This three minute video shows the reasons why it is so important to plan for the future and gives an important insight to the areas that an independent financial adviser will cover in a consultation. Our busy lifestyles and need to enjoy life now, sometimes means that we do not look at the very real problems that we may be storing up in our future, so see what independent financial advice can do to help you address these problems and click on the above video
I’ve recently been reading about US serial investor Warren Buffett who is the third richest man in the world.
What makes Warren Buffett so extraordinary, is not his ability to generate profit; it is his unbelievable generosity towards charities. I recently came across this letter he wrote to Bill and Madeline Gates pledging billions of dollars a year to the Gates foundation. This is a truly fantastic gesture and I just wanted to share this with people as I think it’s extraordinary and just proves how generous some people can be to people who are less fortunate. Read his personal letter to the Gates Read the rest of this entry »
The Andrew Dilnot report into the costs of long term care is an unwelcome reminder to government and opposition parties that the cost of an ageing population is likely to result in some unpopular choices. Although the Dilnot report seeks to cap the cost of long term care for the vast majority of individuals it is unlikely that the coalition government will implement the report’s findings in full, particularly if the cap is set at too low a level.
The present level of assets that an individual can retain before they have to pay the care costs themselves is only £23,250 which includes all assets including one’s home. This is often a controversial area as people who have saved all of their lives want to be able to pass on assets to their family. The Dilnot report suggests that this level of £23,250 each should rise to £100,000 each, this should take the majority of pensioners out of the scope of long term care costs and according to the report would cost the tax payer 1.4 billion a year in today’s terms.
The other part of the proposal is to cap long term care costs for those that have assets above £100,000 and for this cap to be in the region of £35,000 to £50,000, this part of the proposal is likely to be more controversial, as the cost of this is likely to escalate dramatically over the next 30 years as we see even more people needing long term care as life spans increase and overall population demographics become older. The cap is only in respects to medical care costs and does not take into consideration the accommodation and food costs Read the rest of this entry »
People are finding it harder and harder to get a decent rate of return from their savings particularly in these low interest rate and high inflation rate times. So here are some tips on how to maximise your rate of return and some investment tips if you decide to invest in non– deposit based accounts. Read the rest of this entry »
Many people would be surprised to know that the average lifespan of an individual in the UK is now 87, which is up from 77, in just 20 years. Various government organisations, like the Department of Work and Pensions, also predict that this average lifespan will increase further, as medical technology becomes more advanced. This is why it is important that we save, as we now spend, an average 25 years in retirement. The present generation of pensioners have enjoyed lucrative incomes from final salary pension schemes and of course the State Pension. This is unlikely to be repeated for future generations as we have seen the decline of final salary schemes, which have either been closed altogether, or closed to new entrants. We can also not rely on the State Pension, as UK government debt is likely to see further increases in the state retirement age. This has already started with the increase of the state retirement age to 66 and some believe that over time this may have to increase to 70. Read the rest of this entry »
I was passing my local Chelsea Building Society in Ipswich recently, when I noticed a poster advertising an account at 18% rate of return. In these times of very low interest, I thought that this was a bit strange! So I looked and to my horror noticed that this product was a six year term and the 18%, is only equivalent to 2.79% per annum gross. What made this situation even worse was it was not even a standard deposit account, but an investment bond linked to the FTSE 100.
These types of products have been widely available through Banks and Building Societies for the last 10 years. The generic name for them is Structured Bonds and they are typically linked to an index like the FTSE 100, promising a percentage share of any profit in exchange for a capital guarantee. The problem is that although they claim to be linked to the FTSE you enjoy no dividend income and if the FTSE finishes below the original investment level you will only receive back your capital or in this case a small amount of interest. Read the rest of this entry »
- If you die without a Will (intestate) the laws of intestacy come into play. These are a complex set of rules whereby the government tries to guess where you would have wanted to leave your assets. A husband’s assets do not all automatically pass to his wife if he dies without a Will and vice versa, and distant members of the family can benefit in certain circumstances. The Heir Hunters on BBC1 make a living from people dying intestate. Read the rest of this entry »
