Author: Rob Bowers

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

Thank you for your positive feedback and reviews

We’d like to say a huge thank you to everyone who has taken the time to write about the service they have received from us this year.

At Blue Wealth, we’re constantly looking to improve the service we provide. We want to grow bigger and better so that we can help more people achieve their financial goals, whether that’s a dream retirement or the comfort and security of a first family home.

There are several ways we can grow the business, including recommendations, referrals, and positive reviews posted online – which is where you come in.

Leaving a review only takes five minutes and your feedback can help us attract new clients, grow the business, and expand the services we offer.

If you haven’t had a chance to leave a review yet, your support would be greatly appreciated.

Please click here to leave a review on Google.

Alternatively, our Charity Incentive is another way you could show your support. For every initial meeting we have that comes from a client recommendation, we make a £50 charitable donation.

Whether the meeting takes place in person or remotely, we’ll donate. There’s not even a requirement for them to become a client!

This year, our charity partner (who you helped us choose) is Mothers for Mothers – a brilliant charity offering maternal mental health and wellbeing support, advice, and information to women, birthing people, and their families.

Nathan successfully completed his 100 push-ups a day charity challenge

Remember reading about Nathan’s push-up challenge in our last update? Well, he is thrilled to have achieved his goal.

Having successfully completed 100 push-ups everyday throughout November, he helped Cancer Research UK raise a grand total of £1,220,303.

While the challenge is complete, Nathan has decided to keep up the good work and stay in shape by sustaining 100 push-ups a day for the foreseeable future. Though he may give himself weekends off!

Plus, he’s planning to mix things up and add some variety with squats and burpees. Now he’s started, there’s no stopping him.

Rob, Dan, Adrian, and Nathan went to Wales and attended a future-focused national conference

The annual Personal Finance Society conference focused on how advisers and planners could become truly diverse and inclusive.

Among a variety of fascinating seminars and keynote speakers, Dan and Rob particularly enjoyed hearing from Claire Williams of the F1 team. She talked about how she kept a high-performing team motivated against the big manufacturers, as well as the challenges she faced as the first female boss in modern times.

Second best highlight was a presentation on artificial intelligence (AI), which revealed how a brand new planning firm had harnessed the power of AI to help them to thrive with speed and define their strategy. Hearing their story made us think about the interesting opportunities AI may bring and help us to improve our efficiency in future.

On top of the fascinating learning helping us to keep an eye on developments, the conference was also a great opportunity to catch up with peers.

We invited some guests to watch the Bristol Bears

At the beginning of the month, we invited some guests to watch the Bristol Bears play against Gloucester Rugby.

It was a bitterly cold day, but we all wrapped up well and were delighted to see the Bears win, with a very respectable final score of 51-26.

Thanks to all those who came along, it was a great day.

Happy holidays

Over the Christmas period, we want to let the whole Blue Wealth team spend as much time as they can with their family, friends, and loved ones. This means that the physical office will close on 22 December and reopen on 2 January.

Emails will be monitored throughout the holidays and phone messages will be picked up between Christmas and new year, so please don’t hesitate to get in touch if you need our help.

Instead of sending Christmas cards this year, we’ll be donating to charity.

We wish you all a very happy Christmas and a healthy and prosperous new year.

As 2023 draws to a close, your attention might be turning to what the new year may have in store, making now the perfect time to think about your goals and resolutions.

New year resolutions typically revolve around healthy habits such as improving your diet or doing more exercise. But as well as focusing on your physical wellbeing in 2024, there are some useful resolutions you could make to give your financial wellbeing a healthy boost, too.

Keep reading for five practical financial resolutions that could help you to enjoy a prosperous new year.

1. Set up an emergency fund, or top up an existing one

Do you have a pot of savings you can fall back on in an emergency? If you haven’t, now is the time to fix that. If you have, take the time to check how much you have and ensure you’re holding the funds you need.

Ideally, your emergency – or rainy day – fund should have enough money to cover normal expenditure for three to six months. With the rising cost of living, you may find your household bills have risen. So, it’s wise to check whether your emergency fund needs topping up to reflect this.

If you’re self-employed, or have many dependants, it may be worth keeping more in your emergency fund, perhaps as much as 12 months’ worth of household expenditure.

Keeping a pot of savings in an easy access savings account can be a reassuring financial safety net in the event of an unexpected expense. Whether your boiler breaks down, or you’re injured and unable to work for several weeks, your emergency fund could help you meet these unforeseen costs without hampering progress towards your long-term financial goals.

