Category Archive Investments

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Tax Year-End Tips

Planning can save you moneyPart of any planning is to take the relevant steps at the right time. We don’t intend to give you lots of words on each and every thing you need to look out for, although we do list them below.

The main thing is that if you don’t plan, it could cost you a lot of money. A survey done recently by a firm – Dunstan Thomas – found that those who had professional help with retirement planning were £13k better off than those who went alone. So on that basis, let us put some other planning issues to you.

  • ISAs: If you regularly save through ISAs, you are unlikely to have any Capital Gains Tax issues. After the first £11,300 of gains are counted, it is then taxed at 18% if you are liable at 20% income tax, and 28% if you are liable at 40% income tax.
  • Pensions: When affordable, always pay into a pension, but don’t exceed the annual allowance of £40k or the lifetime allowance of £1m. Under the new pension freedom rules though, when you reach the age of 55, you can take out up to 25% of your total pension fund tax-free. This could be worth a lot of money and is not to be ignored; you could use it to repay a mortgage or at least put a big dent in one, for example.
  • In Retirement: If you planned your retirement using both pensions and ISAs, you could have the best of both worlds. Admittedly you don’t get tax relief when paying into an ISA, but you don’t get taxed when withdrawing from it either. In retirement, you could take out £11,500 a year from your pension fund, and you could take £13,500 from your ISA. This would leave you with £25,000 income per year with no tax to pay. Now that’s planning!
  • Married Couple’s Allowance: If you plan things between spouses, you can utilise everyone’s tax-free allowance and so could withdraw £11,500 x2 = £23,000, meaning you would only need to take out £2,000 per year from ISAs to have the same income as in the above scenario.
  • Marriage: The marriage allowance is worth £200 a year; as a well-known actor said, “Not a lot of people know that”.

The bottom line is that you need to plan things out – failing to plan is planning to fail after all. Planning can save you money or make you money; failure to plan on the other hand can cost you money. So do even a small bit of planning as every little bit helps.

If you would like some advice on planning, then why not contact Money Advice & Planning. Visit us at www.mapfinances.co.uk and use the contact form. Alternatively, call your local MAP adviser at a time which suits you.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

Why getting the right advice is so important

Speak to a financial adviser who can help youEstablishing a relationship with an Independent Financial Adviser (IFA) you can trust to handle all of your financial needs is critical to achieving your financial goals. Not all Financial Advisers are the same, so you must beware!

The two main types of financial adviser are those who are independent and those who are not. All advisers must tell you what services they offer from the outset. To be called an Independent Financial Adviser, they must be able to offer a broad range of retail investment products, and give consumers unbiased advice based on a comprehensive analysis of the market.

Restricted or tied advisers on the other hand can only recommend certain types of investment products or products from a limited number of providers (possibly only one if tied). It is important to establish at the outset what type of advice an adviser can offer, to ensure you get the best investment(s) to suit your needs and requirements.

All advisers must be properly qualified to give financial advice and hold the Diploma in Financial Planning, or an equivalent qualification. Advisers must also prove that their knowledge is up-to -date through continual professional development (CPD).

Some types of advice require an adviser to have specialist qualifications – pension transfers and equity release for example. Any companies offering these services should have advisers within their ranks who are suitably qualified to provide advice in these areas.

Advisers must also be transparent in the fees they charge for both initial and ongoing advice and services.

As a valued client of Money Advice & Planning Ltd you can rest assured in the services we offer:

  • Non-restricted advice and planning – no matter what financial advice and products you need, we can help.
  • Face-to-face advice from UK-wide trusted advisers – irrespective of where you are in the UK, one of our advisers will be happy to meet you and discuss matters face-to-face.
  • Fees structured to suit requirements – financial advice should never take on a ‘one size fits all’ approach and our fees will be structured and mutually agreed to suit your needs.
  • Tailored service packages – we don’t believe in one-off financial advice and have several service packages available, so your financial affairs are reviewed throughout your journey with MAP.
  • Whole of market non-discretionary investments – our bespoke investment strategy will cater for your needs and requirements, and give you an investment right for you.
  • Quarterly investment reviews – our proactive analysis of fund performance ensures you are always invested in the best areas to suit your attitudes to risk.
  • Recommended funds – we invest using recommended fund lists, which have been tried and tested to deliver successful returns for our clients.
  • Transparency and peace of mind – clients have 24/7 access to their investments through the MAP portal, so they always know how their investment is performing.

