Vivian Slattery, Author at monetarysolutions

Coming up to retirement?

28 March 202216 August 2018 by Vivian Slattery

At this time of year, many of us are returning from our summer holidays. I have heard retirement being referred to as “one long holiday”. Of course, one day, you’ll retire from full-time work. But have you ever wondered what type of holidays you will be able to afford when you eventually retire?

The type of holidays you’ll be able to take during retirement will depend on your financial situation at the time. It is not just about the Pensions you have built up; it’s your complete financial situation – for example, whether you have paid off your mortgage and other debts.

Planning for this time of life is essential. It’s not just about making sure you have built up enough funds, it is also about making sure that the savings you have accumulated are taking the right amount of risk.

Can you remember back to 2008? People coming up to retirement age were on the news saying that they had to delay their retirement due to the sudden drop in the value of their Pension. Whether you would be affected or not depended on what your Pension funds were invested in at the time.

We often see new clients who have very little idea about how their Pension funds are invested. Do you know what your funds are invested in? If the market were to suddenly drop, do you know how this would affect your Pension and investments?

Over the last few years the options for taking your Pension benefits have changed considerably. Do you know how you intend to take yours? Your answer will affect the risk profile your Pension should be invested in during the time leading up to you taking the benefits.

If you are coming up to retirement and planning to take your Pension, here are some more questions to ask yourself:

How much income would you like to have coming in at retirement?
Is your Pension on target to produce this?
Where are your funds currently invested?
How are the funds performing?
What is your personal risk profile?
Do your current investments match your risk profile?
Is that profile appropriate for the way you envisage taking your Pension benefits?

If you are coming up to retirement, give us a call on 020 8655 8488 and we’ll help you find the right answers.

A Pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of Pension benefits available.

Pension income can also be affected by interest rates at the time you take your benefits. The tax implications of Pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Communicating across the generations

28 March 202217 July 2018 by Vivian Slattery

Of course there are always exceptions, but it seems that the internet has made the generation gap even wider.

You might be interested in this breakdown of ‘recent internet usage’ by age.

As you might expect, younger people seem to use the internet more often.

99% of people aged 16 to 34 years old reportedly used the internet recently1

By contrast, over 75s use the internet far less, although this is changing.

In 2016, 38.70% of people aged 75 years and over were recent internet users (for women aged over 75 it was even less, at 32.60%)1
In 2018, the percentage of people aged 75 years and over who were recent internet users rose to 44%1

What this means to us

One of the biggest questions we face as a firm is the best way to communicate with our clients.

For example, the data above shows that our web presence and online communications aren’t reaching most over 75s. That’s important information for us to be aware of.

At the other end of the spectrum, people reaching adulthood in the early 21st century are termed ‘millennials’. It has been reported that:

Millennials are twice as likely to use mobile phones compared with the older generation2
Almost half of UK millennials want to do their financial planning on a smart phone2
We have traditionally given financial advice face- to-face, so this trend poses a new challenge to us.

What this means to you
Hopefully, this article shows that we make every effort to keep up to date with trends so we can adapt our service offering to suit individual needs.

You can be assured that we aim to look after your best interests, not just financially, but also in how we deliver the service. As financial advisers, we want to communicate with you in your preferred way, on your preferred platform.

We’d be interested in hearing what you think. You can communicate with us however you want – via email or phone, sending a traditional letter, or even by carrier pigeon!

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

1 Office for National Statistics
(20 May 2016 and 31 May 2018)

2 Independent (5 June 2017)

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Understand the Nil Rate Band

28 March 202217 June 2018 by Vivian Slattery

With the average house price in Purley being over £600,000, it is very common for residents to have an inheritance tax (IHT) liability on their death. But can anything be done to mitigate this?

As with all financial planning, it is important to know your potential tax liability so you can decide what to do.

To find out what your IHT liability might be, the first thing is to work out your Nil Rate Band threshold. Anything above the Nil Rate Band is taxed at 40%.

