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Mike Robertson Associates Ltd
30a High Steet, High Street, Battle, East Sussex, TN33 0EA
Tel: 01424 777156 Fax: 01424 775668
Email: [email protected] Web: www.mraltd.com
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IN THIS
ISSUE
CONTENTS
02
Wlcom to th latst iss o
or magazin crammd ll o
articls abot how w can hlp
o grow and protct or walth.
Som instors ma ha
had a rollr-coastr rid in
rcnt ars. A mart all can
happn at an tim. In ars
past, th bn triggrd b
natral disastrs, oil pric spis,
wars, ban collapss and now
thrs th rozon dbt crisis.Th ralit is that mart swings
happn otn, and whn th
do, it can b nsttling or man
instors. On pag 06 w loo at
how o can rdc th pas
and troghs o insting.
Th diagnosis o a srios
illnss can man a r diclt
tim or or halth and or
walth. On pag 08 w loo at
how critical illnss cor can
proid ital nancial scrit
whn o nd it most. Most
hombrs prchas li
assranc whn th arrang a
mortgag, bt orloo critical
illnss cor, anothr orm o
nancial protction that w ar
statisticall mor lil to nd
bor raching rtirmnt.
On pag 10 w also amin
wh ting th not can bring
nancial adantags to th
rlationship. Ta and pnsions
ar probabl th last romantic
rasons or gtting marrid, bt
w considr or was to bnt
rom or marital stats.
A ll list o all th articls atrd
in this dition appars opposit.
We hope you enjoy
reading the magazine.
to discuss your
financial planning
requirements or
to obtain furtherinformation, please
contact us.
Th contnt o th articls atrd in this pblication is or or gnral inormation and s onl and is not intndd to addrss or particlar
rqirmnts. Articls shold not b rlid pon in thir ntirt and shall not b dmd to b, or constitt, adic. Althogh ndaors ha
bn mad to proid accrat and timl inormation, thr can b no garant that sch inormation is accrat as o th dat it is rcidor that it will contin to b accrat in th tr. No indiidal or compan shold act pon sch inormation withot rciing appropriat
prossional adic atr a thorogh amination o thir particlar sitation. W cannot accpt rsponsibilit or an loss as a rslt o acts or
omissions tan in rspct o an articls. Thrsholds, prcntag rats and ta lgislation ma chang in sbsqnt Financ Acts. Lls and
bass o, and rlis rom, taation ar sbjct to chang and thir al dpnds on th indiidal circmstancs o th instor. Th al o
or instmnts can go down as wll as p and o ma gt bac lss than o instd.
New offshore horizoNsTa or mon whn it sits o
estate preservatioNHlping o to loo atr and maintain
or walth in th most cint wa
BuildiNg New uNtouchedpeNsioN saviNgsAn opportnit to potntiall
impro ta-cinc
surviviNg
iNvestmeNt volatilityRsisting th tmptation to ma
short-trm adjstmnts
real help wheNyou Need it mostA r diclt tim or or halth
and or walth
we caNt coNtrolfate But we caNcoNtrol our fiNaNcesLaing or proprt and possssions
to or lod ons
BaNd of goldAr o bnting nanciall
rom or marital stats?
time to aimfor higher returNsTaing a dirnt approach to
instmnts can gnrat
gratr walth
03 09
10
12
04
05
06
06
08
coNteNts SEPTEMBER/OCTOBER 2013
to discuss your fiNaNcial
plaNNiNg requiremeNts or to
oBtaiN further iNformatioN,
please coNtact us.
09
04
05
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INvESTmENT
n Arranging a nancial walth chc
n Bilding an instmnt portolio
n Gnrating a biggr rtirmnt
incom
n O-shor instmnts
n Ta-cint instmnts
n Famil protction in th nt oprmatr dath
n Protction against th loss
o rglar incom
n Proiding a capital sm i Im diagnosd
with srios illnss
n Proision or long-trm halth car
n School s/rthr
dcation nding
n Protcting m stat rom
inhritanc ta
n Capital gains ta planning
n Corporation ta/incom ta planningn Dirctor and mplo
bnt schms
n Othr (plas spci)
FOR MORe INFORMATION PLeASe TICk THeAPPROPRIATe BOx OR BOxeS BeLOW,
INCLuDe yOuR PeRSONAL DeTAILS ANDReTuRN THIS INFORMATION DIReCTLy TO uS.
