Norfolk Financial Services News

Investments can be very complicated, there is such a huge choice of investment products and each product can have a multitude of different funds that you can invest in. Because of this is is wise to get financial advice from an Independent Financial Adviser.

If you live in the Norfolk area then financial advice in Norlfolk could be arranged through independent financial advisers Norfolk Financial Services.

Investment Research

Investment research at Norfolk Financial Services is founded on the aim of identifying the best funds for our clients. To identify the best funds available we have a three step investment process:

1. Determine the asset allocation – This sits at the heart of our approach to investing.
2. Identify the best fund managers in each sector – through in-depth analysis and fund manager research we can select the right managers who consistently add value.
3. Construct a portfolio of funds – we use sophisticated software to create a blend of funds which are complimentary to each other in a portfolio.

For Financial Advice in Norfolk call Norfolk Financial Services on 01603 861621

Visit our website Norfolk Financial Services

# Tamsin Brown
# Magazine: FinancialAdviser
# Published Thursday , November 26, 2009

The vast majority of the population is unaware of or does not understand the value of insuring their retirement income, research from Aegon has shown.

While 70.3 per cent of respondents said they had or would normally consider buying contents insurance, only 1.8 per cent said they would consider insuring their retirement income.

But when asked if they would look at a product that guaranteed their retirement income was paid for life, never fell and could rise over time, 49 per cent of those yet to retire replied they would.

The research indicates that while there is an appetite for insuring pension income, there is a lack of understanding and knowledge of unit-linked guarantees, according to Aegon.

The product only came over from the US in 2006 and has come under fire from some quarters for carrying higher charges.

At a seminar organised by Aegon to discuss the increasing relevance and importance of unit-linked guarantees, Colin Bell, product director for unit-linked guarantees of Aegon said: “Yes, there is an additional guarantee charge. The returns will be less than if you have invested in pure income drawdown but that is essentially an insurance premium.”

He said that with defined contribution schemes becoming the standard retirement vehicle – putting more onus on self-provision – unit-linked guarantees will become an important market for the future, providing an alternative to annuities and income drawdown.

Mr Bell said: “For an affordable cost, unit-linked guarantees can provide people with the security of knowing their retirement income will never run out, never decrease and also has the potential to increase over time if the underlying investment performs well.”

Laith Khalaf, pensions analyst for Hargreaves Lansdown, said that while unit-linked guarantees were a great concept, the products that have been delivered to the market have been too dear.

He said: “The guarantee has come at too high cost.”

Mr Khalaf said he sees annuities remaining the way most people decumulate their pension.

For Retirement Income advice call 01603 861621

Any “relevant UK individual” can contribute up to 100% of their relevant UK earnings into a SIPP, or, if they have no earnings, they can contribute up to £3,600 gross per annum e.g. Mrs Smith is earning £100,000 per year and she can contribute up to £100,000 per year into her SIPP. Please note that there is an annual maximum tax relievable contribution level of £245,000 for 2009/10 and for 2010/11 this will increase to £255,000. You can contribute more, but it will be taxed at 40%. Anyone, even a child, can contribute up to that £3,600 limit in a SIPP. It is possible to contribute more than the annual allowance in certain circumstances, such as in the year of retirement or by changing input periods. We would strongly recommend that advice be sought.

Pensionable income including employment income, bonus, benefits in kind, self employment and partnership profits can all be contributed (Pensionable income does not include investment income, rental income or pension income).

Call us on 01603 861621 or visit our website here

Equity release valuable care tool, say SHIP

Equity release provider trade body SHIP has welcomed the Government’s Green Paper consultation on the future of care and proposes a more central role for equity release.
SHIP said the funding option review is not comprehensive enough, although it welcomed the government’s decision not to increase the tax burden on UK citizens.
Andrea Rozario, director general of SHI, said: “Under the current system with its maximum asset limits, some older people have been forced to sell their homes in order to fund their care needs.  This is a problem we believe will continue under some of the funding proposals in the paper and one that we believe equity release could help with.

“80% of the UK’s wealth is held by the older generation and by providing them with this choice it not only allows them to make use of what is likely to be their largest asset, but also gives them a wider choice of care option.  Delivering a simple effective method by which those entering long term care can access an equity release scheme with all the safe guards and rights that people currently receive from products offered by SHIP members is something that is worthy of serious consideration.

Posted by Kevin Stelfox

If you have your own business you have the choice of either a SIPP or a SSAS.

A SSAS is a Small Self Administered Scheme, individually authorised by HM Revenue and Customs. It is an occupational registered pension scheme set up by the sponsoring business.

In the same way as a SIPP, the SSAS receives contributions and transfers to accumulate a retirement fund for its members. At retirement the choices are the same as for the SIPP.

