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    Tag: financial planning

    Financial planning considerations for the new tax year

    Posted on by Laura Boyd

    With the new tax year underway, it could be a perfect time to review your finances and consider how to make the most of your allowances and investments for the year ahead to gain optimum benefit. Below we consider some of the areas where utilising the allowances available could make a huge difference and potentially save you a substantial amount of money.

    ISA Allowance

    The new tax year means a fresh ISA allowance of £20,000. ISAs can provide tax free benefits for your savings and investments, allowing you to benefit from higher returns over the long term. Maximising your allowance early can allow more time for your investments to grow, free from capital gains and income tax.

    Pension Contributions

    Most pension savers can contribute up to £60,000 per annum into their pension, however, advice should always be taken as an individual’s allowance can be restricted to an amount less than £60,000 due to complexities with the rules. Similar to the ISAs, pensions are tax efficient savings vehicles which can be accessed from the minimum pension age. Your pension can be used to invest in various different investments including cash savings, investment portfolios and commercial property.

    Also, if you haven’t utilised your allowance from the previous three years, it is possible to carry it forward and boost your pension pot further, subject to certain criteria.

    Capital gains tax allowance

    From April 6 2024, the capital gains tax allowance was reduced from £6,000 to £3,000 per person. If find yourself in a position where you have maximised both your pension and your ISA allowance, you could consider investing into a General Investment Account and crystallise your gains on an annual basis using your capital gains tax allowance.

    Dividend allowance

    Rather than investing in growth assets, there is the option to invest into income distributing funds. Any dividend received on unwrapped investments can be claimed tax free if it falls within your Dividend Allowance, the allowance fell from £1,000 to £500 on the 6 April 2024.

    Inheritance Tax

    You are able to give up to £3,000 each year completely free of any inheritance tax (IHT) liability, this can be a useful way to reduce a potential inheritance tax bill, as well as helping out your family with a financial gift.

    The tax-free inheritance threshold is £325,000 per person, above which 40% rate of tax is due (subject to other allowances).

    You can gift more should you wish but if you died within seven years of the gift, the recipient could be subject to a large IHT bill. You are also able to carry over your allowance to the following tax year so if you haven’t used any of your allowance during the previous tax year, you could potentially gift up to £6,000 without any tax liability.

    Get in touch

    For further information or advice on how you can plan ahead to make the most of your finances and maximise the tax allowances available to you, contact a member of our financial planning team today to talk through your personal circumstances by emailing financialplanning@pmm.co.uk or call 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.

    Celebrating Financial Planning Week

    Posted on by Helen Buchan

    As part of Financial Planning Week 2024, we take a closer look at the PM+M financial planning team and the types of things they can provide advice on.

    Our financial planning team are here to help you make the most of your money. Headed up by partners, Antony Keen and James McIntyre, the team also consists of a director, three further financial advisers and a wider support team.

    The team works collaboratively with our specialists across the firm within our tax, corporate finance, accountancy and payroll functions to help you and your family plan for the future in a way that best suits you. No matter what your requirements are, our expert team will work closely with you to provide a tailored solution that not only enhances your financial position but provides peace of mind that your hard-earned money is achieving more in every way possible.

    Areas of expertise which the team would typically provide advice on include pensions, investments, tax and estate planning, lifetime cashflow planning, financial protection (life cover and illness cover) and services to court of protection clients.

    Some of the common questions our clients typically ask regarding their finances include:

    • I would like to retire at a certain age, how do I ensure I’m in a financial situation to achieve this?
    • Am I on track financially for my retirement?
    • Will my family and/or businesses be ok if I die or become ill?
    • Are my investments and pension investments appropriate in this economic climate?
    • How can I plan to minimise the Inheritance Tax I pay?
    • How much do I need to sell my business for and retire comfortably?

    Once we have spent time getting to know our clients and understanding their needs and objectives, we can then test different scenarios using our cashflow forecast software to understand the best plan of action for the individual circumstances and objectives.

    The relationships we build with our clients are paramount and we are always here to provide ongoing support and advice as plans can often change during the journey of life.

