Now is the ideal time to review your finances
Need a financial MoT? Now’s the ideal time to overhaul your finances, writes Sheena Doherty.
Are you following Government advice, staying home and worried about your finances? There has never been a better time to give your finances a major overhaul.
Like all of us, I’ve never experienced a tougher time in my 29 year-career when it comes to reassuring and helping clients – but it’s vital that we don’t bury our heads in the sand.
A Senior Management Wealth Consultant with Sovereign Wealth, I pride myself on offering expert, relevant and jargon-free guidance to help you plan with confidence.
Here, I’ve tackled some frequent questions about common financial issues during the Covid19 crisis. Obviously, personal circumstances will differ. Always consult a financial advisor for further clarification and support:
Mortgage payments – Interest rates are at a record low and home-loan rates are
falling.
If your income is steady, and hasn’t dropped, consider making increased monthly payments if you can – or at least keep them steady.
You will be surprised by how much you can save on interest – reducing the mortgage term. It also helps to create a financial buffer, if your circumstances change longer term.
If you’re struggling, please contact your lender straight away. Your home may be repossessed if you do not keep up repayments on your mortgage.
Pensions – Many people have been understandably concerned by substantial “dips” reported via latest pension fund statements.
Please take professional advice – the main thing is not to jump in and make rash decisions but try to hold your nerve.
Most of my conversations with clients stress that markets go up and down, even though the current position appears unprecedented.
Don’t panic and make sure you get informed advice. Ask lots of questions, don’t ignore annual statements and try to have a balanced approach.
Review portfolios and ensure your money is invested in the most active environments, so you can take advantage when the recovery/bounce comes.
Investments – Markets went into freefall when Lockdown commenced and many people experienced substantial losses, particularly with stocks and shares.
More falls may come or we will start to bounce back. It’s hard to predict in the short term, but experience shows that markets generally do start to recover.
The general advice, is to view investments in the longer term and please ignore the understandable temptation to monitor rises and falls daily. It only adds to worry and distress.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
Helping relatives and implications for Inheritance Tax – Many older clients are asking if they can help their grown-up children or grandchildren without falling foul of the taxman.
It’s important to remember that you can give away part of your monthly income without incurring tax. You can also give gifts of up to £3,000 during every tax year (April 6 to April 5) without affecting your tax inheritance position.
You can also carry this over one year. So if you did not make a gift during the 2019/20 tax year, this allowance can also be used.
Please remember that this only an overview. I can also help you plan:
Business and personal protection
Business efficiency including profit extraction
Capital Gains Tax mitigation
The levels and bases of taxation and reliefs from taxation may change at any time and are dependent on individual circumstances.
During Lockdown, we are available during normal office hours. Interested? For an initial, no obligation chat please email Sheena at sheena.doherty@sjpp.co.uk or call 01422 893531: Mobile: 07858 799596.
Please see our website – https://www.sovereign-wealth.co.uk/SheenaDoherty.html
Sovereign Wealth Private Clients is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purposes of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products. Sovereign Wealth is a trading name of Sovereign Wealth LLP.