Perhaps most importantly of all, we come tried and tested. Read the reviews of just one of our advisers and see for yourself.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

The Markets

The Stock MarketsWhen we were about to start writing this piece about the stock markets, we were going to talk about how placid they had been for some time, and had been showing good growth.

Then they fell…a lot! On January 15th, the FTSE100 reached a high of 7,777, and now at the time of writing this (February 8th) it has fallen to 7,195; a whopping 7% reduction in a matter of days.

From what we can see, there appears to be no logical conclusion for this, but there were some bad economic factors coming from the US, so people have basically panicked.

The overall outlook isn’t bad. Some emerging nations like Brazil (for example) are doing well and coming out of quite a long recession. Japan and the US are doing well, Europe is doing OK, and the UK is doing OK, albeit not as good as the rest of Europe.

We categorise investment funds by risk, and the three main levels are low, middle and high. There is also very low and very high risk, but none of our clients tend to want to use them.

Low Risk Funds

There are quite a few global funds that we recommend; two of the most consistent ones are Royal London Sustainable World Trust, achieving 20.5% over the last year, and Premier Multi Asset Growth & Income, achieving 14.3%.

Middle Risk Funds

There are more global funds in this category than any other, e.g. Old Mutual Global Equity, giving 18.5% growth, which is the most consistent one. One of our long-running excellent performers is Lindsell Train UK Equity, giving 20.7%.

High Risk Funds

The most consistent fund in this category is AXA Framlington Japan, giving 23.4%, but Unicorn UK Growth, giving 36.1%, has done very well recently. High risk is the category where you get a wider variety of funds, and is currently populated mainly by Asian (in particular Japanese) and Technology funds. UK Mid Cap also seems to be making a comeback here as well. As you might guess, there is less consistency with these high risk funds as opposed to middle and low risk, but that is the nature of the beast, so to speak.

When you do any investment, you need a good spread of funds to invest in, and you need to watch them regularly. Funds are like children – you can’t take your eyes off them!!! At MAP, this is what we do. It’s in our nature and our investment process to keep our eyes on your client’s money and try to make it grow.

For any enquiries or just an initial chat, contact Andrew Singleton on 0345 241 1808 or e-mail us at enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

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Adding value to your clients through Proactive Investing

Adding value to clientsIf your clients can maximise their investments – whether this be pensions, ISAs, bonds or general investments – they will be a lot better off. We know that’s a fairly obvious comment but not many people put this into practice.

Let’s say one of your clients has a pension pot of £500k and they have it invested in a Managed fund, or even worse, a With Profits fund; annual growth will likely be no more than 5%. If that client is aged 45 and plans to retire at 65, they can expect a final value in the region of £1.393m. Whilst that is a big sum, if they were to invest in a good spread of funds, including some consistently good performers, and get around 8%, the final sum could be around £2,517m. What a difference!

Calculations show that for every 1% you can improve returns in this example, you improve the end value by roughly £300k. That is a significant difference and would no doubt be greatly appreciated by most, if not all clients.

This is what we attempt to do at MAP – maximise end returns for clients’ investments – which we do through our well-tested investment process. When we take on any new clients and establish their new pensions and/or investments, yes we get an initial fee for setting everything up, but our work only starts there.

It is our job to monitor all funds used within a client’s investment on a regular, quarterly basis. We then make fund switches within an investment as and when needed, in an attempt to maximise end returns. That is the true value of a professional investment adviser.

All investments need to be worked; if not, they probably won’t go perform at all well. At MAP, we attempt to make them work hard, within a person’s attitude to risk, to maximise the end return. As you can imagine, there are no guarantees, especially when you think of the way global markets react to anything and everything. We believe that if you pick consistently well performing funds time and time again, that is half the battle. That is exactly what we do.

