Category: News

What a dreadful year — I was beaten by investors who did absolutely nothing The Times performs a mea culpa of sorts and acknowledges that it is very difficult to outperform the market. The resident share tipster managed to underperform a simple tracker investment over the year. The article attributes most of the underperformance to

2022: Stock picking opportunities abound, but inflation raises the risks The Financial Times has an article that tries to predict the winners and losers over the coming year. The evidence tells us that monkeys throwing darts have as good a chance as picking winners but that would be difficult to write up. Why switching your

Annuity or drawdown: which is best for a £100k, £500k and £1m pension pot The Telegraph continues its annuity push and looks at when buying an annuity may be the best idea with your pot. You can find our thoughts on this here. Rising costs are putting huge pressure on household budgets: Is YOUR inflation

This is the perfect age to buy an annuity This article from the Telegraph reports on a study by LCP. LCP are a firm of pension actuaries that currently employ former pensions minister Sir Steve Webb. It suggests the perfect time to buy a guaranteed income using your pension money is 67. We will have

Do you pay too much for financial advice? The Financial Times covered how a poll suggested most of their readers were happy to continue meeting by Zoom or Teams rather than having an exclusively face to face relationship. This does come with an expectation that the costs associated with purely digital advice will be lower.

The new £1bn scandal hitting savers The Telegraph covers how vast sums have been ploughed into eight schemes that promised returns of more than 10% a year by buying stakes in hotels, care homes, car parks and other properties. However, many of the projects were doomed from the start. This is yet another story of

Stephen Fry joins celebrities urging people to switch to green pensions The Guardian covers a celebrity initiative to call on the public to harness the untapped power of their pensions to tackle the climate crisis. The campaign puts forward the conclusion of research published in the summer. This suggests making your pension green is 21

The Personal Finance Society, the largest professional body for individual financial advisers in the UK, held its annual awards ceremony last night. They recognise and celebrate outstanding individuals and firms who strive to deliver exceptional consumer outcomes within the financial planning profession. During these awards, I (Nicholas Grogan) am proud to have been named Investment

Fire savers: We’re going to retire at 40. Here’s how The Times has a story looking at how retiring at 40 might sound impossible, but with good planning and extreme saving, these people are on track to do it. It covers a few tactics which mostly surround minimising expenses whilst maximising income. One note of

How to avoid needlessly paying 55pc tax on your pension The Telegraph has an article about the cap on how much individuals can have on pensions which is called the “Lifetime Allowance”. It tries to get in more clicks by stating the tax rate on anyone falling foul of it is 55% this is not

Britons warned of ‘dramatic’ inflation impact – how to avoid retirement planning traps The Express has an article covering the risks of higher inflation. You can find what we think about how higher inflation could affect our clients here. DeVere offered me £79,000 to keep quiet The Times has a story about how a retiree

Short summaries of articles we think you will find useful from some of the weekend’s broadsheets. Bonds? Why should we bother? The Financial Times has a piece on Bonds. They talk about how a fabulous run for fixed income is no guide to the future. This is especially true as rates are expected to rise

You can take money from your pension without the pot running out The Times looks at the two main concepts for investors seeking an income in retirement. The first is income investing. This is where you fund your retirement purely from “natural” yield such as interest or dividends. This has been popular because it means

Why the £86k social care cap won’t save you from selling your home The Telegraph reports on how older people still risk losing their homes and spending hundreds of thousands of pounds on care, despite the Government’s new plan to save pensioners from devastating costs. You can find our coverage of this here. Inheritances will

Investors eye labour market inflation risks This opinion piece in the Financial Times speculates on how inflation may bring the recent good run on the markets to an end. It is penned by John Redwood who is writing from the non-biased position of being chief global strategist of a firm that charges fees for investment

Ten million savers could run out of money in retirement This article in the Telegraph covers how a survey conducted by LV, the pensions group, found that 34pc of savers, or 9.9 million people, admitted to not knowing how to ensure they would not run out of money in retirement. Workers who manage their own retirement

