Recently at MAP we had what we think of as a success story, and no it didn’t happen overnight.
A couple who have used the MAP investment platform since 2011 found themselves this month, after a good period on the stock markets, having total gains over the total time of their investment period in excess of £½million.
The couple had followed a fairly balanced investment strategy of 30/40/30 – which is investing in three funds at 10% each in cautious low risk, four funds at 10% each in middle risk and three funds at 10% each in high risk.
We had monitored this money every quarter since inception, and had received the clients’ permission to switch funds as and when we thought it necessary. The clients admitted early on that they had no knowledge of all of these funds, and so basically let us get on with it, which is what we did.
Calculations show that we have managed to get them 7.88% per year every year since we started in 2011. Bear in mind that whilst the FTSE100 achieved an index figure of 7,500 in August 2017, it started off in 2011 at about 5,700. At February 2016, it had fallen to 5,700 from around 7,000 in April 2015, so there have been some lows as well as highs.
The MAP investment process aims to hold clients investments in solid funds which perform consistently well. That is all we are trying to do – it’s not rocket science, but, with rigorous research and hard work, we can deliver strong returns.
If you have money to invest, why not try the MAP way; it really works. Call us on 0345 241 1808 or e-mail us on email@example.com.
Since we know that we will always get taxed, what we should always do is plan. Now planning can cover a variety of situations, like reducing tax overall, or perhaps even take yourself out of tax altogether. The one thing everyone should do is plan things so you get the smallest tax bill you can. You owe it to yourself and your family.
The key area of planning we would like to cover here is the use of tax allowances. Bear in mind most allowances are given for a specific year, and if you don’t use them, you lose them. It is therefore only common sense to use as much of them as you can.
“There are only two things certain in life – Death and Taxes” (Benjamin Franklin)
The main one is the personal allowance which everyone gets. In an ideal world, we would like to see all household income split 50/50, but that is not possible with PAYE income of course. For all investment income in a household, it is down to each couple as to who this belongs to, so couples can split this according to their situation. If both spouses are working, it can get split 50/50; if only one works, it can be split 1/99, i.e. whatever uses up unused allowances. Buy to let property income is an ideal example as well.
In the current tax year, each individual can have dividends up to the value of £5,000 non-taxable, and savings income up to £1,000. This is reduced to £500 for higher rate tax payers and nil for additional rate tax payers. So, once again the argument is there to split such income between spouses as suits you and not HMRC. Even if dividends are higher than £5,000 per year, bear in mind that if someone is liable at basic rate tax, then dividends over £5,000 per year are taxed at 7.5%; for someone liable at higher-rate tax, dividends over £5,000 are taxed at 32.5%, so there are still some savings to be made.
Self-employed people should also consider employing their spouses as this is a good way to “spread” income. It’s not just a case of putting this into a set of accounts – there does have to be some substance behind the figures, so some planning and logistics should take place before you automatically just jump in. PLAN!
Remember that for most allowances it is a case of use them or lose them.
If you would like help with tax planning, please call us on 0345 241 1808 or e-mail us on firstname.lastname@example.org.
The Financial Conduct Authority does not regulate tax advice
Our client’s goals are what drive us to do our utmost for them. Your financial goals will become our targets.
We understand that for any and all aspects of your finances, a number of factors are important. Good advice at both the outset and on an ongoing basis, careful planning and successful investing will help you and indeed your money reach your financial goals.
Our approach has been tailored over many years of looking after client’s wealth, and has been structured to suit their needs and service requirements. We do the total opposite of a ‘one size fits all’ approach.
The values we bring as a financial adviser to any client are:
Our clients choose their financial destination and we MAP out the journey for them.
There are many reasons to choose MAP for independent financial advice:
Perhaps most importantly of all, we come tried and tested – read the reviews of just one of our advisers and see for yourself.
Wherever you are on your financial journey, let us provide the MAP to your desired destination.
Past performance is not a reliable indicator of future results