Previous articles
Jan 2010 - 10 things that 'THEY' don't want you to know
Feb 2010 - Is a pension really the best way?
Mar 2010 - The Magic of Compound Tax Relief
Apr 2010 - How to protect your home from long term care fees!
May 2010 - The worst Insurance policy ever sold.
June 2010 - The worst Insurance policy ever sold.
July 2010 - Have you claimed your Capital Tax Allowance?
August 2010 - How to use your property to create a free monthly income!
September 2010 - UK Owners Hit By the Spanish Property Inheritance Tax Time Bomb
October 2010 - Making the Most of Your ISA Allowances
November 2010 - A Legacy Plan could be just the ticket!
January 2011 - No need for a 20% VAT hangover
March 2011 - Pension scheme closures increase
June 2011 - How do you find the perfect investment?
July 2011 - The silent enemy destroying your wealth!
September 2011 - SBA has Moved!
October 2011 - SBA Open Day!
Monthly Update - April 2010
How to protect your home from long term care fees!
The healthcare crisis in the UK today is just getting bigger and bigger and no matter which government we have next; I do not see any light at the end of this particular tunnel. Successive governments seem to excel in wasting our money and providing very little in exchange.
If the latest suggestions come to pass, then it is estimated that up to 17million families would be forced to pay the extra tax when a loved one dies whether or not their loved one had required any care, and this is in addition to any inheritance tax bill.
The average 65-year-old today can expect to need care costing £30,000 - with the burden on women averaging £40,400 and men £22,300, but you may not be average, so your bill could be much bigger.
With careful planning and the use of a HPT (Home Protection Trust) or Long Term Care policies, it is entirely possible to protect the full value of your home from these crippling costs so that your home passes to your chosen beneficiaries and not to the local authorities.
Stinking rotten fund fees!
There’s something rotten in asset management. Recently DMP Financial crunched some numbers and found that a surprising number of funds charged more in fees over the last 10 years, than they managed to return. One would be forgiven for thinking a story like that ought to be on the front page of the Financial Times. I mean, think about it, more than 250 funds of £100m or more in size failed even to recoup the fees they charge over a decade. That’s pretty appalling.
Do you remember that bit toward the end of the Wizard of Oz, when Toto reveals the grand wizard is actually just some old man sitting behind a curtain, pulling levers and turning knobs? In many cases that’s what asset management in this country is like, except here they don’t even bother with the curtain.
Investing needs to be a two way street where the client benefits as well as the professional that provides the advice and fund managers, so if you really want to make your money work for you, and not just for the fund managers, have a detailed review carried out now to see how your investments and pensions are performing.
Stamp duty – a blessing or curse?
The recent changes to stamp duty are a blessing for the first time buyer market, but if you are not a first time buyer, it makes no difference to you, and if you are looking to buy at the £1M and upwards price bracket, then it is definitely a curse because you will see the rate go up from a huge 4% to a whopping 5%, and this is likely to impact the same group of people that has already been hit with curbs on their pension contributions, and, for many, the introduction of a 50% top rate tax.
If you are in this camp then you may want to look at how you can make savings of up to 3% in Stamp Duty Land Tax on the purchase of your new home!
The bankers are at it again!
It starts with them gambling with your money, then when they lose it, you have to bail them out, and when we do they continue to pay all these great bonuses, to people that have done such a fantastic job!
So what are they up to now?
Well now there seems to be a raft of fixed rate bonds that are being sold to everyone who has been hit by the losses of the last 24 months. The most common seems to be a 5 year bond with a fixed interest rate, but my problem is that the fixed rate seems to be at a level that is barely going to keep pace with inflation.
Then there is the fact that interest rates will rise again and the banks are not stupid, they know that over the next 5 years they will make a fortune from these but worse than any of that in most cases they get you locked into a bond that you can’t get out of for the next five years.
I don’t know what will happen in the next week let alone the next five years, so whatever you do, don’t let these fat cats catch you out, keep your money available and don’t tie it up where you can’t get your hands on it in an emergency.
If you would like to find out more about the topics covered in this month’s newsletter, please contact us or come along to one of our regular seminars all of the details can be found on our Seminar Calendar.
The information contained within, including references to taxation, legislation, regulation, or any other issues are correct at time of going to print.
Regards
Steve