You voluntarily choose to provide your personal details. Personal inormation will be treated as condential by us and held in accordance with the Data
Protection Act. You agree that such personal inormation may be used to provide you with details and products or services in writing or by telephone or email.
want to make more
of your moNey iN 2013?
neW offshore horizonst h
Oshor bonds proid an
opportnit or or assts to grow
in a ta-r nironmnt. Th
also allow o to choos whn an
ta liabilit bcoms paabl. Thr
ar a nmbr o othr ta bnts with oshor
bonds, spciall i o ha spnt tim liing
abroad. Bt th ar compl strctrs that
rqir prossional nancial adic.
Whil man instors will b awar that
insting in an Indiidal Saings Accont
(ISA) or pnsion can hlp rdc thir ta
bill, o ma b lss amiliar with oshor
bonds. Li pnsions and ISAs, oshor
bonds ar ctil wrapprs into which
o plac or instmnts, or ampl,
nds or cash. Th ar ord b li
insranc companis which oprat rom
intrnational nanc cntrs.
Th main ta bnt o insting in an
oshor bond is gross roll-p. This mans that
an ndrling instmnt gains ar not sbjct
to ta at sorc apart rom an lmnt o
withholding ta. With an onshor bond, li nd
ta is paabl on incom or gains mad b th
ndrling instmnt. This mans or oshor
instmnt has th potntial to grow astr than
on in a tad nd.
As long as instmnts ar hld within th
oshor bond wrappr, o dont pa an incom
ta or capital gains ta on thm and o can
switch btwn dirnt nds ta-r. Whil
o do ha to pa ta on an gains whn o
withdraw assts, thr ar a nmbr o was o
can potntiall rdc th amont o pa.
yo can withdraw p to 5 pr cnt o or
initial instmnt r ar or 20 ars, and
dr paing ta ntil a latr dat. I o ar a
highr-rat tapar now bt pct to bcom
a basic-rat tapar whn o rtir, o can
dr cashing in or assts ntil rtirmnt and
possibl pa hal th ta d on an gain ralisd.
yo can assign (transr ownrship) an
oshor bond or parts o it as a git withot
th rcipint incrring an incom or capital gainsta, althogh this ma cas an Inhritanc Ta
(IHT) liabilit i o wr to di within sn ars.
All tr ta on withdrawals will b chargd
at th nw ownrs ta rat, i an. This can b
a ta-cint wa to hlp nd or childrns
nirsit s, or ampl, sinc or childrn
ar lil to b low or non-arnrs as stdnts.
Ptting an oshor bond in a trst cold
hlp or amil rdc or aoid IHT, proidd
o li or sn ars atr stting it p. n
Thresholds, percentage rates and tax
legislation may change in subsequent Finance
Acts. Levels and bases o, and relies rom,
taxation are subject to change and their value
depends on the individual circumstances o the
investor. The value o your investments can go
down as well as up and you may get back less
than you invested.
Finding th right oshor instmnts can b a actor in maing th most
o or walth, and its not onl or th walthist o instors. With a w
wll-adisd dcisions o cold broadn or instmnt portolio.
as loNg as iNvestmeNts areheld withiN the offshore BoNd
wrapper, you doNt pay aNyiNcome tax or capital gaiNs taxoN them.
Nam
Addrss
Postcod
Tl. (hom)
Tl. (wor)
Mobil
seek professioNal advice
For mor inormation on insting
with s, or to discss or
rqirmnts, plas contact s.
7/29/2019 MRA Money September October 2013
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waNt to give your familylastiNg BeNefits?
Th strctrs into which o can transr or
assts can ha lasting consqncs or o
and or amil and it is crcial that o choos
th right ons. Th right strctrs can protct
assts and gi or amil lasting bnts. To
discss how w cold hlp o, plas contact
s or rthr inormation.
04
PROTECTiOn
EStatE
PReSeRvATIONH d h h f
make provisioNs for a willIn th uk, i o dont ha a will, or stat will b
distribtd according to rls st ot b law. Ths
ar nown as th Rls o Intstac. For ampl,
in england and Wals, i or marrid with childrn,th rst 250,000 o or stat (pls an prsonal
possssions) wold pass to or spos. Th
rmaindr wold b split, hal going to or childrn
whn th rach th ag o 18 and th othr hal
sd to gnrat an incom or or spos, passing
to th childrn on or sposs dath.