‘Taxpayers now get a far worse deal’: HMRC pushed on IHT gifts as £1,000s is missed out on The Sunday Express looks at how Inheritance tax (IHT) costs can be managed using gift-giving and other estate planning efforts. However, families are struggling to utilise these options according to new research. The article suggests taxpayers only

Help tomorrow’s widows prepare for an income shock In this article for the Financial Times, former pensions minister Steve Webb summarizes why two alterations to the state pension mean widowed women might experience an income “shock” along with bereavement in retirement. Among many mathematical examples, he encourages no couple to make any assumptions about the assistance available to

Work out if your adviser is worth the money The Times has been on a bit of a tear recently becoming a bit more critical of financial advice. This article urges clients to work out if their adviser is worth the money. The article features analysis from Vanguard which says advice can boost returns by up to 3%

Savers seeking to keep early access to pension pots face 2023 deadline Investors must take swift action to safeguard their pension rights the Financial Times warns. This is because the Government plans to increase the age when savers can access their pensions. The Government says it could increase the so-called ‘normal pension age’ to 57 by

Five tax threats to your pension The Financial Times ponders five potential tax threats that HMRC could enforce on pensions. Due to the coronavirus pandemic, the Treasury is trying to find avenues to save more money. Unfortunately, this could mean reductions to the tax advantages pension enjoy. The possible areas at risk include the lifetime allowance

UK advertising watchdog to crack down on misleading crypto marketing The Advertising Standards Authority has informed the Financial Times it plans to pull misleading crypto advertisements. According to the agency, crypto is on a ‘red alert’ in financial advertising. Customers have usually been the ones to highlight potentially damaging adverts. However, the Advertising Standards Agency wants to

How to protect your investment portfolio against inflation Andy Haldane chief economist of the Bank of England warns people and companies have a “dependency culture around cheap money”. He also believes the threat of a quick increase in prices is “rising fast”, reports the Financial Times. He emphasised the need for ideas outside of mainstream central

Millions face a 55pc pensions tax charge – here’s how to protect your nest egg The Telegraph presses the panic button in this article. They are looking at the possibility of a reduction in the “Lifetime Allowance.” This is a limit on the pension benefits you can build up during your lifetime. It was recently

Earn £100,000? You could be paying 60% income tax without knowing it People who earn between £100,000 and £125,000 pay income tax at a rate of 60% because of government “stealth” tax policies, warns The Telegraph. These earners are only meant to pay income tax at a rate of 40%. However, for every £1 they earn

Your personal data for sale as pension fraudsters strike Pension firms have been a regular target for fraudsters and hackers over the 12 months up to April 2021. The hackers breached the companies’ defences 68 times over the period, reports The Telegraph. Cyber-criminals are targeting pension firms as they usually have up to date consumer

Savings: Britons warned there may ‘inadvertently’ be ‘more risk’ in cash saving – act now This article in the Sunday Express says savings accounts may “inadvertently” create additional risk for Britons who could be left short when it comes to reaching their goals. The story attempts to dispel some myths about investing. These include that

Revealed: £54bn in ‘cheap’ tracker funds charge double the headline fee The Telegraph says that volatile markets in recent times have led to a surge in transaction costs in tracker funds. This has led to investors paying up to five times the advertised rate for their passive vehicles. The newspaper says these additional costs have

How to dodge the £8,000 annuity trap Some 64,000 people failed to seek guidance or advice when buying an annuity over the last two years, according to The Telegraph. It quotes the Financial Conduct Authority and then Canada Life for its research suggesting those who fail to seek help lose out an average of £7,700 over

Pension warning: you need to save 50% more now This article, in the Times, says younger workers saving into their pensions may need to increase their contributions to make up for lower investment returns. Lane, Clark & Peacock, a consultancy, and Interactive Investor, a wealth manager, have shown the impact poor returns can have on

Financial advisers are putting your money in tracker funds – so why are you paying them? Financial advisers are facing pressure to justify their fees after putting customers’ money into tracker funds run by Vanguard. This is what this article in The Telegraph says. Vanguard, which launched its advice service earlier this month, runs £42bn of funds

How middle England can avoid a 55pc pension tax hit The Telegraph has an article about the Lifetime Allowance and what those who might be exposed to it could do. You can find our thoughts about the allowance here. One thing we would question is whether the “hit”, as the headline applies, is 55% for

‘I tracked down my £14k lost pension – before the Government seized it’ More savers are trying to track down forgotten-about pension pots before the government takes the money for other uses, according to The Telegraph. The Government said in January that pensions that had lain dormant for years would be used to fund “good causes”.

