Author: Rob Bowers

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

Naomi Davidson is on course to complete her level 4 Diploma in Regulated Financial Planning

Trainee paraplanner Naomi has passed her R03 exam. Another core unit for the Diploma in Regulated Financial Planning, the exam tested her knowledge and understanding of personal taxation.

Having passed R02 in the autumn, it’s only two months since Naomi was last tested on her knowledge – more specifically, her understanding of investment products and the application of the investment advice process. You can read what Naomi said about the last exam in November’s team update.

Having already secured a pass in this latest exam, Naomi now has just three more steps to achieve her goal to complete the diploma by the end of 2023.

Thanks to your generous support, we have made more charity donations to BillyChip

In the last couple of months, we’ve had three more successful referrals from existing clients. And BillyChip has benefited from more Blue Wealth donations.

Thank you so much for your ongoing support and your willingness to tell your family and friends about what we do. Every referral we get helps us to add financial value and provide peace of mind for another individual or family.

Throughout 2023, we will continue to make a £50 donation to BillyChip for every initial meeting we have that comes from a client recommendation.

However the meeting takes place – in person or remotely through video call – we’ll donate. So, if you recommend your friends, family or colleagues to us and we meet with them, we’ll make a £50 donation on your behalf.

As we grow our business through your kind support, knowing that our work is also helping a great cause simply adds to the feel-good factor.

If you know of anyone that would benefit from our help, please pass on our details, or forward the newsletter to them so they can understand a bit more about the work we do.

You’ll probably work hard for many years to build your wealth and achieve your long-term goals.

You may be investing for a comfortable retirement, saving to buy a home, or securing a nest egg to leave to your loved ones. Whatever your goals, having a clear strategy can give you a greater sense of control and confidence. Yet an unexpected event could jeopardise your plans.

So, one important part of your financial plan is to be prepared for unexpected shocks that may hamper your goals – ensuring you have the right cover in place should never be an afterthought.

There are a variety of ways you and your family could benefit from financial protection. Read on to find out three important reasons to take out protection now.

1. Protection can help cover household expenses if you’re too sick to work

What would happen if you were injured or fell ill and were unable to work for an extended period? This could prove incredibly harmful to your finances, especially if you’re the main breadwinner in your household.

Hopefully, you’d have an emergency fund that you could use, but it may not last as long as you need. Plus, although you’re legally allowed to claim up to 28 weeks of Statutory Sick Pay (SSP), in the 2022/23 tax year the maximum SSP sum you could claim is £99.35 a week.

This is unlikely to be enough to maintain your lifestyle, especially if you face additional expenses due to your illness.

Without enough money to live on, you might have to resort to use your savings to help ends meet, which could harm your financial goals.

Income protection could save a lot of stress. A policy will make regular monthly payments, which will usually continue until you’re able to go back to work or retire. This should enable you to relax and focus your energies on regaining your health, instead of worrying about money.

Generally, the policy will pay out a percentage of your usual salary and can be used to help you meet financial commitments if you become ill or involved in an accident.

Equally important, an income protection plan could give you access to rehabilitation services that might help you return to work sooner.

2. Critical illness cover could provide invaluable peace of mind to you and your family

Every year thousands of people in the UK are diagnosed with a critical illness.

If you were diagnosed with an illness or experienced a stroke or heart attack, critical illness cover will pay out a lump sum on the diagnosis of an illness that is named in the policy.

You can choose the level of cover you’d receive to fit your lifestyle and commitments. We can help you understand which policy might be right for you and assist you in avoiding paying expensive premiums on insurance that isn’t what you expected.

The money from critical illness cover could buy you some breathing space and allow you time to come to terms with the news without having to worry about immediate finances.

Alternatively, you could use the money to pay for private medical treatment, or to buy medication not available through the NHS. It might also help you repay your mortgage or other debts, modify your home if necessary, or provide an income.

The cost of the premiums will depend on factors such as your age, medical history, and risk associated with your job.

Ultimately, protecting yourself against the potential for unexpected healthcare expenses could be essential to preserving your financial wellbeing.

Another option to consider is buying private medical insurance (PMI). This would cover costs of private healthcare, including diagnoses, treatment, and everything in between.

