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Bymapfinancesadmin

Why Accountants should do Tax Planning

As an accountant myself, I know that many accountants don’t want to stray into the financial advice market in case it goes wrong. It doesn’t need to be as black and white as that though.

When doing clients’ accounts and tax returns, it is easy enough for an accountant to recommend that someone see an Independent Financial Adviser (IFA) and potentially concentrate on pensions. You may have noticed when doing their accounts, that their tax bill has increased, and just about the only way to reduce that is contributions into pensions. This means you are at least helping your clients whilst not actually giving advice. They get the best of both worlds and is something that you won’t be held accountable for, but may get an income yourself from.

Accountants today should only recommend independent advisers, and that’s what MAP are. Moreover, the way we do our investing process keeps it that way, because we don’t outsource our investment process. What we invariably do for each client is invest in a spread of 10 investment funds through an investment platform, and then monitor those funds quarterly thereafter to ensure the client is always invested in funds on our approved Recommended Funds List.

In other words, we don’t let things drift, which is important when doing anything like this. Most people – even those that do their own investing – will treat investing as a one-off exercise, when in fact it needs to be a continuous exercise. MAP looks at all the funds that clients use every quarter, and if we are not happy with any fund, we will look to switch to others that we are happy with; so it is constant reviewing.

What could be better for your clients than using this kind of process, and your clients will love you for recommending this to them. They will then feel you are really looking after them with this kind of recommendation, and this will increase loyalty and client retention. Bear in mind we will also give you a percentage of the initial fee so that you can benefit from this as well as your client, and enable you to build an additional income stream for your business.

If you would like to find out more information or would like to start investing today, please contact Money Advice & Planning Ltd 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 long will your pension last?

From April 2015 when the then Chancellor George Osborne changed the rules and brought in pension freedoms, people have suddenly switched from buying an annuity to flexible drawdowns, where they can take out what they want when they want.

Now the FCA doesn’t have a problem with this, but they do have a problem with education more than anything else. They reckon that people are just walking into a nightmare, as there could very well be a problem at some time in the future when they will run out of pension money.

What on earth do these people do then, apart from telling a tale of woe? Pensions, as the FCA see it, are for when you retire, and if you take out a lot of money before you retire, then you won’t have it later. You can only spend it once after all!

If you run out of pension money in retirement – what are you going to live off? The State pension is certainly not enough for a comfortable life-style. How long are you going to live? Have you taken into account housing costs? What about care costs?

What we attempt to do at MAP is create a simple spreadsheet that shows your pension fund through the years to come, taking into account modest growth and withdrawals. Based on this information, we give a best effort at telling you how many years it might last. We only ever use low rates of growth to be pessimistic – 3% for cautious investors, 5% for middle risk investors and 7% for high risk investors – and we tend to work on an average of 6% withdrawals per year. So if you are a cautious investor, you can expect your fund to go down by about 3% per year, and therefore we need to look at longevity.

What we do in these spreadsheets is put in an estimate based on the information we have of how many years we think you have left to make your pension last. Having this kind of information is priceless to our clients and helps them to plan things out a bit better than they were before.

So, if you need some help in planning your retirement, please ask us for a forecast tailored for you. If you would like to discuss any aspect of retirement planning with Money Advice & Planning Ltd, please contact us today 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

Accountants, Lawyers and IFAs – A Team Approach

Business people making introductionsFinancial, legal and tax advice are areas conducted by professionals adhering to their own sets of standards and qualifications, with their own professional bodies and regulators.

These advice professions are no different to other business sectors though when it comes to facing growing pressure to retain their existing clients, and more importantly, to win new clients and discover sources which will provide those new clients.

Legislation such as the Legal Services Act (LSA) and the Retail Distribution Review (RDR) has forced the legal and financial advice professions to introduce more client centric business models and, at the same time, become more competitive. This in turn has created a growing pressure for these advice professions to diversify and expand their business propositions in order to be more competitive.

Working more closely and proactively with a professional IFA can provide a very simple but effective solution to this problem.

Given the overlap between many areas of tax, legal and financial advice, a number of firms have seen the potential for Accountants, Solicitors and Independent Financial Advisers to work together to leverage each other’s client relationships. It provides those clients with a more holistic, joined-up and value-added approach to advice, and at the same time resolves the challenges of retaining existing clients and finding a source of new clients.

If you would like to find out how Money Advice & Planning can add value to your business and your client relationships, please 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.