I won’t highlight everything, but let’s take a look at a few of his achievements:

He started managing at 28(!). A very young age to take on the trials and turbulence of football management. His first post was with Halmstads in Sweden with whom he won two league championships. Not bad eh? In 1984 (after a few years in England), he took on Malmo FF in Sweden and took them to the top of the league for five consecutive seasons. He has also managed Switzerland, gaining them qualification for Euro ’96. Had managed club sides in Italy, as well also managing other international teams such as Finland (the closest they ever got to qualifying for a major tournament) and the United Arab Emirates. He also did a sterling job at Fulham. Guiding them to a Europa cup final and their highest ever premiership finish.

Now I know we’re not quite in Alex Ferguson territory here. But Roy seems have done well with the teams he’s managed and the resources at his disposal.

The England job however, is an entirely different proposition. New manager, but same players and same game. With his C.V. and the players he has available I think he could do an excellent job. That’s the point. I’m sure many footy fans felt a bit non-plussed with his appointment. However, he has the credentials to back it up. That new manager can take those same players, and transform them so that they can change that same game.

Isn’t that always the case? Looking for that someone that has the knowhow, the experience, the credentials and the drive to change the game for you?

I have the experience and the credentials and the desire to change the game in your favour. The players are the same, whether it’s pensions, long term investment plans, inheritance issues. The goals are the same when it comes to your future finances. But sometimes it takes a new man to step in and say “I can get this job done!”

Does Roy work in an office, locked away from his players, just leave them with a set of instructions and let them get on with it? Nope. He works tirelessly with his squad (apparently he really does – out there on the training pitch constantly) so that they understand exactly how he wants them to play the game.

The same holds true here. I want to work with you, as well as for you, to help you achieve your financial goals (this is the reason I do this job – I love it!). You will be involved at every point and won’t be left wondering what to do next.

The game may be the same, as are the players, but sometimes it just needs a new man at the helm to bring the vision and goals to life.

So even if England don’t succeed this summer, you could be well on your way to achieving your financial goals.

Why not get in touch for a chat.

Image credit – Flickr/_Aimee_

According to the Unbiased report a whopping £448m a year is going to the government in avoidable inheritance tax payments.  Ouch!

Apparently, IHT is the fourth largest tax waste area. 85% of taxpayers are not making any provisions to avoid paying this often avoidable tax.  I agree with the report’s authors in that one easy area to target is life assurance policies. In my experience it is extremely common upon meeting a new client to find their life assurance policies not written in trust. Frankly, this is not something that a price comparison site is going to advise on.

My policy is to review all my client’s life assurance (and pension policies) and where possible place these in trust. Most life offices will provide standard paperwork which makes the process relatively straightforward. This leaves you to make the three most important decisions upon placing a policy in trust:

1. Who the beneficiaries should be?
2. How much should they receive?
3. Who the trustees should be?

By placing the policy in trust this should prevent the proceeds from falling into your estate and thus avoid IHT. The additional benefit is that the proceeds in the trust do not need to wait for probate speeding up payment to your love ones.

So check your policies and consider putting them in trust where possible.

For a free no obligation chat about this, please call me on 01204 663904 or email phil@white-well.co.uk

Image credit: Flickr/x_jamesmorris

1. You can’t name any artists in the top 10 singles chart.

That or you plainly don’t recognise any of them. This is the latest top 10. How many of these artists do you know?

1. Tulisa – Young
2. Carly rae Jepson – Call Me Maybe
3. fun. – We Are Young (feat. Janelle Monae)
4. Cover Drive – Sparks
5. Alex Clare – Too Close
6. Calvin Harris – Let’s Go (feat. Ne-Yo)
7. Train – Drive By
8. Jessie J – Laserlight (feat. David Guetaa)
9. Nicki Minaj – Starships
10. Gotye – Somebody That I Used To Know (feat. Kimbra)

OK then. Perhaps you may recognise one or two names, but I’d wager you didn’t know they were currently in the top 10. And why not? Because you’re not interested in the music charts anymore as the responsibilities of being a hardworking, maybe even family orientated adult are what’s important to you now. That or maybe Country and Western is your thing. Who’s to say? Still, the point stands. You could be at that age where the things that made your parents boring are all of a sudden important to you. That should include a good pension plan.

