What was in the weekend’s papers? (27/07/2020)

Category: News

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 under lockdown mean banks are on red alert for signs of suspicious transactions.

COMMENT: You can find a post on financial scams here.

“What a change to CGT could mean to you”

A forthcoming review of how capital gains tax is paid has worried those who fear it will lead to higher levies.

COMMENT: You can find our post about this here. We cover the some of the potential ramifications here.

“Higher earners at risk of losing automatic pension tax relief”

Up to 3m people could be affected under radical government proposals.

COMMENT: You can find more about this here. This covers the Government changing the way some workplace pension schemes deal with tax relief. ‘Net pay’ schemes take the pension contribution out before tax is payable. As such the full tax relief is available straight away although realistically it flows to the individual not the pension. This contracts to ‘Relief at source’ payments where the Governments adds basic rate tax relief immediately and further tax relief is available through self-assessment. The argument is that for low earners no tax relief is available through the net pay method when they would get 20% tax via relief at source.

“How should we split our financial assets when we get divorced?”

Case study.

COMMENT: One area we specialise in is what happens to pensions on divorce and you can find a post on this here.


“Advice giant’s premium price tag for failing funds”

Chase de Vere advisers can win lavish trips to Greece but they have been criticised for pushing customers to pay an extra fee for ready-made portfolios that lag behind offers from its competitors.

COMMENT: First things first the only competition going in PWS is the fantasy football league (I came third). We do recommend a large of proportion on our clients invest into portfolio we put together. However, we do this because these represent what we believe is best for clients. While it is easier for us to have most of our clients in a set of portfolios, suitability is paramount.

“Woodford: £1bn lost in a year”

Savers in the closed Woodford Equity Income fund have lost more than a quarter of their money — about £1 billion — since it was controversially frozen by its administrators, Link Fund Solutions, an investigation has found.

COMMENT: You can read about how we select funds here. We tend not to put too much with a particular ‘active’ manager, no matter how much of a ‘star’ they are at the time.

“Over-55s to cut debt by £19bn as they tighten belts”

Over-55s are expected to cut their debt by £19 billion in two years as they save more and spend less.

COMMENT: One of the pillars of good financial planning is managing debt. Having too much in retirement can severely limit your options. These are things we discuss with our clients and look at the potential strategies and what could happen with them.


“‘How can we make sure our £400k savings will cover the cost of our care?’”

Care fees are rising by as much as 5% a year and knowing when to cash in investments or a home to cover the cost can be a minefield.

COMMENT: A financial pan which does not consider the possibility of going into care is a bad one. We always look at how best to fund care fees.

“Yields have plunged, but there’s more pain on the way”

In a worst-case scenario the market could yield as little as 3.3% by the end of the year.

COMMENT: You can find our thoughts on income investing here.

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