However a SSAS, unlike a SIPP, can make a loan back to the sponsoring employer thus giving flexibility to that business. A SSAS  is also able to own the business property, and invest in a wide range of investments.

Protected Rights

SSASs cannot currently accept Protected Rights as the Department of Work and Pensions (DWP) class SSASs as an occupational scheme and the new legislation only relates to SIPPs. However, it is possible to hold Protected Rights money in a SIPP which can sit alongside a SSAS and be used for joint investments.

For Independent Financial Advice IFA  in Norfolk call 01603 861621

If you are looking for financial advice in Norfolk or in the Norwich area then we would ask that you consider us. Norfolk Financial Services are Independent Financial Advisers and have a wealth of experience dealing with clients in all areas of financial planning.

Consider us for the following:

• Annuities
• Bank Accounts
• Credit Cards
• Household Bills
• Insurance
• Investments
• Loans
• Mortgages
• Pensions
• Pension Release
• Property
• Savings
• Tax
• UK Economy
• Equity Release Schemes

Put us to the test and call us now on 01603 861621 we promise you will not be disappointed

According to Wikipedia

Key person insurance, also called, especially formerly, key man insurance or sometimes keyman insurance, is an important form of business insurance. There is no legal definition for “key person insurance”. In general, it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of the member of the business specified on the policy. The policy’s term does not extend beyond the period of the key person’s usefulness to the business. The aim is to compensate the business for losses and facilitate business continuity. Key person insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy.

An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. The employer does this to offset the costs (such as hiring temporary help or recruiting a successor) and losses (such as a decreased ability to transact business until successors are trained) which the employer is likely to suffer in the event of the loss of a key person.

Ask yourself these questions?

* Does your business rely heavily on one or a few key individuals?
* Could your business survive without those individuals?
* What could go wrong if a director/partner were to die or be diagnosed
with a critical illness?
* How would you retain control of the business?
* Do you have a written agreement in place as to what would happen?

If this has raised some questions for you, please contact us for a Business Health Check
Call us 01603 861621

or visit our website http://www.norfolkfs.co.uk

What is Pension Release?

In the UK if you are aged 50 or over and not in receipt of any benefits from your pension then you can unlock your pension and take your tax-free cash. Pension Release or ‘unlocking’ is the term used for taking the benefits from your pension before you retire and getting up to the maximum tax free cash and/or income.

How much can I release from my pension?

The current rules say that you can release a cash lump sum of up to 25% of the value of your pension fund. This is tax free and is know as a ‘Pension Commencement Lump Sum’ (PCLS). In addition, the remaining fund can be used to provide you with an income that might be taxable – depending on your circumstances.

Do I need to consult an Independent Financial Adviser?

It is highly recommended that you seek expert advice before you consider releasing your pension. We will conduct a FREE investigation to establish all benefits you are entitled to, in addition to providing you with NO OBLIGATION advice to assess whether pension release is right for you.

We specialise in pension release and use a selected panel of product providers

April 2010; Deadline approaches, could this affect you?

* In April 2010, there is a change to pension legislation which means that the minimum retirement age increases from 50 to 55.

Call us today to take advantage of your pension fund 01603 861621 or visit our website www.norfolkfs.co.uk

Pension Release is only suitable for a very limited number of people and should be only taken as a last resort. Taking money from your pension now will reduce the amount of income available to you come retirement. This service applies to UK pensions only.

The annuity market is very competitive and annuity rates differ between annuity providers.

You can substantially increase your pension income by purchasing your annuity from the company which pays the most income. This is called “exercising the Open Market Option.”

It costs nothing to take advantage of this option and new rules introduced recently by the FSA mean that insurance companies must tell you about this option.

Do you qualify for Enhanced or Impaired Rates?

If you can answer Yes to the following questions you may qualify for better annuity rates.

• Do you smoke 10 cigarettes or more each day and have done continuosly for 10 years or more?
• Are you currently taking any medication?
• Have you ever been hospitalised for any medical condition?

Click here for more information

According to the report on This is Money, the elements that are generally covered by private health insurance policies are the cost of surgery, specialist consultations, accommodation and nursing bills in private hospitals and any drugs or x-rays that should be required.

As such, the obvious benefits of private health insurance are clear to see in terms of quality of care and speed of assessment and treatment. However, it is important to note that it is not possible for private health insurance to cover all types of illness.

For example, incurable diseases and pre-existing medical conditions are unlikely to be covered by private health insurance but this is something that can be discussed with private health insurance providers who will go over the in’s and out’s of a policy prior to you committing to it.

For advice on health insurance call us on 01603 861621 or visit our website www.norfolkfs.co.uk