Everyone who dies this year has an individual Nil Rate Band threshold of £325,000.

As you may know, the Government has also introduced an additional Main Residence Nil Rate Band, which amounts to £125,000 for the year 2018/19. This applies where the deceased had an interest in a property that has been their residence at some point, and is part of the estate they have left to one or more direct descendents.

This means that a person’s total Nil Rate Band could be up to £450,000. If it is not used on first death, this amount could be transferred to the spouse.

Of course it’s not as simple as that, so care is needed.

For example, if the net value of the deceased’s estate is above £2 million (after deducting any liabilities but before reliefs and exemptions), the Main Residence Nil Rate Band is reduced by £1 for every £2 that the net value exceeds this amount.

What this means to you

There are many ways that potential IHT liabilities can be reduced. Just give us a call if you’d like some help with that.

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

Disclaimer: Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

GDPR: What’s it all about?

28 March 202217 May 2018 by Vivian Slattery

If your inbox is anything like mine, you have probably been receiving loads of emails recently from companies asking you to “opt back in” to receiving their emails. You might be wondering why this is.

On 25 May 2018, the General Data Protection Regulation (GDPR) is coming into effect. This is a new EU regulation covering data protection and privacy for all individuals within the European Union.

The legislation aims to give control to EU citizens and residents over their personal data, and to simplify the regulatory environment for international business by unifying the regulations within the EU.

How does GDPR affect individuals?

GDPR includes the following rights for individuals:

to be informed about what data companies hold about you
to access your data
to rectify your data
to have your data erased
to restrict processing of your data
to move, copy and transfer your data
to object to automated decision-making and profiling

You may have also seen the term “Personal Data” being used a lot lately. This means data which can identify an individual, such as their name, address, telephone number etc.

There is also the term “Sensitive Personal Data”. This is personal data which consists of, for example, health records, religious beliefs and political opinions.

There has already been a two-year transition period and the Act becomes enforceable on 25th May. In summary, GDPR may seem as though it’s a nuisance, but we think it’s a good thing to protect people’s privacy.

Obviously, as financial advisers, we have access to a lot of information about our clients. As a responsible business, we will of course ensure we comply with GDPR and all other relevant legislation.

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Pension contributions

28 March 202217 March 2018 by Vivian Slattery

With the end of the tax year looming, you might be wondering whether you should top up your Pension(s) before the 5 April deadline. ‘Pension Freedoms’ have added to the attractiveness of Pensions as an investment. However, I meet many people who don’t understand all the benefits. This article briefly explains them.

Tax relief
While interest rates on savings are still very low, the tax relief a Pension can attract adds to its growth, making it an interesting investment to consider.

At the time of writing, higher rate tax relief is still available.

Example

If you earn £55,000 and want to make a £10,000 contribution to your Pension, you would only need to pay £8,000 yourself, with the other £2,000 being added to your contribution in the form of tax relief. (This example assumes you are making no other Pension contributions.) You could then also claim a further £2,000 tax relief via your tax assessment, meaning it has really cost you only £6,000 to put £10,000 into your Pension.

The benefits are not just for individuals. Pensions are also attractive to businesses, as they can be treated as an allowable business expense and offset against your company’s corporation tax bill.

Pensions can be valuable for inheritance tax planning too, and we find they are a vehicle that is often overlooked.

However, Pensions can also be quite complex – there are restrictions on how much you can pay in each year as well as on the total you can accumulate over the lifetime of a Pension. There are penalties if you exceed these limits so, as always, we recommend you seek professional advice…

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

A Pension is a long term investment. The fund value may fluctuate and can go down which would have an impact on the level of Pension benefits available.

Levels, bases and relief from taxation may be subject to change and the value depends on the individual circumstances of the investor.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Women in financial services

28 March 202217 January 2018 by Vivian Slattery

This year is the 100th anniversary since UK women won the right to vote. But, since then, we have not moved as fast as some other countries to address the differences in how men and women are treated.