    Looking after over 300 million pounds worth of assets for our clients, you can be sure our financial planning team is perfectly placed to offer the best advice on looking after and getting the most from your assets. For further information or advice, contact a member of the financial planning team today by emailing enquiries@pmm.co.uk or calling 01254 679131.

    Common myths for financial planning

    Posted on by Laura Bannan

    The thought of financial planning can be overwhelming and the amount of conflicting advice can leave you feeling lost when it comes to planning ahead to make the most of your financial situation. To help, we explore a number of common myths when it comes to financial planning.

    Myth: Financial planning is only needed if you’re wealthy

    Although it is wise to plan your finances well if you have large amounts of wealth, it can still be hugely valuable even for those with modest wealth. Understanding your financial situation in detail and how to make the most out of it can help you plan in a way that is going to be most beneficial, and investing even a small amount can still provide good returns over time.

    It’s important to be clear of your lifestyle aspirations and then tailor your finances to achieving those goals, this is something your financial planner will be able to help you map out and ensure you’re planning ahead accordingly for the short, medium and longer term.

    At PM+M, once we have spent time getting to know our clients and understanding their needs and objectives, we can then test different scenarios using our cashflow forecast software to understand the best plan of action for the individual circumstances and objectives.

    Myth: I’m too young for retirement planning

    Retirement can be achieved at a variety of ages depending on many different factors, some people are able to retire much earlier than others by working extremely hard and with some extensive financial planning. If this is something you are aiming for, or even if you simply wish to plan ahead to ensure you are going to be comfortable in later life, the sooner you start planning the better!

    In terms of your pension for instance, the earlier you begin saving into your pension, the more time your money has to grow and it is highly likely something you will thank your younger self for in years to come.

    By looking ahead as to what you would like your retirement to look like in an ideal world, you are able to plan what steps you would need to take financially to allow you to achieve this. The more time you have to do this, the more you are able to spread the financial impact across a greater number of years, therefore reducing the impact you are likely to feel on your finances. This would also provide more time to make any necessary changes, should your desired retirement plans change.

    We can use our cashflow forecast software to test different scenarios to help understand the best plan of action for your individual circumstances and objectives.

    Myth: I can only invest if I have large amounts of money

    Obviously the more money you invest, the greater returns you are likely to see, but this does not mean it’s not worth investing smaller amounts of money.

    Whatever the amount, you may want to consider putting your money into medium or long-term investments (five years or more). Unlike savings, investments have more potential to grow over time. You have tax efficient options, for example, an ISA or a pension. A small amount regularly invested each month over a few years can often result in a good return over time, providing a strong investment strategy is in place.

    At PM+M, we offer a bespoke managed portfolio service (in partnership with AJ Bell) which we continually monitor and proactively make fund and asset allocation changes when we feel as though this is necessary. You can find out more about our portfolio service here.

    Myth: The State Pension will be enough for my retirement

    Depending on what you want to achieve from your retirement, you may find that relying on the state pension could leave you drastically short of achieving what you have in mind. The full State Pension is £221.20 per week for the 2024/25 tax year (up from £203.85 in 2023/24), providing you have paid the necessary 35 years National Insurance. This equates to around £11,502 a year which works out much less than you would earn if you were working a full-time job on minimum wage, this comparison helps put the figures into perspective.

    With the ever-rising costs of living, it is certainly worth doing your sums carefully and if you are planning on relying solely on your state pension, that it will enable you to live a lifestyle you are comfortable with in retirement.

    However, the State Pension does provide an invaluable income underpin.

    Get in touch

    For further information or advice on any of the common myths discussed above, contact a member of our financial planning team today to talk through your personal circumstances, email financialplanning@pmm.co.uk or 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.

    Are you making the most of your tax allowances?

    Posted on by Laura Bannan

    Making use of tax allowances is at the cornerstone of all financial planning matters. In the high interest environment, which we currently live in, it has never been more important to ensure that you are maximising all available allowances.

