What is an Authorised Corporate Director? How does Omnis as an Authorised Corporate Director affect clients and their investments?

Due to adviser demand, we have recorded a short video which answers these key questions and explains the value that Omnis, as an Authorised Corporate Director, brings to you as clients.

To tackle persistent inflation, the Bank of England (BoE) has increased the base interest rate 14 times since December 2021. As of September 2023, it stands at 5.25% – the highest seen in 15 years. As a result, millions of homeowners are struggling to afford their mortgage repayments.

If you have a fixed-rate deal that’s coming to an end, you could face going from paying interest rates of less than 2% to having to find the means to pay more than double what you’ve been used to.

While the rate you could secure will depend on your own part...

It’s been a difficult year for investors so far. Inflation and political uncertainty have led to market volatility. Market volatility can be scary, especially if the value of your investments drops, but it’s important not to let fear guide your decision about whether to stay invested in your portfolio.

Here are three reassuring reasons for staying invested in the stock market during uncertain times.

01 The best financial decisions are not based on emotion

Emotions can play a big role in your financial decision making if you aren’t vigilan...

Mortgage Charter encourages lenders to provide you with more support Banks and Building Societies have been encouraged by Chancellor Jeremy Hunt to offer more flexibility if you are finding it difficult to make mortgage payments. Mortgage lenders, the FCA, the Government as well as organisations such as UK Finance and the Building Societies Association have come together to provide you with a new Charter to give you reassurance and support through these tough times. The Charter was introduced in June 2023.  Lenders have an extensive range of...

Making your retirement savings last a lifetime

To help ensure a sustainable income, you first need to understand how much you’ll need to live on.

• On the go – during the early stages of retirement, there’s a strong likelihood that you’ll spend more on travel, hobbies, or home improvements

• Slowing down – while you may be slightly less active, you’re still busy with hobbies, but you may be less inclined to long-haul travel

• Coming to a stop – in later life, your mobility may be more limited, which risks increasing costs due to needing care

Structuring a sustainable income

The most efficient retirement income strategy should be planned well in advance and ensure that:

• Allowances and exemptions are used to their full capacity

• Married couples plan together so income and assets are allocated effectively of Cost Living “You first need to understand how much you’ll need to live on.

“You first need to understand how much you’ll need to live on.”

When it comes to withdrawing funds, you may want to consider using cash first, followed by taxable investments, ISAs, and finally pensions.

Tax efficiency is key

While tax-efficient savings helps enhance your wealth for retiring in style, tax-efficient withdrawals helps preserve your capital and increases the chance of having money to leave to your loved ones.

So, maximise all your tax allowances including:

• Income Tax allowances
• The Dividend allowance
• 5% return of capital allowance from investment bonds
• Personal savings allowance
• ISA allowance
• Capital Gains Tax allowance

By planning together, couples can use these allowances to maximise the amount of tax-free income available.

Consider spending excess cash first

Ideally, you should hold an emergency fund to cover around six months of regular expenditure. If you have more cash available, consider using this before withdrawing from pensions. Using excess cash allows you to leave funds invested, which may provide enough time for funds to recover any lost value.

Think twice before drawing on your pension

While you may consider your pension as the foundation of your retirement plan, if you have other income that uses your tax allowances, it may be prudent to defer drawing on your pension. Since pension funds benefit from tax free growth, interest, and dividends, leaving your pension invested is especially useful for maintaining capital value. Plus, pension funds are usually not subject to IHT.

Leaving your pension fund intact while drawing on other investments may help to reduce your IHT liability.

Enjoy flexibility from ISA savings

ISAs are considerably more flexible than pensions. Growth, interest, and dividends are all free of tax and you can withdraw money tax-free without restriction. As for IHT, ISAs can be passed between spouses on death, which preserves the tax-efficient treatment.

Useful in reducing tax in retirement, you can use your ISA to:

• Fund large, one-off purchases
• Top up your income – especially useful if your pension exceeds your tax-free allowance
• Make your portfolio more efficient over time, by gradually moving taxable funds across

Take a savvy approach to investment accounts

A basic and flexible wrapper, investment accounts can hold funds, shares and investment trusts. Interest and dividends are taxable at your marginal rate and selling assets can incur Capital Gains Tax (CGT) if your profit exceeds your annual exemption (£6,000 for 2023/2024 or, for a couple, £12,000).
The following strategies can help reduce tax:
• Move your taxable investment accounts into ISAs
• Use your annual CGT exemption to avoid large gains rolling up
• Structure your investments depending on the type of income they generate

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Past performance is not a guide to future performance and should not be relied upon.

An ISA is a medium to long-term investment, which aims to increase the value of the money you invest for growth or income or both.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen. Tax concessions are not guaranteed and may change in the future. Tax free means the investor pays no tax.

 Get in touch

If you’d like help to create a financial plan to structure a tax-efficient income in retirement, we can help. Please get in touch to arrange a time to chat.

Approved by The Openwork Partnership on 04.10.2023

Remortgaging as a landlord: what to consider with a Buy to Let mortgage

If you’re looking for a Buy to Let mortgage in the current economic climate, the prospect may feel a little daunting. There’s no denying that as a landlord, due to remortgage, you may be facing higher mortgage rates and monthly payments which could put a squeeze on your profits.

But afinancialadviser can help you navigate the difficulties, with the tools and expertise to source a Buy to Let mortgage that works for you.

To help set you up before you speak to an a...

What’s the difference between a product transfer and a remortgage?

If you want to stay on top of your mortgage repayments and ensure you’re getting the right deal for your circumstances then remortgaging is one of the most important financial decisions you can make.

But is it best to change to a new mortgage product with your current lender via a product transfer or look to remortgage with another provider?

The reality is that there are advantages, disadvantages and differences to whichever route you choose to go down, which is why i...

Need to remortgage but left it until the last minute?

With interest rates higher than they have been for 15 years, you may be worried about the impact this will have on your monthly mortgage payments once your current mortgage deal expires.

There is no doubt it can feel overwhelming for homeowners at a time when it’s hard to turn on the news without hearing about increased interest rates, increased living costs and ever-changing mortgage rates. If you don’t know which way to turn and you’ve left remortgaging until the last minute - don’t...

Is now a good time to remortgage as the Bank of England base rate stays the same?

Whilst the Bank of England base rate remains the same, interest rates are still the highest they have been in 15 years. So if you are one of the thousands coming to the end of your fixed rate deal over the next few months it’s very likely you’ll see your payments increase as a result of higher mortgage rates but it’s a common misunderstanding that the Bank of England base rate is directly linked to the mortgage rates on offer. There are many factors that de...