Neil Woodford scandal: What fund bosses knew but never told us The Woodford scandal continues to unfold. The latest comes from The Sunday Times, which says the firm overseeing the fund, Link Fund Solutions, knew of its risky holdings but did not warn investors of such risks. Several requests of information were sent by Hargreaves Lansdown, who

Death tax to catch thousands more in £1bn pandemic raid The Telegraph says grieving families are set to be hit with a £1bn “stealth tax” grab. This is after Rishi Sunak revealed in his Budget that the government would cash in on inheritances to support public finances. Speaking in parliament last week, Sunak revealed his five-year freeze

This is one of the more important budgets of recent times. So, what was announced? Income tax rates, thresholds, and thresholds For 2021/22 Personal Allowance increasing to £12,570, basic rate band to £37,700 meaning a higher rate threshold of £50,270 – but then these figures will be frozen until April 2026. No changes to dividend

Lockdown savings? Put them in an ISA while you can This article in the Guardian looks at how the Covid pandemic has bolstered many people’s balances. It also has some tax-efficient places for readers to put their extra cash. The piece mentions various investment ideas but for most, we believe bespoke advice is best. Rishi

NS&I blocks loyal savers from accessing their own cash Holders of savings bonds with National Savings & Investments could find their money locked away, according to The Telegraph. Previously customers could withdraw their cash at any moment with a penalty of 90 days’ interest. However, untouched savings are being automatically put into newer bonds which removes

Is there any point in an ISA? As the end of the tax year approaches, so does the chance to take out an ISA for next year. The Guardian’s Shane Hickey considers whether the move is really worth it. However, with interest rates so low, he asks, is there any point when it could end up

Woman who got 86p a week state pension finds she is owed £42,000 A piece in the Guardian highlights how thousands may collectively be owed more than £100m after being underpaid State Pension for years. The story looks at how until last year, Angela Jenner, 78, was getting only 86p a week as her state

Q&A: A basic guide to the GameStop squeeze The madness of the GameStop drama caught the full attention of the investment world last week. This Financial Times article asks how did millions of retail investors put big financial institutions under pressure with GameStop last week? This piece seeks to explain how the phenomenon, which began on a

NS&I boss apologises for customer service amid rise in withdrawals The Guardian covers how NS&I have apologised after low staffing levels left them unable to cope with “unprecedented” demand of savers withdrawing their cash. Savers pulled £26.5bn from the bank in the final three months of 2020. This came after it dramatically reduced the rates

How Covid-19 rebooted retirement If coronavirus has brought a positive, writes the Financial Times’ it has purred people to look at their retirement plans. The article talks to several financial planners who say the pandemic has encouraged people their clients to re-evaluate what matters most to them. It has also given them a taster for what retirement

Over-55s at the mercy of a new pensions ‘experiment’ next month Incoming investment pathway rules have been dubbed “fundamentally flawed” and “potentially dangerous”, writes The Telegraph. These new rules compel providers to offer people those without a financial adviser a default fund strategy based on their money plans when they hit the age of 55.

Our 8-point checklist to get your pension in order for 2021 Perhaps second-guessing a few people new year’s resolutions, The Telegraph has offered readers a checklist to get their pensions in order. The first two steps the newspaper suggests are tracking down old pensions and checking charges. On the first point, the article quotes Aegon’s Kate

Did investors do better than a financial adviser? According to an article in the Times, investors who took advice have had worse performance and paid higher charges this year than those who made their own decisions. The article riffs off of this article which by one of the largest pension and investment providers in the

Why ‘final salary’ pensioners should really fear a wealth tax Amid rumours of the Government imposing a ‘wealth tax’, The Telegraph warns those with sizeable defined benefit pension should worry. The tax, thought up by a group of think tanks, proposes to make individuals with more than £500,000 assets after debt pay 1% of their net worth.

