Radcliffe News

Sep

14

Moneyworks

Please see attached below the Autumn 2018 Moneyworks consumer guide to view at your leisure. Moneyworks Autumn... Read More »

May

16

UK stocks – a mixed bag

Brexit or not, cyclical factors do not favour UK stocks in a maturing bull market. Compared with global stocks, UK stocks are skewed heavily toward commodities and defensive sectors and almost no tech. Accordingly, they usually outperform global markets in the middle of bull markets. Since 1970, the MSCI UK outperformed the MSCI World 100% of the time during the middle-third of bull markets’ lifetimes. But during the final third of those markets, UK stocks underperformed on five of the last... Read More »

May

16

Free the mortgage prisoners!

Tens of thousands of home owners who took out loans before the financial crisis are trapped on lenders’ standard interest rates because of changes to rules on whether they can afford repayments. It means that even if they have been paying off their mortgages every month they may not qualify to switch to a deal which is cheaper. The Financial Conduct Authority (FCA) is to consider seeking an industry-wide agreement to approve applications from those who took mortgages out before the crisis and... Read More »

May

16

Equity release on the rise

The surging growth of the equity release market suggests it is fast becoming a go-to option for many homeowners over 55. After a rapid rise in the amount of housing equity being withdrawn in the past 12 months, in particular, equity release is now a £3bn-a-year industry. This still represents less than half of the £6.5bn withdrawn from pensions using freedoms during the same period, but it is the direction of travel that catches the eye. Of note, The Equity Release Council reported that... Read More »

May

16

Investing for income

Retirement investors looking to generate sustainable income should consider investing in a diversified portfolio of different types of investments. The combination of various asset classes that have low correlations with each other provides downside protection during tough times, helping to generate superior risk-adjusted returns. Beyond equities and bonds, investors should also consider investing in property and alternatives, such as private equity, infrastructure and credit investments, to... Read More »

May

16

Steep charges for exceeding lifetime allowance

The amount of tax collected for people whose pension exceeds the Lifetime Allowance (LTA) has ballooned by 1,000% since the policy was introduced in 2006-07. When the LTA was brought in, the tax collected was less than £10m, but the tax taken has now grown to £110m in 2016-17. The LTA was introduced in 2006, aiming to limit the value of payments from pension schemes before tax charges occur. There is an obvious link to make between the increase in tax take and the slashing of the lifetime... Read More »

May

16

California overtakes UK in term of GDP

Despite having a population of only 40 million compared with the UK’s 65 million California’s economy has surpassed that of the United Kingdom to become the world’s fifth largest, according to new federal data made public last Friday. California’s gross domestic product rose by $127 billion from 2016 to 2017, surpassing $2.7 trillion, the data said. Meanwhile, the UK’s economic output slightly shrunk over that time when measured in U.S. dollars, due in part to exchange rate... Read More »

May

16

Making the most of the capital gains tax allowance

There is reported widespread under-use of the annual £11,700 capital gains allowance – a tax break that can be used as a tool to save thousands in tax bills. Each year you can take some gains before being subject to capital gains tax – this year it’s £11,700. It is therefore worth planning when to take gains in order to stay below the threshold in any one year. Spouses also have an allowance, which means it’s possible to share assets and both take advantage. One thing to note is that... Read More »

May

16

Services performance halts talk of interest rate rise

Analysts and investors had been very confident the Bank of England would raise the rate to 0.75% on 10th May. Not so now. The Bank of England is almost guaranteed to leave interest rates unchanged at 0.5%, analysts say, after news of poor service sector activity in April ended any remaining justification for a rise. Economists had expected a rebound in April after activity was curbed by March’s bad weather. The disappointing services data will add to expectations that the MPC will take its... Read More »

May

1

Small businesses cry out for help on pensions burden

Barely two months after the last small businesses moved into the auto-enrolment pensions regime, the clock is now ticking to a big increase in the cost of the scheme. From 6 April, the first day of the 2018-2019 tax year, the minimum contribution employers must make to the pension pots of their employees will double from 1% of pensionable pay to 2%. The smallest businesses, which may only just have got used to paying pension contributions, may find the higher costs particularly hard to deal... Read More »