a priority for the Treasury, at a time when we should be encouraging people to save for the future.
Thursday 4 February 2010
Retirement age issues
From 6 April 2010, the minimum age at which benefits can
be taken under a pension arrangement, moves from 50 to
55. This will not affect those clients already retired, or those
with no plans to retire until age 55 or later – but it will
impact on those clients approaching 50, or aged between
50 and 55.
be taken under a pension arrangement, moves from 50 to
55. This will not affect those clients already retired, or those
with no plans to retire until age 55 or later – but it will
impact on those clients approaching 50, or aged between
50 and 55.
Tuesday 2 February 2010
Important Retirement News!! Were you born between 06/04/55 and 05/04/60?
Did you know…..The minimum pension age is due to change on 6 April 2010. Because this might affect you or one of your clients, I wanted to tell you a bit more about it.
The change means that from 6 April 2010, the earliest an individual will be able to take their pension benefits will increase from age 50 to age 55.
In other words, people aged 50 on 5 April 2010, will be able to take their pension benefits, but if they don’t manage to take them by midnight that night they won’t be able to access their pension for up to five years.
This change won’t just affect individuals who want to retire early, it will also affect individuals who may wish to take their 25% tax-free lump sum early but leave the rest invested, perhaps while they continue to work.
Time is running out, but there is still time to take advantage of some excellent tax-planning opportunities before the change occurs. For example, by tapping into an existing pension fund now may enable someone to generate an additional tax free lump sum later.
Remember, though, that tax rules can change and the value of the tax advantages can depend on your personal circumstances.
This can be a complex area and advice would be required strictly on an individual basis. I recommend speaking with an independent financial planner who can offer impartial financial planning advice on this area.
Garry Hale AIFP, Dip PFS
Director of HK Wealth Managers Ltd.
garry.hale@hkwm.co.uk
The change means that from 6 April 2010, the earliest an individual will be able to take their pension benefits will increase from age 50 to age 55.
In other words, people aged 50 on 5 April 2010, will be able to take their pension benefits, but if they don’t manage to take them by midnight that night they won’t be able to access their pension for up to five years.
This change won’t just affect individuals who want to retire early, it will also affect individuals who may wish to take their 25% tax-free lump sum early but leave the rest invested, perhaps while they continue to work.
Time is running out, but there is still time to take advantage of some excellent tax-planning opportunities before the change occurs. For example, by tapping into an existing pension fund now may enable someone to generate an additional tax free lump sum later.
Remember, though, that tax rules can change and the value of the tax advantages can depend on your personal circumstances.
This can be a complex area and advice would be required strictly on an individual basis. I recommend speaking with an independent financial planner who can offer impartial financial planning advice on this area.
Garry Hale AIFP, Dip PFS
Director of HK Wealth Managers Ltd.
garry.hale@hkwm.co.uk
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