2. Define your long-term financial goals

It’s all too easy to focus on the present and forget to think ahead for the future.

Yet, having clear long-term plans can help to keep your financial resolutions on track and motivate you to make certain that your money is working for you.

Long-term financial goals could focus on saving for retirement, building a healthy deposit for a new home, or funding a trip of a lifetime. Alternatively, there may be a combination of things you want to plan to achieve.

Once you’ve defined your goals, you can plan for how and when you’ll reach them.

3. Top up your pension and pay your future self first

If you’ve yet to retire, and happen to be in the fortunate position of having extra disposable income, resolve to use it to pay your future self first, by increasing the amount you’re contributing to your pension.

Pensions are one of the most tax-efficient ways to save for your future, because the contributions you make are usually topped up with tax relief from the government.

For the 2023/24 tax year, the Annual Allowance – the limit on how much you can contribute to your pension while receiving tax relief – stands at £60,000, or 100% of your earnings, whichever is lower.

In effect, this means that, as a basic-rate taxpayer, a £100 contribution would only “cost” you £80, while the additional £20 would be supplied by the government. If you’re a higher- or additional-rate taxpayer, you could benefit from an extra 20% or 25%, respectively, by claiming it through your self-assessment tax return.

With this in mind, the start of 2024 could be the ideal time to claim any additional tax relief you’re entitled to, as the deadline for completing your self-assessment tax return is 31 January 2024.

4. Review your investment portfolio

Saving money is just one element of growing your wealth. You also need to make sure your money is working as hard as it should be.

If you have large sums of money in a cash savings account, although it may be generating more interest than in many recent years, it may still be growing at a lower rate than inflation.

Read more: 14 rate rises in a row: How rising interest rates could affect your savings

Achieving the right balance between risk and reward is crucial if you want your wealth to reach its full potential.

By diversifying your money across a range of assets, including shares, bonds, property, and cash, you can reduce the impact of stock market falls on your overall portfolio.

The appropriate amount you invest in each asset will depend on several factors, including your long-term goals, your investment horizon, and your individual risk profile.

We can help ensure that you have the right asset allocation for your long-term goals, and that it is updated and rebalanced as required.

5. Write or update your will

The new year is a good time to write your will and set out your desires and wishes for your estate after you pass away.

If you already have a will, check to make sure it’s up to date. This is especially important if your circumstances have changed, as your current will may no longer reflect your wishes.

For example, significant life events, such as the birth of a child, marriage, or divorce, can shift your priorities, and you may decide that you wish to make some changes to your will.

While you’re thinking about your will, take time to review your wider estate plan and check that it still aligns with your circumstances and desires.

Most people want to leave a legacy to children or grandchildren but, if you don’t plan carefully, your estate could be subject to a potentially hefty Inheritance Tax bill, which could put an unhelpful dent in the wealth you pass on to your family and loved ones.

Read more: 5 ways estate planning can help you leave more for your family

We can help you evaluate different strategies to preserve your legacy, including charitable giving, using lifetime and annual allowances, setting up trusts, and taking out insurance.

Get in touch

If you’re resolving to form some good financial habits and increase your financial wellbeing in 2024 and beyond, please get in touch.

Email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

On 22 November 2023, chancellor Jeremy Hunt delivered the Autumn Statement against a backdrop of a cost of living crisis and a looming general election.

It’s been a challenging year with inflation dominating headlines. While inflation has fallen, it’s still higher than the Bank of England’s 2% target at 4.6% in the 12 months to October 2023.

Ahead of his speech, Hunt faced pressure to reduce the tax burden on both households and businesses while there was speculation about a potential Inheritance Tax cut, which didn’t materialise.

In his speech, Hunt said the plan for the British economy was working as the UK avoided a previously forecast recession this year. However, he cautiously added that the “work is not done” as he set out 110 measures to “reduce debt, cut taxes, and reward work”.

Here are the key points of the Autumn Statement, and what they might mean for you.

National Insurance cut for employees and self-employed workers

The chancellor cut National Insurance (NI) for 29 million working people.

The main rate of employee NI will be reduced by two percentage points from 12% to 10% from 6 January 2024. The new rate will save the average employee earning £35,400 a year more than £450 annually.

In addition, Class 2 National Insurance contributions (NICs), which are mandatory for self-employed workers earning more than £12,570 a year, will be abolished from April 2024. It’s estimated this will save the average self-employed person £192 a year. The good news for self-employed workers is they’ll retain access to contributory benefits, including the State Pension.

