Why poor Walt should have seen a Financial Adviser

Why poor Walt should have seen a Financial Adviser

For those of you who haven’t seen the hit TV series Breaking Bad, the story follows Walt, a chemistry teacher who’s diagnosed with lung cancer and his radical approach to ensuring the financial security of his family on his evitable demise.

If you put Walt’s money laundering, corruption, extortion and generally becoming a criminal mastermind aside, would Walt have acted differently if he had known that he would be diagnosed with lung cancer?  He probably would have.

Obviously not counting the numerous laws he’s breaking, Walt’s real predicament is that he should have seen a Financial Adviser earlier in life and had simple family income benefit policy put in place.  This would mean that whether he was diagnosed with lung cancer or suffered a fatal accident his family would have received a lump sum pay out and/or monthly income for the rest of their dependency and his whole life of crime could have been prevented.

We are a society that is very quick to assume that we will never be diagnosed with a terminal or critical illness or be involved in a fatal accident.  But if that were to happen, what would your family do?

Life insurance is not as expensive as you think considering the consequences of not ensuring the financial security of your family, should something happen.  Why not speak to a Financial Adviser today?

Are you a member of the sandwich generation?

The term ‘Sandwich Generation’ typically defines people between the ages of 45 and 60 who are caring for both elderly parents and children.

Research conducted by Aviva in 2014 has shown that most people are aware of becoming ‘sandwiched’ but don’t plan for things like:

·      Reducing their working hours (and income) to care for an elderly parent.

·      Helping an elderly parent/child with rent/mortgage payments

·      Helping out children that rely on the ‘bank on mum and dad’ whilst in further education.

If this is something you are concerned about, contact us on 01636 870 069.

Payday Lenders

PAYDAY LENDERS – The bits they don’t tell you about

We all have times where there seems to be more month than cash but before considering a payday loan, make sure you look at all the options…

Did you know that taking out a payday loan can have an adverse effect on your credit score?

No? Well, lenders view payday loans negatively as an inability to responsibly manage your finances and can imply all other forms of borrowing have been refused.

Keep in mind, a payday loan remains on your credit score for up to six years and will essentially limit your ability to borrow, and more importantly your ability to get a mortgage.

FORCES HELP TO BUY (FHTB) Scheme

According to the website GOV.UK there is a relatively low rate of home ownership in the armed forces.  To help and encourage service men and women to get on the property ladder, move home due to reposting or change their home as family needs demand, the Ministry of Defence have introduced the Forces Help to Buy (FHTB) Scheme.  

The new scheme allows members of the armed forces to borrow up to 50% of their annual salary (maximum of £25,000), interest free, as a deposit for their purchase or remortgage.

The pilot scheme, which will run for the next three years, starting today, is not designed to reduce the amount of personnel in service accommodation, this is still an option if you wish, but to aid members of the armed forces in making that leap on to the property market.

Chief of Defense Personnel, Lieutenant General Andrew Gregory, said:

“Through our work on the new employment model and the armed forces covenant we are continually striving to make improvements to those aspects of life outside of service which we know can be adversely affected by life in service.

“In particular we are keen to address the demand for greater stability, including access to home ownership, and an improved ability to exercise choice in the way our people live their lives.

“And so it is a hugely positive step forward that we are able to introduce the Forces Help To Buy scheme today, a year ahead of our original plan.”

So who is eligible?

• You must have completed a pre-requisite length of service.
• You must have more than six months remaining to serve
• Meet the right medical categories, however, extenuating medical and personal circumstances will be considered.

There are a number of different lenders that will already stated that they will accept the Forces Help To Buy Scheme as a form of deposit without being punitive.  However,as always it is important to find a lender and product that suits your overall needs.  At DALES we will search the market to find the right deal for you. Why not contact us today on 01636 870 069 to discuss how we can help or why not look at our best buy tables Mortgage Best Buys.

Philip Dales Dip PFS Certs CII (MP & ER)

Philip Dales is principal at DALES Independent Financial Advisers, based in Newark and Nottingham. He has been an adviser for over 17 years helping many clients, including those in the forces with all aspects of financial planning, and retirement. For more information on this or any other aspect of financial advice contact t: 01636 870 069.

If you would like more information on this scheme and/or obtaining a mortgage, please contact us by email at advice@pndales.co.uk or by telephone on 01636 870 069 for more information or have a look at our web site www.pndales.co.uk Please note that this article does not represent advice, and the Forces Help To Buy Scheme, may not be suitable for you. P N DALES Ltd is authorised and regulated by the Financial Conduct Authority. 

Things we don't like to talk about:101 - An extra helping for the Overweight

Eat more, Drink more and Smoke: My advice for those looking to maximise their pension....

If you’re Overweight, Smoke, have high blood pressure or other health issues, for once it’s a good thing, you might qualify for extra income from your pension in retirement potentially up to 40% more!

According to the Association of British Insurers 1 in every 2 people who retire could qualify for an enhanced annuity. Which means they could be losing out on extra income in their retirement by selecting a pension from their existing supplier when they retire.

The Technical Bit

WHAT IS AN ANNUITY?