2. You enjoy Sunday afternoon naps.

Which in and of itself doesn’t mean much. You may find that there are many University students throwing out Z’s on a Sunday afternoon. That is probably because they didn’t get home till 10 am that same morning. Not because they stayed up to watch Casualty and the episode of Benidorm they’d sky plussed.

3. Negative Equity scares you!

And so it should! Chances are, if you bought your first house during the last 8 or 9 years, you could be looking at negative equity at the moment. Not generally a problem if you’re not looking to sell anytime soon however, it’s the fact that you now know what it means that should be a pointer. It’s one of those phrases that adults threw around when we were children that we paid no mind to as it was “adult stuff”. As are pensions. And you should be thinking about one. Retirement doesn’t just take of itself you know!

4. You can name more than half the shadow cabinet but you couldn’t name one person that featured in the latest series of celebrity Big Brother.

I wouldn’t really say this is a bad thing. However, it’s a sign that a comfy pair of slippers are creeping up the priority list these days. You’re taking an interest in politics as you’ve begun to realise how it affects you. When they start talking about “budget deficit” and “interest rates” it feels like it’s going to make a difference to your life somehow. And it does! As does not planning for what happens when you finish work.

5. You’re on the first rung of your career ladder and haven’t given it much thought.

To be honest. This is the biggest indicator. Even if none of the above applies to you. So you’re in your prime and still listen to the top forty. You’re out with friends and painting the town red on a Saturday night and you couldn’t give a hoot who the shadow chancellor is. Fine, but if you are working and have a salary it’s time to get that pension ball rolling. The earlier the better as well. There are as many pension schemes as there are pensioners. Well, maybe not quite, but the choice can be quite mind boggling.

Get in touch. I’d be happy to talk with you about your options.

P.S. I couldn’t tell you who was in celebrity Big Brother.

Image credits/Flickr – kevin dooley / ed ed

http://menmedia.co.uk/manchestereveningnews/news/business/s/1492175_uk-back-in-recession

This cannot really have come as much a shock to anyone. Forecasters were warning of the “double dip recession” toward the end of last year as that quarter was showing signs of shrinking output. But it takes two baby. So this quarter showed almost as much decline again and that’s what officiates a recession. Two quarters of negative growth. I can’t understand why this surprised anybody really.

In fact, I don’t imagine it has really surprised anyone. I’m sure David Cameron was trying to stay positive as he confidently predicted that the austerity measures would pull the country’s economy forward. I think everyone understood, or was at least resigned to the fact that the party was over and now, with our bank accounts somewhat hung-over, it was time to clear up.

Seems like this isn’t working though.

Still, economists are forecasting that there will be positive growth, however meagre by Christmas. This recession isn’t as deep as the shrink  during the early 1930’s, but it certainly seems it might last for longer.

However, the good news for all you forty and fifty something’s out there is…..

http://www.telegraph.co.uk/health/healthnews/9223610/Elderly-will-almost-pay-for-NHS-by-2030.html

Yup, the NHS will find pensioners as the majority stake holders. Well, you’ll be paying £80 billion of the £106 billion that is spent  on it each year. This obviously eludes to the fact that you’ll be working for longer. Great time to be alive right? Living through one of the worst  recessions on record, and working longer to pay for it. It’s like all your New Year hangovers have come at once.

If I were you, I’d be glad of people like me. Not to blow my own trumpet or anything, but could there ever be a more apt time for Financial Advisors to exist? Especially the independent sort that aren’t affiliated with any bank or financial services provider, is interested in you  and what you want for your future and can back that up with glowing case studies and testimonials?