The £116k a month cost of failed fund The Times has a story about how investors in the failed Woodford Equity Income fund paid £116,000 in charges for a month’s work to wind down the fund. It also suggests investors will get back three quarters what the fund was worth when the fund manager closed

Philip Green urged to plug pension gap before Arcadia administration Sir Philip Green is under pressure to use his wealth to make up the “huge shortfall” in the Arcadia’s pension scheme. This takes place as the group is expected to enter administration, writes The Guardian. Thousands of workers’ pensions could fall by 10% if the Pension

“Can you be sure of a comfortable retirement after the pandemic?” Financial security in retirement is something we can never take for granted. Naturally, Covid-19 and its effects have prompted savers to reconsider and review their retirement plans. The Financial Times asks how sure we can be of a safe retirement after the pandemic. Many made

“What does CGT review mean for investors? The financial times has a story looking at the recent OTS report recommending raising Capital Gains Tax rates and cutting allowances. We have covered this in detail here. “Dreaming of a rich retirement? £1m may not be enough” The Times has a story about how the cap on

The Lockdown 2 survival guide for pension savers While our portfolios recovered quickly from the market downturn earlier this year, some pension savers may still be reeling from it. The Telegraph looks at what they can do to protect their money from any upcoming turbulence. The piece offers some guidance, imploring people to stay invested and

Retirement plans in jeopardy: equity release could be blocked if house prices crash Clauses in equity release plans mean homeowners may not be able to continue taking equity from their houses next year. This is according to an article in The Telegraph, as the Centre for Business & Economics Research predicts a fall of 13.8%

Emotions cost investors dear, research finds The Financial Times contained an article explaining how research has found investors lose an average of 3 per cent a year in returns to emotionally driven investment decisions.  It also found the gap that widens significantly in times of steep volatility such as the current pandemic. These decisions can

Financial times Wealth tax: FT Money readers are divided This article found FT readers, normally what you would consider a conservative bunch, are in favour of a wealth tax by a slim majority. We have written previously about what such a tax could entail. What this does show is that having a plan that you

Billionaires do well during the pandemic Billionaire wealth soared to a record $10.2tn at the end of July. This is according to a report from Swiss bank UBS and accountancy firm PwC. The plunge in the equity markets in February and March caused combined billionaire wealth to fall 6.6% to $8tn. The number of individual

FINANCIAL TIMES “Property sellers risk tax penalty amid housing ‘mini-boom’” Advisers warn of lack of awareness over shortened deadline for paying CGT. COMMENT: We looked at this in this post. “Investment trust boom in wake of Woodford liquidity concerns” Trust model helps managers control risks of a sell-off when holding unlisted companies. COMMENT: We do

FINANCIAL TIMES “Pension transfer advice in short supply” The number of advisers working in this area has shrunk in the past three years. COMMENT: A combination of increased regulation and a tightening market for insurance cover on this type of advice has seen many advisers stop giving advice on pension transfers. We still advise on

FINANCIAL TIMES “UK confirms plan to extend age for accessing private pensions” From 2028 individuals will have to be 57 rather than 55 to draw from their retirement savings. COMMENT: The change to linking the page someone can access their pensions to within ten years of their state pension age was put forward by the

Eviction day looms Government restrictions on tenant evictions by landlords are to be lifted on 23rd August. But experts say there is unlikely to be an immediate spike in evictions. The government introduced its moratorium on tenant evictions in March and extended it further in June. The moratorium expires on 23rd August, although we should

FINANCIAL TIMES “‘Two companies to pay £10.7m to investors sold risky schemes” Avacade and Alexandra Associates provided investment services without being authorised by regulator. COMMENT: You should always check that your adviser is regulated by the Financial Conduct Authority. Also, if you are advised to invest into something which offers high returns for low or