Usually* when we retire we have to buy a product called an annuity, in simple terms this is where you give your pension savings to a company and they promise to pay you an income for the remainder of your life.

We don’t like to talk about it, but this income is based on statistics for life expectancy, and the healthier that you are the less money you’ll get. The one time in your life that someone will say “Smoking is good for you” is when you come to take your pension, the same is true of being overweight.

There are additional options that you can add such as an income for your spouse if you die, or if you want your income to increase with inflation each year. The starting income is based on the simple idea of a guaranteed level income for the rest of your life and each option you choose reduces the amount they will pay.  

OPEN MARKET OPTION – YOUR RIGHT TO SHOP AROUND

Clearly you can suppose that different companies might want to compete against each other to get your pension pot, by offering higher incomes. In 1978 the government introduced the right to shop around for your annuity, but unfortunately the statistics show that about 60% of people still don’t shop around, a process referred to as using “Open Market Option” By shopping around most people can typically get around 10 to 20% more income, which rises to around 40% more if they qualify for enhancement.

Open Market Option is very simple, all you need do is contact an Independent Financial Adviser, and they can check which options you want and find out who will give you the most income. An independent financial adviser can also see if you would qualify for enhanced annuities, statistically almost 70% of retirees would have qualified. That’s a huge amount of money lost each year, simply because of a lack of knowledge.

DALES Independent Financial Advisers, are independent financial advisers in Newark and Nottingham and can offer Independent retirement advice on taking your pension. Why not call DALES today to see how much more pension income you could get, through Open Market Option?

T: 0333 772 9607, T: 0115 832 0265 (Nottingham) or T:01636 87 00 69 (Newark). E: advice@pndales.co.uk.

*Until 6^th April 2011 everyone was forced to buy an annuity by the age of 75, now there is an alternative, but it involves risk and is not suitable for most people, for most people buying a “pension” when they retire is still going to be in effectively mandatory as the alternatives are unsuitable. Interestingly this is something that is in the news today, as the Pension minister Steve Webb speaking at the party conference, admitted that there are concerns that annuities may not be the right product for people in retirement and said the government needed to tackle the issue.

Philip Dales Dip PFS Certs CII (MP & ER)

Philip Dales is principal at DALES Independent Financial Advisers, based in Newark and Nottingham. He has been an adviser for over 16 years helping many clients with all aspects of financial planning, and retirement. For more information on this or any other aspect of financial advice contact t: 0333 772 9607.

Exclusive 5% Deposit Mortgage Deal (Including First Time Buyers)

Good News for the Property Market - the 95% LTV Mortgage Deal Rides Again!

Leeds Building Society has launched an exclusive 95% LTV (loan to value) product. The core product is a 3 year fixed rate with free valuation* for all purchase and remortgages and free legal service for remortgages, and is only available through mortgage brokers.

Key Highlights:

-          4.89% Fixed until 30/11/2016

-          £199 Booking fee (non refundable)

-          No Arrangement fee

-          Free Valuation (Purchase & Remortgage)

-          Free Legal Service – Remortgages only

-          Available to First time buyers, Home Movers and Remortgages

-         10% capital overpayments allowed each year

This comes as very welcome news to all First time buyers. Luckily there are no postcode restrictions on who can apply so for those looking to get on the property ladder in Newark, Nottingham or Lincoln can access this product though Dales Mortgage Advisers t: 01636 870069 or 0115 832 0265 e: advice@pndales.co.uk w: www.pndales.co.uk

All you need is 5% deposit, and where this differs from the complex Home Buy scheme, which also facilitates buying with 5% deposit, this is not restricted to New Homes, and clearly does not involve the equity loan of the HomeBuy scheme.

Available to Remortgage and Home Purchase customers, whilst its fabulous news for first time buyers the good news is not just restricted to them, this product is available for all types of mortgages, not just first timers. For remortgage clients there’s also the additional feature of a free legal service for the conveyancing.

Add this to the existing "Welcome' range of 0% interest rate mortgages for 3 to 6 months from Leeds Intermediaries, and you have a very strong range of products, that really lend a hand to people trying to get on the housing ladder. 

“Higher LTV products fulfil a need for those that can afford the repayments, but have found it difficult to save for a larger deposit during the economic downturn” – Phil Coombes Leeds Building Society.

This is just the sort of product that the market needs to help it get moving, first time buyers are the very start of the mortgage chain and more and more argue that they simply can not afford to get on the housing ladder, one of the main reasons for this is not lack of affordability, as often the rents they are paying are as high as their mortgage would be, the biggest single reason they can not get on the ladder is the deposit, this scheme offers them a real & affordable opportunity.

Philip Dales Dip PFS Certs CII (MP & ER)

Advising Director

For more information on this or any other mortgage product or to see whether this mortgage product may be suitable for your circumstances advice please contact e: advice@pndales.co.uk or call t:01636 870069. 

The mortgage highlighted here may not be suitable for your circumstances and as such the above is not advice, and should not be treated as such. Terms and conditions apply and more information can be obtained via advice@pndales.co.uk

PNDALES Ltd is Authorised and Regulated by the Financial Conduct Authority. A typical fee for mortgage advice is £300.