October 2010 - Page 3 of 3 - Financial Planning in Wimbledon

UK Millionaires

There are now over 280,000 millionaires living in the UK who are collectively worth over £1.28 trillion. That’s just over 1% of UK households. The research company CoreData identified individuals with more than £1m of liquid net assets. How do they invest? well according to the CoreData research results, about 34% is held in equities, 16% in Managed Funds and 34% in investment property (not their homes) with the balance of 16% in cash and low risk money market funds.

What does this mean? well possibly not very much. Certainly the data would suggest that these people do not asset allocate (diversify risk) very well at all and are likely to be subject to significant liquidity problems and would benefit further from some good advice in this area. Of course it may be that they are so astute that these are all short-term market “plays”. Indeed without knowing how the data was obtained and therefore its integrity I do wonder how many millionaires willingly give up information about their wealth and its sources.

The “average” level of wealth is about £4.5m, although this is due to the “ultra wealthy” who have more than £30m of net investable assets. Most millionaires (55%) are in the £1m-£2m bracket.

Source: CoreData Blog “I’m Alright Jack”

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

UK MillionairesDominic2023-12-01T12:53:03+00:00

Bank Complaints now over 1.25 million

The FSA have revealed that complaints about Banks and Building Societies increased by 5% in the first half of 2010, to a staggering 1,252,467. This is probably no surprise to anyone. IFAs have to issue clients with fairly weighty “reasons why letters” explaining the advice carefully, including illustrations and disclosure of fee/commission etc. This is as it should be (in my view) yet pop along to any high street bank and overhear a telephone call where a member of staff is happily providing advice to open and close accounts, move money to Cash ISAs and so on. There is very little evidence that any “fact finding” is ever done or they spend even a moment reflecting on what might be viewed as best advice.

A great wonder then that the inevitable result of the Retail Distribution Review seems to be to lump the majority of IFAs into the same bracket as the Banks and their single or multi-tied “advice”. I am still failing to appreciate that this is little more than an attempt to move IFAs into the massive institutions where they can be “better regulated”….anyone heard of Leehman, Halifax, Northern Rock, Norwich & Peterborough….. need I continue?

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Bank Complaints now over 1.25 millionDominic2023-12-01T12:53:03+00:00

High ISA Limit – a success

Since the ISA allowance was increased to £10,200 a year ago (for those over 50 – and everyone else since April 6th 2010) there has been an increase in the amount invested, according to the press. I would have thought that this is surely only logical – if more can be invested, then one would assume that those able to invest, would do so.

The IMA data says that new money into ISAs has averaged at over £400m a month over the last 12 months, with October 2009 being the highest amount of investments made into ISAs since they were launched by the previous Government in 1999.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

High ISA Limit – a successDominic2023-12-01T12:53:04+00:00

Weekly Gold Report

I’m not sure if this is of interest but let’s give it a go and see if it is. Our clients hold gold within their portfolios – it has been a very successful move.

Gold Bullion:

1 week +0.6%

1 month +4.4%

3 months +4.7%

6 months +16.9%

FTSE Gold Mines

1 week 0.0%

1 month +5.0%

3 months +8.1%

6 months +24.6%

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Weekly Gold ReportDominic2023-12-01T15:31:56+00:00

Will You Lose Your Child Benefit?

As a part of the cost cutting exercise the Government has decided to restrict payments for child benefit to those paying 20% tax or less. This will take effect from 6th April 2013. Often child benefit is paid to the mother, who often is not working. The current plan is that the benefit will not be paid even if one of the couple earns enough to pay higher rate tax.

With my tax planning hat on and thinking of families – this means that pension contributions (which reduce the amount of tax that is paid) become more important, as does charitable giving. The numbers need to be finalised as in practice the basic personal allowance will increase and the Coalition Government have stated that it is their aim to gradually increase the personal allowance to £10,000. So it is important for anyone with income that is just tipping over into the 40% tax bracket (with children) that we review this with you. Strictly speaking a couple could earn £40,000 each (£80,000 in all) and still retain the benefit, but a family with one income that is say £45,000 would lose the child benefit. So if it is possible, some clever income and tax planning may be very wise indeed. So if that’s you – get in touch.

Child Benefit is a tax-free income. An eldest child entitlement is £20.30 a week (£1055.60 pa) all subsequent children have a weekly allowance of £13.40 a week (£696.80 pa). As stated, this is a tax-free income, so for a higher rate taxpayer to replace this income the higher earner will need to earn £2,920.66 to effectively “stand still”.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Will You Lose Your Child Benefit?Dominic2023-12-01T15:31:57+00:00