Tag: Invest
Trump’s Tariffs Create Turbulence in Global Markets
The first quarter of 2025 has been anything but steady for global markets. With the return of President Donald Trump’s administration in the United States, economic tensions have surged worldwide. Global stock markets have been left rattled as sweeping tariffs—intended to bolster the American economy—were introduced.
Avoiding Financial Pitfalls
Investing is essential for those looking to grow their wealth over time. Cash alone seldom keeps pace with inflation, as the interest it generates is usually too low to preserve its purchasing power. For beginners or those adopting a DIY approach to investing, recognising common mistakes can help protect them from potential financial pitfalls.
Private Pensions Inherited by Beneficiaries Will No Longer Escape IHT
For years, private pensions have offered a tax-efficient way to pass on wealth to loved ones. Currently, any money left in a private pension fund upon death is exempt from Inheritance Tax (IHT). However, this long-standing benefit is set to end. Following announcements by the Chancellor of the Exchequer, from April 2027, private pensions inherited by beneficiaries will no longer escape IHT.
Lifetime Transfers and the Seven-Year Rule
Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs) broadly define gifts made during an individual's lifetime. Their classification depends on the nature of the gift and the recipient. It's equally important to note that some lifetime transfers are exempt, meaning they are not subject to tax.
Do you fall into the 60% tax trap?
For many earners in England, Wales or Northern Ireland, the highest Income Tax rate is 45%. However, while 45% is the highest ‘official’ rate, some individuals effectively pay a tax rate of 60% on part of their income. This phenomenon, commonly called the ‘60% tax trap,’ affects those earning over £100,000 and applies to their income between £100,000 and £125,140.
Time is Running Out: Don’t Miss Your Chance to Boost Your State Pension
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.
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...
DPMS Portfolio Commentary August 2024
With a generally positive Q2 now firmly in the rear-view mirror, we are focusing on looking forward to a more accommodating picture for monetary policy for the remainder of 2024. Interest rate cuts are expected across developed markets as inflation starts to ease with growth prospects expected to improve as debt costs fall.
DPMS Portfolio Commentary June 2024
With an improving macro-economic backdrop, May 2024 has provided some strong returns across developed markets as investors look forward to a rate cutting cycle, GDP growth figures start to accelerate and optimism around the Technology sector continues. After some difficulties in Q1, the UK equity market has catapulted forwards as a top performer quarter-to-date to the end of May, following better-than-expected GDP growth figures, which brought the UK out of recession.
DPMS Portfolio Commentary May 2024
Despite a somewhat rocky start to the year, Q1 2024 proved to be very strong across equity markets due to improving profit growth expectations, falling inflation, optimism around interest rate cut timing and excitement around Artificial Intelligence (AI) in the Technology sector. Whilst some elements of inflation proved to be stickier than first thought, markets have shrugged this information off and continue to look to the future with a period of rate cuts from Central Banks albeit at a later staged than initially thought.
The Top 10 Fundamentals for Successful Investing
Investing serves as a mechanism for amplifying your wealth. It can assist you in expediting the repayment of your mortgage, augmenting your retirement savings or safeguarding your child’s financial future. However, before you invest your money, be ready for a long-term engagement. Read our full guide on our top 10 fundamentals for successful investing.
DPMS Portfolio Commentary February 2024
2024 had a relatively rocket start with inflation coming in higher than expected across developed markets driving bond yields upwards and capital values down, the Purchasing Manager Index (PMI) surveys showing relatively weak results and geo-political instability in the Middle East unnerved investors. However, recent weeks have seen a reversal of this with some strong Q4 earnings results, improved consumer sentiment and optimism towards the first interest rate cuts since 2020.
DPMS Portfolio Commentary June 2023
After a frustrating Q1 2023, with a sustained market recovery derailed by banking failures, Q2 2023 has been a generally more positive quarter. This comes despite continued nervousness in the market related to the US debt ceiling being called into question (and swiftly resolved), sticky inflation in the UK, US & Europe and possible further interest rate hikes and China’s sluggish economic recovery.
DPMS Portfolio Commentary October 2024
Now that all developed markets have started cutting interest rates, we are looking forward to a more accommodating period of easing monetary policy heading into 2025. Further cuts are expected over the next 12 months as the era of higher interest rates has been declared over by The Federal Reserve (The Fed), Bank of England (BoE) and European Central Bank (ECB).