While this only covers healthcare costs, having access to private healthcare when faced with potentially devastating news may be useful.

Many employers provide PMI as an employee perk, and often includes family members, so it may be worth checking to see if this is the case for you.

Also, PMI policies can vary enormously between providers, so be careful to read the small print. Alternatively, speak to us and we can help you understand exactly what you are buying before you sign on the dotted line.

3. Life insurance could prevent your family from facing financial ruin

While it may be uncomfortable to consider, have you paused to think about how your family would maintain their current lifestyle if you were to pass away in the near future?

With a life insurance policy in place, your family could receive a payout in the event of your death.

The money could help them to:

• Keep up with mortgage repayments so they won’t have to uproot their lives and move house if you passed away
• Cover living costs such as school fees, travel, and day-to-day expenditure
• Cushion the blow of an Inheritance Tax (IHT) bill.

As well as providing your family with crucial financial support on your death, life insurance can also play an important role in protecting your legacy from IHT.

While there are opportunities within the current IHT rules to minimise or mitigate a tax liability, there may be circumstances where it’s not possible, appropriate, or cost-effective. This is where life insurance can help.

Insuring against a likely IHT liability could allow you to pass on all your accumulated wealth to loved ones.

It’s essential that you write the life insurance policy in trust, to be paid to a named individual. Failing to do this would mean that the payout would be added to your estate and increase the IHT liability – negating any benefit you hoped to achieve.

We can help you understand how financial protection fits into your life goals

When the unexpected strikes it can be devastating. Having the right financial protection in place should mean that money worries are one less thing to deal with.

The cover you need will depend on your own financial situation and circumstances. Whether you want peace of mind in unexpected circumstances or to mitigate tax liabilities, we’ll help to ensure you have the right protection in place.

Get in touch

If you would like to discuss your financial plan, review your protection requirements, or mitigate IHT, 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.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

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

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

The 2022/23 tax year ends on Wednesday 5 April. After this date, many allowances reset, and it could be your last chance to use some of them.

Allowances can help your money go further by reducing your tax liability. Reviewing your finances before the deadline could help you identify some allowances that could be right for you.

This guide explains how seven useful allowances work:

1. Marriage Allowance
2. ISA allowance
3. Dividend Allowance
4. Capital Gains Tax annual exempt amount
5. Pension Annual Allowance
6. Inheritance Tax annual exemption
7. Gifts from your income.

Download your copy of ‘The 2022/23 end of tax year guide: 7 allowances to make use of before 5 April 2023’ to find out more. 

If you have any questions about your financial plan and which allowances make sense for you, please get in touch. 

When a new tax year starts, many allowances reset. So, checking if you could make use of allowances before Friday 5 April 2024, when the 2023/24 tax year ends, might be valuable.

This guide explores some of the allowances that could help your money go further. You might discover you could reduce your Income Tax liability by using the Marriage Allowance or find a tax-efficient way to save for your long-term goals by using an ISA or pension.

The guide explains seven key allowances:

1. Marriage Allowance
2. ISA allowance
3. Junior ISA allowance
4. Dividend Allowance
5. Capital Gains Tax Annual Exempt Amount
6. Pension Annual Allowance
7. Inheritance Tax annual exemption.

Download “7 allowances you might want to use before the end of the 2023/24 tax year” to learn if you could potentially reduce your tax bill.

If you have any questions about which allowances are suitable for you or would like to create a plan for 2024/25, please contact us.

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

Adrian is one small step away from achieving Chartered status

Having submitted his coursework for the AF8 qualification from the Chartered Insurance Institute (CII), that focuses on retirement planning, Adrian Thorley is another step closer to achieving Chartered financial planner status.

Adrian tells us more about his career so far and what it all means.

How long have you been working towards becoming a Chartered financial planner?

I’ve been working towards this specific qualification since returning to a client advice role in September 2019.

I’ve been in Financial Services for 38 years and gained the CII Financial Planning Certificate and Advanced equivalent in the early and mid-90s. Shortly after that, I left the UK for Guernsey, where I worked for 13 years. While there, I also obtained a local financial services qualification.

Then, when I came back to the UK, I worked for a protection provider servicing the IFA community for eight years, and CII qualifications weren’t really a priority.

