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Personal Finance


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Personal Finance


TAILORED advice

At CKI we understand that everyone is different so we have a tailored, hands-on approach when planning for your current and future financial needs. We will arrange a meeting to discuss and fully understand what these are before creating a proposal for you to approve. If and when your circumstances change, we will remain committed to manage and review your goals, objectives and visions.

 
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Pensions & Retirement Planning


Pensions & Retirement Planning


Many people have outdated views on pensions planning and retirement. The changing landscape has encouraged investors to seek Buy-to-Let property investments, ISAs, Personal Portfolios (OEICs) alongside traditional pensions for income in retirement. Recent changes have meant that planning retirement income means modelling the income around the tax breaks. Planning is essential for this purpose to ensure your overall income requirements are achieved in the most tax-effective way.


Pension Planning

We will advise on the best pension vehicle for you; whether you are at the start of your pension planning or looking to draw benefits is a complex area. Choosing the right pension requires a detailed understanding of your circumstances, tax status, employment status and more.

Our expertise includes advising on:

·         Income drawdown

·         Self-Invested Personal Pensions

·         Stakeholder pensions

·         Consolidation of older pensions to give pension flexibility

·         Employers' schemes and Workplace pensions

·         Executive Pensions and Small Self-administered Schemes

·         Transfers from Defined Benefits Schemes


Retirement Planning

Identifying your retirement income needs and understanding your proposed spending priorities in retirement allows us to plan the utilisation of those retirement assets in the most tax-effective way and, where appropriate, the legacy of those assets protecting your family and future generations. Cash flow modelling is a tool that allows us to forecast expenditure against expected growth and this forms an integral part of our review process in retirement.

·         Cashflow modelling

·         Income tax-efficiency planning

·         Legacy planning and succession

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Investment Portfolios


Investment Portfolios


Investment Advice & Portfolio Management

Choosing the appropriate tax wrapper is key to ensuring that you maximise returns on your investments and savings. There is a bewildering range of savings and financial schemes available on the market and it is our key role to analyse which would be most appropriate for your needs.

We assess your attitude to risk, the prevailing tax opportunities and your requirements for income and growth. Following a review of your current financial position, aspirations and objectives, we then make our recommendations, which may include the following:

·         Portfolio management

·         ISA planning

·         Offshore bonds

·         Inheritance tax planning

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Life Assurance


Life Assurance


Whole of life

Whole of life policies provide cover for the whole of one’s life, whatever period that may be. Premiums are either guaranteed or reviewable at regular review dates. This type of cover is often used for inheritance tax purposes and, in such circumstances, would normally be affected on a joint life, second death basis and written in trust.


Term assurance

TERM ASSURANCE

Level Term provides a guaranteed sum assured over a specified period, in return for a premium fixed at outset.

convertible TERM

A variant on level term, convertible term includes the valuable option to convert the policy to either an Endowment or Whole of Life assurance, at ordinary rates of premium, irrespective of any change in the health of the life assured.  It effectively ensures insurability for life which could prove of particular benefit for someone who finds themselves subsequently uninsurable. This is an excellent additional option where the need for further cover later in life may be required.

decreasing TERM

Both mortgage protection and family income benefit are forms of decreasing term. Unlike level term, the sum assured reduces over the term of the contract, so is ideally suited where the risk or liability diminishes over time. Consequently, it is the cheapest form of life assurance.


Mortgage Protection

This contract would normally be used to cover a mortgage as the sum assured is designed to reduce in line with repayment of the capital borrowed over the term of the loan. It is important to ensure that the interest rate used to calculate the initial sum insured is based on the interest rate for the loan or mortgage. This is to guarantee that the loan is cleared in the event of a claim.

