New Year News
Happy New Year and welcome to our newsletter. 2012 brings lots of hope and enthusiasm for the
financial year ahead and Financial Options has a fair few ‘News’ as we are moving to our larger refurbished office at 14 Tenterden Street, Bury. We are holding an opening party in February and all of our clients past and present are welcome to visit. If you would like to attend email sarah- sarah@financialopts.co.uk
In addition to moving, we have a new team member. Haydn Barlow has now joined us as a Financial
Adviser and we are all very much looking forward to working together.
The Financial market overview
After a rocky 2011, 2012 looks a more promising prospect. Don’t believe all that you read in the press. Speaking with other industry connections, the thoughts surrounding the coming year are more
upbeat. The UK economy will benefit this year from the Olympics and the Golden Jubilee which will hopefully boost tourism.
Focus on Mortgages…..
Now is a good time to fix your mortgage deal. With the forecast for the year weighing heavily on little or no
increase in borrowing rates, now would be the sensible time to switch and fix. With many lenders offering ‘fees free’ deals, why not take advantage.
Stamp Duty exemption for first time buyers will also come to an end 25thMarch 2012 so anyone considering
buying could still take advantage of this exemption for a limited time.
Focus on Insurance…..
Statistics have revealed that nearly two-thirds of the population have no form of financial protection if they become critically ill or are unable to work due to illness or accident, despite advances in medicine and
technology that mean more people are living longer and surviving illnesses that used to be fatal. A debilitating illness can take years to recover from – and while your employer/company may readily allow you sick leave, it can be restricted to a pay percentage or term length. Without a source of income,
family savings can quickly dwindle on the essentials – let alone expensive medical care, or unexpected costs. Although you may have taken out life cover to ensure loved ones are provided for in the event of your death, it is important to realise the financial implications of surviving – but in serious ill health or being unable to work through illness or accident. It is also important to review cover to account for changes to your circumstances i.e. increased borrowing on a mortgage or loan, additional dependents, house prices being lower than when you originally bought and the cover not being adequate enough to repay any loan.
Focus on Investments & Pension Funds…
With global financial markets set for another turbulent year, regular reviews of your investments and Pension funds is extremely important. The importance of spreading your portfolio has never been more of a
priority than right now. The current economic downturn has led to volatility in the markets, by spreading your investments and diversifying across different funds the risk can be minimised. In addition to this, if the markets rise there may be potential rewards to be had.
New pension regulations
Pensions reform will completely change the face of the pensions industry in the UK and will begin in October 2012. Employers’ new responsibilities under pensions reform are built on two
principles:
- the auto-enrolment of working individuals into a pension scheme, and
- compulsory pension contributions
As an employer, you can choose to auto-enrol jobholders into a qualifying auto-enrolment private pension scheme or into the National Employment Savings Trust (NEST).
Financial Options are experienced in providing the most appropriate advice, will give you all the information and tools you need to start preparing and we’ll keep you up to date on all developments as and when they happen. These changes will have a huge impact on a business’ finances so it is important to receive the correct information in order to plan for the pension reforms.
Personal Pensions
Can you answer these 5 important pension questions?
- Do you know exactly what pension plans you have taken out over the years? You may have pensions you are unaware of.
- Do you know exactly how much your pension fund is currently worth? Your pension may not provide you with the income you require
- Do you know exactly how and where your money is being invested? Your investment strategy may have changed over the years
- Do you know exactly how well or how poorly your pension is performing? Have you had regular annual performance reviews?
- Do you know exactly how much is being deducted in annual charges? Your
annual charges may have doubled in the last 10 years.
If you did answer 'No' to any of the above questions you are not alone. Millions of people have paid, or are still paying, money into a pension plan which they haven’t reviewed since the day they took out the plan. That could mean your pension, and any payments you are currently making, are being invested in a
fund with higher than average charges or lower than average performance – or worse still, both. Call for a FREE review now!
Published: 20/01/2012