After a 21-year gap, I found myself in need of updating and upgrading my qualifications and set to it.

What does the process involve?

A fair bit of study and time – which seems to get harder as you get older.

Some of that study is preparing for exams which you sit and get an immediate result. These I’ve found a little easier.

Other sections were case studies. These are tested by either free-format answers to specific questions, or by coursework. For the coursework sections, I had to manage in my own time alongside the other demands of the business – which proved more of a challenge.

As well as being able to display adequate knowledge and apply it to particular situations, recognising what the CII is after and not forgetting to state the obvious has been most difficult.

What will this mean for you professionally?

There is an increasing awareness of the “Chartered financial planner” qualification and what it means for quality of advice.

To have qualified to that level will be an achievement nearly 40 years in the making and I have everything crossed that my final AF8 coursework submission is successful.

Add to that the fact that two of our advisers have already got there and there’s also the incentive of putting a stop to the inferiority complex!

What’s next?

At 56, I hope that success in achieving Chartered status will be the end of the road in terms of qualifications!

That said, the CII is always looking to improve the quality of advice and the profile of the profession in the eyes of the public. With that in mind, introduction of yet more qualifications would never surprise me.

Would I go for it? I guess you should never say never…

More recommendations and more donations for BillyChip

Once again, we’ve sent more money to BillyChip thanks to your referrals.

We greatly appreciate your support and your willingness to tell your family and friends about the work we do. Your recommendations really do mean the world to us.

As a quick reminder about our charity incentive, we make a £50 donation to BillyChip for every initial meeting we have that comes from a client recommendation. However the meeting takes place, we’ll donate.

In short, if you recommend your friends, family or colleagues to us and we meet with them, we’ll make a £50 donation on your behalf.

If you know of anyone that would benefit from our help, please pass on our details, or forward the newsletter to them so they can get a feel for what we do.

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 be closed on:

• Wednesday 28 December
• Thursday 29 December
• Friday 30 December

Emails and telephone calls will be monitored throughout the holidays, 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. Thank you for your continued support.

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

Chancellor Jeremy Hunt delivered some good news in November’s autumn statement. With the announcement that the State Pension “triple lock” would be honoured, from April 2023 pensioners can expect a boost of just over 10% to their State Pension.

Read on to find out what the pensions triple lock is and what it means for you and your money.

What is the “triple lock”?

The triple lock was introduced in 2010, by the Conservative/Liberal Democrat coalition government. It is designed to ensure that the amount pensioners receive from the State Pension increases at an appropriate rate each year: to increase with the cost of living and not be overtaken by the working population’s average income.

The State Pension is supposed to increase each year in line with the highest of these three measures:

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

From April 2023, the State Pension will increase by 10.1% – the rate of inflation in September 2022.

So, if you’re claiming the State Pension, you should see an increase in the amount you receive from 10 April 2023.

To ensure that they each keep pace with the cost of living, the triple lock applies to both the basic State Pension (pre-April 2016) and the new State Pension (post-April 2016).

What does the triple lock mean for me?

If you’re receiving the State Pension, the triple lock system helps to protect your income. In effect, it guarantees that your income will be a fair sum when compared to the income of those still working.

If you’re currently receiving the full new State Pension, the 10.1% increase will mean you’ll get an extra £19 a week. Over a full calendar year, this will amount to an additional £988 in your pocket.

For those who reached State Pension Age before April 2016 and are receiving full basic State Pension, the 10.1% increase will mean an extra £14 a week – an additional £728 over the year.

This increase is clearly good news. However, while inflation continues to climb – it exceeded 11% in October 2022 – even this seemingly generous 10% boost to the State Pension won’t be sufficient to cover all the extra living costs.

Check your State Pension forecast and don’t miss the opportunity to top up your entitlement

Remember, the values above are based on the full State Pension amount. If you don’t have a complete National Insurance record, your pension will be lower than this.

To find out how much State Pension you might expect to receive, check your State Pension forecast on the government website.

A gap in your National Insurance contributions (NICs) could mean that you will receive less State Pension.

The good news is that there’s a time-limited window of opportunity to increase your entitlement.

In April 2023, you can top up as far back as 2006

Depending on your National Insurance record, it is currently possible to purchase up to an additional 10 years of NICs gaps for the years 2006 to 2016.