In 2024/25, Class 4 NICs paid by self-employed workers on earnings between £12,570 and £50,270 will fall from 9% to 8%.

Combined, these two changes will result in an average self-employed person earning £28,200 saving £350 a year from 2024/25.

The State Pension “triple lock” will remain in place

After weeks of uncertainty, Hunt confirmed during the Autumn Statement that the State Pension “triple lock” will be honoured.

Under the “triple lock”, the State Pension increases each year by the higher of:

• Inflation, as measured by the Consumer Prices Index (CPI) in September (of the previous year)
• The average increase in wages across the UK from May to July (of the previous year), or
• 2.5%.

Wage growth of 8.5% means someone on the full new State Pension will receive more than £900 a year extra in 2024/25.

Similarly, Pension Credit will also rise by 8.5% in April 2024.

Abolition of pension Lifetime Allowance confirmed

While the chancellor didn’t make any new announcements related to pension allowances during the Autumn Statement, he did confirm that the previously reported abolition of the pension Lifetime Allowance will take effect from 6 April 2024.

Hunt also announced plans to consult on a pension “pot for life”. Under the plans, pension savers would have the legal right to choose the scheme their employer pays pension contributions to. This move could help workers manage retirement savings and reduce the number of people with multiple small pensions.

ISA holders will benefit from more flexibility

The annual subscription limits for ISAs (£20,000), Junior ISAs (£9,000), Child Trust Funds (£9,000), and Lifetime ISAs (£4,000, excluding government bonus) will remain the same in 2024/25.

However, changes could provide savers and investors with more flexibility.

First, ISA holders will be able to deposit money into multiple ISAs of the same type each tax year from April 2024. They will also be able to partially transfer money between providers.

Second, investors with an Innovative Finance ISA will be able to invest their money in a greater range of assets, including long-term asset funds and open-ended property funds with extended notice periods.

Other measures

National living wage

Hunt announced the largest increase to the UK’s national living wage. It will rise by 9.8% to £11.44 an hour. In addition, the new rate, which comes into force in April 2024, will be expanded to include 21- and 22-year-olds for the first time.

It’s estimated the increase will benefit almost 2.7 million people, with full-time workers earning the national living wage receiving a boost of more than £1,800 a year to their income.

Benefits uprated

In line with September 2023 inflation figures, Hunt announced an increase in benefits of 6.7%. He also added an increase to the Local Housing Allowance, providing 1.6 million households with an average of £800 of support next year.

A shake-up of the benefits system was also unveiled. Benefit claimants who fail to find work for more than 18 months will have to complete a work experience placement. Long-term unemployed who are deemed to be not adequately looking for jobs will also face stricter penalties.

Business rates discount to continue for another year

The 75% business rates discount for retail, hospitality and leisure firms has been extended for another year in a welcome boost for high street shops, pubs, and more.

The multiplier for small business premises is also frozen.

Freeze on alcohol duty

In further positive news for pubs, the chancellor announced a freeze on all alcohol duty until 1 August 2024.

Full expensing

Businesses will continue to benefit from full expensing. It allows firms to offset spending on plant and machinery against profits.

The measure was previously set to expire in March 2026 but has been made permanent.

Enterprise Investment Scheme and Venture Capital Trusts

To support early-stage, innovative companies, both the Enterprise Investment Scheme and Venture Capital Trusts, which provide a tax break to investors, have been extended to 2035.

Get in touch

If you have any questions about how the Autumn Statement will affect you and your finances, please get in touch.

Please note:

All information is from the Autumn Statement 2023 document and the government’s Autumn Statement news bulletin.

The content of this Autumn Statement summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

While we believe this interpretation to be correct, it cannot be guaranteed and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

Nathan is powering through 100 push-ups a day

This November, Cancer Research UK is asking supporters to sign up and complete 100 push-ups everyday throughout the month. The challenge commenced on 1 November 2023 and Nathan was among those primed to pump.

Nathan explains what prompted him to say “yes” to this fitness challenge…

“Since returning from a summer holiday, any exercise had been lacking to say the least and I felt out of shape. This seemed like the perfect way to get back into things as well as raise money for a worthwhile cause.

“So far, I’m getting on well with the challenge. Fortunately, I started early and slowly worked my way up to 100 press ups a day. So, by 1 November I was primed and ready.”

While he could no doubt power through them all at once, Nathan is taking the “sensible” option of spreading 100 push-ups throughout the day. Breaking things down into manageable sessions, he’s doing 30 as soon as he wakes up and another 30 when he arrives at work. Later in the day, he does two lots of 20 push-ups during the evening before hitting the hay.

