Using equity release for Inheritance Tax planning
I COVERED the methods of mitigating Inheritance Tax last week and was asked a question regarding equity release to mitigate the tax where the property or home may be causing the tax. As house prices have rocketed, so too has the value of our taxable estates. Inheritance Tax is charged at 40 per cent on […]
Best methods of mitigating inheritance tax
THERE is often ‘fear driven’ communication around Inheritance Tax which can leave people paralysed to act. In reality, it’s possible to mitigate Inheritance Tax impact quite easily so here’s a quick summary of some effective methods to reduce your Inheritance Tax liability. First and foremost, every individual has a nil rate band, which is the […]
How regular saving reduces risk
THERE is a discipline to saving which is often overlooked which can produce significant gains over time, and funnily enough, benefit from what most people fear – volatility. When you invest a lump sum of money, there is a psychological battle wondering if you are investing at the right time. Is the market about […]
Property funds suspension – what it means
St James’s Place (SJP) has been under fire recently and we have had a few calls regarding the property fund being suspended. It is not unlike most property funds where liquidity is the issue, so from here on, I will just talk about property funds per se. A property fund is included in your portfolio/pension/ISA […]
What are the best ways to buy a vehicle?
There are different ways you can buy a vehicle, with the main options being personal contract purchase (PCP), hire purchase (HP), leasing, a personal or secured loan/mortgage advance, or cash. PCP allows you to put down a small deposit followed by lower monthly payments (compared to the others). At the end (normally three years), you […]
Understanding the risks of financial fraud
Fraud is a tale as old as time, but its guises evolve with the ages. Let’s have a look into some of the most notable frauds and understand the psychological underpinnings that make them so effective. The Nigerian Prince Story was pretty obvious right? “Send me your bank details so I can send you money,” […]
What will new government’s impact be on the stock and housing market?
What will the next government’s impact be on the stock and housing market? It’s a question I get asked every election, and for a full answer, I would need the manifestos of all parties (but even then, they don’t stick to it). We are staring down the twin barrels of large government debt interest payments […]
Short sellers and St James’s Place
Last week I covered the potential impact on St James’s Place (SJP) shares if their stock left the FTSE100 index. I also mentioned the potential impact that short sellers have on the stock because a declining share price is fodder for them. Short selling is where investors bet on a share price falling and profit […]
What happens if St James’s Place leave the FTSE100?
I’ve had a few queries regarding St James’s Place (SJP) leaving the FTSE100, and concerns about customers losing their money, so I’ll cover that one off. Firstly, some journalists in certain newspapers love a headline. Others love facts. I find the drama unnecessarily upsetting for St James’s Place customers and wholly inaccurate. Is your money […]
The economic comparison of owning or renting a home
THIS week I want to look at how owning or renting a home compare. I’ll have to be broad with the comparison by looking at house prices across the whole of the UK. I’ll compare average rents, repairs, mortgages and see how the numbers work out. The average property value in 1999 (25 years ago) […]
The pros and cons of owning a home versus renting
HERE’S a question we get asked quite a lot so I want to break it down into different points – what are the advantages of owning a home versus renting a home? Wealth creation: Homeownership has typically been a source of wealth accumulation due to property appreciation over time. Cost of borrowing: As a homeowner, […]
Are you thinking of early retirement?
ARE you thinking of early retirement? Imagine right now a lazy Tuesday with nothing more pressing than deciding between a cup of tea, dibbling out in the garden, a sleep, or all three! For many, this encapsulates the dream of early retirement – escaping the relentless pace of the work world and replacing it with […]