Benefits of Financial Advice That’s Independent
Equity markets are erratic, the uk plc has overspent and many people are not sure of the future as far as jobs, money & finances are concerned. It might all seem a tad uncertain and indeed the UK has a lot of pain to bear before we begin to get the finances in order. Although the new coalition government can start to address the problems facing the UK we can all take a little time to review our own individual finances.
I am a firm believer that where change comes about, chances are present. The emergency budget will close some loopholes as far as financial planning is concerned, but others may open up to promote entrepreneurship and long term saving. Personally if you can obtain the most acceptable investment return for the amount of risk you are prepared to accept , blended with utilising tax breaks and low cost investment products, then over the long-term you should see the benefits.
The old phrase “don’t let the tax tail wag the dog” has never been closer to the truth. Seemingly a large number of people with buy to lets have put them up for sale, hopefully to sell before the emergency budget in three weeks time. The reason is the possible change to capital gains tax. Great, but what if the government decide to backdate CGT to the Sixth of April. In reality these investors should have taken the possibility of CGT into account when planning their investment portfolios. Property is an ill-liquid asset it cannot be easily disposed of. Due to the growth in property values over the last 10 yrs many investors will face potential CGT demands when they least expect it.
A competent financial adviser should be able to point out the advantages & disadvantages concerning different types of investments. This should include the investment risks and potential tax implications.
Consilium Asset Management is an IFA in Bristol.