It seems that he’s caught the fitness bug as he’s already on the lookout for a similar challenge to help him continue to stay in shape.

To show your support, donate through Nathan’s official giving page and help raise funds for Cancer Research UK.

Love is in the air for Naomi

Earlier this autumn, Saul popped the questions and Naomi said “yes”.

Here’s a short but lovely summary of their engagement story…

Who’s the lucky man and how did you meet?

His name is Saul. We met online on a video game a few years ago and instantly became friends. When we met in person, we got on really well and decided to try and make it work – despite the long distance (he’s from the US).

How did he pop the question?

We were walking through the woods, and he asked me when we stopped for a short rest by a river.

When do you hope to tie the knot?

Hopefully towards the end of next year but it depends on how good my organisation skills are! We will be getting married in the US, so I need to do a bit more research into how that will work.

What are you looking forward to the most?

He’s moving over to the UK after we’re married and I’m really looking forward to that as it means we won’t be so far apart anymore.

As the Christmas period is almost upon us, you may have started thinking about your Christmas gift list.

While buying and wrapping presents to put under the tree for the children in your life may bring you joy, you may not relish the idea of having to choose what to buy for them – especially if they already have a fully stocked playroom.

If the idea of buying more “stuff” for your children has lost its lustre, you could consider gifting money instead. While popping some money or a gift voucher inside a card is an easy solution, making an investment on their behalf could make a big difference to their financial futures.

Give your children and grandchildren a healthy financial start to adulthood

In fact, investing for children is one of the best presents you can give to the young people in your life. Crucially, because time is key to growing wealth through compounding, the earlier you start investing for children the better.

Giving your children or grandchildren a healthy financial start to adulthood could help them:

• Fund further education
• Travel the world
• Buy their first car
• Take a firm step onto the property ladder.

Apart from the invaluable financial freedom they might enjoy, investing for children is also a fantastic way to help them learn important money lessons. As they get older, you can involve them in conversations and decisions about how and where their money is invested.

So, here are three possible ways you could invest for the children in your life this Christmas.

1. Invest into a child’s ISA

A Junior ISA (JISA) needs to be opened by a parent or guardian, but once that’s done anyone can pay into it. And you can invest up to £9,000 a year (2023/24).

By investing in a Stocks and Shares JISA when your child or grandchild is young, the money you put away for them may enjoy greater long-term potential for growth.

In fact, according to data from Fidelity International, if you invest just £30 a month into a JISA, by the time your child turns 18, you could have accrued £9,742. Invest £178 a month and you could amass more than £57,000.

Once they reach 18, they can withdraw the money – free of Income Tax or Capital Gains Tax. Alternatively, they can opt to transfer the account to an adult ISA, allowing them to keep the funds invested. They can then continue to make further payments into it on a regular or ad hoc basis.

2. Start contributing to a pension

Saving into a pension may seem an odd idea, especially if your child or grandchild is still very small. Yet, commencing pension contributions when they are young can be one of the best ways to set your child up for the future.

Although they won’t be able to access the money in their pension until they reach retirement, the tax relief on offer, alongside the potential for investment returns over a long period, makes pensions an effective vehicle for providing your children with a future income.

One of the main advantages of a child’s pension is that there is huge potential for the fund to enjoy compound growth. If your child is still a tot, the money could be accumulating for 50 years or more, which allows excellent scope for long-term growth.

Initially, the pension must be set up by the child’s parent or guardian. Once in place, you can pay money in and receive tax relief on payments.

The government automatically tops up contributions by 20% – even for a child – so an annual payment of £2,880 automatically becomes £3,600.

As with all pensions, children’s pensions have an Annual Allowance. In 2023/24, this limit is the lower of either £3,600 gross or 100% of the child’s earnings, if they have any.

You can contribute more than this, but you won’t enjoy the same tax relief on contributions above the Annual Allowance.

Read more: How you could help your child become a pension millionaire

According to calculations from Times Money Mentor, if you invested £300 a month (including the tax relief from the government), you’d be contributing the maximum £3,600 each tax year, from birth until the age of 18, you would have invested a total of £64,800.

Assuming you take away 0.75% for charges and add an average investment return of 4.5% a year, for example, your child’s pension fund could be worth £91,800.

Of course, they can’t access it until retirement so if that £91,800 remained invested for a further 42 years, applying the same charges and investment returns in the example above, the pension pot would be worth around £425,000.

