The Outlook for 2016

In January 5, 2016
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I have been given the treat of writing the first blog of 2016! I hope every one of our Clients and Customers had a great Christmas and New Year break and we wish every one of you the best possible for 2016.

Looking back over 2015, just like every year, there were some fantastic highs and some incredible lows for all of us, be that in my own personal family, the Redwood family and of course the Redwood Clients and Customers. As we say at our regular Estate Planning Seminars, we can’t stop bad things happening to good people, no matter how much we wish we could. We do what we can and we have been incredibly successful in doing so for many years now; we have been able to help people through those bad times when they happen in the best and most supportive way we possibly can and of course we will continue to do that in the future.

I know some people often look at the New Year as something to perhaps worry about, because they don’t know what the future holds. Whilst I can understand that it can feel a bit like that for some of us, for myself personally I love the New Year. I see it as a golden opportunity to get everything in focus and on track.  To get myself and any projects goals, dreams or aspirations I’ve had in the past reviewed and amended if necessary, and on track so that I can look forward to the achievements I’m planning to make for the ensuing year.  There is so much excitement in the Redwood family about what we are going to achieve this year, which I am sure you will hear about as the year progresses.

But for now I would like to share with everybody some important information about two areas that may affect many of our Clients or their families or their friends, in the sincere hope that the information below might just help them.

The £1 Million Inheritance Tax Myth!

Of course, it would not have escaped anyone’s notice that the government has yet again failed to keep to its manifesto promises of a £1 million Inheritance Tax threshold, but they have been incredibly economical with the truth and the misreporting within the newspapers and other media on this subject. This has done nothing but to add to the confusion.  The government has also failed to deliver on its promises of providing clear and precise guidance of exactly how their new proposals are going to work.  However, in their current format, it is blatantly clear to professionals such as ourselves, that there is no £1 million Inheritance Tax at all.  In fact far from it.

To aid our clients in understanding the exact nature of the proposed new Residential Nil Rate Band allowance, we have already committed to setting up and holding an incredibly important briefing session to help each and every one of our Clients fully understand the implications for them and their family, as well as the implications to their existing Estate Planning. Every person in the country is likely to be affected by these proposed changes in legislation, which means that everybody in the country should at least review their existing Wills and Estate Planning. And for some, they will need to make some changes.

A Note from our Financial Adviser – Jasmine Lambert

Pensioner Bond Rates Halved!

NS&I have announced that the Pensioner Bonds introduced last year will not be renewed, despite the clear popularity of the product. These Bonds were designed to encourage savings by the over 65s and offered high returns on cash savings compared with the market place, over either one or three years. However, the one-year product will see a rate cut of 50% as early as January. The rate will fall from 2.8% down to 1.45%, which is lower than could be achieved with a Cash NISA at your local high street bank!  The three-year Bond will return only 1.9% instead of the 4% they were originally offered at. This doesn’t seem nearly enough reward for locking your money away for three years!

WARNING – it has been suggested that if you do nothing, your Bonds will be automatically reinvested at the lower rate on your one-year anniversary!

It is clear that money invested in these Bonds will have to be a moved to an alternative provider to get the best rates available.

 

Disclaimer

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Past performance is not a guide to future performance. Tax rules can change at any time.

Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage. We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

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Statement

Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

Contact us

Telephone: 01489 877547
Email: info@redwoodfinancial.co.uk

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,