london session 3
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London session 3TRANSCRIPT
Financial Education Seminar: Session 3 of 317 July 2012
About Helm GodfreyBased in London, Helm Godfrey specialises in employee benefits and financial planning. • Experience of over 30 advisers • Consultation specialist in:
— Life, pensions and savings— Lifetime financial planning— Retirement
• 2008 winners of Financial Adviser and Money Marketing IFA of the Year award• Regulated and Authorised by the FSA
Financial Seminar ScheduleAs an additional benefit to NYSE Euronext employees, your company is providing you with financial education seminars, these seminars will cover:• 29th June 2012
— Investing in rental property— Pensions (I can’t get no) satisfaction
• 2nd July 2012— Protecting my hard work— Making my money work harder for me
• 17th July 2012— The importance of having a plan— Planning for the future – it starts earlier than you may think
We will also be conducting 1:1 meetings in rooms W4 and W5 for anyone interested in discussing any financial aspect of your personal situation
Your Team
Anthony Nash
Sam Whybrow
Planning your future – it starts earlier than you think17 July 2012
Agenda
Financial Future• Long term returns• The Basics• State Pension Age• Retirement Income
Long Term Returns
Bank of England Base Rate 144.36%UK Property 211.18%London Property 301.08%FTSE all Share 357.08%SP 500 491.26%
Inflation (1991 – 2011) 76%
The BasicsBe disciplined•Use a budget and review regularly•Be realistic•Keep records and download statements
Manage Debt/Cash•Offset mortgages•Know the interest rate•Credit card transfers
Start Saving•Pensions•ISAs•Use your allowances
The cost of delay
Begin Saving at Age
Monthly Pension Saving
Total Paid In
Final Value
25 £500 £240,000 £744,000
35 £909 £327,600 £744,000
40 £1,267 £382,500 £744,000
Retirement Age: 65Growth rate based on 5%
State Pension Age
Born Before 6 April
1950
CurrentBorn on or after 6 April 1950 - 1955
Nov. 2018 – Oct. 2020
2026 – 2028 2036 – 2038
Benefits from HMRC
Benefits from HMRC
Benefits from HMRC
Retirement Income
Annuity
Drawdown
ISA
• Lifetime•Enhanced • Investment
• Capped• Flexible (no limit)
Benefits from HMRCOther
• Temporary
• Gilts/Bonds• Shares • Cash
• Property• Shares• Inheritance/Windfall
Types of AnnuitiesAn Annuity (also referred to Lifetime Annuity) is a promise to provide you with a guaranteed level of income for life.
A Temporary Annuity pays a fixed income for a fixed term then you review your options at the end of that period (typically a 6 year term).
An Enhanced Annuity pays a higher income based on a reduced life expectancy.
An Investment Annuity pays a minimum income that can be higher based on the investment performance of the fund(s).
Annuity rates are based on several factors such as: Your life expectancy, age, gender, address/postcode and any medical condition. It pays a regular income to you in return for an initial investment. A 5% annuity rate means that you will receive £5,000 a year gross from a £100,000 investment.
Drawdown options
Capped Drawdown is taking a pension without buying an annuity and only being able to withdraw up to the capped amount.
Flexible Drawdown allows members to withdraw as much or as little as they want as long as they have £20,000 of guaranteed income from other sources.
Drawdown allows you to take income from your pension fund while the fund remains invested and continues to benefit from potential fund growth. Pension funds in drawdown remain invested and therefore subject to the normal associated risks and charges.
Benefits from HMRCDrawdown
• Capped• Flexible (no limit)
The basics of ISAs
Stocks and Shares ISAs can be invested in gilts, corporate bonds and not just shares.
Cash ISAs are invested in cash deposits.
Income from gilt and corporate bond funds is paid tax free.Income from shares is taxable at 10%.
An ISA is a tax efficient wrap on your investments. Simply put, it saves tax and can increase the potential for the return on your investment.The current limit is £11,280, up to £5,640 which can be used for cash.
Benefits from HMRC• Gilts/Bonds• Shares • Cash
ISA
Use your allowances
Property is the home you live in or a second property used to generate capital growth or additional income.
Shares can be a higher risk strategy offering a potentially higher reward.
Inheritance or windfall is either a planned or unplanned event which can enhance your wealth.
Each of the above requires careful tax planning and review.
Benefits from HMRCOther
• Property• Shares• Inheritance/Windfall
Other Options
Conclusion
The best time to start is now, so….
on your marks
get set
GO!
Financial Education Seminar wrap-up
Protection
Risk Tolerance
Tax Planning
Emergency Fund
Employee Benefits
Income & Expenditure
Emergency Fund
Review
Savings
Long Term Care
You
Important InformationHelm Godfrey Partners Limited is authorised and regulated by the Financial Services Authority.
The Financial Services Authority does not regulate tax advice.
This presentation is based on our understanding of current legislation. Whilst we take great care to ensure that the information contained in this document is accurate and up to date, we make no representations or warranties about the accuracy, completeness and reliability of the information. This presentation is for guidance purposes only and should not be taken as advice or a recommendation. We believe that independent advice should be exactly that. It is therefore important that you seek independent advice before undertaking any action with the areas mentioned in this presentation.
“Treating Customers Fairly” (TCF) is central to the delivery of the Financial Services Authority’s retail regulatory agenda as well as being a key part of our move to more principles-based regulation. “Treating Customers Fairly” is at the heart of our culture at Helm Godfrey. Our policy on “Treating Customers Fairly” is about balancing the customer’s needs with the firm’s needs, being absolutely clear about what the firm and its services offer, and being transparent about fees and levels of service.
Contact Us
Anthony Nash at: [email protected]
Sam Whybrow at: [email protected]
Marlow House, Lloyds Avenue,London,EC3N 3AATel : 020 7614 1000 [email protected] in England and Wales No. 2544237