STRIVING TO MEET EXPECTATIONS

Here are a few recent client comments:

“Thank you so much for all your help and patience.” - Mr & Mrs I S of Heathfield

“We know you and trust you and you have helped us in the past.” - Mr & Mrs M C of East Sussex

“Thank you for all your help and advice over the years (it must be 25-30 years).” - Mr & Mrs R J of Kent


By survey what our clients value and why they continue to come back to us, is our efficient, independent and unbiased advice – utilising our extensive knowledge and know-how gained over the last 38 years.

INSURING YOURSELF

If you have no one dependant on you and your income, there is little sense in taking out life assurance. However, if you have children or a spouse depending on you, or a business partner, you might wish to take out life assurance.

The simple form of life assurance – term assurance – can be very inexpensive. Do feel free to ring us for a quote. We do not charge for providing quotes and, if you then wish us to arrange the life assurance, normally there is also no charge for doing that.

TAKING THE BENEFITS – THE RETIREMENT MENU Minimum Age 55

Cash please: You can take a maximum of 25% of the value of your pension funds. For example, if you had a pension with a value of £50,000, you could take £12,500 free of tax. (Note: this applies to personal pensions; the rules are different for Final Salary Schemes where the benefit is based on the salary and years of service.)

All as cash please! In fact you can withdraw the total value of your pensions as cash. The downside is that the amount you take, over and above your 25% tax-free element, is subject to tax as if you earned it in the Tax Year you take out the cash. This can result in a very substantial tax bill so do check out the tax ramifications before acting!

Income please (after you have taken your tax-free cash) Option 1: Take a guaranteed income for life (Lifetime Annuity). Option 2: Take a guaranteed income for life but at a higher level if you have a serious medical condition or problematic medical history, or history of smoking (Enhanced Annuity). Option 3: Take a fixed income for a period of time (usually 5 years) and have a guaranteed amount left at the end of the term so you can then review your options again (Temporary Annuity). Option 4: Transfer your pension fund into a Flexi-Drawdown Pension. You can then leave the money invested at any risk level that suits you and you have the option to withdraw a regular amount of income or take an occasional lump sum. (Note: For all of the income or cash withdrawals listed above, once you have had your tax-free cash, will be taxed as earned income.)

INVESTMENT BOND – A USEFUL FINANCIAL TOOL

If you are willing to take risk with some of your savings, one useful and historically successful tool, is an Investment Bond. Within the wrapper of the Investment Bond your money is invested in funds that invest in stocks and shares and bonds and property, etc.. The Investment Bond has special features. One of the most attractive one is that you can withdraw up to 5% (of the amount you originally invested) in each 12 month period free of tax in the year you withdraw it. It is considered a partial return of capital, i.e. of your original investment. Note: Ultimately there is a tax reckoning when the bond is cashed in but usually tax would only be chargeable on the profits made with the bond if the person concerned is a higher-rate taxpayer when he encashes it. Another feature is that the monies held in an investment bond currently are excluded in the calculations of savings when local authorities work out eligibility for funding nursing home care.