Equity Releases

If you need a lump sum or extra income at retirement, it is possible to unlock some of the value tied up in your property. Equity release or a re-mortgage can help you do this. If you'd like to investigate this, we can help assess your various options. We do not advise directly but do refer clients to a carefully selected firm who are also Chartered Financial Planners.

Estate Planning

Because house prices are so high, many people have assets which will be taxed when they die. 40% of everything over �300,000 will normally go to the tax man. However, there are some sensible ways of minimising this. Please contact our estate planning service if you'd like to know more.

Life Cover

In the past, life cover wasn't needed when you reached retirement age. Today that's changed. Many people still have mortgages, other debts or even dependants living at home. The good news is life cover for people age 50-70 is much cheaper than it used to be, even for those in poor health.

Long Term Care

Because lots of us are living longer, more of us will need nursing care at the end of our lives. Without proper planning, this could be an open ended, financially crippling commitment. We can help you plan tax-efficient ways to fund the costs of long-term care, either in advance, or later when needed.

Investing Tax Free Cash

When you convert your pension fund into retirement income you may be eligible for a tax-free lump sum (up to 25% of the total fund). It's up to you whether you take the cash or use it to buy a bigger pension annuity. Most people are better off taking the cash as it can be reinvested to provide a more tax-efficient income, or capital growth. We can advise on what would be best for you.

ISAs

ISA stands for Individual Savings Accounts. There are different types of accounts into which you can put regular amounts of lump sums. Because they are normally tax-free the Government limits how much you can pay in each year. They are popular because it is quick and easy to cash in ISA investments (even those that are linked to the stockmarket). We can explain ISAs and tell you if any types would be relevant for you.

PEP Transfers

Although you can buy an new PEP (personal equity plan) any more, you can still transfer an existing PEP to another fund manager. This may be beneficial if you are dissatisified with investment performance, want to change to an investment approach that your current PEP manager doesn't offer, of it you can benefit from lower charges somewhere else. We can review your current PEPs and assess if you could do better by transferring.

Investmet Bonds

There are many different types on the market (usually available from insurance companies). Investment returns are taxed at the basic rate tax (capital gains tax is taken into account in the price of the bond's units). Dividends and investment income are reinvested in the bond to increase the unit price. You can take capital withdrawals at any time - and with good fund performance these can be used to provide income (although eventually you will cash in all your units). The minimum investment amount is usually 1,000 though this can vary both by both provider and bond products. 101% of the value of the bond's units is paid out if you die. We can advise if bonds would be suitable for your investment portfolio, explain the various bonds and the investment risks involved.

Unit Trusts and OEICs

These collective investments are available from unit trust companies and many fund managers as well as some insurance companies, banks and building societies. You can buy them with a lump sum or through regular savings. Basic rate tax is deducted at source from dividends. Higher rate tax and capitals gains may apply to some investors. Some unit trusts pay out share dividends in the form of income, others reinvest the dividends to produce capital growth, and some offer a combination of income and growth. We can advise if any would be suitable for your investment portfolio, explain the various products and the investment risks involved.

Purchased Life Annuites (PLAs)

These are very similar to pension annuities, but they are taxed differently (more beneficially) and are bought with your own capital or savings, rather than a pension fund. There are two types. Permanent PLAs which pay you a guaranteed income for life and Temporary PLAs which pay you a guaranteed income for a fixed time (usually 3, 5 or 10 years) or until earlier death. The taxman deems that part of the income from a PLA is the return of some your original capital (so this portion is tax-free) and the remainder is deemed to be taxable interest. Because of this beneficial tax-treatment PLAs are a popular way of investing the tax-free cash from pension funds in order to boost retirement income. PLAs are almost always a better solution than opting not to take the tax-free cash from your pension and using it to buy a bigger pension annuity. We can advise you about this and get quotes from today's top annuity providers.

Guaranteed Income Growth Bonds

These investments are considered totally safe if you invest for the recommended term. Usually available from insurance companies, they pay a fixed guaranteed return (usually after tax) either as income or as capital growth. If you invest offshore bonds (eg often issued in tax-havens like the Channel Islands or the Isle of Man) you will be paid gross and must account for your tax directly with the Inland Revenue.

Guaranteed Equity Bonds

The name of these investments makes them sound safe but there is a catch which means you could lose out if market conditions don't turn out as predicted. The capital is only guaranteed if (and it's a big IF) a specific stock market index or indices fall by less than a stated amount over the term. Because we are in a prolonged stockmarket dip, a number of these bonds have fallen by greater amounts than their benchmark, and people have lost money. Usually income or growth versions are available, and they aim to pay higher than average post-tax returns.

National Savings Certificates

These investments are 100% safe and guaranteed by the Government. You can open different types of account and make withdrawals and deposits at any post office.

Investment account

• Easy saving by post, standing order or at any post office
• Passbook
• Tiered interest rates
• Minimum 20 Maximum 100,000
• Taxable, paid gross
• Take money out with no notice and no penalty

Easy Access Savings Account

• 100 or more to open an account
• easy saving by phone, post or any post office
• Minimum deposits thereafter 10
• Tiered interest rates
• Interest earned daily and added each year on 31st March
• Cash card for easy deposits and withdrawals
• Dedicated telephone service