These calculations assume that contributions cease at age 18, but once your child reaches age 18, or starts working, they can, of course, continue to contribute to the same pension fund.

3. Give them a chance to win cash prizes with Premium Bonds

If you fancy giving a financial gift with a difference, you could give your children or grandchildren Premium Bonds this Christmas.

Premium Bonds provide the potential to win tax-free prizes, giving them the opportunity to win anywhere between £25 to £1 million every month.

Once purchased, if the Premium Bond wins, your child can opt to claim the cash prize or use the winnings to purchase more Premium Bonds – potentially increasing their chances of winning more money.

You can invest anywhere between £25 and £50,000 in Premium Bonds for a child. Initially, a parent or guardian will need to be responsible for the account. When your child turns 16, they become responsible for the bond and can register with NS&I to manage the account.

Get in touch

If you’d like to give the children you know the gift of a lifetime this Christmas and would like to discuss all the available options, please get in touch.

Email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

Life expectancy is increasing and with more research into longevity, you could expect a long retirement. The secret is how to ensure that it’s also a happy one.

Even without adopting healthy lifestyle changes to lengthen your lifespan, according to the Office for National Statistics, the average life expectancy for a British man aged 55 today is 84, and there’s a 1 in 4 chance that you could reach 92.

Meanwhile, if you’re a 55-year-old female, the average life expectancy is 87, and there’s a 1 in 4 chance that you could live to celebrate your 94th birthday.

Thoughtful lifestyle changes could help you increase your longevity

With growing interest in the subject, there are more and more news articles about how lifestyle changes can improve your longevity. If you subscribe to Netflix, there’s even a four-part documentary covering the subject: Live to 100: Secrets of the Blue Zones.

There are five Blue Zones:

1. Japan
2. Costa Rica
3. Italy
4. Greece
5. California

From adapting your diet to taking the right kind of exercise, there are now multiple science-backed ways that could make a positive difference to how long you live, and how healthy you are in retirement. A report from Insider revealed top lifestyle tips from the Blue Zones, including:

• Stick to a primarily plant-based diet
• Move regularly – this needn’t be exercise; small energetic bursts throughout the day can help your overall fitness
• Have purpose – having a clear life plan has been associated with fewer strokes. Science has also revealed that a strong sense of purpose can help people living with heart disease reduce the risk of heart attacks.

A healthy lifestyle is only one aspect of ensuring a long and happy retirement

Most people hope to enjoy a long and happy retirement. Living longer means you get to spend more time with friends and family, and have more time to enjoy both simple pleasures and adventures that you dreamed of while you were working.

Yet, a longer life will also influence your finances, as your pension and savings will need to last longer, too.

When thinking about your retirement plan, you’ll need to ask yourself some important questions, including:

• When do I want to retire?
• How do I want to retire?
• How long might my retirement last?
• What do I plan to do in retirement?
• How much will my retirement lifestyle cost?

As with all aspects of financial planning, it’s crucial to have a goal in mind.

Answering these questions will help you understand how much money you need to fund your desired lifestyle in retirement and the amount of risk you’re willing to take to fund your dreams.

Knowing how you’d like to spend your retirement will also influence the amount of money you’ll need.

If you have an adventurous spirit and want to enjoy world travel, that will prove more costly than if you prefer to stay close to home. You may prefer to spend time with family and friends, take up a new hobby, or become involved in your local community. You may want to enjoy a little of both worlds.

Of course, the choice is entirely yours but knowing in advance will help you plan your finances accordingly.

Plan for all stages of your retirement

The years immediately after you finish work are likely to be more active. You’ll likely find you spend more on travel, weekends away, or days out.

After a few years, as your energy levels change, your outgoings might begin to decrease. Instead of spending on long-haul travel, once-in-a-lifetime experiences, or meals out, you may see a rise in household bills as you spend more time at home. You may find more pleasure in pottering around your garden, reading, or looking after your grandchildren.

Then, as you begin to age, you may find your costs rising again. And one downside of rising life expectancies is that the number of years spent in ill health is increasing.

So, when planning for your retirement, you’ll also need to factor in potential care costs. It’s also a good idea to have an opposing optimistic plan for what will happen to the money you’ve earmarked to pay for care if you don’t end up needing it.

According to The Good Care Group, residential care typically costs between £27,000 and £39,000 a year. If you need nursing care, fees may run as high as £55,000 a year. Over time, inflation could see these costs climb ever higher.

While you may receive some government support, if you have more than £100,000 in assets, you’ll need to cover these costs yourself. This is something we can help you plan for.

