Keep it in the family – making your money work

Independent financial advisor Gavin Smart looks at what you can do to secure your hard earned assets.

The last thing that you want is for all your hard earned cash and assets to be lost to Inheritance Tax so it is important to ensure that you consider options to reduce or even eliminate your Inheritance Tax payable. Intergenerational planning helps you put financial measures in place that will benefit your children, and possibly even your future grandchildren, so it’s important to start planning early.

You may want to keep an element of control when passing on your assets. You may want your money to be used for a particular reason, such as paying for school or university fees or for a first property deposit, or you may just want to make sure your money stays within the family. Without appropriate provision, Inheritance Tax (IHT) could become payable on your taxable estate that you leave behind. Your taxable estate is made up of all the assets that you owned, the share of any assets that are jointly owned, and the share of any assets that pass automatically by survivorship. Careful planning can reduce or even eliminate the IHT payable.

IHT is not payable on the first part of the value of your estate – the ‘nil-rate band’. The nil-rate band is currently £325,000. If the total value of your estate does not exceed the nil-rate band, no IHT is payable.

Leave your interest in the family home

Commencing 6 April 2017, an additional ‘residence nil-rate band’ (RNRB) allowance was introduced if you leave your interest in the family home to direct descendants (such as children, step-children and/or grandchildren). This only applies to your main home but can be available even if that home had been sold after July 2016.

The RNRB is being phased in gradually. For the 2018/19 tax year, the maximum additional allowance is £125,000, increasing your total IHT allowance to £450,000 (£900,000 for a married couple). The maximum allowance will rise by £25,000 each tax year until it reaches £175,000 in 2020. This will give you a potential total IHT allowance of £500,000 or £1 million for a married couple. For estates worth more than £2 million, the tax relief is tapered away.

Legitimate reduction of IHT

There are legitimate ways to plan to reduce the amount of IHT you may have to pay. We can advise you on the many ways that you may mitigate any exposure which could include:

• making a Will
• making lifetime gifts
• leaving a proportion to charity
• setting up a trust
• making contributions into a pension
• investing in assets that are IHT free

Whatever your plans are for later life, make sure you review your financial position and put plans into place to ensure that your assets are protected for the future. Contact Gavin today to discuss your plans and objectives.

FB Wealth Management Limited is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate advice on Trusts, Taxation or Will writing Services.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.

 

Enter Our Competition

As the sponsor of the Louth Playgoers production of The Diary of Anne Frank we are excited to give you the chance to win a pair of tickets to see the play on Saturday 16 March at 7.30pm.

We have 3 pairs of tickets up for grabs. For your chance to win all you need to do is tell us:

What colour was Anne Frank’s first diary?

Simply email your answer to:

r.duncalf@fbwealth.co.uk

Lucky winners will be chosen at random on Wednesday 13 March 2019.

 

ISAs – reducing your tax bill

The tax year end is close approaching and I am sure that you don’t relish the news that you owe the tax man a large chunk of money. Is it time to give your financial future a boost?

Howard Pykett, financial advisor at FB Wealth Management explores the world of ISAs to provide you with some options to make the most out of your annual allowance.

One of the easiest ways to reduce your tax bill is to shelter any returns above your allowances in an Individuals Savings Account (ISA), which is a tax-efficient wrapper. For the 2018/19 tax year, you can put up to £20,000 into an ISA. For a couple with two children, the total ISA allowance available to the family is £48,520, which comprises £20,000 for each adult plus £4,260 of Junior ISA allowance per child.

There are various tax advantages to saving or investing through an ISA. You don’t pay Capital Gains Tax on any capital growth nor Income Tax on any income received, either as interest or dividends, from the investment or cash savings. Another advantage is that you don’t have to declare ISAs on your tax return.

Independent financial adviser
Howard Pykett

Contact Howard to discuss your investment options.

 

Equality in State Pension age – is it enough for a comfortable retirement?

Women will now begin to qualify for their State Pensions at the same age as men – currently 65, it has been announced. This landmark ruling to equalise male and female pensions ages has been a long time coming, some 25 years in fact.

Neil Boulton, Operations Director at FB Wealth Management looks at what this means and what the future holds for State Pensions and saving for your retirement.

