Asset Management
See also:
Asset Management Top Tips
Asset Management Client Library
INVESTMENT SOLUTIONS GENERAL
In our experience, clients who have received a lump sum from either their pension as tax free cash of from a legacy will be concerned about losing something which has been an integral part of their financial plan for a long time. That is why we go through a thorough step by step process of educating clients on subjects such as risk and reward, diversification, asset classes, tax efficient collective investments. Our client library section has been set up to give clients in depth support information on all the issues we cover. There are papers provided by investment commentators, financial journalists, solicitors and accountants. They are free for you to download or access at any time. So for example, there are articles which you can download on:
The Fundamentals of Investing
How to survive the credit crunch
Crisis. What Crisis?
Investment Bonds or OEICs?
Popular Investments- Asset backed investments and Deposit backed investments.
EMAIL US NOW SO WE CAN TELL YOU WHETHER YOUR INVESTMENTS ARE WORKING HARD ENOUGH FOR YOU --it will not cost you anything -- investments@youretirementstrategies.co.uk
Recession Proof your portfolio
You may already have earmarked the monies for a specific purpose such as:
School Fees planning for grandchildren
Deposit on a house for grandchildren
Ethical Investing
Tax Efficient investments
High Net Worth
Income Tax and Capital Gains Tax
POPULAR INVESTMENT PRODUCTS
The Client Library section contains a description of deposit backed fund (Bank deposits, Building Societies, National Savings) and asset backed investments (Shares, investment bonds, investment trusts etc,)
RISK and REWARD
This is probably the most important issue that financial advisers have to get right. It is our job to ensure clients know the consequences of any action taken which is based on our recommendation. We utilize the most sophisticated tools to match your risk tolerance with the most appropriate investment fund or body.
INVESTING FOR SPECIFIC REASONS
These are some of the areas clients regularly seek advice on:-
School Fee planning
Investing for income in retirement
Investing for grandchildren
HIGH NETWORK CLIENTS AND TAX SHELTERS
For specific high network clients wanting to shelter tax or higher risk takers other forms of investments may be suitable, namely:
- Enterprise Investment Schemes
- Venture Capital Trusts
- AIM Companies
- Discretionary Management Portfolios*
- Film Partnership
- Forestry Schemes
*We are not discretionary fund managers but work with a number of them when appropriate
INCOME TAX AND CAPITAL GAINS TAX PLANNING
Income Tax and Capital Gains Tax Planning
Most individuals would not volunteer to pay more than their fair share of tax. Tax planning ensures that full advantage is taken of all available relief and exemptions. This is particularly important, whether looking towards wealth creation or towards wealth preservation. Tax planning may take many forms including:
Investing in products that produce little or no income. Any tax charge may then be deferred until that investment is encashed.
Transferring investments to an individual who pays tax at a lower rate - most particularly a spouse (but not your child if under eighteen years). Gifts of assets should be unconditional and non-returnable. Since independent taxation began in April 1990, married women have been entitled to their own personal allowance and rates of tax in respect of their taxable income. Income from assets jointly held by a married couple is automatically slit equally between them for tax purposes. However, if a couple wish to be taxed on the income arising
on their actual share of joint property they may elect to do so.
- Investing in tax-free products and products that attract tax relief
- Taking advantage of the provision that tax on savings for basic rate taxpayers is at only 20% rather than 22%
- Reducing chargeable income by charitable donations
- Retaining age allowances by investing in assets that produce little or no income. Transferring income-producing assets to a spouse who is not in danger of losing age allowances and who is not a 40% taxpayer
- Investing, where appropriate, where tax relief is available.
THE BENEFITS OF INVESTING OFFSHORE
The myths
There are four myths about offshore investing
- It is unregulated and risky
- It is complicated and expensive
- It is all about tax evasion
- It is only suitable for the very rich
Many UK and international investment companies have set up offshore companies in UK dependent territories like the Isle of Man and Channel Islands, or EU member states like Republic of Ireland or Luxembourg. All these states benefit from stable governments, strong regulatory contracts and investor protection measures.
Benefits
- Virtual tax free growth often referred to as gross rollup where investments grow virtually free of income and capital gains tax.
- Switches do not trigger a CGT liability
- Greater control over how much and when tax is paid
There are many uses of offshore investing
Investing in offshore bonds is now commonplace, with the ability to assign policies to other people in lower tax brackets without triggering a chargeable event. They are regularly used for school and university fee planning.
For people planning to retire abroad offshore investments are becoming a very attractive alternative to investing in the UK when encashment could lead to UK income tax or Capital Gains Tax liabilities.
ETHICAL INVESTMENT
More and more investment houses are introducing green or ethical funds, global climate change funds and those accounting for environmental concerns as UK investors become more socially and ethically conscientious.
There are now transparency guidelines for SRI (Socially Responsible Investment) funds which investment houses now adapt to enable consumers to understand policies and practices relating to the fund.
Ethical funds have performed more or less on a par with their non-ethical equivalents – Investment Management Association.