FINANCIAL TIMES “‘Dividends cut by 445 LSE-listed companies” Some yields still remain attractive even after changes, analysts say. COMMENT: You can find our thoughts on income investing here. “Pensions cash a temptation for silver job seekers” If you’re made redundant in your fifties, should you dip into your retirement funds? COMMENT: We always recommend to

Base rate held at 0.1% The Bank of England’s Monetary Policy Committee (MPC) voted unanimously to maintain the Bank Rate at 0.1%. The Bank also said it would maintain its current quantitative easing programme at £745billion. This came as the BoE warned that it expects UK unemployment to jump by 7.5% by the end of

FINANCIAL TIMES “Can active fund managers deliver higher returns than ETFs?” Despite the lure of beating the index, for every winner there is a loser and higher costs can erode gains. COMMENT: What this refers to as the “Zero Sum Game” when investing. The conclusion of this is that the higher costs are, the lower

FINANCIAL TIMES “Will superfunds come to the rescue of UK pensions?” Covid-19 adds to pressure on final salary schemes to consolidate. COMMENT: The guaranteed income these types of schemes offer is only as strong as the performance of the scheme’s investments and the ability of the company backing it to meet any shortfalls. Anything which

Financial Times “Dividends are not dead — but your strategy might need recharging” Covid-19 has merely “accelerated the inevitable”, as dividend cuts were on the way from a number of companies. COMMENT: You can find our thoughts on income investing here. “What are your rights if your bank account is frozen?” Rising reports of fraud

DIY investors now have unprecedented access to investment information and markets. This has levelled the informational playing field between them and professional investors. Even though you may have the tools to do manage your own portfolio, should you go down the DIY route? What you need to be a successful investor Time and interest You

Stamp duty holiday season Figures released today highlight the resurgent UK housing market, as asking prices reached record highs in July. Figures from property search portal Rightmove suggests the average asking price of properties coming to the market have hit new highs. The report points to an average increase of 2.4% on the previous record-high

Financial Times What a change to CGT could mean to you It was revealed earlier last week that Chancellor Rishi Sunak had ordered a review into capital gains tax. COMMENT: You can find our post about this here. The Times Is your cheap tracker more expensive than you thought? Low-cost investing is on the rise,

FINANCIAL TIMES “Psychological traps investors should be wary of” Do you need an ‘emotional circuit breaker’ to prevent untimely investment decisions? COMMENT: You can find more about this here. We believe this to be one of the most important factors behind long term investment success. As such we believe a large part of our ongoing

Venture Capital Trusts (VCTs) have always been viewed as highly useful when looking at someone’s tax planning. Over time VCTs have become more mainstream and for certain clients are just another way to invest tax efficiently. VCTs are publicly-listed companies which invest money in small UK businesses who are not quoted on the main stock

What to expect from the Summer Statement UK chancellor Rishi Sunak will unveil a raft of measures designed to lift the UK economy out of its coronavirus-induced slump. Many of the moves, such as a new green jobs initiative and a cash bonus scheme for firms that hire trainees, are known. The treasury has been

SUNDAY TIMES Paying your tax now will save pain in January Tempting though it is, delaying paying your tax bill this month means facing a double bill in six months’ time, accountants warn. COMMENT: We usually operate based on the assumption of “tax-deferred is tax saved”. Although it is correct that deferring means a bigger

FINANCIAL TIMES “ISA savers retreat to cash despite poor returns” The latest ISA figures showed UK investors shied away from stock markets last year. COMMENT: It is only natural to be worried about what could happen in the markets. Those who stayed in cash may have been fortunate to miss out on the current market

Probate – things you should know With the coronavirus causing long delays to the process, here are the key points to remember: Find the will Once somebody’s death has been registered, the first thing to do is locate the person’s will. If you cannot find it, contact the person’s solicitor, accountant, or bank to see