65 is now the earliest age that you can start to receive your State Pension, with the State Pension age (SPA) increasing to 66 by October 2020 and 67 by 2028. Anyone who reaches their SPA on or after 6 April 2016 will receive the new State Pension (known as the single-tier State Pension). This may be different to your selected retirement age for your workplace or personal pension* so always make sure that you are aware of these dates.

The equalisation of the State Pension age is a prompt for women to think about how much they will need to save for a comfortable retirement. The gender pay gap, career breaks to raise a family or care for the elderly, part-time working are all factors that can affect the ability to save for retirement so whilst the news about the state pension age is good news for women, careful planning and consideration into retirement planning is still of fundamental importance.

The challenge now is the impact of life expectancy. It has been well documented that we are living longer and our aging population is growing putting extra strain on government services. This too will have an impact on the State Pension which the government are continually monitoring to ensure they are responsive to these changes.

So the move to increase the State Pension age is the government’s response to accepting that unless the qualifying age increased, retirement would start to become very uncomfortable.

No matter what stage of life you are at, whether just starting your career or beginning to plan what you would like to do in your retirement years, I would recommend talking to a financial advisor about your options and plan for your retirement today.

Talk to one of FB Wealth Management’s wealth advisors today about your future finances.

FB Wealth Management Limited is authorised and regulated by the Financial Conduct Authority.

* A Pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

Welcome to our newest Adviser Phil Jones

We would like to take some time to introduce our newest team member,  Phil Jones, who joins our High Networth Team.

Phil has worked in the financial services industry for 27 years and joined FB Wealth Management in September 2018 from NatWest Private Clients.

For many years Phil has specialised in advising High Net Worth private clients, with his areas of particular expertise being investment and wealth management, retirement, trust and estate planning.

He is a Chartered Fellow of the Chartered Institute for Securities and Investment and also a Chartered Financial Planner with the Chartered Insurance Institute.

Outside of work he enjoys spending time with his wife and two young children, following rugby union and cricket, playing golf and taking family skiing holidays in the Alps.

 

 

 

Meet the Team- Ian Simpson and Nicola Simpson

Ian Simpson- Independent Financial Adviser

Ian Simpson joined FB Wealth Management in 1996 and has more than 33 years’ experience in the financial services industry.

Before joining FB Wealth Management, Ian worked in the occupational pensions industry.

Ian can offer support to clients in all areas of pensions (both group & individual) and group protection.

“Out of the office I enjoy watching Nottingham Forest.”

Admin support

Working alongside Ian is Nicola Simpson, who is responsible for group pension administration.

Nicola started with FB Wealth Management in 2000, and has nearly 18 years’ experience in the financial services industry.

Meet the team- Keith Pearson and Diane Denney

Keith Pearson joined FB Wealth management in September 2017 and has 1 year direct experience in the financial services industry, however prior to this Keith was a qualified management accountant.

Before joining FB Wealth management Keith worked as a Finance Director in the education sector and pharmaceuticals industry for 28 years with a range of responsibilities in finance, logistics, purchasing and IT.

Keith can offer support to clients in the following areas of investment, savings, pension, estate and general financial planning across all key stages of their lives.

Out of the office I enjoy travelling, playing golf, gardening and watching most sports.

I became an Independent Financial adviser because it is an area that I have always been personally interested in and through talking to friends and colleagues, came to realise how important an impact good financial planning can have on someone fulfilling their life goals. .I took the decision relatively late in my career to take the skills I had developed in my previous roles and add to them in order to work with people in developing the most suitable financial plans for their key objectives.

Admin support

Working alongside Keith is Diane Denney, who is responsible for all aspects of administrative support within the firm. Diane started with FB Wealth Management in July 2001, and has 17 years’ experience in the financial services industry. Prior to working for FB Wealth Management Diane worked for a high street bank for nearly 20 years.

Meet the team- Gavin Smart and Debbi Hardy

Gavin Smart – Independent Financial Adviser

Gavin joined FB Wealth management in 2014 and has more than 7 years’ experience in the financial services industry.

Before joining FB Wealth management Gavin came into the world of financial services after completing his degree in Psychology and Criminology at the University of Hull in 2010. From here he gained knowledge of the industry working as an administrator and paraplanner for a local firm.