It was 1963 when John F Kennedy signed the United States Equal Pay Act, making it illegal to pay men and women different salaries for similar work in the same place.

However, recent research shows that UK women working full-time are still paid less than men in 90% of sectors, with those working in financial and insurance sectors among the worst affected. (Source: UK Commission for Employment and Skills 17 November 2015.)

Theresa May has tried to redress the balance in her last cabinet reshuffle. Of the 13 new politicians on the Government payroll, eight were women and four were black or minority ethnic (BME). She hailed a Government that “looks more like the country it serves”. Surely all industries and boards should look more like the country they help?

Impact on financial services
Financial services is a sector that is traditionally male-dominated, and many people feel that more females are needed.

In financial services, women comprise just 14% of executive committees, even though 66% of new recruits are female. (Source: Daily Telegraph 22 March 2016.)

The Government is trying to support women working in the finance sector by introducing the financial charter that asks companies to pledge to set internal targets for women in senior management, and to publish progress reports.

This is a subject very close to my heart since I run an advice company with all female advisers – although two of our administrators are male.

Studies have shown that women are the main breadwinners in 56% of households across the country. (Source: Real business 7 Jan 2016.)

Surely, women should have the option to have someone of the same gender to advise them?

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

‘Tis the Season to be Jolly

28 March 202216 November 2017 by Vivian Slattery

The Christmas season is one of my favourite times of the year, as it is for many people.
However, it is easy to get caught up with the madness of Christmas spending.
Many of us have probably over-spent around Christmas-time (or know someone who has), and financial concerns can make us feel very unjolly.

I know if I leave my Christmas shopping until the last minute, I can get caught up in the panic and spend far too much. As with most events, planning is key. Here’s some useful advice.

Set your budget
It’s important to know how much you can afford before you have spent it.
The best time to sit quietly and work out your budget is before the mad festive rush begins. It doesn’t mean you have to be tight – it just means you can sit down to your Christmas meal and not have to worry about how you can afford it. Good planning also means there is less waste, otherwise, it is all too easy to stock up the fridge and throw away unused food later.

Be creative
I’m sure you’ve heard the saying “It’s not the price, it’s the thought that counts.” This is so true! It’s not the most expensive presents which are the best ones.

“It’s not the price, it’s the thought that counts” – This is so true! It’s not the most expensive presents which are the best ones

Spread your spending
If you are paid early in December, it is tempting to use this income to fund your Christmas spending. But if your next pay cheque is not until the end of January, you’ll find you’ve run out of money and will have a bleak New Year. Again, this is something to budget for.

Plan for 2018
Over the festive period, after all the madness has calmed down, it is a good time to think. Look back over the past year and set resolutions for the coming year to help you move towards your financial goals.

At Monetary Solutions, we can help you achieve your goals by putting a financial plan together. So, if you have never seen an adviser (or haven’t updated your plans for a number of years) why not book our free initial consultation and see how we may be able to help you?

Meanwhile, we wish you a merry Christmas and prosperous New Year.
At Monetary Solutions Ltd, you can book a free initial consultation about any
financial matters, so please call us on 020 8655 8488.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Time to fix your mortgage rate?

28 March 202216 October 2017 by Vivian Slattery

With interest rates being at an all-time low, there has been a lot of talk about rates rising, especially now. The question you might be asking yourself is: “Should I switch to a fixed rate and if so, over what period?”

Remember, everyone’s situation is different, and just because a particular mortgage is suitable for one person doesn’t mean it’s right for you.

When you are considering any financial option, you should put all your cards on the table. You need to look at the rates available and then consider all the “what ifs” and calculate the likelihood of each scenario.

For example, how would it affect you if mortgage rates went up by 2%? If you moved within 5 years, what would the penalties be?

The question you might be asking yourself is: “Should I switch to a fixed rate and if so, over what period?”