At the last time of looking one of our investment advisers had 51 client reviews on VouchedFor, with a score of 4.8 out of 5…not bad at all! We believe this is not only for our investing skills, but also for continually working investments to better their performance. Our advice is both initial and ongoing because that is what is needed with every investment.

For any enquiries or just an initial chat, contact Andrew Singleton on 0345 241 1808 or e-mail us at enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

How we invest money

How we invest money puts risk at the heart of the discussion.Here at MAP, we invest our client’s money as if it was our own. Our investment process has been refined over many years, and we make our client’s money work harder for them – to help them achieve their long-term goals – through the ongoing monitoring of their investments.

Once we understand a client’s needs and attitude(s) to risk, we invest their money in a spread of funds from our Recommended Fund List (RFL). These funds will vary in type and also in geographical area (of where they are invested), in an attempt to maximise returns, and more importantly, lessen potential over-exposure in any one area.

A typical spread could be an investment made up of UK equities, interest-based funds, global funds, Asian funds, emerging markets and technology funds. It all depends on what is performing well at any given time.

Where we add real value is in the ongoing and regular monitoring of the funds chosen. This ensures returns are maximised for our client’s. Here is how the process works:

  • Select – Based on a client’s requirements and attitude(s) to risk, we select a range of funds from our RFL to make up their investment(s).
  • Review – We review the performance of all available funds every quarter and remove those which have underperformed from our RFL.
  • Switch – Client investments that are using any underperforming funds, which have since been removed from our RFL, are interrogated with a view to switching the poorer funds with those which are better performing and are on our RFL.

We always keep our client’s informed of any proposed change of funds, and we will never move their money without their prior permission. It also means client money is not shifted about from policy to policy, unless there is a change in circumstances or requirements. That can be an expensive way of doing things and can lead to a client eventually not even knowing where there money is invested any more.

With the investment providers we normally recommend, our client’s have 24/7 online access to see how their funds are performing. This also provides complete transparency on any fees which may apply; either from MAP or the investment provider.

Investments done through MAP offer true value and are bespoke to you.

Investing client’s money to maximise returns and helping them achieve their financial goals is our business, and we have many very happy clients who rely on our investment process to do just that for them (see proof below). Why not contact us today to see how we can help you.

VouchedFor-Certificate-04-2018
 

To see what our clients say about just one of our advisers, read their reviews here.

Bymapfinancesadmin

Trends in Investing

Getting growth from your moneyThe one thing you always need to look out for when investing are the trends…and there are quite a few!

First of all, you have to keep in mind the areas which are available to invest in. Over the years, we have seen funds for Technology, Financials, Healthcare, etc. but they all tend to have a start point and an end point. The last thing you want to do is invest when an area is getting near its end point and is about to fall; you could lose big in that respect.

You also need to look at geographical areas as well, as they too follow trends. For example, Emerging Markets can do well for a period and then fall away terribly as their economies stutter.

At the present time, when we have been preparing our new Recommended Fund Lists, we have noticed there are more and more Global funds performing well enough to be included. This includes a variety of options, like Global Alpha, Global Smaller Companies, or the simple but effective Global Growth.

What this means is that these funds have a pretty wide remit and so can look for investments (to make them grow) just about anywhere. Therefore, they may represent a better approach to investing than most. However, do bear in mind that they could possibly be a jack of all trades, and master of none. They might have a bigger area to work in, but they have to do a lot more homework before finalising their investments, i.e. decisions are made too late either to get involved with good investments and/or to offload bad investments.

What we find the best indicator of all is the trend of performance of funds; we always look at that over 1–5 years. It is far better investing in a reasonably consistent fund, taking into account its economic background, than merely looking out for high flyers which may be the big drops of tomorrow. Consistency in our opinion is key, and is what we have watched at MAP over the years. You can get good performance in 1-2 years, but bad performance is more possible at any moment. Good performance over 5+ years is special and should be looked out for.