I or not marrid, or stat will go to or
blood rlatis, n i o bn liing with
somon or sral dcads. This cold b ar
rom what o wish. Thin abot whr o want
or mon to go and wh. A will mas or
wishs concrt and claris who shold gt what,
bt can also b riwd or tim.
life assuraNceLi assranc can pla a big part in or stat
prsration stratg. Rathr than rdc a potntial
IHT liabilit, b taing ot a plan to cor or stats
potntial IHT liabilit and writing it in an appropriat
trst, th paot can b sd to mt an bills. Mor
importantl, b ptting it in an appropriat trst, it will
b otsid or stat so it wont orm part o or
stat and will not b liabl or IHT.
give it awayGiing or walth awa to anothr indiidal whil
o ar still ali cold also rdc or stats
posr to an IHT liabilit. Ths transrs ar
potntiall mpt rom IHT and thr is no limit on
sch transrs. This is an cllnt wa o transrring
assts that o do not nd to p in or stat.
Howr, it ma b adisabl to cor sbstantial
gits b insranc against dath within sn ars.
An gits o ma to indiidals will b mpt
rom IHT as long as o li or sn ars atr
maing th git. I o gi an asst awa at an
tim bt p an intrst in it or ampl,o gi or hos awa bt contin to li
in it rnt-r this git will not b a Potntiall
empt Transr.
I o di within sn ars and th total al
o gits o mad is lss than th IHT thrshold,
thn th al o th gits is addd to or stat
and an ta d is paid ot o th stat.
Som gits ar immdiatl otsid or stat. yocan gi as man popl as o li p to 250 ach
in an ta ar. I o want to gi largr gits, ithr
to on prson or sral, th rst 3,000 o th total
amont o gi will b mpt rom ta. yo can also
ma a rglar git as long as it is ot o or incom
and dosnt act or standard o liing. A wdding
or rgistrd ciil crmon can also b a good
cs or an IHT-mpt git. A parnt can gi p to
5,000, a grandparnt 2,500 and anon ls 1,000.
trust iN your futureutilising a trst cold b sl i o want to gi
som mon to, or ampl, or childrn or
grandchildrn bt ar concrnd th might not
spnd it wisl dring thir tnag ars. Or, i o
wantd to gi awa capital whil ping control
or how it is managd and, in som instancs, still
bing abl to rci an incom rom it.
Ta chargs can also com into pla on th mon
placd in trst; howr, gnrall, i this rmains blow
th nil-rat band, o wont nd to pa an ta, and in
man cass it is lil that th ll o ta srd will
b lss than th 40 pr cnt hadlin IHT rat. n
Thresholds, percentage rates and tax legislation may
change in subsequent Finance Acts. Levels and bases o,and relies rom, taxation are subject to change and their
value depends on the individual circumstances o the
investor. The value o your investments can go down as
well as up and you may get back less than you invested.
I o ar uk domicild,
Inhritanc Ta (IHT) is
crrntl chargd at
40 pr cnt and is paabl
on or stat onc
or nt assts cd
325,000. For som
marrid copls and
rgistrd ciil partnrs, an
nsd prcntag o th
aailabl allowanc romth stat o th rst to
pass awa ma b claimd
whn th scond spos
dis. Onc th domain o
th spr-rich, wid-scal
hom ownrship and rising
proprt als ha mant
that mor and mor popl
nd to implmnt an
stat prsration stratg
to protct thir walth.
giviNg your wealthaway to aNotheriNdividual while youare still alive couldalso reduce yourestates exposure toaN iht liaBility.
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RETiREMEnT
building neW untouchedpension savingsa x-f
Drawdown is th main altrnati to a scr annit incom. It is mor
fibl than an annit bt is also mor compl and highr ris. Figrs
rom Sandia (08 Jl 2013) show onl on third (35 pr cnt) o popl in
drawdown ar actall taing thir ll incom allowanc.
T
his mans two thirds (65 pr cnt)
o popl with mon prchas
pnsion saings ha th
opportnit to potntiall improthir ta-cinc, and hnc
thir orall long-trm walth. This can b
achid b opting to s som or all o
thir aailabl pnsion incom to bild nw
ntochd pnsion saings.
qualify for tax reliefIndiidals ndr 75 can crrntl achi ta
rli on contribtions into a pnsion o p to
3,600 ach ar, n i th ar not woring.
I somon is woring th will qali or ta
rli on rthr contribtions, sbjct to th
annal contribtion allowanc and th ll o
thir arnings.
