Tag Archives: Money

Tax year end: last minute pension planning tips

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  • Investors are urged not to forget the ‘forgotten’ allowances
  • Falling annual allowance emphasises the importance of making hay while the sun shines
  • 50% tax relief is only available until 5th April
  • Bed and Sipp
Use your earnings related pension contribution allowance. For the past three years, we have seen a steady erosion in pension contribution allowances, with both the annual and lifetime allowances being cut. Both the Liberal Democrats and Labour have threatened to go further and limit the rates of tax relief available on pension contributions. If you have spare capital which you are looking to invest for your retirement, then it makes sense to get on and do it before 6 April.
Tom McPhail, Head of Pensions Research “Pensions are sometimes the forgotten allowance at this time of year when attention tends to be focused on ISAs, but with retirement saving tax breaks coming under increasing pressure from the Chancellor, wise investors will make hay while the sun shines. If you don’t use the allowances now, you may not get the chance next year.”
Non-earner’s pensions
It makes sense to share household retirement savings to take full advantage of the tax free personal allowance in retirement. Non-earners can contribute up to £3,600 a year to a pension and enjoy tax relief on their contributions. With personal allowances set to rise to £9,440 in 2013/14, a couple in retirement could enjoy a household income of nearly £19,000 a year without having to pay any tax – but only if they have shared their pension saving equally between them.
It is also possible to make pension contributions for your children – an effective way to give them a head start on their own retirement saving, as well as reducing a potential inheritance tax bill.
Bed and Sipp
Use existing investments to make a pension contribution. Even if you don’t have cash available to invest in a pension, you can potentially use other investments.
For example: Peter has some shares which he bought 10 years ago for £10,000. Today they are worth £15,000. He sells the shares, realising a gain of £5,000, which falls within his Capital Gains Tax allowance of £10,600. He invests the proceeds in his pension and immediately repurchases the share portfolio within his Sipp. As well as having now sheltered his investment within a pension for tax purposes, he also benefits from immediate tax relief of £3,750 which is added to his pension. If he is a higher rate taxpayer Peter can claim a further £3,750 after the end of the tax year.
Take advantage of the 50% tax rate.
For the (un)lucky few who pay 50% income tax, it makes sense to invest in a pension before the end of the tax year. Any contributions made from 6 April onwards will only be eligible for relief at 45%. If using carry forward as well, this could mean up to an additional £10,000 in tax relief.
Carry forward unused relief to boost contributions. If you have the capital to spare, then provided you also have the earnings to justify the contribution, it is possible to carry forward unused pension tax relief from up to 3 years ago. This means it is possible to make a pension contribution of up to £200,000, which for a 50% tax payer could then result in up to £100,000 of tax relief.
Plan ahead for flexible drawdown.
You’re not allowed to make any pension contributions in the same tax year in which you start flexible drawdown. So anyone planning on using flexible drawdown may want to top up their pension with any final contributions before 6th April – any contributions after that date could mean having to wait up to another 12 months before getting full access to their pension funds.

A decade on since FTSE 100 hit bottom at 3,287

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A decade on since FTSE 100 hit bottom at 3,287

 

–       FTSE 100 returns 93% over 10 years

–       Technology sector is best performing returning 369%

Adrian Lowcock, Senior Investment Manager at Hargreaves Lansdown, looks at how investors have fared over the last 10 years.

 

In the last 10 years the FTSE 100 has risen 3,074 points or 93% since the low of March 2003, although it remains a little way off the high point of 6,732 reached on 15th June 2007.  Whilst the market has risen over the last 10 years there have been some big winners and losers during that time.  The Banking sector has been the worst performer over the last 10 years and the only sector to post a negative capital return with the FTSE All-share/banks returning -20%. The Technology sector posted the best performance with the FTSE All-share/Technology returning 369%, recovering from the lows seen in the years following the Dotcom bubble.

