Andrew Lumley-Holmes - Making Money Work For You

16/04/2022

Annuities

An annuity is a type of investment product that will pay you a fixed level of income for a certain term in return for a lump sum investment at the start. Annuities can be an interesting option in many countries in the world as they are often taxed in a friendlier way than other income sources.

The income payments that you receive can either be for a set period of time, say 10 years or 20 years or it could be an income that is paid for life. Income payments could be inflation linked so they increase each year and thus protecting the value of your income of they could be flat. Some annuities may also have an investment element to them.

Looking for more? Making Money Work For You is available to buy in eBook and paperback on Amazon or reach out to discuss your own situation in confidence.

14/04/2022

Business ownership to generate passive income

Owning a business that you do not work in can be a lucrative way to generate passive income – if you choose the right one! This is largely the issue; it tends to be a relatively specialist area but if you get it right it can be a great way of building wealth.

Several of my clients own small hairdressers, restaurants, and niche companies where they are either an investor and thus receive a share of the profits or are the full owner but install managers to run the business day to day, sometimes acting in more of a consultancy role. The returns can be extremely good, especially if the business you invest into grows significantly but it does require more time and some business knowledge (or a good adviser!).

It doesn't even have to be a big business, what could you start as a 'side hustle' that could generate additional income?

Looking for more? Making Money Work For You is available to buy in eBook and paperback on Amazon or reach out to discuss your own situation in confidence.

13/04/2022

https://www.theguardian.com/business/2022/apr/11/uk-benefits-and-pensions-whats-changing

Pensions and most state benefits go up by 3.1% on 11 April – but bills are rising far faster, and inflation is predicted to top 8.4%

12/04/2022

Are you looking for great financial advice tailored to your individual circumstances? Meeting dates available with me personally next week and the week after. Get in touch to arrange a time for us to speak.

11/04/2022

Inflation has been a key word in Q1 2022, but how high could it go?

10/04/2022

Don't bury your head in the sand, there has never been a better time to understand your personal finances and this starts with your budget so you know when and where you spend your money.

The soaring cost of living is affecting millions of people in the UK. These five charts explain why.

09/04/2022

Tax efficient investments

My role for my clients as a financial adviser is to show them the options available so they can make informed choices and that’s the kind of advice you should try to find. Generally, pensions like private or employer sponsored pensions in the UK or 401k’s in the US can be a good way of investing pre-tax income, as can checking your tax code, claiming any tax credits you are due and reclaiming any overpaid tax.

Some great tax wrappers in the UK include ISA’s (Individual savings accounts) and National Savings and Investment Products or more advanced structures like enterprise investment schemes. In the USA they include such things as tweaking your W-4, contributing to an IRA, opening a 529 education savings plan or more advanced structures like income tax deductible investments to write down your tax bills.

Looking for more? Making Money Work For You is available to buy in eBook and paperback on Amazon or reach out to discuss your own situation in confidence.

08/04/2022

New Video: Diversification - why is it important for your investment portfolio?

Making Money Work For You: How to plan for the future, increase wealth, protect your money, manage debt and build passive income. Available in eBook and Paperback on Amazon now: https://www.amazon.co.uk/Making-Money-Work-You-increase-ebook/dp/B09LSFGGR6

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07/04/2022

Trusts

Trusts are a way for the owner of an asset (the settlor) to distribute or use that asset for the benefit of another person or persons (the beneficiaries) without allowing them control over the asset while it remains in trust.

The settlor creates the trust and originally owned the assets placed in the trust (the trust property). But the settlor no longer owns the asset once it is placed in trust, unless the settlor is also a trustee.
Depending on the nature of the trust, the beneficiaries may eventually become the absolute owners of the asset. They may be named individually or referred to as a group, for example, ‘all my children’.

The settlor appoints trustees to take legal ownership of the trust property and administer it under the terms of the trust deed on behalf of the beneficiaries. The trustees, who can include the settlor, are named in the trust deed. Trustees must be aged 18 or over and of sound mind. If a trustee dies, the remaining trustees, or their personal representatives, can appoint a new trustee.

Looking for more? Making Money Work For You is available to buy in eBook and paperback on Amazon or reach out to discuss your own situation in confidence.

06/04/2022

Are you considering switching to a full electric car? Have you already done it? Let me know in the comments

Overall new car sales fall slump as petrol and diesel prices soar in Ukraine crisis

05/04/2022

Equity investment types

Equities can generally be split into three different broad classifications, as follows:

Developed Market stocks – These are shares of US, UK, Japanese and EU companies. Developed market stocks tend to have many more established household names and huge, global companies, because of this they tend to be lower risk and more predictable equity assets with information on companies more easily available.

Emerging market stocks - Stocks issued by emerging market companies often perform differently to the developed market, providing exposure to different opportunities and returns. They will often be invested into countries such as China, Brazil, Russia or regions like Southeast Asia, Latin America, or Africa. Naturally as there is less information about these areas, they tend to be higher risk than developed market companies.

Sector funds - Although these invest in stocks, sector funds, as their name suggests, focus on a particular segment of the economy such as technology, robotics, luxury goods or banking. They can be valuable tools for investors seeking opportunities in different phases of the economic cycle or those looking to buy into a specific sector that they think is going to do well.

Looking for more? Making Money Work For You is available to buy in eBook and paperback on Amazon or reach out to discuss your own situation in confidence.