New peNsioN saviNgsusing th pnsion incom to inst into nw
pnsion saings can ha man bnts and
no ral downsid. Th incom ta paid whnmon is tan rom th isting pnsion is
ost b th ta rli rcid whn it is
instd as nw pnsion saings.
future retiremeNt iNcomeutilising nsd drawdown incom in this
wa, th nw pnsion nd is not dmd
to b in drawdown and is not sbjct to th
55 pr cnt ta liabilit on lmp sms paid
to bnciaris on dath bor ag 75. Th
nwl cratd pnsion nd will proid a
rthr 25 pr cnt ta-r lmp sm as part
o thir tr rtirmnt incom (proidd th
saings ar within th Litim Allowanc).
tax-free sumFor thos in drawdown who ha tan thir
ta-r lmp sm bt ar not sing all o
thir aailabl incom to impro th ta-
cinc o thos saings with no ral cost
to thmsls, not onl dos this planning
rdc th potntial ta liabilit or thir
bnciaris on an aailabl lmp sm i th
di bor 75, it will also bild anothr 25 prcnt ta-r lmp sm, hlping to proid
gratr incom in th longr trm. This is good
nws or appropriat pnsionrs who ma
not b taing th maimm incom allowanc
ach ar to bild a mor cti rtirmnt
incom stratg. n
Drawdown is a complex product. I you are
at all uncertain about its suitability or your
circumstances, you should seek proessional
nancial advice. Your income is not secure. You
control and must review where your pension is
invested, and how much income you draw. Poor
investment perormance and excessive income
withdrawals could deplete the und.
By utilisiNg uNuseddrawdowN iNcome iN this
way, the New peNsioNfuNd is Not deemed to BeiN drawdowN aNd is NotsuBject to the 55 per ceNt tax
liaBility oN lump sums paidto BeNeficiaries oN deathBefore age 75.
waNt to coNsider yourdrawdowN optioNs?
To discor i drawdown cold orm part
o or rtirmnt incom stratg, plas
contact s to discss or rqirmnts.
7/29/2019 MRA Money September October 2013
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invESTMEnT
surviviNginvestment
volatilityr h h- djSom instors ma ha had a rollr-coastr rid in rcnt
ars. A mart all can happn at an tim. In ars past,
th bn triggrd b natral disastrs, oil pric spis,
wars, ban collapss and now thrs th rozon dbtcrisis. Th ralit is that mart swings happn otn, and
whn th do, it can b nsttling or man instors.
7/29/2019 MRA Money September October 2013
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invESTMEnT
nothing ignits th ar o losing
ons hard-arnd mon li ashort-trm mart corrction.
A natral raction to that ar
might b to rdc or liminat
an posr to th stocs, thining it will
stm rthr losss and calm or ars.
Bt disciplind instors tpicall do jst th
opposit: th tr to maintain an appropriat,
dirsid mi o instmnts and rsist th
tmptation to ma short-trm adjstmnts.
Th simpl trth is that olatilit is a act o
insting li and or otn bttr srd
staing in th marts or th long trm than
plling ot. Hrs wh, and how, o can do it.
toleraNce for riskundrstandabl, som instors ma
orract to short-trm mart olatilit
that isnt sall rlant to thir long-trm
goals. yor tim horizon, goals and tolranc
or ris ar actors in hlping to nsr
o ha an instmnt stratg that wors
or o. yor tim horizon is th nmbr o
ars ntil o will bgin to s what o
instd. yor tolranc or ris shold ta
into accont or broadr nancial sitation
sch as or saings, incom and dbt and
how o l abot it all. Looing at th whol
pictr can hlp o dtrmin whthr or
stratg shold b aggrssi, consrati
or somwhr in btwn.
set realistic expectatioNsI o ar nros whn th mart gos down,
o ma not b in th right instmnts. en
i or tim horizon is long nogh to warrant
a mor aggrssi portolio, o ha to b
comortabl with th short-trm ps and downsoll ncontr. I watching or balancs
fctat is too nr-racing or o, thin
abot r-alating or instmnt mi to
nd on that ls right. Bt b war o bing
too consrati, spciall i o ha a longtim ntil o nd th mon. St ralistic
pctations, too. That wa it ma b asir to
stic with or long-trm instmnt stratg.
extreme market volatilityTh to long-trm instmnt sccss is
haing a balanc to or instmnts. Haing
all o or mon instd in on asst
class can b a r high ris approach. On
o th most important things o can do to
hlp protct or portolio rom olatilit and
down marts is to dirsi. Whil it wont
garant that o wont ha losss, it can
hlp limit thm. It was pt to th tst dring
th trm mart olatilit dring th global
crdit crisis in 2008.
