The Money Advantage Blog - The Money Advantage

Sep

2019

How to prepare for a financial emergency

03 Sep 2019

Last year The Money Charity reported that almost ten million UK households have no savings at all. Their most recent figures also show that 340 people were declared insolvent or bankrupt, and 14 properties were repossessed, every single day in the UK. Pretty alarming statistics, but how would your family cope if you suddenly lost a primary source of income, or received a large unexpected bill? As always, preparation is key. Ensure you have an emergency fund Emergency fund, rainy day fund – call it what you want – but it’s essential to have readily accessible money to replace lost income or meet unforeseen costs. Between three to six months household living expenses is generally recommended, but this does, of...

Aug

2019

3 tips to get the best Final Salary pension advice

Adam Rideout

Blog

22 Aug 2019

Figures reported in the FT show that whilst the value of pensions transferred reduced last year, it still amounted to a whopping £33 billion. It’s also widely predicted that most of those transfers were out of Final Salary (also known as Defined Benefit) schemes. But, towards the end of 2018 the FCA found that only 49% of advice given to transfer out of a Final Salary pension was suitable. If you have a Final Salary pension, you too might be tempted to accept a seemingly generous cash-equivalent transfer value. However, forfeiting a lifetime of guaranteed retirement income is, in the words of Megan Butler, Executive Director at the FCA; “one of the most complex financial decisions a consumer may have...

Aug

2019

Who wants to be an ISA millionaire?!

Adam Rideout

Blog

08 Aug 2019

Do you remember the former Army Major Charles Ingram on ‘Who wants to be a millionaire’? He correctly answered the million-pound question, but instead won a 20-month suspended prison sentence and a bill for thousands in legal fees! There could, however, be an easier way to make a million… No ‘lifelines’ necessary, no coughing accomplice in the audience – you could be an ISA millionaire. First, a quick reminder of the basics. An ISA (Individual Savings Account) is a tax-free savings wrapper, free of Capital Gains Tax on growth and Income Tax on withdrawals. ISAs have been around for 20 years now, first introduced with an annual contribution limit of £7,000. But that cap has generously increased over the past...

Jul

2019

Six reasons why you don’t want a financial planner

Adam Rideout

Blog

19 Jul 2019

1. I don’t need advice, yet You might think you’re too young to speak with a financial planner. But, you really shouldn’t put it off. No matter the current value of your savings, getting some advice and help as early as possible can make a big difference to future financial security, all thanks to the impact of compound growth. For example, if you are saving just £100 per month towards retirement with an assumed average growth rate of 5% p.a. then; 10 years saving gives a final balance of £15,593 which is a 30% total growth 20 years and the final balance is £41,275 giving an impressive 72% growth Saving over 40 years the final balance is £153,238 which is...

Jun

2019

Beer, Brexit and the silent wealth killer

Adam Rideout

Blog

21 Jun 2019

Don’t worry, this isn’t a Brexit heavy post, but it is relevant. You’ll see why shortly. The silent wealth killer? Well, that’s the unseen force in wealth building; inflation. It’s silent as rates usually evolve so slowly, banks don’t warn you about it and neither does the regulator, the Financial Conduct Authority (FCA). Unlike the immediate effect and visibility of market gains, investment risk and taxation, the current rate of inflation attracts very little attention in the UK. But, it can have a significant and direct impact on your future financial security. Figures from the Office for National Statistics (ONS) show that the rate of inflation for May 2019is 1.9% (the Government’s target), meaning prices are 1.9% higher than a...

May

2019

Should I invest in property or a pension?

Adam Rideout

Blog

31 May 2019

It’s a question financial planners hear regularly, often after someone inherits money or gets a windfall. The thing is, the question isn’t always directed our way. It could be a casual conversation between friends in a coffee shop. But, it’s a big question, and despite property being a go-to option for previous generations, the consideration really requires some professional advice. We Brits have been obsessed with owning bricks and mortar for decades. But, pension options and flexibility have come a long way recently. For a number of reasons, which we’ll outline shortly, the tide is also changing for some Buy to Let investors. But first, let’s discuss one of the nation’s favourite subjects… House prices Across the UK price increases...