Get in touch

We can help you draw up a long-term financial plan aligned with your retirement goals. We use sophisticated cashflow modelling tools to help you visualise how much money you might need in retirement.

We can then help you plan towards saving enough to make your dream lifestyle a reality, however long your retirement lasts.

If you would like to discuss saving for retirement, or you have questions on any other aspect of your long-term financial plan, please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Your pension income could also be affected by the interest rates at the time you take your benefits. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

The Financial Conduct Authority does not regulate cashflow planning.

The Walt Disney Company is celebrating a huge milestone – its 100th anniversary.

On 16 October 1923, brothers Walt and Roy Disney set up Disney Brothers Cartoon Studio to produce films. From humble beginnings, the company has gone on to become one of the most recognisable brands in the world.

To mark 100 years of Disney, this guide lists 10 life and money lessons you can learn from the company and its films, including:

• Follow Walt’s lead and set long-term goals: Did you know Walt purchased more land than he needed for his initial plans to build a theme park in Florida? This means Disney World has far more freedom when it pursues new developments.
• Don’t fall for a scammer’s promise of treasure: Understanding what you’re signing up for and being aware of the red flags when approached by someone with an opportunity is a lesson Aladdin learnt. While fraudsters won’t use a cave filled with treasure to entice you, they may use similar tactics.
• Diversify your assets like the Disney Company: When you think of Disney, it’s probably the films that come to mind. But the company has become far more than its latest movie and the company’s profits come from more places than you may expect. Diversifying helped Disney to make a profit even when Covid-19 restrictions affected some business areas.
• Learn from Cinderella and review your estate plan regularly: Cinderella is a classic rags-to-riches story. But the whole tale could have been avoided if her father had updated his estate plan.

Download your copy of “10 magical life and money lessons you can learn from Disney” to discover more lessons.

If you have any questions about your financial plan or the topics covered in the guide, please contact us.

Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.

Each month, we share some of the highlights of what’s been happening in and around Blue Wealth.

This month, Sarah and Dan Britton’s son enjoys his first day at school and Adrian Thorley is on the mend after a nasty crash on his bike.

One of life’s first milestones for Sarah and Dan Britton’s son

Early this month, Sarah had the emotional task of dropping her son off at school for the very first time. Sarah said: “The first drop-off went very well. He lined up with his new classmates and walked straight in without looking back. I had a tear in my eye but was pleased that he had gone in okay.”

Sarah and Dan were, naturally, a little sad that their son’s early years were at an end but were also happy to see him start school and move on to his next chapter.

Fortunately, his big sister goes to the same school, so he was very excited to be joining her, and, undoubtedly, she is proud to be his protector, too.

Having already visited the school, he knew a little of what to expect and was very much looking forward to enjoying the new toys and the school playground.

On the way home, when Sarah asked what he enjoyed most about his first day at school, he was quick to answer, “Playtime and lunchtime!”

Adrian had a nasty crash on his bike, thankfully he was wearing a quality helmet

The picture below was taken in Bristol Royal Infirmary A&E on Sunday 6 August, just a few hours after Adrian had come off his bike in a nasty crash.

Fortunately, no other vehicles were involved in the accident – it was simply very bad misfortune.

Here, Adrian tells us what happened:

“I was out training alone on a Sunday morning. I was almost home at the end of a 30-mile circular route to Clevedon and was cycling along a lane that is covered by a canopy of trees. There was a lot of debris on the road, which is what led me to come literally crashing from my bike.

“The people who kindly took care of me (and my bike when the ambulance arrived) later told me that it looked like a large vehicle had been through the lane and knocked a lot of small branches and twigs onto the road.

“I didn’t give it any thought and, luckily in many respects, have no recollection of coming off the bike.

“Another cyclist, who was coming along behind me, told me that the bike stopped dead and I went over the handlebars, using my head and shoulder as a brake! I’m told that a stick from the road had become wedged between my front rim brake and the wheel, which explains why the bike suddenly came to a complete halt. The momentum must have carried me over the handlebars.

“As one of my helpers said, it was a one-in-a-million chance – I could try to do it again (I won’t) and it’s very unlikely that I’d achieve the same outcome.

“Thankfully, I always wear a helmet, as I dread to think what the consequences would have been had I not. My old helmet had a huge dent in it, so I’ve had to buy a new one!

“When I came to, I was surrounded by four people, who had kindly stopped to help. They had already called an ambulance which, fortunately, arrived within about 10 minutes.

