In today’s fast-paced world, safeguarding your Financial well-being is paramount. While homes and Investments are often considered primary assets, one crucial aspect is frequently overlooked: the ability to make critical decisions about your Finances, your Health, and your Welfare.
Kate Garraway, presenter of Good Morning Britain, shared a moving account highlighting the importance of having a Lasting Power of Attorney (LPA) in place. In the ITV documentary “Kate Garraway: Finding Derek,” which aired on 23rd March 2021, she discussed her husband Derek Draper’s year-long battle with Covid-19 and the challenges she faced due to the absence of Legal Protection for their Financial affairs. Derek’s illness left Kate unable to access accounts or manage Finances without an LPA, hindering her ability to support his care and handle their assets.
This story serves as a reminder for everyone to consider setting up these essential Legal documents to ease practical complexities during difficult times.
Imagine a scenario where illness or injury leaves you unable to manage your affairs. How would you cover your bills, Mortgage or other Financial obligations? Who would make the right decisions on your behalf?
These questions are key and emphasise the importance of putting your LPAs in place and choosing the right person(s) as your Attorney(s).
Just as you would insure your belongings against damage or loss, think of LPAs as your Personal Insurance Policy, ensuring your interests are safeguarded even if you’re unable to speak up for yourself. Whether it’s handling Finances, making healthcare choices, or tackling Legal matters, having LPAs in place offers peace of mind for you and your family.
LPAs empower you to prepare for the unexpected, ensuring your wishes are honoured and your interests protected, come what may.
To find out more information, you can download a copy of our Attorney Guide or watch our videos on Health and Welfare LPAs and Property and Affairs LPAs.
We’re also here to answer any questions you may have, so please do not hesitate to contact us.
It’s vital to remain vigilant against the evolving landscape of scams targeting individuals and Businesses across the UK. From deceptive phishing emails to coercive fraudulent phone calls, scammers continually devise new tactics to exploit personal information and Financial assets. Here we will explore the prevalent scams and offer practical strategies to safeguard yourself and your Finances.
Among the most prevalent tactics are bogus emails posing as HM Revenue & Customs (HMRC) notifications and intimidating phone calls falsely threatening Legal action. One common scam involves phishing emails impersonating HMRC, claiming that recipients are entitled to a Tax refund or owe money to the Government. These emails often contain links to counterfeit websites designed to extract personal information or install malware on devices. It’s essential to remember that HMRC never requests personal or Financial details via email.
Another widespread scam revolves around fraudulent phone calls from individuals posing as HMRC agents or other Government representatives. Using coercive tactics, these callers pressure victims into divulging personal information or making payments over the phone. It’s vital to recognise that HMRC never threatens Legal action or demands immediate payment over the phone. If you receive such calls, hang up promptly and report them to HMRC to prevent further exploitation.
We’re also seeing more celebrities finding themselves innocently entangled in scams and fraudulent schemes. One such case is that of beloved TV presenter Lorraine Kelly, who became a victim of scammers exploiting her image to promote dubious products, such as a “ridiculous weight loss product”. Despite Lorraine’s explicit disassociation from weight loss endorsements, scammers targeted Facebook users with false claims, using her image without consent.
Which? have also released a recent article outlining email scams to watch out for right now. To read what they have to say, click here – 5 email scams to watch out for right now
To protect yourself and your Finances, here are some tips:
Safeguarding your Financial security against scams is paramount. Most importantly, trust your instincts. If it feels wrong, it probably is wrong. Fraudsters are clever, and remember for them, conning you is a full-time job.
In the last few weeks, two clients and a team member have nearly been caught out by scammers – it really can happen to anyone.
The recent UK Budget for 2024 has brought several changes that could impact your Financial Planning strategies. Whether you’re saving for Retirement, managing Investments, or considering Tax implications, staying informed about these key highlights is crucial. Let’s delve into the key points you need to know:
A notable change includes a 2p cut in National Insurance contributions for both employees, and the self-employed.
While the NI cut offers potential savings, it’s essential to note that Income tax thresholds remain frozen. Any pay rise could inadvertently push individuals into higher tax brackets, highlighting the importance of wise Tax planning.
When Governments do not increase allowances, this is effectively a stealth Tax – so as the Personal allowance is staying at £12,570, it means you are likely paying more Income Tax this year.
The extension of child benefit to more families, with higher earnings thresholds, is a welcomed relief for parents. This change aims to alleviate Financial burdens and support households with growing expenses and to stop certain families benefiting, compared to others.