If you are a man born after 5 April 1951 or a woman born after 5 April 1953, you have until 5 April 2023 to pay voluntary contributions to make up for gaps between tax years April 2006 and April 2016, if you are eligible.

After 5 April 2023, you will only be able to pay voluntary contributions for the past six years.

This window of opportunity is short and, from 6 April 2023, the maximum number of years it will be possible to retrospectively purchase, will revert to six years.

Deciding to top up your State Pension with voluntary NICs isn’t straightforward. You need to balance the cost of the contributions you’d make, and additional pension you’ll receive.

We can help explain what it means and, taking all your circumstances into account, advise you on whether making voluntary contributions is the right decision for you.

How to boost your pension pot

The UK State Pension has been deemed one of the worst systems in Europe. Research from the House of Commons has shown that income from work and personal pensions is more important as a source of retirement funding in the UK.

So, although the State Pension can provide a useful and reliable income stream, if you want a comfortable retirement, your State Pension should, ideally, be supplemented by additional savings from workplace or private pensions.

Read more: 5 practical steps you should take to prepare your finances for a comfortable retirement

Review your retirement planning to make sure you’re on track

You may feel that the State Pension and your other retirement savings might not be enough for you, if so, you might still have time to top up your pension plan or save in other ways.

For example, you could consider:

• Deferring your State Pension and delaying when you start receiving payments; doing so for 12 months will boost your State Pension by an extra 5.8% a year
• Building up your private savings through a workplace pension scheme or your own private pension
• Tracking down lost pensions, this could be especially important if you’ve moved between several jobs
• Checking where your money is invested, and that you are not paying too much in fees.

Get in touch

If you’d like to discuss the State Pension and how it factors into your financial plan, 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.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up, 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. Levels, bases of and reliefs from taxation may change in subsequent Finance Acts.

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

It has been a tumultuous year in British politics, with three prime ministers and four chancellors holding office.

After the calamitous “mini-Budget” ushered in the demise of Liz Truss and Kwasi Kwarteng, new chancellor Jeremy Hunt has delivered his first autumn statement.

Hunt’s speech came at a tricky time for the UK economy, with inflation at a 41-year high and the Bank of England (BoE) reporting that the economy is expected to be in a recession for a prolonged period. Hunt said his plan was designed to “strengthen our public finances, bring down inflation and protect jobs”.

Here are the key points of the autumn statement, and what they might mean for you.

A reduction in tax-free allowances and exemptions

As part of his plan to raise tax revenue, the chancellor announced reductions to two key tax allowances.

Capital Gains Tax

The Capital Gains Tax (CGT) annual exempt amount will fall from £12,300 to £6,000 in April 2023, and to £3,000 in April 2024.

This means that you will only be able to make profits of £6,000 on non-ISA investments – such as company shares or second homes – in the 2023/24 tax year before CGT becomes due.

Dividend Tax

The Dividend Allowance – the amount you can earn from dividends before Dividend Tax is paid – will be reduced from £2,000 to £1,000 in April 2023, and then to £500 in April 2024.

If you receive any income from dividends, it’s likely that you will pay more tax on these dividends from April 2023 onwards.

These two combined measures will raise more than £1.2 billion a year from April 2025.

Inheritance Tax thresholds frozen for a further 2 years

The Inheritance Tax (IHT) nil-rate band has been at its current level of £325,000 since April 2009. The additional residence nil-rate band is set at £175,000 and normally applies if you leave your home to a child or grandchild.

These two thresholds had already been frozen until 2026. The chancellor announced an extension to this freeze, meaning that the nil-rate bands will remain at these levels until at least 2028.

Qualifying estates can continue to pass on up to £500,000 and the qualifying estate of a surviving spouse or civil partner can continue to pass on up to £1 million without an IHT liability.

As house prices and asset values rise, it is likely that more and more estates will face an IHT bill over the next five years.

A cut to the level at which you pay additional-rate Income Tax

In a considerable change of direction from the former administration, Hunt reduced the threshold at which individuals pay additional-rate Income Tax.

