Recent Arrangements
Recent Arrangements
REDUNDANCY PAYMENT
Two weeks before the end of the tax year a soon to be redundant client aged 54 wanted advice. His redundancy lump sum would mean that he would pay 40% tax for the first time. A large pension contribution would both get tax relief & make up for possible years of missed pension contributions in the future. He was paid on the 30th March and the financial year end was that Sunday. So we drove the application & cheque to a chosen provider to get the confirmation that the application was within the tax year. Many other pension companies refused to guarantee they could do it in time. Investing £60,000 into a pension cost him £48,000 then and later he received a £11,800 tax credit from the 40% tax he had paid on his redunancy settlement.
AT RETIREMENT
Several recent arrangements have involved pensions. Many people do not realise that they can start taking their private pension benefits at any time from 55 from April 2010 and not wait for state pension age. Too many people just accept their pension company's annuity rate when the majority would do much better by shopping around. Others do not realise that over 40% of us can get enhanced annuity rates from lifestyle ( 10 cigarettes a day) drinking or because they take prescribed medications.
Others find the complications of the terms and variety of options - lifetime allowances, guarantees, value protection, escalation, unit linking; not to mention the other types of pensions USPs & Drawdown just confusing. We can help you find a suitable arrangement.
BUSINESS PROTECTION
Many companies insure tangible objects for fire & theft but ignore the greater impact that the premature death of a key member can cause. Think of information, contacts, expertise lost and the time to recruit & bed in a replacement. It is hard enough coping with the loss of key personnel without the extra burden of financial pressures that come to. The company can insure its staff for those extra cost and resulting loss of profit. The service we provide is to seek not just the best arrangement before underwriting but to give the client an idea of the premium loading after underwriting. This means doing that bit more at the preparation stage and fewer surprises afterwards. In this case the key man was insured for a reducing sum as he approached retirement to ensure the company could survive his untimely death if it occurred before retirement.
INVESTMENT FOR CHILDREN
A recent arrangement was to help a grandfather give his grandchildren funds when they were older. Having experienced a poor return from a volatile previous arrangement, we arranged a with profits fund for him. So his gift has the potential to grow until needed.
Equity Release
A couple approached retirement with £50,000 owing on credit cards. A lifetime mortgage on their home provided them with a means to clear their high interest charges, and the wife finally to really retire. The particular product chosen lets them gradually reduce their mortgage debt with payments from their income rather than let it rollup.
Immediate Needs Annuity
A client with adequate funds to pay for the care home chose to purchase a five year deferred annuity for his parent. So He would pay the first five years and the annuity would pay the remaining no matter how long the parent lived. This enabled him to have the certainty that the care fees could be funded and to cap the total cost of care fees.
A financial adviser can help
By finding out about your objectives, explaining the options you have, making recommendations and implementing any changes require and monitoring over time. The regular review is to help you achieve your goals because there are changes throughout life.
Contact Us
For further information about any of the services we provide, or if you have any questions, call today using any of the details provided on the sidebar above. Alternatively, email us directly using the query form provided on the Contact Us page of this website. We look forward to working with you.
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