The idea of retiring in your 50s or even your 40s sounds like a pipe-dream to most, what with the increased cost of living, inflation and other economic factors slowly eating away at your predicted earnings
How is your financial wellbeing?
Increasingly, people are talking about financial wellbeing. But what does it actually mean?
Financial wellbeing is about having a sense of confidence and security around money. It’s about having enough money to meet everyday needs and being in control of your finances; having the financial freedom to make choices that enable you to enjoy life.
First the good news. None of the leading world stock markets on which we report in this Bulletin fell in April. With just one exception – China – all the markets made gains, with the German DAX index leading the way.
People simply aren’t saving enough into their pension funds. Despite the relative success of the auto-enrolment of employees into their employers pension scheme and the increase of minimum contributions from 5% to 8%, there’s still a culture of misunderstanding surrounding pensions.
Benjamin Franklin famously said, ‘In this world nothing can be said to be certain except death and taxes’. And if your estate is valued at over *£325,000, everything above this figure will be taxed at 40% when you die. Even in death there’s no relief from taxes!
We have commented before on the difficulty of ‘hitting a moving target.’ Sometimes in writing this commentary you run the risk of what you write being overtaken by events, and that has never been more true than this month. In the short time between us publishing notes and you reading them it is possible that the Brexit section will be different.
The rules around ISAs (or individual savings accounts) change relatively often and different types of ISA rise and fall in popularity depending on where savers consider the most competitive place to put their money.
ISAs are a great way to save because of their tax efficiency. You don’t pay income tax or capital gains tax on the returns and you can withdraw any amount any time as a tax free lump sum. Because of their tax efficiency, there are set limits on how much you can save using ISA accounts.
Retiring overseas is a dream for many Brits. After all, who wouldn’t be tempted by the better climate and the amazing travel opportunities found abroad. Where you choose to spend your retirement, however, will affect how much state pension you get.
The story of the US/China trade dispute was a thread running through much of last year. Some progress was made in resolving the dispute at December’s G20 summit and that appeared to continue in January with China saying it is ‘ready to work’ with the US. Donald Trump confirmed this, describing a telephone conversation with Xi Jinping as leading to ‘big progress’.
If you’ve received money in a will from a relative or close friend, it can be difficult to have a clear idea of what to do with it. Of course your personal circumstances and the amount that you receive will play a big role in your decision, but whatever the case, these are four things you should always consider.