Tag: Financial Plan
Your Guide to Year End Tax Planning
It’s important to take the time to give your finances a year-end check-up. The 2017/18 tax year ends on 5 April 2018, with the new tax year beginning the following day, on 6 April. These are important dates for financial planning, so it’s important you don’t miss the chance to make the most of valuable tax-efficiencies and allowances.
How to Navigate Capital Gains Tax Allowance
Cuts to the Capital Gains Tax (CGT) exemption mean it is now more critical than ever to arrange your investments tax-efficiently. For the tax year 2024/25, the CGT allowance has been reduced to £3,000, allowing you to make tax-free gains up to this amount. However, any gains above this limit may be subject to CGT.
Planning for a Comfortable and Rewarding Retirement
The five-year countdown to retirement marks a pivotal phase of introspection and detailed preparation. A well- thought-out plan is essential for a comfortable and rewarding retirement, from ensuring financial stability to thinking about healthcare, housing and the lifestyle you hope to enjoy.
Individual Savings Accounts (ISAs)
For UK residents, one of the most effective ways to minimise tax on investment returns is through an Individual Savings Account (ISA). These accounts are a 'tax-efficient wrapper', safeguarding your interest, dividends and capital gains from taxation. Whether your financial goals are short term or long term, ISAs can provide the flexibility and security you need.
Planning and Preparing for Retirement
As we navigate life, reaching our 50s and 60s often brings retirement into sharper focus. This phase heralds a well-earned respite from years of dedication and hard work. For many, retirement is envisioned as the most extended holiday of their lives, offering opportunities to travel, engage more deeply with hobbies or spend cherished moments with family and friends. However, realising this idyllic vision requires thoughtful financial planning.
Building wealth and achieving financial goals
Investing is an indispensable tool for building wealth and achieving financial goals. By allocating resources to various investments, individuals can accumulate wealth over time through capital appreciation, dividends and interest. For example, investing in a diversitied portfolio of stocks can yield significant returns, enabling you to grow your wealth far beyond what traditional savings accounts offer.
A Guide to Mastering Financial Fitness in Your 50s
Entering your 50 is not just another chapter in your life; it's a profound and exciting phase in your financial journey. By this time, life may have settled into a more predictable rhythm. Perhaps your children are financially independent, and your career is at a peak, providing a stable income.Thoughts of winding down or retiring might be dancing on the horizon. This is why it's a pivotal moment to take a comprehensive look at your financial situation and ensure you're on the right path to achieving your future goals. Here's our guide to help you focus on key areas and...
Minimise Inheritance Tax
Effective planning reduces Inheritance Tax (IHT), enabling your loved ones to benefit more from your wealth. Estates above £325,000 (2024/25 tax year) may be taxed at 40%. Strategies to manage this include using IHT allowances and more advanced options like forming a company with your heirs as shareholders.
State Pension Awareness
In April 2024, the state pension rose by 8.5% to £11,502.40 a year for post-2016 retirees. However, according to new research, one in seven (14%) retirees receive less money from the state pension than expected. This highlights the need for more information about the payments people can expect to receive from the government later in life.
The Essential Guide to Financial Protection
Nobody wants to consider what would happen if they became too ill to support their family financially. Financial protection is essential to creating peace of mind for your loved ones, but understanding what cover you may need can be confusing.
Placing Assets Into A Trust
Trusts are a powerful tool for estate planning, providing flexibility and control over asset distribution. Properly structured, they can address various scenarios and requirements, ensuring that your legacy is managed according to your wishes long into the future.
Transfers Exempt From Inheritance Tax
When contemplating estate planning, it's pivotal to grasp the nuances of lifetime transfers and the significant impact of the 7-year rule. Gifts made during one's lifetime are classified either as Potentially Exempt Transfers (PETs) or Chargeable Lifetime Transfers (CLTs), based on the nature of the gift and its recipient, unless the gift falls under an exemption. This distinction is crucial for anyone aiming to navigate the complexities of Inheritance Tax efficiently.
Establishing a Power of Attorney within your estate plan
The significance of an estate plan transcends the mere distribution of your assets after your demise. Integrating a Power of Attorney (POA) ensures that a trusted individual is empowered to make decisions reflecting your best interests when you're not in a position to do so.
Enhancing Pension Contributions For A Brighter Future
Contributing additional amounts to your pension stands to benefit you significantly in the long term. We explore in our blog different ways you can enhance your pension savings for a brighter future.
I have a will so why do I need a lasting power of attorney?
It is critical to consider the potential consequences of not having a Lasting Power of Attorney (LPA) in place. Many people assume that their loved ones or close relatives will automatically have the authority to make decisions on their behalf. However, this is not the case, and without a LPA, those close to you will not have the legal authority to handle your financial affairs, health decisions and welfare.
Passing on assets Tax-efficiently
Are you concerned about the impact of Inheritance Tax (IHT) on your estate? It’s natural to want to leave behind a legacy for your loved ones, but without the right plan in place, a significant portion of your wealth could be subject to Inheritance Tax. With IHT affecting more and more families, it’s crucial to be proactive and plan accordingly. In most cases, it’s better to begin Inheritance Tax planning as early as possible in order to ensure that your estate is adequately protected. Investing in other options like trusts or leaving money to a registered charity may also provide...
Critical illness cover, your questions answered.
People are increasingly becoming more concerned about the possibility of being affected by a critical illness such as cancer, stroke or heart attack, according to new research findings[1]. This is reflected in the fact that searches for ‘critical illness insurance’ have skyrocketed, with, on average, 6,800 people searching for ‘critical illness cover’ every month, mostly asked on Google.
Wealth Succession
Financial planning can be a daunting and uncomfortable conversation for many, but thankfully attitudes towards talking about money are changing. Wealth succession should be an integral part of your financial plan as early as possible – because the right preparation now can have positive long-term impacts on future generations.
Time for a tax health check?
Personal tax planning should be at the top of your agenda as the end of the current tax year is not too far away. Taking action now may give you the opportunity to take advantage of any remaining reliefs, allowances and exemptions. At the same time, you should be considering whether there are any planning opportunities that you need to consider either for this tax year or for your long-term future. We’ve listed a few reminders of the issues you may want to consider as worthy of including in your 2022/23 tax health check to-do list.
Guide to Individual Savings Accounts
Time is running out to take advantage of this year’s Individual Savings Account (ISA) allowances. On 6 April when the new tax year starts, if you haven’t used all of your or your children’s ISA allowances from the previous tax year, it will be lost forever. Check out this guide to Individual Savings Accounts.