Lowes Magazine Issue 129

INSIDE TRACK

Lowes Client Competition Congratulations to Mr & Mrs N Fecitt the winner of our client competition 2023. We asked you to predict the annual percentage change, to two decimal places, in the average residential house price to November 2023. The answer was -1.1%. Mr & Mrs Fecitt guessed closest, and will Sad news We were sad to learn of the passing of one of the Lowes family, Ros Glaholm. Ros had a longstanding relationship with Lowes, first as a secretary to Ken Lowes, before he set up Lowes Financial Management, and later as a key point of contact for clients for many years as a PA within the company. Our thoughts are with her family at this difficult time. Midlife savers Recent research by Phoenix Insights revealed that 45 to 54 year olds are reprioritising their spending in order to save more, with nearly a fifth (18%) spending less money on holidays and luxury items. At the same time, 14% are increasing contributions to a workplace pension and 14% are putting more money into a personal pension. Phoenix Insights estimates that this group of people currently has £88,000 on average in retirement savings, meaning they will need to save a further £160,000 to achieve a ‘moderate’ standard of living based on thresholds set by the Pensions and Lifetime Savings Association. This would give a minimum of £23,300 income a year for a single person. The earlier we start planning for our retirement, the more our pension can grow, benefitting from years of accumulated investment. Encouraging family members to start planning for their retirement, even if it is a long way off, can significantly boost their retirement savings, helping to ensure they don’t have to make lifestyle sacrifices further down the line. therefore receive £500 of Amazon vouchers. For our 2024 client competition turn to page 11.

Rejecting robo-advice

One of our clients recently contacted us after receiving an unsolicited communication from a firm which promoted its use of robo-advice as part of its proposition. Robo-advice offers people the ability to undertake their own investments with the potential to ask for some advice when needed. This kind of service was launched around 10 years ago with much fanfare and predictions that it would take the financial advice market by storm. That has not happened. In our view, the reason is simple. Financial advice is personal, and centres around an individual’s unique needs, circumstances and goals. To understand this and develop holistic financial plans, it’s important that face to face conversations take place, and many of our clients would agree. Individuals, couples and families who come to us for advice want to have conversations with someone who can help them understand their options and help make the right decision. However, we do acknowledge the place for technology in supporting and delivering financial advice, such as research and information gathering to help ensure accuracy and efficiency. Regardless, at its core, financial advice is incredibly personal and will remain so.

The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

Blue Canyon, Taşyaran Vadisi Tabiat Parki, Turkey by Ozkan Ulucam

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LOWES Issue 129 · Published January 2024