Category: Products

This blogs talk about financial products. A product is traditionally the way companies have taken copious charges from the underlying investment. Not anymore, now we are in a fee-only world. Some of the analogies used should be taken with a pinch of salt but I hope they are entertaining. It is important you understand these blogs do not offer advice. Please read our Terms & Conditions and Privacy Policy

If you have any comments please Contact Us.
 

Posted on

Slack News Fortnight

Obviously It’s been anything but a slack fortnight at the office. With 5 major events occurring, which have repercussions for investors, I thought it would be best to wait until all 5 unknowns were in before I commented. Individually, each of these domestic and international geo-political events will shape how we manage our investment portfolios and how we help clients plan their finances, both now and into the future.

Plan | Save | Grow | Spend | Gift | Pass

But firstly I would like to extend our condolences to the families of the two clients we suddenly lost this week. After almost 38 years building long-term client relationships it’s inevitable that some must come to an end. Currently we are helping the families of 8 of our clients who have passed away in recent months.

Hopefully our previous financial planning and long-term client relationships will help at this difficult time.

The 5 known unknowns

“There are known knowns, things we know that we know; and there are known unknowns, things that we know we don’t know. But there are also unknown unknowns, things we do not know we don’t know.”

Donald Rumsfeld – United States Secretary of Defense.

Two weeks ago we knew there was a UK budget to come, a new Conservative leader to be chosen, a new President of the US, a further interest rate decision to be made in the US and also an interest rate decision due from the Bank of England. All those changes would move both domestic and global shares in some way. Some outcomes were expected, some were binary decisions which were too close to call and some were just plain unexpected.

Continue reading “Slack News Fortnight”
Posted on

Pension Theft

With the first Labour budget a little over a month away we can now begin to see the public relations playbook hasn’t changed much with the new administration. Why would it? Much of the Socialist Civil Service remains in place. Ideas are leaked to assess the likely response of the middle class. The “painful” budget that Rachel Thieves Reeves is likely to deliver will undoubtedly affect the attractiveness of pensions as a tax efficient savings vehicle, both now and into the future.

Luxury Beliefs

A luxury belief is an idea or opinion that confers status on members of the upper class at little cost, while inflicting costs on persons in lower classes. The term is often applied to privileged individuals who are seen as disconnected from the lived experiences of impoverished and marginalised people. – Wikipedia

Ms Reeves was born in 1979, which means she is at least 12 years away from being able to access the sort of pension savings we all hold, even if she had some herself. This Labour administration is about to plunder a rich seam of savings that won’t affect them. Many “hard-working families” (sounding like a politician myself now) have spent decades building up this form of life savings and will rely on these savings for the rest of their lives. With a quick scan of Wikipedia I can also deduce that she can afford to make sweeping changes to defined-contribution pensions (the type we have) because she is unlikely to have anything but defined-benefit pensions herself. Neither is her Civil Service husband likely to be affected.

Sir Keir Starmer has also faced criticism for benefiting from a special pension scheme during his time as Director of Public Prosecutions (DPP) from 2008 to 2013. His pension is “tax-unregistered,” meaning that it is not subject to the Lifetime Allowance (LTA) cap, which normally limits the amount one can save in a pension without facing additional tax charges. This scheme was introduced by the government and mirrors arrangements available to judges, intended to prevent an exodus of senior public figures from the judiciary.

One rule for us, one rule for the elite. Luxury beliefs.

Continue reading “Pension Theft”
Posted on

Changing of the Guard

Happy New Tax Year!

Over the weekend the new tax year entered along with “Storm Kathleen”. Is it me, or does the media generated as each named storm arrives allow for ever more drama? Storms get scarier sounding now they have names. Apparently it was the 11th storm of this season; apart from the odd tree giving up and falling over there was nothing to see really in the NW for this or the preceding 10. Sure planes were diverted, and yes that’s always been the case. Nobody knows whether it would have stopped the trains from running – because most weren’t running again anyway. So all in all, most UK citizens won’t remember this one like the previous 10 they have already forgotten. However we have some scary historic storm numbers building, to help prove weather events are more extreme today than they have ever been. I will refrain from commenting on climate change in this blog as I wanted to publish a very short one this time. In Bolton, even a storm with a name on it means it’s just been a case of bring the sheets in off the line and if you going out put your big coat on.

Agnes, Babet, Kieran,Debi, Elin, Fergus, Gerrit, Henk, Isha & Jocelyn. No Howard once again! And why no Grace and Rose and Daisy? – not scary sounding at all, Storm Grace.

Spring Cleaning Jobs

Once we get into the new tax year we embark on the project to get as much of our clients savings as possible into a tax free wrapper. ISAs as everybody knows are a no brainer. Why pay tax on your savings when you don’t have to?

Continue reading “Changing of the Guard”