And it’s not like you’d be left out of the loop.

Ahem……

http://www.dailymail.co.uk/news/article-2134516/Pension-fund-boss-stole-52million-fund-lavish-lifestyle-pay-ex-wife.html

Trial still going on so let’s not assume anything. But there must be quite a few miffed contributors wondering where there money has gone. I’m not interested in taking your money (beyond my fees obviously), that isn’t what we do. I’m here to help you sort out your finances, your investments, pensions . It’s a process we’ll engage in together and you will get complete clarity on where your money goes.

I’m like a financial Sherpa that will guide you through the peaks and troughs of double dip recessions and help you look after your finances.

And what if you’re a bit strapped for time? This sort of thing can take a bit of planning and devising and ermmm………a bit more planning. That’s what I’m here to do. Take that burden from you whilst keeping you involved in what is going on. I have many happy clients that will testify to that.

I’m not sure why you’re still thinking about it. Seems like a no brainer to me.

Image credits/Flickr colm_bracken / M@rg / Lars Kasper

PruProtect in conjunction with Micoach from Adidas have introduced a new concept which I think is quite novel and interesting. By using their Micoach whilst working out, over time customers will receive Vitality points which will then in turn potentially lead to lower insurance premiums. So the more you work out the less you pay for your insurance.

This concept seems fairly logical – the fitter you are the less likely you are to claim – and I think will be the first of many such collaborations that we will see as insurers seek more innovative ways to approach providing insurance and incentives to do so.

I for once will be watching this space to see if the carrot of lower premiums for being more active works. Certainly, with the low uptake of insurance products as a nation new ways to engage with customers is a good thing and better coverage is always to be applauded.

I only hope that the costs of working out and the purchase of the Micoach do not outweigh the savings. I am sure the actuaries at Prudential will have thought that one through.

Phil

PS Are you and your finances as fit as they could be?

Image credit: Flickr/Andrew-Hyde

http://www.ftadviser.com/2012/03/29/ifa-industry/advisory-companies/us-fund-manager-backs-question-of-trust-campaign-AJPyoyeofxSswh3EvCWr9L/article.html

Sometimes it takes somebody to point out the blindingly obvious before even the most keenly sighted person can see it. Especially as we look at each other through the thick fog of recession.

Trust, I believe at its most fundamental level is all about transparency. Not holding anything back from clients and consumers.

Instead of the opaque inner workings of the finance industry, there is a growing need to offer a clear, honest view of what we do. It doesn’t just need to be about trust though. People have a desire to understand how the finance industry works. How and why are decisions made? People are much more interested in understanding the answers to those two questions these days, on a global level as well as when it comes to personal finance.

The principle finds many analogies. When a mechanic seems to magically breathe new life into your car, or a designer transforms that back bedroom from something that felt a bit “tired and dated” into something that feels a lot more “fresh and vibrant”, we’re often quite happy to observe the end result and not really ask how or why.

However, later on as the car seemingly starts to cough like an asthmatic running a half-marathon, or the walls in the back bedroom start to relieve themselves of their new wallpaper, we may ask why? Moreover, as we rectify these problems in future we may find ourselves asking “how did this happen and how can I stop it happening again?” It may have been no fault of the professionals we put in charge of the work. Or it may have been their negligence that found us in this predicament.

Either way, even when you have found someone you trust to do the work for you, you may be a bit more enthusiastic in understanding exactly how they are going to do the work. “How exactly are you going to fix my Engine? What exactly was the problem?” Education squares the circle?

Mistrust breeds the need for transparency. The truth is though, that transparency should always have existed but the financial services industry has shot itself in the foot time and time again.

