FINANCE

WHAT’S THE BEST FINANCIAL DECISION YOU EVER MADE?

I asked this of a client recently and they said the best financial decision they ever made was getting divorced! But seriously the best investment decision most people ever made was buying their first house because inflation does the rest; you need a deposit to start and an income to pay the mortgage. There is a little luck involved however because you could be buying at the wrong end of the boom and bust cycle. We have a client who likes houses so much every time he moves he keeps the old house and now has four! Another client says his best investment was a lottery ticket as it made him three million but that’s more luck than judgement and we don’t encourage gambling. If you had used your maximum stocks & shares ISA allowance from the date they commenced in 1999 you could be an ISA millionaire by now. There are several out there but it does mean picking the right shares and funds so it doesn’t just happen on its own, that’s where we come in. What does happen on its own is making money on premium bonds as they create a millionaire every month. The maximum holding is £50,000 just now so the more you hold the better your chance of winning. Joining your employers pension scheme has been one of the best investment decisions most of our clients have ever made. We often see values of half a million and for most people that’s a mini lottery win. The profession you choose or find yourself in might be your best investment decision so using your brains rather than your hands makes a big difference. One manual worker however made it work in his favour, his name was Percy Shaw from Halifax and he became a road contractor. One night driving home in the dark a cat sitting on a fence looked at him and he had that ‘eureka moment’ from the reflection. He became a millionaire by inventing the cat’s eyes on all our roads today. I have a grandson who has an entrepreneurial streak and wants to get into ‘penny shares’ it might be his best money decision ever but needs some tips, can anyone help?

PHILIP VAUGHAN Director at Abacus Assurance Financial Services Ltd Porthcawl 01656 772222

SPRING CLEAN

Spring is [hopefully!] now in the air, and the classic springcleaning will be undertaken by many. Gardens, garages and cupboards are having their annual tidy up, and doubtless the queue for the tip will be huge! However, how many of you take this same opportunity to do a spring clean on your finances? Why not make some time this year? As a starter, are you one of the many thousands of mortgage holders whose deals have expired and are now on the standard variable rate? Interest rates are still at an all time low, and there are some great rates available. Switching to a new mortgage rate could potentially save you thousands. Another often overlooked area is that of protection. When did you last check what level of life, critical illness and income protection cover you have? If you’ve changed employers in the last few years you may no longer have the same levels of these types of protection that you once did. Additionally, if you’ve started, or extended the family, are you comfortable that your loved ones would be adequately catered for should the worst happen? Do any existing plans you hold still match their original purpose? For example, have you topped up the mortgage, or changed the term, but left the original covers in place? You could have a shortfall? And when did you last review your retirement plans? Are you still on track to retire on your terms? Why not give me a call on 01656 771747, or 07859 129850. As an Independent Financial Adviser at Tavistock Partners (UK) Ltd, I can access the whole of the market for all areas of financial advice. In these strange times, I can conduct meetings either via video call, or over the phone, until we can meet face to face again in the future.

Tavistock Partners (UK) Ltd are authorised and regulated by the Financial Conduct Authority. FCA No: 230342

PHIL PROTHEROE Tavistock Partners [UK] Ltd 01656 771747/ 07859 129580

95% IS BACK FOR FIRST-TIME BUYERS

As I write, the news that all first time buyers were waiting on is that one of the country’s major lenders is offering new 95% scheme for those purchasers only. It’s only available authorised through mortgage brokers and we are delighted to be able to offer this scheme to our Clients. So, if you are a first time house purchaser with a 5% deposit, call us without delay, with applications going into the lender from all over the UK. Call 01656 782545 / 07768 418308, with the mobile available out of hours up till 10pm even on weekends. Older Clients who already have a Later Life or Equity Release scheme, you could now be enjoying the very much lower rates on offer from the market, especially if you took out your scheme more than 3 years ago. We can’t guarantee that everyone will qualify to switch rate, as this will depend on property value, your age and how much you owe currently. However, a phone call could lead to you saving many thousands of pounds in interest. Give us a call and we’ll do a free appraisal for you. At the time of writing, a disturbing survey by MoneySupermarket reveals that a whopping 41% of homeowners with dependents have NO life cover whatsoever, which is a dire situation, especially if there is also a mortgage in place on the family home. One big misunderstanding is that people believe that life assurance is expensive; in reality, many policies can be obtained for little more than 50p per day. With a move away from smoking and with people paying more attention to their health, life cover rates are probably the most competitive they’ve ever been and offer that vital reassurance for families, should the unexpected happen. We’ve all heard about or know about people who have died unexpectedly, and some of these very young, long before their time. Don’t be complacent, pick up the phone and ask us for a quote – we deal with all major insurers. 01656 782545 / 07768 418308. You could be very pleasantly surprised at just how inexpensive it could be for you.

PAUL FIELDING Dragon Financial 01656 782545 / 07768 418308