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Later Life Advice


Later Life Advice


We are all living longer and it makes sense to plan for those later years. Some people really look forward to the idea of simply stopping work, whilst others prefer a transition period where they gradually reduce their hours. Either way, it’s worth reviewing your finances and reflecting on some aspects of old age before reaching retirement. Our advisers can give advice on estate planning, paying for care fees, equity release and pensions to help you make the most of those golden years.


Equity Release

To release equity from your property in later life we use Lifetime Mortgages. This involves taking out of a mortgage secured against the value of the home. There are no monthly repayments and interest is rolled up over the life of the loan and repaid upon leaving for long-term care or death, at which point the property is sold and the lender repaid. Interest can be fixed or capped. One aspect is that the loan can increase as interest is added over time to greater than the value of the property, although SHIP's member schemes offer a no-negative-equity guarantee.

This is a Lifetime mortgage. To understand the features and risks, ask for a personalised illustration.


Downsizing

A smaller property with fewer maintenance costs might be more suited to your new lifestyle and make both practical and financial sense. Investment of the released equity can sometimes be used to increase your income in retirement.


INHERITANCE Tax Advice

With careful planning, we can help reduce the amount of tax that your loved ones will pay on your estate through the use of gifts, transfers and tax-effective investments.


Annuities

An annuity allows you to convert your pension savings into a regular, guaranteed income during your retirement. Knowing you will receive money each month to pay for your living costs can be reassuring and allows you to enjoy life a little more.


Lasting power of attorney

None of us knows what the future holds which is why planning ahead can bring peace of mind. A Lasting Power of Attorney allows you to allocate authority over your future finances to those you love and trust the most.

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Mortgages


Mortgages


Mortgages

Expert advisers with extensive knowledge, ensure that you obtain the best products the market offers. We have a strong sense of integrity that underpins all we do.

For most people, your home will be the largest single investment you will ever make, so making the wrong decision can become a very expensive mistake. Taking the wrong mortgage can end up costing thousands of pounds extra over the lifetime of the loan. What appears to be the cheapest on day one, will not always prove to be so over an extended period of time.

We have access to a panel of lenders representative of the whole market, which means that they can offer you more than 3,000 different mortgage products from over 54 lenders, including many that are not available in the High Street.

Mortgage types

Capital Interest

The monthly payment combines both repayment of capital and interest so that the loan is guaranteed to be repaid at the end of the mortgage term, often 25 years, depending on your age. The monthly repayment will vary with any change in the mortgage interest rate. Consequently, it is important to factor in a rise in interest rates to ensure continued affordability.

Interest Only

A mortgage has to be redeemed by the end of the specified term, more commonly as above with a combination of capital and interest on a monthly basis.  However, in some circumstances, a lender will allow the payment of the interest charged only, leaving the borrower with the responsibility of repaying the mortgage at the end of the term, usually with a savings vehicle such as an ISA or pension.

As with a capital repayment mortgage, the monthly payment of interest may increase with a rise in the mortgage interest rate.

Flexible

A flexible mortgage permits both the underpayment and overpayment of the loan with changing circumstances. It is also possible to build up a cash reserve from which funds can be withdrawn for other purposes or a financial emergency.

Variable

A variable rate mortgage links your monthly repayment to the prevailing rate of interest, which can change in line with the lender’s standard mortgage interest rate or the Bank of England Base Rate. Once again, careful budgeting is important to ensure future affordability is not a problem.

Discount

This is a facility whereby the initial rate at which interest is charged is lower than the standard variable rate for a specified period, eg. two years. It is invariably used as a marketing tool to attract new borrowers. It can be useful for professionals and younger practitioners in particular whose earnings are expected to rise within the discount period.

Fixed

A fixed rate of interest for a period of, say, two or five years, can be very useful for borrowers wishing to be certain of their monthly repayments or whose income is limited and expenses high. Predicting the future movements of interest rates is a difficult call but the rate is often set in the lender’s interests so careful consideration should be given in determining whether it is worth paying a fee for. Furthermore, opting for a fixed rate invariably means sacrificing flexibility.