However, I believe times are a changing. The Retail Distribution Review is driving change and advisers are waking up to the needs of their clients to understand their processes and frankly, what they are paying for! Greater transparency and initiatives such as this one will help – http://www.financialplanning.org.uk/sites/financialplanning.org.uk/files/user/120209_press_release_question_of_trust_2.pdf

It is my belief that we will see more and more emphasis being put on fees, investment charges and costs both pre and post RDR and hopefully with more initiatives like this one being launched the general public will be more connected that ever before.

For a fee based financial planner with all my badges I say bring it on! If it really is a question of trust, then surely the answer is transparency.

Image credit: TerryJohnston

Let’s have a look at the differences between these two seemingly similar pension schemes.

In the blue corner we have the Small Self-Administered Pension Scheme (SSAS) and in the red corner we have the Self Invested Personal Pension (SIPP). It should be noted that although the HMRC pension legislation is different for both schemes (hence their differences) the underlying tax rules are the same. The Finance Act 2004 allowed pension schemes to invest in almost any type of investment / asset. However, at the same time the tax treatment was made so penal that certain assets (such as residential property) although allowable are not attractive to hold as an investment.

As retirement planning vehicles for individuals and business owners each has its merits.

Small Self-Administered Pension Scheme (SSAS)

With this sort of pension you will have much more control and flexibility over the investments but with that control comes much more responsibility than a SIPP. The members of the scheme are all trustees and as an occupational scheme it is regulated by the Pensions Regulator and not the Financial Services Authority (FSA).

The allowable investments are wider in a SSAS and those in bold are the ones not allowed within SIPPs.

SSAS Allowable investments

• Cash deposits
• Gilts and Corporate Bonds
• Unit trusts and OEICS
• Discretionary Fund Managers
• Quoted shares, including investment trusts, Exchange Traded Funds and REITs
• Shares quoted on AIM and PLUS markets
• Shares quoted on recognised overseas stock exchanges
• Insurance company managed funds
• Hedge funds and offshore funds
• Unregulated Collective Investment Schemes
• Secured loans to sponsoring companies
• Loans to unconnected parties
• Gold bullion
• Commercial property with borrowing if needed
• Traded futures, options and contracts for difference
• Structured products
• Shares in unquoted companies

In summary, a SSAS is an excellent pension to use for businesses who need access to capital and for pooling pensions between families to purchase property.

Self Invested Personal Pension (SIPP)

Although SIPPs are less flexible than SSASs arguably they are less cumbersome to manage. They are open to almost anyone and the SIPP provider acts as the trustee and they are regulated by the Financial Services Authority.

The allowable investments are:

SIPP Allowable Investments

• Cash deposits
• Gilts and Corporate Bonds
• Unit trusts and OEICS
• Discretionary Fund Managers
• Quoted shares, including investment trusts, Exchange Traded Funds and REITs
• Shares quoted on AIM
• Shares quoted on recognised overseas stock exchanges
• Insurance company managed funds
• Hedge funds and offshore funds
• Unregulated Collective Investment Schemes
• Gold bullion
• Commercial property with borrowing if needed
• Traded futures, options and contracts for difference
• Structured products

In summary a SIPP is a personal pension plan which gives the member greater control over the investments than a standard pension plan. This scheme gives you the flexibility to invest in non-insured assets such as unit trusts and property and also insured assets such as a personal pension plan.

Overall summary

Membership of a SSAS requires a degree of involvement that surpasses that of a SIPP. Even though both schemes come under the banner of investment regulated pension schemes, and the rules governing investment applies to both, there are crucial key differences between the two.

The key factor to consider is how much involvement a member considering the options wishes to have. How involved in the running of the scheme would you want to be? And what types of investments will you want to make. For example, will you want to use the pension funds to assist your business?

For an impartial discussion about your needs why not get in touch.

Image credit – Flickr/Generation Bass

They are more interested in my money than they are in me

This may have been the case at some point in the past, certainly for some IFAs. However, setting aside the fact that any IFA is working to earn just the same as anyone else, a good IFA is much more interested in you and your financial future than getting hold of your money. It is how we build long term relationships!