As a financial adviser for many years, I have always steered away from the idea that mortgages are portable, meaning that if you move you can take the mortage with you.

Although your mortgage may technically be portable, mortages are secured on a property. You may find that, for example, the lender will not lend on the type of property you wish to purchase. I have known a number of clients who were caught out by this. Consequently, I would be cautious and assume that the mortage is not portable.

The mortgage rate you pay is not the only thing you need to look at. You also need to add all the costs into the equation. For example, any arrangement fee and survey fees (some are included free).

If you decide to opt for a two-year fixed mortgage, you should compare the options by working out the exact cost over the entire period, including all the upfront costs.

If you have a mortgage already, don’t forget to ask what rates your current lender has to offer, as well as looking at alternative lenders. Also make sure you understand the cost of change, including penalties, if any.

Having said all this, even if the outcome of your research is that you decide to opt for a different rate, you still may have some hurdles to overcome. This is because new regulations mean that lenders now have to make affordability tests, which means that borrowing may be harder these days than it was in previous years.

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Tax implications

28 March 202222 August 2017 by Vivian Slattery

Tax implications on your investments

When looking at different types of investment, you also have to consider the tax implications. In fact, you could be entitled to allowances totalling over £30,000*. When deciding on the investment vehicles for your funds, it’s important to take these allowances into consideration.

So what are the main allowances?

Personal allowance

Firstly, we all have a personal allowance that we can offset against income, although this is reduced if you earn more than a certain level, and could even be reduced to zero. Even children have personal allowances, and it’s important to make full use of them.

Capital Gains allowance

We also have a tax-free Capital Gains allowance* of just over £11,000. If you aren’t using this – and you don’t have any personal allowance left – it could be very attractive to offset this against your investments.

Dividend allowance

There is now a £5,000 allowance* that you can offset against dividends. This can be attractive when looking for an investment to help top up your income.

Saving tax on interest

Most people earning less than £16,500 will not have to pay any tax on their saving interest, because they can use a £5,000* saving tax allowance which reduces by £1 for every pound of income earned above the personal allowance.

On top of this, every basic rate taxpayer can receive £1,000* interest on their savings without having to pay tax on it. A higher rate tax payer can receive £500* tax-free.

What to do

At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.

When you are looking at tax implications, we recommend you also seek advice from an accountant.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Keeping your investments in tune

28 March 202214 June 2017 by Vivian Slattery

We recently rescued a piano, which was sadly rather out of tune. The piano tuner came today to tune it. To get it playing well and sounding beautiful, the strings need to be at the right tension and the hammers in good condition so they hit the strings well. It also needs to be easy to play, so the keys shouldn’t keep getting stuck. Once these things are sorted out, the piano also needs to be retuned again regularly to keep it up to scratch.

Unfortunately our poor piano was old and had been somewhat neglected and is now beyond repair, so we’ll have to send it to piano heaven and get a replacement.

Often our finances can be the same. It’s easy to leave the arrangements that we have made in the past, because they worked well when we bought them. Over the years, the investments held within our ISAs, bonds or pensions may be working less well, or there may now be a better way of doing what we were trying to achieve. We can now access many providers’ plans online, or at least consolidate a number of holdings into one place, making them far easier to administer.

Having someone retune your investments means that you can make sure that what you have is still the best way to reach your financial goals. It also means that if your existing setup is out of kilter with what you need, you can replace it with a more appropriate option, or just tweak some of the individual parts. Regular reviews can then make sure that it never gets too far out of tune again.

If you would like a review of your finances contact us today to arrange a free intial consultation.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

020 8760 9940

Coming up to retirement?

Communicating across the generations

Understand the Nil Rate Band

GDPR: What’s it all about?

Pension contributions

Women in financial services

‘Tis the Season to be Jolly

Time to fix your mortgage rate?

Tax implications

Keeping your investments in tune

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