    Personal savings allowance

    At the beginning of the new year the Bank of England base rate remains at a 15 year high of 5.25%. Whilst these high rates are to the delight of savers, many individuals are now being hit with income tax liabilities on interest payments. Depending on your tax status individuals have a personal savings allowance of:

    Basic Rate – £1,000

    Higher Rate – £500

    Additional Rate – £0

    If the interest which you receive exceeds your personal savings allowance the distribution will be taxed at your highest marginal rate of income tax. There are many allowances available to individuals and these are summarised below:

    Personal allowance – Income Tax

    If you are retired and pre-state retirement age, you may be earning less than the personal allowance (currently £12,570). This is your personal income allowance before you start paying income tax. There is the opportunity to draw additional income to utilise that allowance, potentially from your own pension, releasing income without paying income tax.

    ISA Allowance

    Individuals have the option of investing £20,000 per person into an ISA. Savers have the option to deposit funds into a cash ISA, however if you are taking a longer term view you may wish to consider investing into a Stocks and Shares ISA.

    Another consideration could be a Lifetime ISA, perhaps you’re saving a deposit for your first home, but if you aren’t saving that money into a lifetime ISA, you could be missing out on an annual bonus of £1,000 paid for by the government. Although you can only use the money you save to buy a property (below £450,000), if you’re aged 18-39 and haven’t yet bought your first home, you are able to save up to £4,000 a year and you will receive an extra 25% on top!

    Pension annual allowance

    Following on from the spring budget, pension savers can now contribute up to £60,000 per annum into a pension. However, advice should be taken as an individual’s allowance may be restricted to an amount less than £60,000 due to complexities with the rules. Similar to the ISAs, pensions are tax efficient savings vehicles which can be accessed from the minimum pension age. Your pension can be used to invest in various different investments including cash savings, investment portfolios and commercial property.

    Capital gains tax allowance.

    During the tax year 2023/24 the capital gains tax allowance is £6,000 per person. If you have used both your pension and ISA allowance, you could consider investing into a General Investment Account and crystallise your gains on an annual basis. Please note that the capital gains tax allowance is reducing to £3,000 from 6th April 2024.

    Dividend allowance

    Rather than investing in growth assets there is the option to invest into income distributing funds. Any dividend received on unwrapped investments can be claimed tax free if it falls within your £1,000 Dividend Allowance. Please note that the Dividend Allowance will fall to £500 from 6th April 2024.

    GET IN TOUCH

    For further information or advice on how to best utilise your allowances, please contact a member of our financial planning team by emailing financialplanning@pmm.co.uk or call 01254 679131.

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

    UK Equities – where are we at?

    Posted on by Laura Bannan

    2023 has seen UK equities fall behind again in terms of returns and it continues to be widely publicised that the UK equity market has become a global backwater, with companies and investors lacking vibrancy. However, if you look more closely, there remain important features of durability which should continue to keep capital flowing in.

    In terms of positives for the UK, it looks to be in a good place in terms of property rights and rule of law, the political system allows governments and leaders to operate relatively well, the Treasury has a solid track record of collecting taxes, and there are also time-zone and location benefits.

    Why is it important?

    The long-term health of the UK is key when it comes to investment portfolios. When considering the blend of an investment portfolio for UK-based investors and those likely to have liabilities in sterling, investing in the domestic market can often help to reduce currency risk, cost and tax.

    Many assume that companies listed in the UK are priced in pound sterling and therefore are excluded from currency risk, however this is not necessarily the case. Revenues and cost bases are often global in nature and profitability can be dictated by the performance of the pound. Any weakness could be down to a tailwind for those generating revenues in another currency, and the other way round. This could potentially have a serious impact on those with large cost bases in the UK.

    Measuring and managing the translation effect is virtually impossible given the huge number of factors impacting company accounts, and the fact that accounts are only ever a ‘point-in-time’ snapshot of activity provides an extra complication. At least by having a home bias, it provides a degree of reduced currency risk and diversification.