core asset classesSo how do o dirsi? First, considr
sprading or instmnts among at last th
thr cor asst classs: stocs, bonds and
short-trm instmnts. yo ma also want to
incld othr assts that ar not alwas closl
corrlatd with th cor asst classs. Thn,
to hlp ost ris n mor, dirsi th
instmnts within ach asst class. Chc
whr or nds ar instd and sprad
holdings or dirnt sctors and gographical
aras. Riw th balanc o or assts: ar
o posd to too mch or too littl ris?
yo shold also chc to s i nw asst
allocations match or ris prol.
smooth out riskAttmpting to mo in and ot o th
mart can b costl, particlarl bcas a
signicant portion o th marts gains ortim ha tndd to com in concntratd
priods. Man o th bst priods to inst
in stocs ha bn thos nironmnts that
wr among th most nnring. Drip-ding
mon into instmnts at rglar intralscan allow instors to smooth ot ris
throgh pond-cost araging. This rqirs
o to inst in all conditions, thrb hlping
to aoid th poor dcisions that som popl
ma ma whn tring to scond-gss th
mart. Whn th mart alls, or pamnt
will b mor shars or nits in a nd so
oll ha a biggr holding at th point
marts rcor.
the right mixLoo at th tp o instmnt nds o hold
and ma sr th ar bst placd to gi
o som protction i marts all, bt also to
bnt whn th ris. Good qalit d-
intrst nds ar lil to b rlatil stabl,
whras qit nds can b mor olatil, so
i appropriat to or particlar sitation, o
cold considr holding a combination in th
right mi or o. n
Past perormance is not necessarily a guide to
the uture. The value o investments and the income
rom them can all as well as rise as a result o marketand currency fuctuations and you may not get back
the amount originally invested. Tax assumptions are
subject to statutory change and the value o tax relie
(i any) will depend upon your individual circumstances.
helpiNg you grow yourwealth is aN importaNt
part of what we doThr ar man dirnt was to grow
or walth. Or sill is in hlping o to
ndrstand or choics, and thn hlping
o to ma th instmnt dcisions that
ar right or o. That dpnds on or li
prioritis, or goals and or attitd to
ris. To discss how w cold hlp o,
plas contact s or mor inormation.
uNderstaNdaBly, some iNvestors
may overreact to short-term marketvolatility that isNt usually relevaNtto their loNg-term goals. your timehorizoN, goals aNd toleraNce forrisk are key factors iN helpiNg toeNsure you have aN iNvestmeNtstrategy that works for you.
7/29/2019 MRA Money September October 2013
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PROTECTiOn
real Help wHen
you need it mosta df hh d h
Th diagnosis o a srios illnss can
man a r diclt tim or or
halth and or walth. Bt critical
illnss cor can proid ital nancial
scrit whn o nd it most. Most
hombrs prchas li assranc
whn th arrang a mortgag, bt
orloo critical illnss cor, anothr
orm o nancial protction that w ar
statisticall mor lil to nd bor
raching rtirmnt.
somethiNg criticalCritical illnss assranc pas a ta-r
lmp sm on diagnosis o an on o a list o
spcid srios illnsss, inclding cancr and
hart attacs. Th good nws is that mdical
adancs man mor popl than r arsriing li-thratning conditions that might
ha illd arlir gnrations. Critical illnss
cor can proid cash to allow o to prs
a lss strssl listl whil o rcor rom
illnss, or o can s it or an othr prpos.
core specified coNditioNsAll policis shold cor sn cor spcid
conditions. Ths ar cancr, coronar artr
bpass, hart attac, idn ailr, major
organ transplant, mltipl sclrosis and
stro. Th will also pa ot i a policholdr
bcoms prmanntl disabld as a rslt o
injr or illnss.
Bt not all conditions ar ncssaril
cord. Th Association o British Insrrs
(ABI) introdcd a st o bst practic
gidlins. In Ma 2003, th ABI introdcd
othr masrs. Ths incldd conditions
sch as non-inasi sin cancrs and lss
adancd cass o prostat cancr. Tmors
that ha not t inadd th organ or tiss,
and lmphoma or kaposis sarcoma in th
prsnc o HIv ar cldd.
Thr ar also mor rstricti conditions
or hart attacs. Thr has to b idnc
o tpical chst pain, or changs in th
lctrocardiogram (eCG), or ampl, i a
claim is to b sccssl. Cardiac conditions,
sch as angina, will not b cord.
gettiNg it coveredWhil li assranc is otn th priorit
o thos with dpndant amil mmbrs,
critical illnss cor can b ital i o ar th
sol bradwinnr, rl hail on or incom
or ar singl. It proids a wlcom nancial
boost at a tim o motional strss and
nancial hardship.
