Afternoon All
Welcome to the ninth issue of our Quarterly email. Unlike the previous issue that I’ve just read back on and struggled for content, on this occasion my concern is that I’m not going to hold your attention all the way until the end. Loads to go through, thank you for listening. And I promise not to mention Rachel from Accounts! (You know who you are).
Market Conditions
Always like to start here, and really pleased to report that this is on a continuing upward trend. As an example, looking at a mid-rate Growth plan, year on year until the end of July the percentage increase is 7.33%. 5 years is 7.03% and over a 10 year period is 5.72%. Considering some of the events that have caused markets to flump over this period, then it just goes to show what I always say, that it’s so important to maintain the initial objective/s and keep the faith.
Onward forecast seems bright, although the view on interest rates appears divided. Majority view see two rate reductions of 0.25%, so down from current rate of 4.00% to 3.50%. Other than that, I think we may see a period of sustained stability, and as I always point out, historically this is still at a low level. When I first started in the industry 20+ years ago now, 4 – 5% was the norm.
Annual Allowance
Let’s chuck some education in. This won’t apply to many of us, myself included, but is worth knowing. The Annual Allowance I refer to relates to the maximum level of contributions you’re permitted to invest in to a pension plan/s over the course of the year. I’ll try to keep this as simple as I can. Essentially, each financial year (6th April) as a personal contribution into all pension plans, is restricted to 100% of your annual salary, or £60,000.00 gross, whichever is the lower. As an example, if your annual salary is £40k, then the maximum contributions across all pension plans including any workplace pension, is £40,000.00. Whether this be by way of regular monthly, and/or lump sum contributions. Furthermore, an annual salary of £90,000.00, would only allow you to contribute £60,000.00 across all contributions into all plans. On the latter example, there are ways you can potentially increase this contribution, using any previous years unused allowance, but that’s for another day.
And don’t forget, on personal contributions, basic tax relief at 20% is added to the amount/s contributed by yourself. This is why I’m such an advocate for and passionate about saving for your retirement.
Protection
No, I’m not talking about the vending machines in the restrooms! By Protection, I’m talking Life Assurance, Critical Illness cover as well as Accident and Sickness Insurance. Many of you already have this, thanks to those who have arranged this through me. Like your pension plans, periodically it’s really important to review the relevance of such plans. As we all know, over our lives situations change, and as such it’s important your protection provisions change with you. If anyone would look to review their arrangements, then please flag this up to me so as we can cover it off at your next annual review.
The Self-Employed
My apologies to those of you who are not self-employed, but this is the easiest way to get this message across.
Mortgage Lender’s will accept your HMRC returns as your proof and confirmation of income for a period of 18 month’s since the last issue. To clarify, this basically means that your 2023-24 income returns will now only be valid to a mortgage lender or institution until the 5th October 2025. For HMRC purposes, the latest year returns doesn’t need to be submitted until the end of January 2026, however you may want to consider preparing early, and I’m sure your Accountant will love you for this.
Whilst touching on the self-employed, there is so much from a financial perspective I can do to help companies out there, indeed it’s one of the aspects of my role I like the most. As an aside, I’ve just started to consider using my many years experience of running a business, to offer my services on a consultancy basis. This could be anything from conducting an overview of your business efficiency and ideas to enhance and grow your business, through to representation of your business in order to promote services through the many connections I have already developed over the years. If you feel this could be of interest, let me know and I’ll be only too pleased to help out.
Business Efficiency | Ideal Financial Solutions
One arrangement I already have in place, is to help out with my Son’s Saturday football team on the Commercial side, raising funds and awareness locally. This may involve the (very) occasional mailing out to you highlighting their current plight. If you’d rather be omitted from anything like this, I will not be offended please just drop me a line to say not for you.
US Politics Unspun
I’m becoming more fascinated bordering on obsessive of the United States of America. Particularly from a financial perspective, so much revolves around the decisions it makes, and America really does influence what happens to the rest of the World. Having recently been fortunate to spend a few days in New York, highlight for me was my first time going to the NY Yankees to watch baseball, I’m really keen to dig deeper with what happens in the States, and maybe I can interest you in sharing that passion. After all, knowledge is power, yeah! Attached is a BBC email I subscribe to, as a taster. Another American themed exercise I do each morning, is a word game called Wordle. Look it up, good brain stimulation for first thing in the morning.
All Thing’s IFS
As I like to do, as per the title, finish off with what’s happening in the World of IFS. A bit of self-indulgence so to speak. For those of you still with me at this point, thank you! You may have noticed that this edition is more upbeat. I hope so, that is my intention. To summarise, Woolley is back!!
A lot has gone on over the last few month’s that has made me question whether I have taken IFS as far as I can. So much so, that this could possibly have been the last issue I was putting out there. Thankfully, I have taken stock, realised what I have with all of you lot, and have recharged the batteries for the next 5 years at least. I won’t go on forever, but for now you’re stuck with me. I do need some new challenges, hence the additional services I mentioned earlier. But predominantly, my core services will be maintain your financial arrangements and keeping them in good shape.
Look forward to seeing or hearing from you all soon.
Marcus Woolley
Certified Financial Adviser
Ideal Financial Solutions Limited
Tel 01202 916488
www.idealfinancialsolutions.co.uk