Unlike his predecessor, Kwasi Kwarteng, who abolished the additional rate of tax (45%) – a move that was swiftly reversed – Hunt’s announcement means higher earners will pay 45% tax on more of their earnings.

The 45% rate will now apply for earnings above £125,140 rather than the previous level of £150,000. It means if you earn £150,000 or more, you will pay just over £1,200 more in Income Tax each year.

Hunt also froze the Income Tax Personal Allowance – the amount an individual can typically earn before paying Income Tax – at the current level of £12,570 until 2028. Additionally, he fixed the higher-rate threshold at £50,270 and the National Insurance thresholds at their current level to 2028.

All these measures are also likely to increase your personal tax burden. As earnings rise, more of your income will be subject to tax than if the allowances had risen in line with inflation.

The State Pension “triple lock” to be honoured

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

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

After months in which no senior politician would commit to honouring the government’s pledge, Hunt announced that he would increase the State Pension in line with inflation.

This means pensioners can expect a boost of just over 10% to their State Pension from April 2023. For someone on the full, new State Pension, that will represent an additional payment of more than £900 a year.

Pension Credit will also rise by 10.1% in April 2023 and benefits will be uprated by inflation, too.

As a result of uprating both working age and pension benefits, around 19 million families will see their benefit payments increase from April 2023.

An increase in the Energy Price Guarantee

Hunt announced that the government’s Energy Price Guarantee – an initiative of the Truss administration – would continue in its present guise until April 2023.

Under the guarantee, for six months from 1 October 2022, the average household will pay energy bills of around £2,500 a year.

The scheme will then become less generous from April 2023. The guarantee will rise to £3,000 for a further 12 months, meaning your energy bills will likely rise again in the spring.

The government say this equates to an average of £500 support for households in 2023/24.

There will be additional support for more vulnerable households.

Increase to windfall taxes

Jeremy Hunt announced a significant increase in windfall taxes. The oil and gas companies’ tax rate will increase from 25% to 35% of profits on UK operations from January 2023 until March 2028, extended from December 2025.

There will also be a 45% tax on profits of older renewable and nuclear electricity generation.

Together, these measures will raise more than £55 billion from this year until 2027/28.

Stamp Duty reductions to end in 2025

In September’s “mini-Budget”, Kwasi Kwarteng announced some increases in the thresholds at which Stamp Duty would be payable.

The £125,000 threshold increased to £250,000 while he increased the minimum threshold for first-time buyers from £300,000 to £450,000.

Jeremy Hunt announced that while these changes will remain, they will now be time-limited, ending on 31 March 2025. They are designed “to support the housing market and the hundreds of thousands of jobs and businesses which rely on it”.

Other measures

National living wage

Hunt announced the largest-ever rise in the UK’s national living wage. For workers aged 23 and over, it will rise by 9.7% to £10.42 an hour from April 2023.

This represents an increase of more than £1,600 to the annual earnings of a full-time worker on the national living wage and is expected to benefit more than 2 million workers.

Electric vehicles

From April 2025, electric cars, vans, and motorcycles will begin to pay Vehicle Excise Duty in the same way as petrol and diesel vehicles. The government says that this will “ensure that all road users begin to pay a fair tax contribution as the take up of electric vehicles continues to accelerate”.

Health and social care

Hunt announced spending of £2.8 billion in 2023/24 and £4.7 billion in 2024/25 for adult social care, to help the most vulnerable.

He also committed an additional £3.3 billion in 2023/24 and a further £3.3 billion in 2024/25 to improve the performance of the NHS.

Furthermore, the chancellor announced that the lifetime cap on social care costs in England due to come into force in October 2023 will be delayed by two years.

Education

There will be an increase to the education budget of £2.3 billion in 2023/24 and £2.3 billion the year after, taking the core schools budget to a total of £58.8 billion in 2024/25.

Business rates

There will be a £13.6 billion package of business rates support over the next five years.

The business rates multipliers will be frozen in 2023/24, and upward transitional relief caps will provide support to ratepayers facing large bill increases following the revaluation. Additionally, the relief for retail, hospitality, and leisure sectors will be extended and increased to 75%.

Corporation Tax

As confirmed in October 2022, the main rate of Corporation Tax will increase to 25% from April 2023.