Bor o ta ot critical illnss cor,
o nd to obtain prossional nancial
adic to ma sr that it is right or o and
ors scint cor. ncritical illNessassuraNce pays atax-free lump sum oNdiagNosis of aNy oNeof a list of specifiedserious illNesses,iNcludiNg caNcer aNdheart attacks.
do you have peaceof miNd should theworst happeN?
No on r lis to thin abot gtting ill,
bt how wold o and or amil cop
i o bcam too ill to wor? To tal to s
abot or concrns, plas contact s
w loo orward to haring rom o.
7/29/2019 MRA Money September October 2013
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WEalTh PROTECTiOn
l d d
Thr ar complling nancial and motional rasons or maing
a will. Bt wh do so man o s sh awa rom it?
Whn it coms to important
dcisions particlarl nancial
ons w tnd to pt thm o,
or ma css: thrs plnt
o tim or its too big a job.
Non o s lis to thin abot ding, bt
what happns i o pt o maing or
will? At th r worst, th stat cold p
rthing o own lod ons gt nothing.
Whn o ma a will, rthing or which
o ha word so hard (inclding or hom)
is protctd; all or hard-arnd assts will go
to actl th popl o want to ha thm. An
p-to-dat will, thror, complts th circl o
all th nancial planning o ndrtan.
my family situatioN iscomplicated, i doNt kNowwhere to start
This is a common problm, bt a compl
amil sitation shold b an incnti to ma
a will. I or not marrid bt liing with
somon, or assts will atomaticall go to
blood rlatis not or partnr in th nto or dath.
Th intstac rls dtrmin who will
bnt rom or stat i o di withot
maing a alid will. I o ar sparatd bt
not diorcd, or spos will still inhrit
rgardlss o or intntions. In england and
Wals th wold b ntitld to or prsonal
possssions, th rst 250,000 o or
stat and wold ha a li intrst in hal o
anthing atr that. Childrn wold inhrit onl
i th stat is worth mor than 250,000 and
an nw nmarrid partnr wold gt nothing.
I o ha no will, two things ollow. Firstl,
its mch hardr or or griing rlatis to
gt control o or assts; scondl, rigid rls
stp in to ll th oid and dcr who gts
what. A painl, practical consqnc o that is
sall a highr ta bill. unmarrid partnrs ar
th biggst losrs.
i doNt Need a will, i owNeverythiNg joiNtly withmy spouse/registeredcivil partNerIts somtims tr that proprt and instmnts
wold go to or spos or rgistrd ciil
partnr, bt what abot an prsonal possssions
that o might wish to pass on?A will also gos rthr than jst daling with
proprt. It allows o to appoint ctors
to dal with paprwor, organis nral
arrangmnts and gi to charit.
my circumstaNcesare chaNgiNgyo shold sall riw or will at last
r ars and atr an major li
chang sch as gtting sparatd, marrid
or diorcd, haing a child, or moing hos.
It is bst to dal with an major changs bgtting a nw will drawn p. Bt it is also
possibl to ma minor changs (codicils) to
or isting will.
Wills can b writtn to catr or things that
ar abot to happn in contmplation o
marriag, or ampl, or to gi rthing
to childrn who sri o.
Onc o ha tan a dp brath and
thos rst w stps in maing a will, o
can ris it as otn as o wish. Th hard
wor has bn don. And it is ital to riw
or will as o gt oldr in an cas. yor
potntial Inhritanc Ta liabilit ma chang
as o accmlat mor assts or simpl as
th al o or hos gos p.
im too youNg to make a willWills ar not jst or th ldrl. I o ha
assts, and particlarl i o ha childrn
ndr ightn, o shold s or will to
dictat to whom thos assts go and who
shold loo atr or childrn i o, and
anon ls with parntal rsponsibilit,
di. Its a sad act that accidnts and illnss
can happn, and whil w cant control
at, w can control or nancs. n
While we have made every eort to
provide accurate inormation, the law is alwayschanging and aects each person dierently.
This inormation is no substitute or specic
proessional advice about you personally and we
will not be liable to you i you rely on
this inormation.
we cant control ate but we
can control our inances
Need help?
Th npctd cold happn at an
tim, so it is ssntial that o obtain
prossional adic. Dont hsitat to gt
in toch to discss or rqirmnts.
