Lowes Magazine Issue 128

PLANNING

Why more people value financial advice

Gershom Chan, Head of Financial Planning, considers some of the reasons for the growing demand for trusted Independent Financial Advice to help with financial and investment planning.

Managing money for life goals The cost of living crisis has also brought into sharp focus the need for people to manage their finances effectively. People looking to successfully balance their income with expenses, whilst also saving for goals such as home ownership, education or retirement, sensibly have been seeking out professional advice. Likewise, economic uncertainties have acted as a catalyst. There is plenty to contend with at the moment – volatility in stock and bond markets, the looming threat of a recession, longer term inflation issues, and interest rate rises among them. These factors have prompted a growing number of individuals to want to better understand the market conditions, evaluate their investments, and be helped in managing investment and risk within their portfolios. If this isn’t enough, geopolitical issues, such as Brexit, the war in Ukraine, and tensions between China and the US, among others, have played their part in building on the uncertainty people are feeling. Independent Financial Advice not only helps establish a financial planning strategy aligned to individual circumstances and goals, but it also ensures financial plans receive regular review and, where necessary, are adapted to the changing economic and investment landscape. Our aim is to help people make better financial decisions and have the best chance of achieving their goals and building a more secure financial future.

A combination of the rising cost of living, UK economic situation, changes to tax legislation and geopolitical issues, have been driving up demand for financial advice over recent years. With the current uncertainties in the economy and the markets, more and more people have been recognising the value of independent financial advice to help in their tax and investment strategies and deliver more surety over their long term financial goals. Tax management has always been a key reason people seek out Independent Financial Advice. The significant rise in the number of people now paying inheritance tax on their estate, has seen more families affected and with the nil rate band frozen until April 2028, the next three to four years will see more people caught in the net. In addition, frozen personal tax bands, tax allowances and exemptions will start to see more people become liable for tax in other areas. This will include some people moving into a higher rate tax band, which can have a knock-on effect on the rate at which other taxes are paid. And the lowering of the CGT exemption amount will need these tax liabilities to be managed more carefully. Pensions are another area where people can get caught out. Taking money out of a pension injudiciously could result in a jump up in tax bracket and/or if a large sum is taken, HMRC determining that sum as a regular monthly income and taxing it accordingly. Helping clients navigate their path through complicated tax and pensions legislation is where our technical teams come to the fore.

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