    When it comes to tax, this is essentially about the treaty status between the UK and the country of domicile, where the dividends or interest payments originate. In relation to withholding tax, this is taken at source and dividends coming from US-listed investments, for example, would be levied at 30% for UK investors. This could be reduced by a series of forms and reclaims but can act as a drag on performance for both active and passive investments. Although relatively small given some markets are not focused on dividends, this barrier to return can give the UK market an advantage for UK investors.

    Summary

    The nooks of the matter are that we continue to believe in a well-diversified portfolio which helps us manage volatility and medium-long term performance. If we exit from certain equity markets, we miss out on the upturns too. This is depicted in the below graph which highlights the value as at 31/12/21 of a £10,000 investment being placed in 1981, in various scenarios.

    Inflation is high and interest rates have been ascending, but this isn’t just a story for the UK, this is happening all around Europe.

    Get in touch

    As always, every individual situation is different, and it is vital to get advice based on your exact circumstances when considering any type of investment.

    If you would like to discuss your investments in more detail, or need some tailored advice specific to your situation, please get in touch by emailing financialplanning@pmm.co.uk or by calling 01254 679131.

    The value of investments can fall as well as rise. You may not get back what you invest.

    The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

    Inherited pensions could be taxed under new proposed rules

    Posted on by Laura Bannan

    From 6 April 2024 inherited pensions may no longer be excluded from marginal rate income tax, following plans announced by the government to change income tax rules for inherited pensions and make them liable for marginal rate income tax.

    It is not yet fully understood exactly how the proposed tax change will work as it was only mentioned as part of new guidance in relation to the removal of the lifetime allowance, so further detail and clarity is needed.

    As part of the Spring Budget 2023, the lifetime allowance cap was abolished which removed tax liability on larger pension pots exceeding £1.07m. During the latest announcements it was stated that the government now intends to charge tax on pension benefits at marginal rates of tax.

    It is believed that the measure is being introduced as a way to offset the loss of tax from the removal of the lifetime allowance. However, as far as we are currently aware, all pension beneficiaries would be included.

    Who will be impacted?

    Under the current regime, if someone dies before age 75, their pension can be inherited completely tax-free if taken as income

    However, the government is considering new rules, where someone dies before age 75 and they choose to access as yet untouched inherited pension as income, the entire amount would be subject to income tax.

    By contrast, if the same person took the inherited pension as a lump sum and it was within the £1,073,100 lump sum limit, it would remain tax-free

    Therefore, these changes could potentially subject many more people to taxation and would affect beneficiaries of members who die before age 75 leaving unused funds in their pension pot.

    Summary

    The proposed changes could be huge for the way tax is treated in relation to beneficiary pensions and further clarity is certainly needed from the government before they come into force from 6 April 2024. However, it could be sensible to plan ahead where possible and think about how the changes might affect your personal circumstances.

    For further information or advice on how the potential changes could impact you, get in touch with a member of our financial planning team by emailing financialplanning@pmm.co.uk or calling 01254 679131.

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

     

    Could you boost your state pension?

    Posted on by Laura Bannan

    Could you boost your state pension?

    The state pension usually forms a large part of retirement planning, and it is important to check that you have made the necessary national insurance contributions to receive the full amount. If you find you have fallen short, there is the option to ‘top up’ with voluntary contributions but there are restrictions on this.

    The original deadline to plug any missing gaps dating back to 2006 was 31 July 2023, however following the massive number of calls received ahead of the deadline it has now been extended to April 2025. The extension means that individuals will have a longer period to fill any gaps to ensure they will be eligible to receive the full state pension at retirement. Filling in the gaps normally offers great value for money, as the break even point could be around 4 years in to receiving your state pension.

    To qualify for any state pension, you will require a minimum of 10 years national insurance contributions. As of the tax year 2022/23, the full state pension entitlement is £203.85 per week and to qualify for this, a full 35-year national insurance contributions is required.

    Presently state pension age is 66 for both males and females. Current legislation is for state pension age to increase to 67 in 2028, and it is being ratified for an additional increase to age 68 in 2039.

    Summary

    If you think you may fall short of receiving your full state pension because of gaps in your national insurance contributions, looking to top these up with voluntary contributions could be a great way to ensure you’re going to have sufficient funds to live the lifestyle you desire in retirement.