7/29/2019 MRA Money September October 2013
10/12
Bandof goldare you beneiting inanciallyrom your marital status?Ting th not dos bring nancial adantags. Ta and pnsions ar
probabl th last romantic rasons or gtting marrid, bt thr ar anmbr o was to bnt rom or marital stats.
10
WEalTh prOTECTION
if you are a higher-ratetaxpayer aNd your spouse
or registered civil partNeris a lower-rate or NoN-taxpayer, you have theoptioN to traNsfer the
BoNd, or segmeNts of theBoNd, to them.
7/29/2019 MRA Money September October 2013
11/1211
WEalTh prOTECTION
althogh o can contribt whatr o
wish into prsonal pnsions, o can
onl rci ta rli on contribtions p
to th amont o arn ach ar, and
sbjct to a maimm annal allowanc
o 50,000 (or th 2013/14 ta ar).
An contribtions cding th allowanc will b
tad. I o want to contribt mor than th annal
allowanc in a ta ar, its worth considring splitting
contribtions btwn or pnsion and that o or
spos or rgistrd ciil partnr.For ampl, i o wantd to contribt 60,000 and
rci ta rli on th whol amont, o cold pt
50,000 into or pnsion and 10,000 into or sposs,
with both staing within th annal allowanc limit. This
is dpndnt on or partnrs arnings bing highr than
th amont o ha paid in. en i or partnr has no
incom th can rci ta rli on contribtions p
to 3,600 gross ach ar. Also, rmmbr that i or
spos is a basic-rat tapar, th will onl rci ta
rli at 20 pr cnt on th contribtion.
iNvest iN iNdividual saviNgsaccouNts (isa)en i o arn a r sbstantial incom, ISAs shold
not b ignord, sinc incom rom thm is ta-cint
and o do not incr capital gains ta whn o cash
thm in. This is spciall tr or copls, who ach
ha thir own allowanc. This mans that, btwn
o, o cold potntiall inst p to 23,040 into
Stocs & Shars ISAs, or split it p and inst p to
hal o that into Cash ISAs. Insting th maimm
ar-on-ar or, sa, a 20-ar priod wold crat a
considrabl ta-r sm.
On problm with ISAs or highr arnrs is that
th cant b gitd and th cant b mad sbjct to
a trst. That mans th rmain in th instors stat
or Inhritanc Ta (IHT) prposs. Th answr might
b to contin sing ISAs, and s som o th incom
to nd an appropriat li polic that can b hld in an
appropriat trst to cor th IHT liabilit. Altrnatil,
o cold spnd th ISA nds at rtirmnt bor
bing an annit or stablishing drawdown o pnsion
bnts, as ths ar mor IHT-cint p to ag
75 shold o di.
traNsfer your oNshore
BoNd Before surreNderInstmnt bonds proid a ta-cint wa o holding a
rang o instmnt nds in on plac and aim to proid
long-trm capital growth. Incom rom instmnt bonds
is dmd b HM Rn & Cstoms to b nt o basic-
rat ta, althogh additional ta ma b paabl whn th
bond is ncashd, in part or ll.
I o ar a highr-rat tapar and or spos or
rgistrd ciil partnr is a lowr-rat or non-tapar,
o ha th option to transr th bond, or sgmnts
o th bond, to thm. This mans an tr chargabl
nt on ncashmnt is assssd on or partnr,
rdcing th potntial incom ta liabilit on an gain
ralisd. This is a compl ara and o shold obtain
prossional nancial adic rst.
share your assets to reducecapital gaiNs tax (cgt) aNdiNheritaNce tax (iht)CGT is paabl whn o sll or transr an asst, bt
transrs btwn sposs or ciil partnrs ar mpt.
Th CGT allowanc lts o ma a crtain amont o
gains ach ar bor o pa ta. For th 2013/14 ta
ar, th allowanc is 10,900. Howr, this allowanc
is pr indiidal. So, b sprading assts sch as or
instmnt portolio btwn o and or spos or
ciil partnr, o ar ctil dobling th allowanc
to 21,800 bor o pa CGT.
Whats mor, th rat o CGT o pa is basd on
or incom ta stats, with basic-rat tapars paing
18 pr cnt and highr-rat tapars paing 28 pr
cnt. So, holding assts in th nam o th indiidal
paing th lowr rat o ta mas sns. In th sam
wa, transrs o assts btwn sposs and ciil
partnrs ar also mpt rom IHT.
