15
May
2018
0

Three common financial protection myths

“A lie gets half way around the world before the truth has time to put its pants on.” Winston Churchill might not have been talking about the common misconceptions of financial protection, but his statement applies just as well. What do we mean by ‘financial protection’? Insurance, emergency funds and the plans you have in place to keep you and your family afloat, should something go wrong, money-wise. These may include: Life Insurance: Pays a lump sum if you die while the policy is in force. Critical Illness Cover: Pays a lumps sum or income if you are diagnosed with a serious illness covered by the policy. Income protection: Provides a portion of your usual pay if you are unable...
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27
Mar
2018
5

Final Salary & Defined Benefit Pensions: Should you stick or twist?

What is a Final Salary Pension? Also known as Defined Benefit Pensions, Final Salary Schemes offer a guaranteed, inflation-proofed annual income in retirement. The actual income received is calculated using several factors, including the length of time you have been in the scheme and your pensionable earnings at retirement. To keep matters simple, we’ll use the term ‘Final Salary’ for the rest of this article. However, our thoughts apply equally to Defined Benefit Pensions. What do we mean by ‘transferring’? As retirement approaches and you consider how best to move from a life of work, you are faced with a range of options and questions. If you choose to continue with your Final Salary Pension, you will receive the annual...
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20
Feb
2018
1

Six things all investors need to remember right now

Now that the dust is settling on the recent stock market volatility we can look back in a calmer and more reflective mood. Let’s start with a simple question… What can we learn after the events of last week, when the Dow Jones fell by 4.6% in a single day and the FTSE 100 dropped 9% from its peak of 7,778 in January? The answer? Nothing. That’s right, the volatility seen in the UK, US and around the world tells us precisely nothing new about investing. Stock markets rise and fall and after a lengthy bull run a correction was bound to happen sooner or later. Ironically, it was positive economic data, which caused the volatility, with markets worried that...
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9
Feb
2018
0

Stand back and observe the bigger picture: Putting the current stock market decline in context

There’s no doubt hyperbolic headlines depicting the recent falls on the world’s financial markets are potentially anxiety-inducing. With the FTSE 100 Index falling to its lowest levels since May 2017, the effect of the headlines has been to generate a sense of uneasiness; we’re here to remind you that this shouldn’t be the case. Instead of reacting to the volatile nature of the markets (or the sensationalist headlines) with panic or knee jerk decisions, we think that it is wise to stand back, observe the bigger picture and take a calm and considered approach. Rarely, if ever, should short-term stock market volatility cause you to change your long-term financial plan. Especially if your goals and aspirations remain unchanged. I believe...
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25
Jan
2018
0

Five reasons not to rely on your home as retirement income

Just under half (47%) of homeowners over the age of 55 plan to downsize to smaller homes later in life, according to research from Prudential. With almost four million people looking to trade their current home for a more manageable space, it is perhaps surprising that less than one third (28%) are motivated by financial gain. In fact, the main reason, given by 74% of people is the convenience of running a smaller home. (Source: Prudential) Let’s focus on the 28% though, who believe that their house is the key to a financially secure retirement, as well as anybody in their 30s, 40s and 50s right now, who look forward to cashing in on their property in later life. Unfortunately,...
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14
Dec
2017
0

What’s your number?

Think carefully. How you answer will say a lot about you. Of course, some of you reading this won’t know. Others will be too embarrassed to say… But, it’s time for some transparency and openness. Otherwise, how will you know when you will achieve financial independence? Yes, that’s right, financial independence. What did you think I was talking about? Let me explain more The number we are referring to is the amount of money you need to be financially independent and free. Free from the 9-5 (if only it was that, when was the last time you only worked a 40-hour week and took your allocated hour each lunchtime?) Free from debt Free from financial anxiety Free to do what...
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