    Along with many other considerations, your state pension should be a key factor in your retirement planning. We can help you plan ahead by creating a personalised cashflow plan which is based upon your current circumstances and an agreed set of assumptions.

    Get in touch

    For further information or advice on your pension savings and planning for your retirement, get in touch with a member of our financial planning team by emailing financialplanning@pmm.co.uk or calling 01254 679131.

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.  

    Is the new year a good time to consider your investments?

    Posted on by Katie Heaton

    With a fresh year underway, it could be the perfect time to review your investments and consider if there are any adjustments you should be making given the current challenging financial market.

    With huge amounts of uncertainty due to various reasons including the cost-of-living crisis, recession and the ongoing crisis in Ukraine, it can be tempting to make changes to your investments or look to withdraw them out of fear. However, as the well-known golden rule of investment states, “time in the market beats timing the market!”.

    What should I do?

    Although often difficult, it is important to ride out a negative market cycle where possible. There may be circumstances where access is unavoidably required, but investors must generally hold their nerve and remain focused on the long-term objectives.

    If an investor finds themselves in a phase of accumulation, ongoing investment contributions benefit from market volatility as, when markets fall, investors can often buy more units for their money. Regular investors can benefit from pound cost averaging to potentially smooth out market volatility. Fewer units are purchased when prices are high, but more units when prices are low.

    Investors who find themselves in a decumulation phase (i.e. those who are accessing their portfolio) must be ready to play the waiting game as it is typically better to ride out market cycles rather than try to time them. Those who exit the markets temporarily could find themselves buying back in after markets recover, which can be risky.

    If you are close to, or have reached your de-cumulation phase, you should hold a contingency fund to ensure any capital requirements can be satisfied from cash, rather than risk selling down part of an investment portfolio at a bad time. It is also important to consider retaining cash to provide the liquidity to fuel ongoing income requirements for a set period, reducing the risk of having to sell down for liquidity purposes during periods of volatility.

    Summary

    Investors should remind themselves why they are investing, have a plan in place and bravely ‘ride out’ a difficult market cycle – holding cash for contingency and shorter-term liquidity can help with this.

    Meanwhile, diversification across assets is also important to ensure you have a portfolio capable of withstanding a negative market cycle. This means including assets which are likely to do well during economic growth, but also some that are likely to do better in difficult times. It is usually a good idea to include a broad mix of equities, bonds and some alternatives. It may also be wise to consider a variety of sectors and themes too.

    Get in touch

    As always, every individual situation is different, and it is vital to get advice based on your exact circumstances when considering any type of investment. PM+M’s Managed Portfolio Service, is a bespoke investment portfolio produced by us, and managed in collaboration with AJ Bell, to make your life easier. At PM+M, we are currently having a rethink of our house asset allocation (blend of investments) and will shortly be implementing these changes for our clients as we plan forwards for them.

    If you would like to discuss your investments in more detail, or need some tailored advice specific to your situation, please get in touch by emailing financialplanning@pmm.co.uk or by calling 01254 679131.

    The value of investments can fall as well as rise. You may not get back what you invest.

    The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

    How to plan financially for a recession

    Posted on by Helen Buchan

    With forecasts predicting the UK is facing the prospect of a challenging two-year recession, inflation rising at a record rate and the cost of living crisis ever widening, as part of our recession resilience series, we consider some of the ways you can look to prepare financially.

    If possible, save an emergency fund

    During a recession, the risk of redundancy is unfortunately higher and this coupled with factors such as household bills continuing to rise, means it is extremely sensible to have an emergency fund available if at all possible. The ideal would be 6 – 12 months’ worth of expenses but obviously any amount is better than nothing.

    If you are able to raise an emergency fund, it can provide some much-needed peace of mind that you would be able to survive without having to take on additional debts or get in arrears with any bills. It is also important to remember that there can sometimes be unexpected events which arise and require immediate funds at short notice, such as damage to your property or vital car repairs.

    If saving an emergency fund is not an option, which is the case for many right now, then it is always worth looking closely at your everyday expenses to see if there are any savings that can be made there, although these may only be small individually, it can soon add up if there are a few.