Gavin can offer support to clients in the following areas Financial Protection, Savings & Investments, Pensions Planning and Inheritance Tax and Estate Planning.

Out of the office Gavin travels around the county entering races on his motocross bike. He is a committee member of Lincolnshire Enduro Club which he helped form in 2016.

When not racing his motocross bike he enjoys attending music festivals and gigs as well as traveling. He hopes see more of North America and Asia within the next 5 years. Gavin is also a keen animal lover and likes exploring the English countryside with his dog Brooke. When at home he likes socialising with friends over good food.

“I became an Independent Financial adviser because I enjoy working and forming relationships with new people, I have always had an interest in investments and enjoy seeing others benefit from the advice I have given to them.

Admin support

Working alongside myself is Debbi, who is responsible for our Financial Services Administration. Debbi started with FB Wealth Management in Sept 2016, and has 2 years’ experience in the financial services industry.

Meet the team- Howard Pykett and Neil Moore

Howard Pykett DipPFS ACSI Joined FB Wealth management in August 2012.

Howard started his career working for Edward Jones, one of the largest Investment Companies in the US as a Stockbroker and Financial Adviser based in Canary Wharf, with a local office in Louth. Following Edward Jones’ departure from the UK, Howard continued his career at Towry Wealth Management offering holistic financial planning to high net worth individuals and also approved to provide advice to lottery winners on behalf of Camelot. During his time in financial services, he has worked at Santander as a client relationship manager.

Clients have described Howard as patient and prepared to listen without applying pressure to rush into anything. They have also said that he explains recommendations so that the client can easily understand.

Out of the office Howard enjoys Horse Riding, Sailing and getting involved with charity work. Howard’s specialisms include later life clients, divorce planning, estate planning and personal injury cases.

Howard became an Independent Financial adviser to ensure ethically the advice he gives is without question the right solution for the client to meet whatever objective is agreed. Howard has always taken pride in the relationships that he builds with his clients and is keen to ensure they are kept informed.

Admin support

Working alongside Howard is Neil Moore, who is responsible for Client Support. Neil has a high degree of experience having worked for HSBC for over 7 years. Neil continues to progress with his Chartered Insurance Institute Qualifications.

Meet the team- Alex Munn and Amy Portess

Alex Munn– Independent Financial Adviser

Alex Munn Joined FB Wealth management in October 2017 and has more than 10 years’ experience in the financial services industry.

Before joining FB Wealth management Alex worked for HSBC Bank Plc for 10 years. Alex held a number of roles with HSBC during this period of time, though he spent over 8 years of his time with HSBC within their Premier Banking Department. As a Premier Relationship Manager, Alex looked after a portfolio of HSBC Premier Clients, providing banking services and regulated financial advice. Alex joined FB Wealth to enable him to progress his career within Financial Services giving particular focus to providing Independent Financial Advice to clients in around the Louth area.

Alex can offer support to clients in the following areas; Financial Protection including Life Cover, Critical Illness Cover and Income Protection, Savings & Investments, Pensions & the wider area of Retirement Planning and Inheritance Tax and Estate/Legacy Planning.

Out of the office Alex enjoys playing and watching a variety of different sports including cricket and football. Alex can often be found at Scothern Cricket Ground in his capacity as Club Secretary. In addition to this Alex is currently studying for a number of different Financial Services exams which account for a great deal of his spare time.

Alex became an Independent Financial adviser because having the ability to make a difference to somebody’s financial security, wellbeing or future gives Alex a great deal of pleasure. Whether it is ensuring that a young family are suitably protected should the unthinkable happen, or helping somebody plan for and realize the retirement lifestyle that they have worked so hard to achieve gives a great deal of job satisfaction. Alex has always taken pride in the longstanding relationships that he builds with his clients and he is looking forward to working alongside his clients with FB Wealth Management in the future.

Admin support

Working alongside Alex is Amy Portess, who is responsible for our Financial Services Administration. Amy has amassed a wealth of experience in Financial Services Administration, including successfully passing a number of examinations giving her a wealth of knowledge, which enables her to support our clients’ needs on an ongoing basis. These include the Certificate for Financial Advisers (CeFA) and the Certificate in Life and Pensions (Cert CII).

Amy started with FB Wealth Management in 2013, and has over 10 years’ experience in the financial services industry.