 

 

Performance of FTSE Sectors from 12 March 2003 to 28th February 2013

 

All Share Sector

% Growth
FTSE All-Share/Banks CR

-20.25
FTSE All-Share/Financials CR

22.81
FTSE All-Share/Health Care CR

78.02
FTSE All-Share/Telecommunication CR

100.11
FTSE All-Share/Oil & Gas CR

110.22
FTSE All-Share/Consumer Services CR

112.91
FTSE All-Share/Utilities CR

179.25
FTSE All-Share/Basic Materials CR

280.44
FTSE All-Share/Consumer Goods CR

346.31
FTSE All-Share/Industrials CR

360.45
FTSE All-Share/Technology CR

369.08

 

Adrian Lowcock says;-

 

“The technology sectors strong performance over the last 10 years highlights the contrarian nature of the stock market.  However, it is difficult for any investor to go against the trend and take such risks. Instead investors should focus on their long term investment goals and invest whenever they can afford to do so.”

 

“It is time in the market not timing that counts. Even though the FTSE 100 remains below its all-time high (6,930 on 30th December), if you had been invested all that time, with dividends reinvested, you would have been up 44.73%. In addition picking the right funds can transform your portfolio and make the nominal value of an index meaningless.”

 

Recommendations

 

Schroder UK Alpha Plus – Richard Buxton takes a long term view and is able to spot some opportunities before others – a distinguishing feature of all great investors.  Having the conviction to back them is equally important and Richard holds only 30-40 companies in his fund which means each idea has a significant effect on performance. You will never see his portfolio padded out with mediocre holdings just to make up the numbers. This fund has the potential to deliver superb returns, in a variety of economic conditions.

 

JO Hambro UK Equity Income – The managers believe the UK economy is performing better than most commentators expect. The fund continues to have a bias towards more economically-sensitive companies and has performed well recently as a result.

 

Innovative Films Raising Funds: Alpha

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A_poster_ENFrost Magazine is doing a long-running series on innovative movies which are raising funds or about to be released. We love film at Frost Magazine. In fact quite a few of us work in the film industry as actors, producers and writers. (Myself included. I have been an actor for years, and have also written scripts and started a film production company with Steve McAleavy. Our first full-length film, Prose & Cons is currently being edited) We want to support other filmmakers out there. Making films is hard and getting them seen is just as hard. We hope you like some of the films we showcase enough to invest in them and/or watch them. Thank you.

Alpha

A is much more than a feature film, it is inspired by the ancient myth of Antigone and has a totally different approach to filmmaking as a whole.

SYNOPSIS

A woman -Alpha- is forced to sit and watch her hanged brother rot in the middle of a burned forest, until the authorities decide that she has been punished enough. She will find the strength not only to rebel against this unjust order but also to confront her brother when they meet in the afterlife.

Alpha is a movie inspired by the ancient myth of Antigone and talks about what we are all witnessing and experiencing as consequences of the so-called “crisis”.

We are using an old story, not to reiterate the past, but to explain the present and take a glimpse of the future.

With this film, we want to make our voice heard not only as artists but as active citizens, and share how we are experiencing the “crisis”.

And not only do we want to, but we have to, because this is our duty as active participants in the society we are leaving in.

HOW WE FUND THIS MOVIE

The way we cover our budget (196,000€) is as follows:

The main artistic team (Screenwriter, Director, Photographer, Production Designer, Composer, Actors) and the communication team, capitalise our work.

Our co-producers, Imagina Pictures, provide all the necessary editing and post-production equipment and facilities, for both image and sound.

Imagina Pictures also provides the camera and related shooting equipment.

All of the above constitute 40% of the budget (69,000€). To help fund Alpha go here.

What is left for us to cover :

The crew fees

The catering

Special equipment (steadicam, crane, hexacopter)

3D animation & visual effects

The above constitute another 40% of the budget (70,000€).

We cover this part with private sponsorships.

The remaining 20% (57,000€) is the Production Design cost.

This is an essential part of the movie because the aesthetics of the image need to be treated with great care.