    Review your investments

    Considering historical data, we know that stocks tend to rise right into a recession and fall during it. However, it’s impossible to forecast, as both markets and economies are unpredictable.

    It is important to understand that the market can be volatile, and you should aim to focus on the long term. Our Managed Portfolio Service is a bespoke investment portfolio produced by us, and managed in collaboration with AJ Bell, to make your life easier.

    Of course, when a recession is predicted, it is completely normal to worry about your investments. Working together, we continually monitor the market, conducting ongoing due diligence and proactively making fund and asset allocation changes when we feel it is necessary to manage volatility and drive long term growth.

    If you do have spare cash, there could be an opportunity to buy whilst markets are devalued; this could represent good long-term value.

    However, if your cash isn’t available to invest for at least 5 years, it’s worthwhile reviewing bank interest rates to ensure that you are capturing the most efficient return.

    Examine your mortgage

    Look ahead and speak to a mortgage expert before there are changes in your circumstances or any fixed rates come to an end. Unfortunately, it is looking likely for many that a rise in interest rates is inevitably going to lead to higher mortgage payments so it is sensible to start looking now at ways you are potentially going to be able to manage this. It may be necessary to look closely at your monthly expenses so see if there are any possible savings to be made which could cover a rate rise.

    Are you protected?

    Most people’s greatest asset is their income so in uncertain times, it’s more important than ever to make sure you are protected if you were to become unable to work because of illness or injury. Income protection or critical illness cover could provide a vital financial lifeline to you and your family should the worst happen and you become too ill to work.

    Another one to consider could be mortgage life insurance which would provide a lump sum to your family if you were to die prematurely. This could remove the huge burden of having to cover the remainder of the mortgage debt for your family in this difficult situation.

    Think carefully about your pension

    When faced with difficult financial challenges, it could be that your pension is low down on your priority list but this could prove to be a costly mistake in the long run. Your pension provides a great, tax efficient way to save and it is important to protect it, even when cutting back on your contributions could make life easier in other areas.

    If you are getting close to retirement and are concerned that your pension fund may have decreased in value because of the falling stock market then speak to your pension provider, for most, this shouldn’t be a problem as the level of risk for a pension portfolio decreases as you get closer to retirement age.

    If you don’t already have a pension, it could be a good time to consider starting one as if you look to invest while the stock market is low, it can provide more opportunity for higher returns in the longer term.

    Summary

    There is no doubt that the coming months are going to be a huge challenge for many but considering some of the above factors in advance and being pro-active with planning for the worst, could make a huge difference to your financial outlook long term.

    Get in touch

    For further information or advice, contact a member of our financial planning team today to talk through your personal circumstances, email enquiries@pmm.co.uk or call 01254 679131.

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

    USING YOUR SUMMER HOLIDAY AS A TIME TO REFLECT…

    Posted on by Laura Boyd

    In our latest blog PM+M partner, James McIntyre, describes his moment of reflection on holiday in North Devon, highlighting the importance of financial planning, should the worst happen…

    You may have already enjoyed your summer holiday, or be getting ready to brave the airport queues, in anticipation for a week in the sun.  I have been able to enjoy a week with my wife and little ones, in my favourite place on the planet – North Devon. It’s a time for fresh air, family, food/drink and for many; a time for reflection.

    Holidays are essential and I am a great believer in making the most of your life now. However, I also believe that it is essential to plan for the future and consider the ‘what ifs.’

    FAMILY TIME

    On holiday, my two favourite pastimes are: being buried in the sand by my two children and building a channel down to the sea, only to see my sandcastle get washed away minutes later! I will genuinely treasure these moments for the rest of my life. This moment got me thinking – my family are ‘my everything’ and therefore I honestly believe that it’s important to make sure that they are adequately cared for should something go wrong.

    That’s why I have ensured I have the following in place, should the worst happen.

    PM+M have ensured that my income is protected should I be unable to work due to an accident or sickness. You could take out one of these plans personally, or as an employer, you could set up a group income protection scheme.