Adjustments in housing Taxation, including a reduction in the Tax rate on profits from property sales and the discontinuation of tax breaks for holiday let property owners, could influence Investment decisions in the property market.
Seek advice, do not ‘panic sell’ your assets just on this announcement for relatively small Tax differences.
The introduction of a tax-free British ISA offers new avenues for savers to invest in British Businesses, potentially diversifying Investment portfolios.
We don’t have details yet but keep an eye on this one.
Small businesses stand to benefit from an increase in the VAT registration threshold and the extension of Government loan schemes. Furthermore, Tax reliefs for specific industries aim to stimulate economic growth and Investment opportunities.
Understanding how these changes affect your Financial situation is key to effective Financial Planning. Please don’t hesitate to contact us to assess the implications of these changes.
*Please note, the information provided here is a general overview, and it’s essential to seek personalised Advice tailored to your individual Financial situation and objectives.
Friend,
Can you remember where you were on 16th December 2021? Or what were you doing, and with whom?
I can barely remember what I had for lunch yesterday. Assuming that we’re all losing our marbles at approximately the same rate, I’m going to guess the answer to the above questions is a resounding “NO.”
Why that date? Because that’s when silly money ended1. Nine days before Christmas 2021, the Bank of England hiked the Bank Rate (the artist formerly known as Base Rate) from an insane 0.10% to a still-loopy 0.25%.
Having had a drop of the hike stuff, reminiscent of historic Friday lunchtimes at The Lamb Tavern2, those wild City types couldn’t stop themselves. Once they started imbibing the Bank Rate elixir in a Herculean effort to fight The Cost of Lockdown Crisis, the hiking continued at a record pace, settling at 5.25% just seventeen months later, in August 2023.
Bad news for borrowers. Good news for savers.
And it’s the savers we need to focus on. Finally, this overlooked group are getting a fair deal after over a decade of absolutely dismal cash-saving interest rates.
No, scrub that. What savers are now getting is a slightly less dismal deal.
Yes, as interest rates have increased, so, with a slight lag (!), have cash-saving rates. Rejoice! As of January this year, the average easy-access instant savings rate stood at 2.82%, the highest in 13 years.
Sounds good, right?
Wrong.
Some quick numbers:
Assume you had £100,000 in the bank and it had earned 2.82% a year for the last three years (it wouldn’t, but I’m being kind. Also, to keep things simple, I’m ignoring tax on interest. If you allow for this, the following figures are even worse).
After three years, your cash plus interest is £108,701 – nearly nine thousand pounds of “growth.” Nice!
But….
We cannot ignore inflation, which has been clipping along at nearly 9% through that period. To preserve purchasing power, those cash savings must now be £128,295, not £108,701.
The cash has suffered a permanent and irrevocable 15% decline in purchasing power. As we finance boffins are apt to say, this is distinctly sub-optimal.
We need the folding stuff to fund “lifestyle”. We need cash for those moments when
Be it a new car, a memorable holiday, an extension to the family pad, clearing a debt, etc.
A personal example: The Lovely Penelope (TLP) and I have a fixed-rate mortgage that ends in a couple of years. Aeons ago, we set up investments designed to grow and be used to clear some of the debt. As that time approaches, those investments have recently been sold to cash.
The right money has to be there: if we miss two years of investment growth, that’s too bad. We don’t have the timescale to weather the market’s temporary declines, which come along as regularly as buses.
So, we’ll bite the bullet and accept that our money is losing purchasing power for the next two years. That’s the price you pay for the certainty of cash, of knowing it will be there because it has to be there.
As importantly, it’s also the price I’m willing to pay not to have my knackers on the chopping board: TLP devolves all the money stuff to me, and God forbid I cock it up.
So yes, cash savings are not as dismal as they were – they are just slightly less dismal. Cash remains trash. Understand the principle of purchasing power, and your perception of cash’s role in your life changes fundamentally.
Furthermore, you will intuit that:
Make sure you know the real risks that lie ahead. I can help you navigate these. Subtle, eh?
1
16-12-2021 should be a National Holiday from now on. It was the end of a crazy era of ultra-cheap money, which inflated assets and denied a generation any chance of getting on the property ladder. In time, it will be seen as a monumental moment in our recent history. Probably.
2
I worked in the City 35 years ago. Friday lunchtimes were carnage. It’s all changed since then: now it happens on a Thursday. #WorkingFromHome #YeahRight #PassTheAsprin
3
Source: Dimensional Fund Advisors (DFA) Returns Software
First Class Stamp in 1994: 25p. First Class Stamp today: 125p. How’s your “Three-Decade-Retirement-Income” planning going?!
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