We make up our recommended list of funds based primarily on consistency, as long as it has half-decent performance throughout. When we invest client money therefore, we are looking for that performance to continue for a reasonable time at least, and we continue to monitor it, to ensure it achieves that.

When you are looking to invest, you too should be looking for that consistency of performance. It will allow you to plan investments a lot better and should require less ongoing maintenance and less stress too!

If you would like to benefit from our hands-on approach to investing, why not contact us on 0345 241 1808 or email us at: enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement.  Always obtain independent professional advice for your own particular situation.  Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

How to invest sensibly

Getting success through hard workAs we aim to start the new year on a positive note, we are focussing on achieving goals. When it comes to investments, this can only be done by careful and diligent investing. Now it may seem easy to some people, but having done this for quite a number of years now, we can tell you that it is anything but.

You need to know the right time to invest and also the right time to sell, much like the old adage of buying low and selling high. We believe most people have a reluctance to come out of what has previously been a good performing fund, and they then inevitably get caught out when it drops in value.

What we do at MAP is basically ignore past performance to a certain extent, and put more reliance on actual performance and of course consistency. When we look at fund performances, if things are starting to drop off, we tend to no longer use that fund. It’s as simple as that!

Investment Fund Types

In financial services we talk about Asset Allocation. This is just a fancy expression for investment spread. If we were looking to put together a client’s investment using a number of different funds, we wouldn’t put them all into the same fund type, e.g. UK equities. What we would do is use a variety of types like UK equities, interest-based funds, global funds, Asian funds, technology funds, etc.

If you work on the basis that from 10 funds used, four will do very well, three will be good but not brilliant, two will be average and one will underperform, that would be a fair assumption. All areas will not perform brilliantly all of the time – it is the nature of the beast – so you need a spread of types.

Investment Geography

Another thing to watch out for is geographical areas as they will all provide different growth rates. One of the leading fund managers recently recommended looking at global economics. Their belief is that North America, Japan and some other Asian countries should do well in 2018, Europe will do not too badly, and the UK will probably flat-line.

Furthermore, watch out for emerging nations especially the likes of Brazil, who are up-and-coming. When you invest money, you also want a spread of countries so you can get the benefits that arise from them.

Ongoing Investment Monitoring

When you have invested money, the next thing you must do is monitor your choices. What we tell clients is the only thing guaranteed when investing, is everything will change. You can make a great selection to start with but this might change because of economic conditions in whatever locality.

If you don’t monitor a fund and it then starts to fall, you could lose heavily, and so you need to be ready to switch out of that and into another fund; one which is performing. This is where consistency comes into your thoughts – the more consistently well a fund performs, the more likely it is to continue to do so.

Understanding Risk

The final part of investing is all about risks, which is something the Financial Conduct Authority place a great deal of stress on. People should know what risks are involved before they invest so they can then make a logical decision. How MAP deals with this is to use five categories of risk, although only three are normally used as people are not interested in very low risk or very high risk.

Low risk is where the chances of loss or of significant gains are small, middle risk is where some money could be lost or gained, and high risk is where excellent gains could be made but equally almost all money could be lost. What people should do is only invest in the risk areas they are comfortable with.

At MAP, we invariably use 10 funds for each investment; and the number of low, middle and high risk funds selected are based on a client’s attitude to risk, i.e. how many funds they want in each category.

Final Thoughts

All of the above is why investing carries a lot of risk overall; there are so many things you need to watch out for, and watch all the time. At MAP, we have been employing our own investment process since we started up, so have built up a lot of experience in that time. To be honest, even we are still learning, but we use it to better the end outcome for our clients.

If you would like to benefit from our hands-on approach to investing, please contact us on 0345 241 1808 or email us at: enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement.  Always obtain independent professional advice for your own particular situation.  Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

Tax Planning

Dealing with taxThroughout your financial journey, whatever your stage in life, there will almost inevitably be some tax implications connected to your personal financial activities. Since no-one likes paying taxes, why not let MAP help you to avoid them as much as possible.