Infrastructure projects

The chancellor confirmed the government’s commitment to High Speed 2 (HS2) to Manchester, the Northern Powerhouse Rail core network, and East West Rail, along with gigabit broadband rollout.

Get in touch

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

All information is from the autumn statement 2022 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.

If you want some festive cheer, a Christmas market is perfect.

From stalls filled with seasonal treats to entertainment like carol singers, they can really put you in the mood for the holidays. Whether you want to visit an event locally or combine it with a weekend away in Europe, there are hundreds of Christmas markets to choose from.

Download our latest guide to discover some of the best Christmas markets to visit this year and what sets them apart. From the St Nicholas Fair in picturesque York to Strasbourg, France, which is dubbed the “Capital of Christmas”, there’s something for everyone.

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

5 of us went to a festival

No, not that kind of festival – although there was a feel-good atmosphere!

Dan, Rob, Adrian, Mason, and Nathan attended the Professional Finance Society Financial Planning Festival in Birmingham at the beginning of November.

Dedicated to supporting the financial advice profession, the festival covered 17,000 square feet – so there was a lot of ground to cover. Featuring hundreds of exhibitors and top-level speakers, we all attended separate sessions ranging from Behavioural Investing to Pension Tax Calculations.

With each of us learning different things from the event, we were able to swap notes and share useful insights.

Of course, since Birmingham is known as the country’s curry capital, we also made time to go out for dinner and enjoyed a great Indian meal.

Naomi Davidson is on her way to a Diploma in Regulated Financial Planning

Last month, trainee paraplanner Naomi passed her R02 exam. A core unit for the Diploma in Regulated Financial Planning, the exam tested her knowledge and understanding of investment products and the application of the investment advice process.

We caught up with Naomi to find out how it went.

Can you tell us a bit about your role at Blue Wealth?

I assist the financial planners by undertaking technical research, preparing recommendation reports for clients, and implementing agreed plans. I also make sure our files are up to date and complete admin work where needed.

How long have you been working towards this particular exam, and did you have to pass other exams to reach this one?

I have been studying for the last two months. It’s only one part of the Regulated Financial Planning diploma so there will be more I need to complete to get the full qualification.

How are you at exams, generally?

I find that I am fine as long as I’ve put the work in beforehand. However, I get quite nervous and sometimes doubt myself before sitting the exam.

What was the hardest part of preparing for the exam?

The hardest part was getting through the content, it was a lot to read through and it was quite boring!

And the easiest?

The easiest part was towards the end, when I had worked my way through the syllabus and was recapping what I had learnt.

Do you have a particular revision technique or are you a natural when it comes to learning new stuff?

I try to revise in small chunks – if I study for too long in one long stretch, I find my mind starts to shut off and I don’t retain as much of what I’ve learnt.

I also like to go through past exams. I focus on finding my weaker areas and then be sure I give them extra attention to ensure I’m fully prepared for anything I might be asked.

How was the exam?

I had a bit of a delay at the test centre getting started due to IT issues, but after that it was fine. I found that everything I had learnt returned to me and I didn’t find the exam as tough as I expected.

What will it mean for you professionally?

With this exam under my belt, I’m on the way to becoming diploma qualified. I hope to have completed the whole course by next year.

Are you now working towards another qualification, or are you taking a break before diving into your next challenge?

I have my next exam booked for December, which is R03 and covers personal taxation.

You – and we – continue to give generously

This month we’ve clocked up more BillyChip donations with more client referrals.

Thank you so much for your ongoing support and your willingness to tell your family and friends about what we do. Your recommendations mean the world to us. Knowing that our work is also helping a great cause simply adds to the feel-good factor.

As many of you know, we make a £50 donation to BillyChip for every initial meeting we have that comes from a client recommendation.

However the meeting takes place – in person or remotely through video call – we’ll donate. So, if you recommend your friends, family or colleagues to us and we meet with them, we’ll make a £50 donation on your behalf.

If you know of anyone that would benefit from our help, please pass on our details, or forward the newsletter to them so they can get a feel for what we do.

Historically, the main source of financial advice value has been anchored in investment performance and returns.

For example, a study carried out by Royal London and the International Longevity Centre (ILC), revealed that people who enjoyed a long-term relationship with their financial adviser were up to 50% better off than people who only received professional advice once.

