Generating your Wealth

Too many of us let cash languish in accounts or in products paying poor returns. Shake off this laziness to give yourself better returns, and hunt down any forgotten funds or concealed cash. You may be amazed at what you find!

Have you thought about where your regular income will come from when you retire? Even though your regular expenses may decrease (things like mortgage payments, for example), you would probably like to have some regular money coming in to help you make the most of those ‘golden years’. 

That’s why it may be a good idea to invest in a pension or another suitable investment plan and start a retirement fund as soon as possible.  The Government encourages us to do this by making pension savings tax-efficient.  This means that, for every bit of money you put in, you’ll receive an amount from the Government on top, up to an annual limit.

There are several types of pensions on the market and you’ll need to decide how and where your money is invested, however, it’s important to remember you can’t take it out until you retire!  Start saving as soon as possible though, because any delay could have a huge impact on the value of your pension pot at retirement. It’s a good idea to get some advice on how to best manage your pension plans from one of our advisers.

Improving your investments

You could get better returns and achieve your financial goals faster by improving your investments. Think about whether your needs have changed over time since you took out your plans?  

Reviewing your investments

Are your investments giving you the best returns you can get? Review your investments regularly to see how they are performing.  Speak to one our advisers regarding an investment review.

Managing your investments

Find out how best to manage your investments and stay in control of your money. Sign up to manage your investments online and keep track of any rise or fall through our Client Website.

Tax-efficient investing

Could you be making more of your tax allowance? Investments like pensions, ISAs and bonds can all help protect growth from the taxman, depending on your circumstances.

Are you making the most of your tax allowance? Not all investments are tax-efficient but if you want to protect any growth in your investments from the taxman, we can help.

What are your options?

Pensions, ISAs and bonds all offer tax-efficient investment options. Inheritance planning can make a real difference to the size of any estate you want to pass on to future generations.

Maximise any tax-free returns

ISAs 

Choose from Cash or Stocks & Shares ISAs. You can save an annual overall allowance of £10,680 of which a maximum £5,340 can be in a cash ISA. Any returns you make will be tax-efficient, although this may change in the future. You can save for income, growth or both.

Pensions

The government gives you 20% basic rate tax relief on any money you put into a personal pension (within limits). For example, if you want £125 to go into your pension pot each month you only need to pay in £100 and the government pays in £25. If you’re a higher or additional rate taxpayer, you can claim extra tax relief through your tax return (subject to limits).

On retirement you’ll then normally be able to take up to 25% of your pension pot as a tax-free lump sum. The remaining income from your pension will be taxed as normal. 

Tax deferred options

Onshore and offshore bonds – these provide an opportunity to take up to 5% of your original capital investment as income for up to 20 years without any immediate tax charge. This could be helpful if you’ll be moving to a lower tax bracket during that time, for example if you retire.  

Planning for the future

When you die your estate is valued and inheritance tax (IHT) may currently be payable on anything over £325,000 at 40%.

As well as property, valuables and investments, the IHT bill could include gifts made within the seven years before your death - so it makes sense to reduce your tax liabilities.

For more guidance, contact us 0844 272 3701

Tax relief on any investments you hold may change. Its value may also depend on your individual circumstances. The information provided here is based on our understanding of current law and HM Revenue & Customs practice.

Encore Financial Solutions is authorised and regulated by the Financial Services Authority (529581).  Registered Address 1L, 17 Oakburn Gardens, Jamestown, Alexandria, G83 9NN