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.
Among others, the article quotes Mike Hodges, of accountancy firm Saffery Champness, who says the potential tax is “fraught with the danger of getting it wrong at the expense of people’s pensions”. He adds: “The Government clearly needs to raise money now but imposing a wealth tax that will only pay out in future decades when people retire is not an answer to today’s problem.”
When the details of any new taxes become clear we can give your clients advice on what to do.
Investment 2021: prospects and pitfalls in a post-pandemic world
The Financial Times’s FT Money’s experts pick out what they think could be promising trends for the new year, in this article, as well as their causes for concern.
We believe articles like these are as relevant when forming a long-term investment strategy as using how much it rained yesterday to predict what the weather will be like in a month. I doubt many of these experts predicted a Global Pandemic this time last year.
“Why women make better investors”
The Times has a story about how investors who trade online tend to do worse than telephone traders. This, the story states, is because their over-confidence is augmented by the illusion of being in control. Also having access to online trading means they deal more something. The research the articles cites states Women trade less and therefore get better results.
This is something which is reflected in the academic evidence behind our investment process. We have a process behind every decision we make and do not trade just because we can.