This is the part we want to cover with crowd-funding.

This is the part in which you are actually contributing to the final look of the picture.

This is the part in which we are asking for your help.

We hope you will become our fellow traveler during this difficult but exciting journey.

WHAT IS THE MYTH ABOUT?

Antigone is the daughter of King Oedipus.

King Creon, who is now the ruler of Thebes, demands that the body of her dead brother Polynices be left unburied and eaten by predators. Whoever does not comply with his orders, will face immediate execution. Antigone will defy this unjust order and bury her dead brother, thus losing her life, but coming to terms with her feelings and her inner sense of justice, regardless what the Authority says.

There is no need to point out the relevance of the myth of Antigone with the current political and socio-economic status quo. In this new world order governed by numbers and economic indicators, an invisible King Creon has not only invaded our lives, but is gaining power day by day. Few dream of taking an active stand against him, while most of us conform to his irrational and inhuman demands.

Government Urges GPs To Cut Pain Relief For Women Giving Birth

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A lot of things make being a woman seem unfair. Periods, unequal pay, the biological clock, having your breasts stared at. But life is unfair and you just get on with your life. I mean, there is only a certain amount of time a person can stress over things, but yesterday I read something that I think is worth stressing over. Whilst reading the March 2013 edition of Easy Living magazine, in an article entitled, ‘How Can That Fit Through There?’, I read the following:

“In August 2012, new guidelines were drawn up for GPs, urging them to encourage mothers-to-be to have a natural labour with as little pain relief as possible in a bid to save the NHS money – given that an epidural costs £200.

Frankly, if the NHS needs to cut things then a women in the worst pain imaginable trying to push a baby through a 10cm hole is not the most humane choice. If men gave birth, would these ‘guidelines’ have been put through? I don’t have children, but I have been in a relationship for three years and it is on my mind whether or not to have them. This piece of information is not encouraging. I doubt any of the taxpayers money was considered when it came to Kate Middleton and her morning sickness (and neither should it).

If women stopped having children the world would stop. We need to be given more respect for the ordeal of being pregnant for nine months and then giving birth. Childcare is also expensive. Maybe this is the governments answer to the population crisis? Anyway, it feels like an attack on women and completely inhumane. If someone gets drunk and falls over do they get pain relief? Yes, and they should. I don’t want to live in a country where a doctor will see someone in pain and not give them pain relief. If the government really wants to save money why don’t they cut the £400 per month food allowance MPs get while families rely on food banks to feed themselves. Or the money to pay their rent and mortgage. Most of the population does not get paid expenses on these things.

We are not ‘all in this together’, some of us have a great deal more pain to bear.

Sort Your Finances Out In 2013

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January is the month that people make resolutions and try to sort their lives out. So, in the true spirit of January why not take the time out to sort your finances? Here are three top tips if you are needing some financial help.

1. Sell Your stuff: Sell unwanted stuff that is cluttering your home on Ebay, Ebid, the Amazon Marketplace or the ASOS marketplace. People generally have a lot of clothes they never wear and books that they have read. You will feel immediately better. I have regular clear outs.

2. Try lower brands at the supermarket. In the past supermarket own brand goods were not very good but the quality has really improved in recent years. Pound stores are also incredibly popular now and their is no stigma attached in shopping in them. The cost of living does not have to be expensive.

3. If you really need to borrow money take out a safe and secure affordable loan from a legitimate regulated lender. Many people are currently borrowing money from pay day lender sites which have annual interest rates in the thousands of percent. You could be wasting a fortune. The same is true of credit cards which often charge very high levels of interest. This interest can compound as the debt increases turn into a nightmare. As long as you are smart, taking out a loan to pay for a new home, car or a big purchase is fine.

Disclaimer: Consult a qualified financial advisor first before you take any action. Everyone’s situation is different and taking out a loan may not be the right decision for you depending on your personal circumstances.