“I was taken to the Bristol Royal Infirmary A&E department, as the ambulance staff thought I would need maxillofacial specialist attention.

“They were right – I had stitches in wounds in my eyebrow, my chin and lower lip, and I’ve also chipped off one of my front teeth. I also took a chunk out of my shoulder, and the left side of my face was covered in road rash. For good measure, I took the skin off my knuckles on my left hand too.

“What I didn’t realise, at the time, was that I have likely cracked, or at least bruised, several ribs in the process.

“I was in a fair amount of pain for several weeks, and it was a while before I managed anything approaching a normal night’s sleep. I was told that there’s nothing I could do about this other than taking it (relatively) easy and waiting. Fortunately, with every passing week, the discomfort receded a little bit more.

“Since a full recovery will take time, I had to shelve plans for another charity ride on 10 September.

“I’ve had the stitches out and my face is almost back to normal – not that that’s much to shout about. I have managed several rides since as, unbelievably, there was very little damage to the bike. I think it must have fallen on me and then toppled, relatively gently, to the floor from there.

“I’ve managed to keep working, although I did find it difficult to concentrate for the first few days. If I had a manual job, it would have been very different, and I would have been glad of my income protection plan without a doubt.”

When you think about financial planning, you’ll likely immediately conjure thoughts of pensions, ISAs, investment portfolios, and tax planning. Not to mention the high possibility of paperwork.

Yet these financial products are simply the tools used to help you achieve your life goals.

Ultimately, financial planning is all about you, your life, and your long-term aspirations.

In recognition of World Financial Planning Day on 1 October, read on to learn more about how working with a financial planner could help to make a big difference to your life and happiness, as well as influencing your potential wealth.

Conversations with a lifestyle financial planner can bring clarity for your future

One of the first conversations you’ll have when you meet with any good financial planner will be about your life. They will want to understand your responsibilities, priorities, long-term goals, and what in life makes you happy.

As such, instead of asking about the size of your mortgage or how much you’ve saved into your pension, expect questions like:

• What is your life like now?
• What makes you happy?
• What matters to you most?
• How would you like your life to look in the future?

The hectic pace of life means that many people fail to slow down long enough to consider questions like this.

If this is the case for you, your Blue Wealth planner will chat with you and ask a series of exploratory questions to help you set goals that truly matter to you. Once we know you better, understand your current circumstances, and appreciate your aspirations, we’ll explain the ways we could help make your dreams a reality.

These first steps of your financial planning journey are essential in achieving your long-term goals.

Setting goals can help you manage your money better

A clear understanding of your short-, medium-, and long-term goals can help you stick to your financial objectives.

And science proves it.

According to research conducted by experts at the University of Stirling, goal setting is key to successful saving.

After analysing a large sample of UK household data from the Office for National Statistics Wealth and Assets Survey, researchers found that “setting goals, alongside having confidence in your numerical ability and using professional financial advice, were all more likely to make you a successful saver”.

The study also revealed that people without access to financial advice are less likely to have any equity investments. Consequently, these people are “less likely to hit their long-term savings objectives”. For this group of people, setting goals is arguably even more crucial.

Setting goals that matter to you is believed to give the “greatest potential benefit” for your savings.

Practical goals are good but exciting life goals matter, too

While it’s useful to create practical goals that you wish to work towards, such as paying off your mortgage, helping your children through university or onto the property ladder, it’s equally important to consider what lights a fire in your belly.

What’s topping your bucket list? Do you wish to travel to far-flung countries, start a business, or buy a home abroad?

Once you understand your goals and can prioritise them, it’s time for pensions, ISAs, equity investments, and tax planning to come into play.

Your financial planner will use a selection of investment products to devise a financial plan that puts your money to work to help you attain your dreams. So, you can rest assured that you’re on course to pursue what makes you happy.

Read more: The true value of personal financial advice, revealed

Creating a solid financial plan and sticking to it could help you achieve your goals and reduce stress. Ultimately, a bespoke financial plan tailored to your unique circumstances and aspirations could lead to a happier and more fulfilling life.

Blue Wealth clients share the benefits of financial planning

Of course, many of our clients already understand the benefits of financial planning.

For instance, Steve and Jayne have said that working with us has helped put their mind at ease.

Meanwhile, both Marcus and Dave have enjoyed greater financial confidence. Dave, in particular, is happy that he’s able to “travel and enjoy … life without worrying about money”.

Hear complete client stories on our website.

