Client Update - Issue 3 futurefinancial Newsletter Contact us www.future-financial.co.uk E-mail your comments Archive

Planning for a prosperous 2010 Helping future generations Increased ISA limits Family income benefit Ready to work longer? futurefinancial 26 Queen Square Bath BA1 2HX Telephone: 01225 44 66 11 Email: kt@future-financial.co.uk Future Financial is a trading name of Synergie Financial Planning Limited which is authorised and regulated by the Financial Services Authority. January 2010 Happy New Year from everyone at Future Financial! I know that it is only just a month after our last Newsletter but there was some content that I thought would be useful to kick off the New Year, this is detailed in the articles below. From a financial perspective 2010 will hopefully be more settled than the last two years and we hopefully have the prospect of some recovery over the coming years to look forward to. It is therefore a good time to review your portfolio if we haven’t done this with you already. Obviously we also have a General Election due by early summer and that will have an impact on the markets in the UK, at this stage it is impossible to say whether this will be positive or negative. The same applies to the relative strength or weakness of the pound versus other currencies. Post election there are also likely to be legislative changes which may affect taxation and financial planning vehicles such as pensions. Hopefully the election will not end up with a ‘hung parliament’ as that is rarely a positive scenario. We will continue to keep you updated as all of this unfolds. The good news is that the worst of the financial crisis appears to be behind us and it is even starting to get easier to get a decent mortgage deal again! I hope that you find these articles interesting and useful? Any feedback is always appreciated. If anyone has any requests or ideas for future content then please let me know. As always if there is anything that you would like to speak to me about, or if you would like to arrange a review meeting either on a specific area or just as a general ‘catch up’ please don’t hesitate to get in touch. Best Wishes for the rest of the year, I hope to see you soon. Yours sincerely, Keith Tadhunter Dip PFS Director futurefinancial Planning for a prosperous 2010 Personal financial success is not an accident,It is the result of taking time to understand your goals, review your resources and then undertake careful planning and implementation to ensure that you can achieve your personal financial aims. Nobody knows what else is hidden over the horizon, in terms of new or increased taxes. You may rest assured, however, that as your independent financial advisers and planners we will make every effort to ensure that you are informed whenever new opportunities arise. Find out more here. Helping future generations Grandparents can help future generations and do some effective inheritance tax planning, too. It may sound rather strange talking about making pension contributions for children, particularly since they will not be able to access the money until they are 55 and that is provided the minimum age is not hiked again in future, as it will be (from 50 to 55) in April. There are, however, a number of reasons why this could be a good idea and an ideal complement to Child Trust Funds (CTFs). This means that the money given is outside the donor’s estate on death; and pension schemes are not subject to the sort of tax that applies to other forms of trust. Find out more here. Increased ISA limits A change in the rules for Individual Savings Accounts (ISAs) could give a boost to tax efficient savings for older people now and others soon. Those aged 50 or over can now make total ISA investments of up to £10,200 in the current tax year (younger people can do so from April 2010). Those who have already put in the previous maximum of £7,200 should now be able to add another £3,000 (£6,000 for a couple) and from 6th April, the limit will be £10,200 for everyone. Find out more here. Family income benefit We may be coming out of the recession only time will tell but even if we are, there is no need to be wasting money. Yet thousands of families could be doing so if their life insurance is not properly structured. Because people are now living longer than previous generations, the cost of life insurance generally is falling. So you might find that restructuring your cover to reflect current and future needs could either save you money, or provide more cover at similar cost. Find out more here. Ready to work longer? Thanks to changes already announced, we will soon all be waiting longer for our state pensions. From next year, the state retirement age for women will start rising from 60 to 65; and from 2024, the retirement age for both men and women will gradually be increased towards 68, which will be achieved by 2046. But if you were to ask most people whether they actually want to carry on working into their late 60s, or stop when they are much younger and better able to take advantage of a more relaxed lifestyle than most busy careers permit, they would probably opt for early retirement. To retire early the only option is to start planning now. Find out more here.

© FutureFinancial This publication represents our understanding of law and Inland Revenue practice as at the date of publication. It does not provide individual tailored investment advice and is for guidance only. Rules may vary for Scotland and Northern Ireland. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. The value of land and buildings is generally a matter of a valuer’s opinion rather than fact. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status and written details are available on request. Always seek independent advice from a qualified financial adviser. Think carefully before securing other debts against your home. Fees for mortgage advice maybe charged and for details of these please contact us. The Financial Services Authority does not regulate all the activities undertaken by the company, including taxation advice and overseas mortgages.