Cultivating the art of patience Sticking with a long-term commitment to your investments The longer you’re prepared to stay invested, the greater the chance your investments will yield positive returns. That means holding your investments for no less than five years, but preferably much longer. During any long-term investment period, it is vital not to be distracted by the daily performance of individual investments. Instead, stay focused on the bigger picture. Putting your money into the market Success in the

Protection matters Families face a precarious situation if the worst were to happen Everyone’s circumstances are different, but most people start to think about cover to help protect their family financially once they have children. But research from Scottish Widows[1] reveals that 60% of women in the UK with dependent children have no life cover, leaving their families in a precarious situation if the worst were to happen. The research also shows that only 13% of mums have a critical

Investment trusts Public company aiming to make money by investing in other companies Investment trusts, unlike unit trusts, can borrow money to buy shares (known as ‘gearing’). This extra buying potential can produce gains in rising markets but also accentuate losses in falling markets. Investment trusts generally have more freedom to borrow than unit trusts that can be sold to the general public. BUYING SHARES Unlike with a unit trust, if an investor wants to sell their shares in an

One in eight will retire with no pension in 2018 Excuses to avoid facing the difficult work of saving for retirement Retirement is one of our biggest financial challenges. As with any daunting challenges we face, we tend to think up excuses so we can avoid facing the difficult work of saving for retirement. Worryingly, nearly one in eight people retiring this year (12%) have made no provision for their retirement, including 10% who will either be totally or somewhat

Money’s too tight to mention Financial impact on annual retirement income after divorce However, for some couples, no amount of marriage counselling is enough to avoid a divorce. It’s a tough process emotionally and financially. Untangling two people’s money can be messy. Long before spousal or child support is awarded or your post-divorce budget is in place, you’ll need to prepare your finances for the work ahead. Marriage breakdown impact on pension saving Divorcees who plan to retire in 2018

This time next year we’ll be ‘million-heirs’ Larger individual wealth and expectation of substantial inheritances Put simply, Inheritance Tax is a tax charged on your estate when you die. The Government set a tax-free allowance called the ‘nil-rate band’, which is currently £325,000. Any amount above this level is taxed at 40%. Your estate is the value of everything you own, such as your house, car, investments, life assurance policies and the contents of your home. UK’s massive wealth increase

Making the most of your pensions Have you accumulated multiple plans that need reviewing? Consolidating your pensions means bringing them together into a new plan, so you can manage your retirement saving in one place. It can be a complex decision to work out whether you would be better or worse off combining your pensions, but by making the most of your pensions now, this could have a significant impact on your retirement. Retirement savings in one place Whenever you

Guide to New Tax Year Planning 2018/19 Time to take a tax wealth check? Now that we’ve entered the 2018/19 tax year, a number of key changes have taken place to existing policies, along with some newly introduced initiatives. It’s important to consider these tax implications when making financial decisions. The key changes to existing policies and newly introduced initiatives To help you navigate your way through the main changes that could have an impact on your financial situation, we’ve

Generous grandparents The bank that likes to say ‘yes’ Forget the Lamborghini – 2.4 million UK grandparents[1] have either raided their pension to support their grandchildren or plan to in the future. According to research from LV=, a quarter of generous grandparents (25%) who have already given away money to their grandchildren[2] have taken the funds from their pension. A further one in six (16%) plan to use their pension for this reason once they reach retirement age. Substantial amounts

Tax relief and pensions Annual and lifetime limits When it comes to managing money, one of the things some people find most difficult to understand is the tax relief they receive on payments into their pension. Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief

Inheritance Tax Reducing the amount of money beneficiaries have to pay IHT is usually payable on death. When a person dies, their assets form their estate. Any part of an estate that is left to a spouse or registered civil partner will be exempt from IHT. The exception is if a spouse or registered civil partner is domiciled outside the UK. The maximum a person can give them before IHT may need to be paid is £325,000. Unmarried partners, no

2018/19 tax changes New initiatives you need to know Here’s what you need to know about the 2018/19 tax year changes and new initiatives. Personal Allowance The tax-free Personal Allowance is the amount of income you can earn before you have to start paying Income Tax. All individuals are entitled to the same Personal Allowance, regardless of their date of birth. In the 2017/18 tax year, the Personal Allowance was £11,500, and it rises to £11,850 in the 2018/19 tax