Get in touch

If you’d like to explore some of the different ways we may be able to help you achieve your life goals and aim towards ticking off your top bucket list items, please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

On 3 August 2023, the Bank of England (BoE) raised the base interest rate from 5% to 5.25%, a level last seen 15 years ago, in February 2008.

The good news is that the 14th successive rise since December 2021 wasn’t as steep as the 0.5% increase the BoE made in June, indicating that the successive rate rises are having the desired effect on inflation.

Indeed, in the year to June 2023, the UK inflation rate was 7.9%, down from the 41-year high of 11.1% in October 2022.

Historically, when inflation starts to rise too much, interest rates are increased as it helps deal with one of the main drivers of inflation: consumer demand. This is because higher interest rates encourage people to save their money instead of spending it on goods.

In time, this should help bring down the price of goods and services, thereby lowering inflation.

The chart below tracks inflation and interest rates from January 2018 to May 2023. The blue line represents the level of inflation. You can see that increasing interest rates started to have the desired effect in October 2022.

Source: Statista

With all this in mind, how could rising interest rates affect you and your money?

Good news for savers

Interest rate rises are good news for savers, as they usually result in higher savings rates offered by banks and building societies.

According to Moneyfacts, the highest interest rate on an easy access savings account as of 7 August 2023 was 4.65%.

While banks are generally good at passing rate rises down to consumers, the interest you can earn on your savings is still less than the rate of inflation.

It’s wise to keep a pool of money in an easy access account as a ready emergency fund, but holding more cash in the bank than you truly expect to spend, isn’t necessarily the best course of action. This is because, over time, the effects of inflation can harm the real term value of your cash.

Your circumstances will dictate how much you might want to hold in cash. We can help you understand the balance that might suit you and explain alternative ways to grow your savings and work to prevent your buying power being diminished by inflation each year.

Watch out for potential Income Tax charges on interest earned

Everyone has a Personal Savings Allowance (PSA) that limits how much interest you can earn before having to pay Income Tax.

Now that the base rate has climbed to 5.25%, it’s likely that your cash savings are earning substantially more in interest than they were a year ago. If you have a lot of cash in the bank, this uptick could increase the chance of you incurring an unwelcome tax charge.

In 2023/24, the PSA allows:

• Basic-rate taxpayers to earn £1,000 interest during the year before paying Income Tax.
• Higher-rate taxpayers to earn £500 before paying Income Tax.

Any interest earned that exceeds your PSA will be liable to Income Tax at your marginal rate.

If you’re an additional-rate taxpayer, you do not have a PSA. This means that any interest you earn on your cash savings is taxable at 45% in the 2023/24 tax year.

If you are unsure whether you might have to pay tax on interest you earn following the spate of interest rate rises, please get in touch. We’ll help you understand your situation and discuss alternative options for your cash savings.

Investing with a long-term view could beat interest rates on savings and help protect your buying power

Over time, investing in the stock market can be a good way to hedge against the effects of inflation.

While equity investments will always be affected by short-term fluctuations, if you remain calm and hold a diverse portfolio, investing could help protect your wealth from the eroding effects of inflation.

For example, Times Money Mentor reports that, as of June 2023, over the past 30 years, with dividends reinvested, the average annual return for the FTSE 100 was 7.3%. This compares favourably to the 2.1% average annual growth in inflation over the same period.

Remember though, past performance is not a reliable indicator of future performance.

The typically positive compounding effects of equity investments is one of the most popular reasons to work with a financial planner.

After understanding your circumstances and goals, we can help you build a well-diversified portfolio that considers your risk profile and takes a holistic view of your financial situation.

Your retirement income could be affected

If you’re approaching retirement or have already retired, you may have concerns about how your pension might be affected by rising interest rates.

The effect of the rate rises will depend on how your pension is invested.

Many pension funds are at least partially invested in bonds, which often fall in value when interest rates increase. As a result, during times of higher interest rates, you may find that your pension pot doesn’t grow as quickly as you might like.

One way to benefit from higher interest rates might be to buy an annuity.

According to a PensionsAge report, annuity rates have increased by 20% in the 12 months to June 2023. Since the start of 2022, the total increase adds up to 48%.

An annuity can be a helpful way to secure a guaranteed income in retirement. However, this solution may not be suitable for everyone and can’t be changed once you’ve purchased it, making it crucial to speak with your financial planner before you commit to a deal.

Get in touch

If you’re concerned about how the recent interest rate rise will affect your finances or want to find out how you can make the most of the options available to you, we’re here to help.

Email us at hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

The Financial Conduct Authority does not regulate tax advice.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.