It is now ten years since the dotcom bubble burst and today the technology sector landscape is completely different to that of a decade ago. At the end of the 1990s and beginning of the 2000s, companies were floating based on an idea rather than profit or even sales.
On 6 April this year, several changes were introduced by the Department for Work and Pensions aimed at helping women, carers and low earners in retirement, but it was not good news for everyone.
What many people are not aware of is that a pre-inheritance gift can still lead to a potential inheritance tax (IHT) issue. Any large, outright gifts are treated as Potentially Exempt Transfers (PETs), which means that there could still be a liability to IHT if you die within seven years of making the gift.
If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of our professional help, a Self-Invested Personal Pension (SIPP) could be the retirement planning solution to discuss with us.
Take a look at our guide and see how your finances may have been affected by Budget 2010.
Some major tax changes that had been announced in previous Budgets came into effect on 6 April 2010. From 6 April, income tax has been set at 50 per cent on earnings above £150,000. In addition, income tax allowances and bands have been frozen – meaning that everyone will pay more tax on their earnings if they receive a pay rise.
There is no one investment strategy that suits everyone and your decisions on how to divide up your investment portfolio into different types of investment will change over time. If appropriate to your particular situation, now may be a good time to reconsider your attitude towards risk for return and give some thought to whether the structure of your portfolio is still in line with your wishes or whether your investment attitude has changed.
Rising inflation poses a risk to any investor. Cash and gilts are the most vulnerable asset classes when it comes to erosion from inflation: cash because the returns are generally quite low and gilts because they pay a fixed interest. In contrast, rental income and company earnings tend to rise in line with inflation. Equity income funds, which invest in companies, aim to pay and grow dividends above the rate of inflation.
Each person has their own way at looking at life and their own set of unique circumstances; therefore we believe that it is essential you obtain professional advice when it comes to generating an income for your retirement. If your pension fund is due to mature in the next twelve months, make sure you talk to us sooner rather than later to help ensure that you don’t miss out on the best pension arrangement available for your requirements. Here we explain why converting pension savings into an income is probably the most important financial decision you will ever make – and there is no second chance if you get it wrong.