    My mortgage will be repaid in the event that I was to die or become seriously unwell. Debt is the last thing that I want to leave to my family, should disaster strike.

    As the main breadwinner in our family, I have also ensured that there would be a capital lump sum should I die or become seriously unwell. I have made the decision that I am not prepared to compromise my family, should anything go wrong. I wouldn’t want my little girl and boy to be without a Daddy and I certainly wouldn’t want them to be without a Daddy and leave my wife in a challenging financial situation – fortunately the latter is something that I can control.

    I have also ensured that I have a will in place and that my pension death nomination forms are up to date.

    BUILDING SANDCASTLES

    Back to the beach! I love to build sandcastles – I must admit that on a number of occasions, when the little ones have become bored, I am likely to be seen continuing to build the sandcastle on my own; a big kid at heart. There is a knack to sandcastle building: you need sturdy foundations, the right tools and the right sand/water blend.  How does this link to financial planning, you ask?!

    Building wealth to enjoy holidays and help sustain lifestyle during later life is equally as important as living life now. I urge you to consider starting to build your sandcastle (your retirement fund) as soon as possible.

    You will need:

    • Sturdy foundations – it’s important to start planning as soon as possible. We consider the foundations of financial planning to be your personalised cashflow forecast to determine how much you need to save now, to meet your objectives in the future
    • The right tools – we would ensure that you choose the right vehicle, be that a Pension, ISA or something else. We will also ensure that your contributions are managed in a tax efficient way to create the best efficiencies possible
    • The right blend – at PM+M, we can manage your portfolio on a proactive basis. This means that we can make changes to your underlying investment funds and your asset allocation (the blend of different types of investment) whenever it is deemed appropriate by our experienced team.

    Once you reach retirement, we can also help you manage your fund in a sustainable way whilst allowing you to enjoy your extra time. Unlike a sandcastle, we don’t want your retirement fund to be washed away!

    ENJOYING THE SURF

    North Devon is notorious for great waves and therefore when the tide is right, the sea is packed with surfers who put my paddle boarding to shame. I’m probably much safer on a boat trip to visit the seals and dolphins.

    Cashflow planning is rather like exploring the ocean. The captain needs to know where they are going, they need to navigate rough seas and hopefully enjoy calmer waters at the destination.

    Once we know where you want to go, we can determine what you need to do to reach your goal, that could be helping you understand how much:

    • you need to save now to be able to retire at a specific age
    • you can afford to gift without compromising your own sustainability
    • you need to sell your business for to retire when you desire
    • your family will need in the event of death or illness.

    As part of our ongoing service, we will be there for you throughout the journey – helping you reach calmer waters.

    GET IN TOUCH

    I hope that you enjoy the rest of your summer. If you would like to consider any of the financial planning needs discussed, it would be great to talk. Get in touch by using the button below.

    A comment that the possible changes may not arise and that any current information included in the article represents your understanding of law and HM Revenue & Customs practice as at 06/07/2022

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

    PM+M Court of Protection Service

    Posted on by Laura Boyd

    At PM+M, we offer a fully integrated approach where we support our clients in all areas of accounting, audit and advisory, cloud accounting, corporate finance, payroll, tax, financial planning and private client work. Through our services, we aim to assist and support our professional connections to the best of our ability. We are delighted to introduce our Court of Protection services, read our latest blog to learn more about what we have to offer.

    Introducing our Court of Protection service

    At PM+M, our investment proposition, financial planning advice process and Court of Protection advice specialism has enabled us to develop a unique Court of Protection service which is tailored to suit our clients. We aim to meet your requirements and enable a more efficient process for your business whilst offering a caring and holistic planning approach for your clients.

    PM+M has developed a specialism within this field and understands the sensitive nature of the work involved. We recognise the breadth of work that the appointed deputy must do for their client, including benefit assessments, managing spending sustainably, managing periodic payments and supporting everyday care needs and issues that materialise. We want to support you in the best way possible to ensure that you can spend your valuable time where it really matters.

