EXPERIENCE AND EXPERTISE

Although we are no longer as young as we would wish, over 3 decades of experience does give us the know-how and expertise to use in assisting our clients. We aim to achieve maximum customer satisfaction and we are happy to receive client feedback such as:

“Your service has never been anything short of excellent.” Mr IB of Leeds

 “Thank you very much for the helpful advice you have provided. I feel a lot better now understanding more about the pension side of life – very important.” Mrs ACL of Canterbury

“Thank you for your time and patience today. It was most helpful.” Mr JR of East Grinstead

Best wishes, Tom Shuster

ATTACK THE PLASTIC

One of the unhappy after-Christmas and New Year “surprises” is the arrival of the credit card bills for the Christmas spending. Of the various financial tools available, the one we find most misused and most destructive are the credit card and store cards. If you then pay the credit card balance off in full, you will have 4 to 6 weeks free credit and will have avoided the “honey trap”. If you do not pay it off in full, it is all too easy to fall into the habit of just paying minimum payments. Paying minimum payments of 2% or 3% will not pay off the debt and you will end up having paid an enormous amount of interest and the credit card balance still unpaid. If you need credit and are not going to be able to pay it off in full, use a loan. They are structured to ensure that the amount owed does really get paid off.

MERGER – AVIVA AND FRIENDS LIFE

Two of the largest UK life assurance companies – Friends Life and AVIVA are planning to merge. Their strategy is to increase efficiency and savings by economy of scale. What the real result will be is more uncertain. Each of them already have commitments from having absorbed a number of earlier life companies. For example, Friends Life took over Friend Provident, F&C (Foreign and Colonial), BUPA, Resolution and others. While AVIVA have General Accident, Commercial Union, Norwich Union and others. Each of their subsidiaries brings past responsibilities and contracts to honour. At the moment the Stock Market considers it a good idea for Friends Life and a not-so-good one for AVIVA and their share prices have reacted accordingly.

STUCK WITH AN INTEREST ONLY MORTGAGE?

More and more people are having to come to terms with an interest-only mortgage they have which does not have a repayment strategy. There are various solutions available. More and more lenders are willing to negotiate an extended term to enable a solution to be found – whether that be switching to a repayment-type of mortgage over a longer term, or perhaps an equity release type of solution with interest-only payments being continued definitely, or a lifetime mortgage arrangement whereby no payments are made and the mortgage and interest are paid from the eventual sale of the property.

OTHER NEWS: MORTGAGE RATE WAR

There is still fierce competition as regards mortgage interest rates. While the Bank of England seems minded to move slower rather than faster in raising interest rates, we still believe it is an excellent time to take advantage of the current fixed interest rates – with 5 year fixed rates under 3.0%. We would be pleased to provide you with quotations so you can see what savings you can achieve. This can be done very speedily.

COMPULSORY PENSION ENROLMENT

The crunch time for companies, particularly smaller companies with 50 staff and less is approaching. It is estimated that in 2015 there will be tens of thousands of companies having to set up their compulsory Auto Enrolment Company Pension Scheme, and in 2016 that will rise to hundreds of thousands. Failure to meet your Staging Date can result in fines and other penalties from The Pensions Regulator who are in charge of this vast change in the pensions landscape.

Even now when less than 30% of employees have now been automatically enrolled, there is evidence that the pension providers are beginning to creak under the strain of the new business. In the Tax Year 2015/16 tens of thousands of employers will reach their Staging Date and in 2016/2017 it increases to hundreds of thousands! This will certainly stretch the resources of the pension providers and the number of pension advisers. It is a good idea to plan ahead.

NEW PENSION SOLUTIONS

Along with these changes are coming new product developments. Various hybrid new products will have the benefits of some guarantees, like annuities, while also providing access to capital. We will be pleased to use our knowledge and expertise to help you with your planning.