In fact, over a 10-year period (which included the 2008 financial crisis) people who had sought financial advice were, on average, £47,000 better off than those who had made decisions without expert advice.

It probably won’t surprise you to learn that we believe passionately in the benefits of financial planning. So, read on to find out why financial advice works and the added value your planner can deliver over the long term.

What to expect from your financial planner

Financial advice can provide value in ways you may not have considered. Some examples of how a financial planner can add value include:

• Being a trusted source of professional expertise and an impartial sounding board with a clear focus on helping you reach your goals
• Helping you to recognise your goals and establishing a clear financial road map to help you attain them
• Managing your investment portfolio to maximise returns, simultaneously controlling risk, and reducing potential tax charges
• Preparing you to deal with unpredictable outcomes you may not have considered, such as premature death, or life events that change income, savings, or retirement dates that could have a detrimental impact on your desired lifestyle
• Keeping on top of your changing life and needs ensuring your plans stay on course
• Saving you time by performing complex, tedious, or time-consuming tasks
• Offering emotional support and guidance to provide peace of mind.

Areas of expertise you can benefit from

While investment returns are undoubtedly important, they are only one aspect of how a professional planner can help you achieve your financial goals.

There’s a whole range of financial planning strategies we provide to help ensure you are prepared to meet the challenges you and your family may face in life.

The true value a great planner will deliver can be broken into four distinct parts:

1. Financial value

Investment returns are important in helping you achieve specific financial objectives.

An adviser will take a holistic view of your finances, including saving and spending, income planning, tax planning, and planning for bad outcomes and unexpected changes in circumstance.

2. Portfolio value

Portfolio value is delivered through building a well-diversified portfolio that generates tax-efficient investments that match your appetite for risk while delivering the kinds of returns needed to reach your long-term goals.

3. Emotional value

Emotional value covers areas of support that arise naturally from a long-term and trusted relationship.

For example, extreme market conditions can create anxiety. When faced with poor market performance, it can be tempting to reduce your equity allocation or sell your investments altogether. On the flip side, when the market is doing well, you may get over-excited and enthusiastic about equity performance and be tempted to take on more risk than you should.

A financial planner who knows you and understands your specific circumstances can help provide reassurance and peace of mind.

4. Time value

Your financial planner performs tasks that you might not have the time, inclination, or ability to perform yourself. This alone can remove a whole load of hassle and time-consuming tasks from your shoulders.

The more personal an advice plan is, the more value it can potentially deliver

Successful financial advice starts with you. An initial meeting helps us to gain insight into your aspirations – for your life and your financial future.

We will challenge you to set goals, both financial and otherwise. This will ensure that you protect your family now while growing your wealth for the future.

These first steps of your financial planning journey are essential in achieving your long-term goals. The better we understand your aspirations and circumstances, the more confidence you’re likely to have in the advice and planning that we undertake.

Expect to form a long-lasting relationship

We proactively monitor your needs and investment portfolios and recognise when changes are needed. To be successful, it’s essential that we earn your trust – one of the primary drivers of a successful client/adviser relationship.

Find out more about how we achieve this from existing Blue Wealth clients. Several of our clients have generously shared their stories about how we have helped them achieve their goals.

As an independent firm, we offer unrestricted options. This means that we can create plans specifically suited to you. This personal approach also helps us to achieve the best results for you.

We use financial modelling software to build interactive plans. So, no two plans are identical, and you benefit from truly bespoke financial planning advice.

Review at regular intervals

Knowing that life can get in the way of even the best-laid plans, we have annual review meetings to help you stay on track.

Regular audits will help make sure your actions and investments remain aligned with your goals.

At your review, we’ll often use cashflow planning tools to explore the financial impact of various scenarios. This helps ensure that you’ve thought about all aspects of your financial future, including inflation, so that whatever the future holds, you won’t come unstuck down the line.

Get in touch

Whatever stage of life you’re at, we can provide financial planning advice to support you and help you meet your goals.

Whether you’re thinking about your retirement, worried about whether you can afford the lifestyle you want, or worried about passing on your wealth to younger generations, we can help.

If you would like to find out more or you know someone who could benefit from our help, 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.

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