BEACON WEALTH MANAGEMENT LTD
- Get Well Soon
March - May 2018
In January our Marketing Assistant had a terrible accident resulting in broken bones and an air ambulance being called and now a long recovery.
This accident serves as a reminder of just how precious life is, and how close we come sometimes to having everything snatched away without notice.
I feel sure that some of you reading this will have suffered traumatic experiences and already know the importance of making the most of each day.
Recognising your own mortality is one of the reasons why when I work with clients, it is not all about the consistently high returns* we have achieved over the last 8 years; it is about what is the purpose of having money, and how much is required to do the things they want to do, and how important it is to do things while you can, rather than having regrets.
Most of us have regrets of some kind.
Looking at Your Life
In my head I still feel young, but I do not have the same energy as 20 years ago, and I will take the car instead of walk.
In another 20 years I will simply not be bothered to do certain things or have to give myself longer to complete them.
In summary we do not always know what is around the corner, so construct a bucket list.
There will come a day when your arms are weak, your legs struggle to carry your weight, your eyes grow dim and ears become blocked, hair recedes, and desires become lost. Enjoy life now.
You are probably not the fittest or healthiest you have been, but you are probably better than you are going to be. Enjoy life now.
Review your pensions and consider your ISA’s, look at your bonds and review your Unit Trusts for Investment returns and for efficiency. Enjoy life now.
Do not put off to next year what you want to do now, whether that is spending, saving or reviewing. Enjoy life now.
So now let us consider your own mortality for a moment and assume you are like everyone else and that one day you will tootle off the planet into the great sky above (well like most people – some will go down instead of up).
What are you leaving behind for others to sort out?
If you are like many of my clients you will have a collection of various bank accounts in both individual and joint names, plus a number of ISA’s and individual shares, and perhaps bonds.
When it comes to sorting out someone else’s finances this can be difficult and time consuming, so some simplification now is usually preferable; especially if the original reasons for the various investments no longer exist and the benefits are not as good as the alternatives that now exist.
Sometimes the process is made worse when the person dying is still of working age and has various pensions and life insurance that has not been written in trust.
Delays can also occur if no Will exists or Powers of Attorney are not in place.
I often find that whilst it can take a little while to complete a full Spring clean of a client’s finances, the after effects are worth it.
It also usually means that all the paperwork kept for many years can be destroyed (we can even do this for our clients via an industrial shredder).
Avoid Paying Unnecessary Tax
Assuming your Will is up to date and all your finances have been checked, considered where best, and summarised, you then need to think about whether there is an inheritance tax liability.
This will take into account how any life cover has been arranged, who the pension beneficiaries are and how the Will has been written i.e. beneficiaries trusts etc., as well of course as all your assets, liabilities and previous gifts made.
It has been said that death and taxes can’t be avoided, and whilst I agree with the first point there is a lot that can be done to reduce, if not avoid most taxes.
The government after all have provided so many allowances and exemptions to assist individuals to legally avoid paying tax.
As a former accountant, it seems a shame when I see so much paid for little or no reason.
Whilst I know the government needs individuals to pay tax, personally I think you should pay the minimum, and then if you want to make a donation to your favourite political party, you should do so separately.
Contact me if you want to discuss your options at: firstname.lastname@example.org
*Our cautious Ethical portfolio for 2017 grew 10.58% ranked No.1
*Our average risk normal portfolio for 2017 grew 12.9% ranked No.1
**Funds go down as well as up and past performance is no guarantee of future performance
You should always seek qualified advice from an IFA, preferably a Chartered (APFS) or Certified (CFP) Financial Planner.
Should you require financial assistance for pensions, savings, investments, mortgages, protection, long term care, employee benefits... contact the team at Beacon Wealth Management Ltd.
Tel: 01480 869466
The Old Chapel, Thrapston Road,
Kimbolton, Cambridgeshire, PE28 0HW