What was in the weekend’s papers? (21/09/2020)

Category: News


“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 them but only to select clients.

“Can I protect my assets from my daughter’s husband to be?”

“I would like everything to stay in the family, going to my daughter and her children”.

COMMENT: This article looks at creating a trust through your will to give a much greater chance of the money staying in the family if a divorce were to happen. This is an area of advice best done with the assistance of a good solicitor and we can refer you to one if needed.

“Loan charge deadline reignites debate over tax fairness”

The idea tax law can be changed on a whim is a very worrying development.

COMMENT: Tax laws have always changed over time with the idea of closing various loopholes like the one mentioned in his article. This is why we regularly review our clients planning to ensure it as tax efficient as it can be.


“200%: the true cost of commission”

From car insurance to mortgages, extra charges are almost everywhere and often impossible to unpick.

COMMENT: This article shows the importance of understanding what you are paying for. We always tell our clients what the costs are and the effect these could have on returns.

“Young investors make mistakes, so stop gloating and help us out instead”

When you’re saving for your first home, it can seem impossible to know where — or whether — to invest your deposit.

COMMENT: For most who are saving for a deposit on a first home the idea of getting high rates of return by investing can be alluring. Ultimately you have to ask yourself are you willing to take risks. If the markets fall are you willing to delay buying a house until they recover? If you have a long time to invest for this might be the case but for most cash is more likely to be the better option.


“Retirees who stick to 4pc ‘golden’ drawdown rule three times more likely to run out of money”

The virus has killed hope of interest rate rises, and pensioners must protect their savings by spending less.

Comment: This article refers to the “4% rule” which acts as a rule of thumb on how much people may be able to withdraw from their pensions and sustain over the long term. There are a few facts this article ignores. The first is that the “4% rule” is more relevant for investors in the US. The figure for UK investors has been estimated to be more like 3.5%. The other is that the rule assumes you invest in a portfolio containing 60% equities and 40% bonds. The rule also does not take specific charges into account and tax.

As we state in this post we don’t believe in rules of thumb. We believe in tailoring each client’s withdrawal strategy to their goals and circumstances.

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