Our tax planning strategies, when done properly, are quite simple. There is no ingenious formula(e) for success; it is instead all about awareness of legislation, how it affects different people and how it can be legally avoided through planning.

The three taxes you could be liable to pay in your lifetime are:

  • Income Tax – On your profits or income;
  • Capital Gains Tax (CGT) – On the sale of an asset; or
  • Inheritance Tax (IHT) – On an estate upon death.

MAP can provide effective planning to minimise your tax liability.

MAP has taxation specialists who know all about the intricacies of taxation and how it affects people’s affairs. This means they are in an excellent position to provide tax planning advice for clients; be they individuals, families, partnerships or firms.

At MAP, we will work with you to create an effective plan based on your current and likely future financial position, minimising your tax liability as much as possible along the way.

We also have a sister firm – Accounts Advice & Planning Ltd (AAP) – who work exclusively in accountancy and taxation. They can assist further with tax planning as well as undertake day-to-day accountancy work and support, plus complete HMRC submissions on your behalf.


For more information, click on the most suitable link:

Income Tax
Capital Gains Tax
Inheritance Tax
Our Investment Process
Accounts Advice & Planning Ltd

The Financial Conduct Authority does not regulate tax advice

Bymapfinancesadmin

Savings & Investments

Getting growth from your moneyInvesting is not done purely by the rich, and equally, bank accounts are not necessarily the best place to maintain excess savings. So if you have spare income every month and want to earn more than just interest on it, or have a lump sum you would like to invest, MAP can help make your money work harder for you.

We pride ourselves on the returns we generate for our many happy customers by way of our investment process, which contains three three key steps:

  • Select – Choose the best product and range of funds for someone based on their investment attitudes;
  • Review – Regularly review the funds we are happy to recommend to clients, new and existing; and
  • Switch – Recommend fund switches where necessary and if approved, make those switches.

If you currently have an underperforming investment or savings plan, talk to MAP. We can review existing policies and switch funds, should those that are on our Recommended Fund List (RFL) be available to use. This means keeping your money in the same investment(s) but changing the underlying fund(s) to something with better performance, without necessarily taking any more risk.

Should this not be possible, the alternative is to move your money to new investment(s), which have access to funds on our RFL. This then gives the potential for better growth, by way of increased fund selection, fund diversification (so not all your eggs are in the one basket) and cost effectiveness.

MAP can maximise your returns with an ongoing, proactive investment strategy.

So whether you have new money to invest or existing investments which aren’t doing what they are supposed to, we can find the product or plan to suit you, which will maximise growth and the returns payable.

We will regularly review the performance of your savings and/or investments thereafter, to ensure they remain on track throughout your financial journey, at all times taking into consideration your personal circumstances, future goals and requirements.

In order to provide complete transparency, we can also give you 24/7 access to viewing your savings and/or investments, thus allowing you to track and monitor their performance at any time. If you already have access, why not login today to see your money working harder for you.


For more information, click on the most suitable link:

Existing Investments
ISAs
Investment Bonds
Other Investment Products
Structured Investment Products
The MAP Investment Process
Ongoing Financial Reviews

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Client Login

MAP will always work hard to give you a first class service, for as long as you need it. Here are some of the benefits of investing through MAP:

  •  Your money is invested in areas to match your attitude to risk;
  •  Independent and bespoke advice tailored to meet your specific needs;
  •  All funds invested in are tried and tested, with successful track records;
  •  Investments are looked after by a dedicated adviser;
  •  Investments are reviewed regularly to maximise returns;
  •  Ongoing service is provided to complement the initial advice given; and
  •  100% transparency lets you check performance and charges at any time.

If you have a MAP investment with an online facility, you can log-in to it securely, at any time, by clicking on the appropriate provider logo below:

Ascentric logo Prudential logo Transact logo

Do you not know your login details? No problem – just contact us and we will arrange for them to be sent out to you as soon as possible.

If you are looking to invest, or have money invested and would like to find out more, feel free to contact MAP today. One of our advisers can talk through the options open to you and review your existing portfolio and requirements before recommending the best investment(s) to suit your needs.


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