An nsd IHT nil rat band th amont o or
stat that is not sbjct to IHT (crrntl 325,000)
can b sd b th sriing partnrs ctors on
thir sbsqnt dath. n
Thresholds, percentage rates and tax legislation may change
in subsequent Finance Acts. Levels and bases o, and relies
rom, taxation are subject to change and their value depends on
the individual circumstances o the investor. The value o your
investments can go down as well as up and you may get back less
than you invested.
time to talk aBout your optioNs?
W all want th tr tan car o, which is wh
w combin gnin insight into or nds and
circmstancs with a comprhnsi ndrstanding
o th dirnt hicls aailabl. To nd ot mor,
plas contact s.
7/29/2019 MRA Money September October 2013
12/12
Pblishd b g m l,
B i t I ti C t 110 B tt ld G t M li L t B d d hi Lu2 8DL
INvESTmENT
time to
aim orHigHerreturnst d h h
arond two ths (41 pr cnt) o uk adlts ar
crrntl insting in Cash ISAs. Howr,
lss than on in tn (9 pr cnt) ar insting
in Stocs & Shars ISAs, dspit low intrst
rats maning that n ta-cint Cash ISAs cold
b strggling to p pac with infation.
reviewiNg your approachWith th Montar Polic Committ (MPC) contining
to p intrst rats low and infation rlatil high,
cash hld in an ISA or a saings accont cold b
rodd in ral trms. So now might b worth riwing
or approach and, i appropriat, considring whthr
o cold ta mor r is with som o or cash. yo
cold potntiall inst in th stoc mart instad,
throgh a ta-cint Stocs & Shars ISA, to tr to
bat infation. Howr, its alwas snsibl to p
som mon in cash, whr it is sa and o can gt
instant accss to it.
coNsider your optioNsFor thos indiidals willing to ta mor ris with
a proportion o thir mon, thr is th option to
considr sing as mch o th crrnt annal
11,520 (2013/14) Stocs & Shars ISA allowanc as
th can this ta ar. Th annal ISA allowanc is
pr indiidal. This mans that a hsband and wi, or
rgistrd ciil partnrship, or ampl, can inst p
to 23,040 btwn thm into ISAs this ta ar.
Th rsarch rom Standard Li (08 April 2013)
also rals mn and womn ta a r dirnt
approach to thir instmnts. Or on in tn
(12 pr cnt) mn crrntl sa into a Stocs &
Shars ISA, compard to onl jst or on in twnt
(6 pr cnt) womn. An qal prcntag o mn andwomn ar crrntl saing into Cash ISAs (41 pr
cnt or both).
isa mattersus as mch o or crrnt 11,520 (2013/14) ISA
allowanc as possibl in this ta ar. yo can inst this
ll amont in a Stocs & Shars ISA so o ha th
chanc o gratr ta-cint growth or th longr
trm. Insting rglarl ach month can hlp to smooth
ot an short-trm ps and downs in th stoc mart.
Riw or Stocs & Shars ISA instmnt rglarl
to ma sr it is prorming as pctd. Rinst to hlp
gnrat mor incom. Rmmbr that i o choos an
ISA that gnrats incom, o can rinst this mon as
wll as paing it into a ban accont. This mans o ha
th opportnit to contin to gnrat incom basd on
or long-trm instmnts. n
Source: All gures, unless otherwise stated, are rom
YouGov Plc. Total sample size was 2,059 adults. Fieldwork
was undertaken between 25-28 January 2013. The survey
was carried out online. The gures have been weighted
and are representative o all UK adults (aged 18+).
Past perormance is not necessarily a guide to the
uture. The value o investments and the income rom
them can all as well as rise as a result o market and
currency fuctuations and you may not get back the
amount originally invested. Tax assumptions are subjectto statutory change and the value o tax relie (i any)
will depend upon your individual circumstances.
Whn it coms to
taing instmnt ris
to scr a highr
rtrn, thos agd
55 and or ar most
lil to b taing
th lad with Stocs
& Shars Indiidal
Saings Acconts
(ISAs), according to
rsarch rom Standard
Li (08 April 2013).
Or on in tn (11 pr
cnt) o 55 and ors
inst in th stoc
mart ia thir ISA,
compard to jst
7 pr cnt o 35 to
44-ar-olds.
iNterested iN isas?
No mattr what or instmnt goals
ar, w can wor with o to dlop th
bst portolios or or rqirmnts. How
can w hlp o? Plas contact s or
rthr inormation.