Clydesdale Bank’s instant decision loan offers an APR representative of 5.1% on all loans between £7,500 and £15,000 (subject to conditions). http://www.cbonline.co.uk/personal/loans/personal-loan

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The Benefits of Playing Bingo

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Ah, the game of Bingo; we all know someone who plays it regularly, whether it be our mums or our grandmas, and although we all know how to play it ourselves, none of us do. Why? Because, I bet we all believe the stereotype that the game of Bingo is only for the elderly generations, right?

Well, it’s time to quash the stereotype, because playing Bingo isn’t just for the over 65’s. In fact, the game holds many benefits for all, and more and more of the younger generations in Britain are enjoying the game because of them.

Still don’t believe me? Well, here’s a rundown of some of the benefits that playing bingo could bring you:

1. Money, Money, Money!

So, although this benefit may be pretty obvious, it often baffles me that people shun the benefit of being able to win money just because they feel the game’s for the older generation. Whether you choose to play at your local bingo hall, or whether you choose to join an online bingo website, join up fees cost next to nothing, when you consider that you have the chance to win up to thousands of pounds!

However, aside from also helping you to make money, playing bingo can also help you to save money – particularly if you choose to play online. Many bingo sites offer promotional incentives, either in the form of voucher discounts for all your favourite stores, or even the chance to earn points which can be accumulated over time to be spent or exchanged at some of the nation’s biggest stores. 

2. Play From The Comfort of Your Own Home

As I’ve mentioned, bingo can be played online – there are thousands of sites, such as this online bingo voted best site, designed specifically to let you do so. So, if you’re desperate to play and start winning but are a little conscious of popping down to your local hall on your own, then you can play from the comfort of your own home!

The huge benefit of this is that the traditional game of bingo can be played in a much more contemporary way. And, this is one of the main reasons that the game has seen as huge rise in popularity in recent years amongst the younger generations.

Signing up to an online bingo site is quick and easy and you can be on your way to playing bingo against thousands of others up and down the country in a matter of minutes. And, what’s more, the thrill and excitement of getting a full house is just as fun if you were to play it in a bingo hall.

3. Social Aspect

Bingo, whether played virtually or for real, is a great social game. Traditionally, it was the thrill of playing in a packed, buzzing bingo hall that lured in players, but now, with online chat facilities and forums, you can meet and play other bingo fanatics over the web. So, whether you’re looking to grab some new bingo tips from someone who’s been playing a lot longer, or whether you just want to have a good old natter with a regular you play against often, then online bingo is the perfect way to do so

2013 Travel Trends

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Intelligent travel search and convenience key

In September 2012, Momondo introduced a new flight rating technology. Unique to the market, the system aimed to take travel search to the next level – the second generation of meta-search.

 

By combining several factors into a single rating system – to get past cheap, but longer flights, momondo’s new technology instantly spots the best flights available, saving consumers time and money, with every search.

 

Every flight is rated with a smiley and a score between 0 (bad) and 10 (good) to help the user find the flight with the best balance between price and flight duration.

 

From its introduction in September, momondo noticed their rating technology, with price/time scores and new user interfaces with ‘smileys’, also made a significant change in the way users interacted with travel meta-search information, and made their travel decisions.

 

In the process, momondo discovered two new travel trends, which will affect travel in 2013:

 

1. Meta-search sites will need to be intelligent

Over the last four months, momondo saw a 24% drop in refined travel searches, since it introduced the rating system – as it is now easier for momondo users to make the right decisions based on travel needs. This information told momondo that moving into 2013, more consumers are looking for ‘intelligent’ travel search sites, which help with their travel decision making – by turning raw flight data into actionable information.

 

2. Convenience factors key

Secondly, momondo has seen a change in consumer buying habits. momondo observed that over the course of 2012 people steadily have been spending more money on flights, which in turn confirms that the traveller’s focus on a whole, is not now on booking the cheapest ticket, moreover convenience factors – such as time, play an important role. Users will act as ‘smart-buyers’, that seek insight and want to compare several factors, before they purchase.