    We care about managing your clients’ finances in a sustainable manner and we prioritise their safeguarding. Here, we understand the importance of short, medium and long-term planning and will consider client retirement needs. We can work with you for the duration of the court order and continue to offer a client support thereafter if deemed to have capacity to act for themselves.

    What will our Court of Protection service offer you and your clients?

    • You will work with a dedicated team who will help you meet your reporting requirements, freeing up time to dedicate to your clients.
    • We will provide you with annual review meetings and valuations in line with your reporting periods alongside the timely production and submission of a tax return.
    • You will have the choice between our proactive in-house discretionary (Managed Portfolio Service), advisory or ESG (Environmental, Social + Corporate Governance) investment offerings.
    • We will also assist with cash management to ensure security from a financial services compensation scheme perspective.
    • We will offer lifetime cashflow planning to satisfy court order requirements whilst managing wealth in a sustainable manner

    Get in touch

    We tailor the service to suit the needs, requirements, and processes of your practice. If you would like to understand more about this service for your practice and clients, it would be great to hear from you – please read our brochure or contact James McIntyre, using the button below.

    Budgeting – how to achieve more from your money

    Posted on by Laura Boyd

    Budgeting can be a fantastic tool to help your money go further. In our latest blog we highlight the basics of budgeting and how you can make the most of your hard-earned cash.

    How to get started

    • Calculate your income after tax

    Most people know their salary, but it is important to note down your take-home pay – which is how much money you take home after tax and other deductions. You should also include any means of income outside of your salary.

    Knowing how much money you have after tax will make budgeting a lot easier.

    • Track your spending

    You should categorise your spending to identify where most of your money is spent. This will help you determine which expenditure will be easiest to cut back on.

    Start by listing all your fixed spending – things like monthly bills, rent, mortgage and vehicle payments. Knowing how much you spend on these can be helpful when budgeting.

    Then, list your variable expenses – things that are likely to change from month-to-month, such as groceries, fuel, and entertainment. Typically, your variable expenses are likely to be the easiest to cut back. The best way to begin managing and tracking your variable expenses is by looking through your credit card and bank statements and categorising your spending, from most required to least required.

    Make a plan

    When you have a good idea of what you are earning against what you are spending – make a plan. Examine where your money is going, and whether you have the capacity to cut back on any of your expenditure.

    The first things you should think about cutting back on are commodities: the things you want but do not really need. Perhaps you can spend a night watching a movie at home instead of going out to the cinema? Or produce a more budget-friendly meal at home rather than spending in a restaurant? Try adjusting your numbers to see how much you can afford to cut back.

    If you are spending more than you are earning, or if your budget isn’t allowing for as much freedom as you would like, try to scrutinise your expenditure in more detail. You may even benefit from adjusting your fixed expenses – but this can be harder to do if you are in fixed contracts, for example.

    Pitfalls to budgeting

    At the beginning of your budgeting journey, it is easy to become overwhelmed.  Consider the possible pitfalls of budgeting outlined below:

    • Overestimating your income: it is easy to look at your income and forget about any deductions. In which case, you will overestimate the amount you earn, and you may be planning to spend money you do not have
    • Underestimating your expenses: it is important to be vigilant with your expenses. Although it is easy to ‘cheat’ your budget, this will not help you manage your money. You may benefit from writing a daily budget entry on paper or on your phone – quickly jot down any daily expenses and at the end of the month, calculate and reflect on what you have been spending.
    • Not having a strategy: when starting your budget, consider what you want to achieve, do you want to save money for a rainy day, pay off your debts or something else? Having a strategy for your budget is important to help you achieve your goals. For example, if you unexpectedly require money due to an emergency, it would be convenient to have savings which you can fall back on. As such, you may want to add savings to your list of ‘expenses’ to plan for this eventuality.  Alternatively, you may want to see some more growth from your money and be interested in investing – if this is the case, speak to an expert to find out how they can help your money go further.  Remember to keep in mind that investments can fluctuate with market volatility.

    Budgeting can be a fantastic way to manage your expenditure and essentially save money. By planning carefully, and being strategic with your budget, you can achieve more from your money.