FINANCIAL TIMES “Coronavirus puts the squeeze on retirement hopes” Workers in their 50s may have to rethink their long-term plans. COMMENT: This article focuses on how the current downturn in the investment markets could affect someone who is about to retire. Whilst we can never predict when they are going to happen, downturns like this

FINANCIAL TIMES “Fine wine investment ages well amid volatile markets” The Covid-19 crisis is bringing tensions to a head in the market for Bordeaux’s ‘en primeur’ wines. COMMENT: This is another article about investing in non-standard assets. These include classic cars stickers, toys, and all sorts of collectables. We never advise our clients to bet

Deflation fears and what it would mean The Eurozone is on the brink of sliding into deflation. This is after the economic disruption of the coronavirus pandemic dragged price growth in the bloc down to 0.1% in May. In fact, in 12 of 19 Eurozone countries, the rate had turned negative. The fall in inflation

FINANCIAL TIMES “Wealth management faces fallout from coronavirus” Pressure on fee income and investment in tech has intensified during the pandemic. Comment: This story covers two trends in our profession. The first is where if fees are related to the performance of the markets then they will have fallen. The second is the development and

Please note that, due to copyright, we are no longer able to include a direct link to the newspaper article. FINANCIAL TIMES “Pandemic accelerates desire to pass down wealth” Fear over potential tax rises leads to a rise in people gifting assets to family members. Comment: We always recommend to clients, when it is relevant

Are tax rises around the corner? Raising taxes or imposing public sector wage freezes. These are among the options on the table to pay for a government borrowing boom during the coronavirus pandemic. This is according to a leaked Treasury document. The internal report estimated the gap between government income and expenditure is on course

Furlough and tax bills Many SMEs are making errors on their applications for the Government’s furlough scheme. This means they will have to repay thousands of pounds to HMRC later. Many small business applications for the furlough grant include the cost of their Employer’s National Insurance Contributions (NICs) for furloughed employees. However, for many SMEs

FCA Warns Firms Over Paying Dividends The FCA has set out its expectations on financial resilience for FCA solo-regulated firms. It has done this considering the coronavirus. It says it expects such firms to plan and ensure the sound management of their financial resources. This means taking appropriate steps to conserve capital, and to plan

HMRC publishes new guidance on exceptional circumstances for the statutory residence test. This applies to non-residents forced to overstay due to COVID-19. It states they may escape deemed UK tax residency. HMRC introduced the SRT to determine the tax residence status of individuals with connections to the UK. The rules are complex, but they are

Rates dive deep The Bank of England has slashed the base rate for the second time in over a week. In a further emergency response to the coronavirus pandemic, they have reduced it from 0.25% to 0.1%. The base rate is the Bank of England’s official borrowing rate. This what it charges other banks and

Coronavirus and the markets: greed and fear in action Warren Buffett once described fear and greed as diseases that infect investors. As the coronavirus spreads, investors are quoting the billionaire investor as they try to hold their nerve. “Occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community,”.

What the Budget might mean for taxes Reports that the budget on 11 March will contain tax rises have raised concerns within the Conservative party. Several proposals have been aired in the media: Reports have floated the possibility of a “Mansion Tax” being introduced. Mooted at the same time as this is a UK-wide home

HM Treasury issues a draft of the social security benefits up-rating order 2020 HM Treasury has issued a draft of the Social Security Benefits Up-rating Order 2020. This confirms the April 2020 increases to various Social Security payments. It confirms that: The New Single-tier State pension will increase from £168.60 per week to £175.20 per

Trusts under the spotlight Over time, the Government moves has reduced the tax advantages of trusts. They are likely to become less popular still from March. This is when trustees need to register on a government list or risk penalties. Since 2017, certain trusts have had to report information to an online register. This is

High-risk mini-bonds still being promoted Adverts for risky mini-bonds are still around despite the FCA banning them a year ago. Reports found mini-bonds at the top of searches such as “high-return investments” or “top ISA rates”. Mini-bonds have come under scrutiny following several high-profile scandals. One was the collapse of London Capital & Finance, which