In any industry there will be a few individuals that don’t care about the client and are only interested in the money. Whether that’s the mechanic down the road that took advantage of your lack of knowledge and fitted part worn tyres on your car, or the heating engineer that convinced you to rip out your whole system when in fact a simple boiler repair is all that was required.

It is unfortunate that there are bad eggs in all walks of life. Try not to let bad experiences cloud your judgement.

Legislation on tax, pensions and investments is an absolute minefield, fraught with all kinds of potholes and bumpy ground. An IFA is there to help you and guide you in conjunction with your other advisers.

Look for strong qualifications – Chartered Financial Planner or Certified Financial Planner – both qualifications I hold – which mean your adviser has signed up to a strong code of ethics.

Ask friends and relatives, anyone with no vested interest from where and from whom did they get their advice?

There are movements afoot which are trying to dispel the myths around IFAs and trust. These are welcome and to be supported: http://www.financialplanning.org.uk/sites/financialplanning.org.uk/files/user/120209_press_release_question_of_trust_2.pdf

Most of them are affiliated with or even employed in some way by banks or other companies selling financial products.

It has to be said that in the past this is a fair point. However, the key word in the job description is INDEPENDENT. Is my adviser working for me, themselves, or someone else?
For me there are two levels of independence. Independence of product and independence of income and both are vital to how I operate. Having the whole market to source products has been the IFAs strongest selling point for years but given the high number of clients using tied providers is this as big a deal as IFAs would have us believe?

My view is that it is very important. If you were assembling a tied product list who interests would you be working? They can only offer a limited range of financial products. Talking to an Independent Advisor will ensure you have all the investment avenues open to you.

Independence of income is also important. Before proceeding with any piece of work my clients get a written engagement letter setting out exactly what the costs of advice are and how they will be charged.

I can do better myself

There are a lot of direct brokers out there who will provide you will all the tools to invest. And they will be more than happy to take your money year on year for providing their basic service.

But how do you ensure that what you choose for your investments fits with your financial plans. And what happens if things start to go pear shaped. You cannot turn to the direct broker who has sold you the investments (without paying them extra!)

IFAs are not rogue traders. A good IFA with a strong reputation will be able to offer you advice and peace of mind over your finances. In these current choppy economic waters, who better to navigate you through than someone that has built up a client base through doing just that, time and time again?

For a chat about your finances why not get in touch. I promise not to bite.

Image credit – Flickr/sylvar

The array of choices when choosing the shape of an annuity is bewildering, from Single versus Joint; Level versus Increasing or Escalating; Fixed versus Retail Prices Index; Enhanced or Impaired; Guaranteed or Protected or even Asset Backed.

With the purchase of annuity being a one off deal it is important that the decision is made correctly. When clients purchase annuities they are effectively taking on two risks, the risk of inflation and that of an early death. There are a number of ways in which this can be protected, including adding a guarantee period and value protection.

So before racing into purchasing an annuity based on the highest rate available I would always recommend that further thought and consideration is given to choosing the right type of annuity for your circumstances.

I have on many occasions seen single life annuities purchased where the client has a spouse and would have wanted to provide for an on going pension.
If this is something you would like to have a conversation about then please get in touch 01204 663904 or email me at Phil@white-well.co.uk

1. Borrowing – up to 50% of the value of a SSAS can be lent to the sponsoring employer over a 5 year period.  This can be very valuable in a time when bank lending is difficult.
2. Pooled investments – a SSAS can hold investments particularly commercial property as a common trust fund.  This makes succession of assets much easier than they would be under a SIPP.
3. As an occupational pension a SSAS can pay out a scheme pension rather than capped drawdown or annuity purchase.  Actuarially this is advantageous as potentially more income can be paid out under this method.

If you are a director or owner manager and would like to know more about how a SSAS could help you and your business, why not get in touch on 01204 663904 or phil@white-well.co.uk