'Your Money Matters'
Quarterly Client Newsletter 
Autumn Edition
October 2011
Greetings!  

Hello again and yes it really is time for another edition of 'Your Money Matters'. 

Articles covered in this edition include advice on how to set up some form of provision for university education funding and proposed reforms that (if implemented by the Government) will have a fundamental implication on long-term funding for the elderly.

If you run your own business you may also be interested in reading an article featured in the News Section of our website that Chris Newton of Newtons Accountants Limited has written about:  Saving Employer's NI.     

Over the last three years we have been asking new and existing clients what they think about the service they receive from Firth & Scott and we are delighted to announce that the Customer Survey Results for 2010 actually saw an improvement over the figures for 2009. 
 
Do let us know if you have any suggestions for topical financial issues you would like to see included in future editions of 'Your Money Matters'.  We value your feedback and hope that you are continuing to find these quarterly newsletters of interest? 
 
Why not take a look at our new website and let us know what you think?
In This Issue
Financial Tips
University Education Funding
Long-Term Care - The Dilnot Solution
Financial Tips
In each edition of 'Your Money Matters' we aim to provide you with financial strategies that we follow when advising clients.   
 
Buy to Let Properties

When reviewing our clients' financial planning it is evident on numerous occasions that clients don't understand the advantages of having Buy to Let properties with a mortgage on an interest-only basis. 

The interest that you pay on a Buy to Let mortgage can be offset against the income being received in respect of the rental.  With a conventional repayment mortgage the level of interest that you pay actually reduces on a year by year basis, which means that you have less to offset against the rental income, meaning that you inevitably will pay more tax if you are paying tax on the rental received.

Therefore, there is definitely an advantage in keeping Buy to Let mortgages on an interest-only basis (although of course, the effects in the short-term are only marginal) as the interest portion on a repayment mortgage only reduces gradually each year but in time this would have a substantial effect.

Most lenders would be happy to switch mortgages over onto an interest-only basis so long as you can provide them with an explanation as to how you intend to repay the mortgage at the end of the initially selected mortgage term.

Again, if you require any help and assistance in this respect please do not hesitate in talking to your Independent Financial Adviser here at Firth & Scott.
 
Article written by Steve Hopkins FCII. 

University Education Funding 

 

From September 2012 universities and colleges in England and Wales (Scotland and Northern Ireland are currently still under review) can charge up to £9,000 per year for their full-time under-graduate courses. 

 

Your child or grandchild may not be university age at the moment and the rules governing student funding may change but it is worth considering the investment solutions available to you to start saving now for your childrens' further education OR to help fund your grandchildrens' further education.

 

To discuss a specific situation then please don't hesitate in contacting us here at Firth & Scott.

 

Article written by Steve Hopkins FCII

 

Long-Term Care - The Dilnot Solution

  
The Dilnot Commission (chaired by the Economist Andrew Dilnot) issued on 4 July 2011 it's recommendations on funding of long-term care and support.  If the Government is prepared to implement the proposed reforms then this will have a fundamental implication on long-term funding for the elderly.

The Goverment have committed to publishing a White Paper next year but undoubtedly there will be fierce arguments about the proposed funding arrangements in the months ahead.  The commission was set up by the Government to investigate how to achieve an affordable and sustainable funding system for long-term care.

Under the current system most individuals have to pay something towards the cost of long-term care.  Anyone with assets worth £23,250 or more is expected to pay for their care needs and in most cases the value of their property will be included.

 

Please click here to read in full Firth & Scott's recent news item about the new system suggested by Dilnot - that proposes to limit the maximum amount people would have to pay for care to between £25,000 and £50,000 - with Dilnot recommending that only those with assets worth more than £100,000 should pay for the full cost of care.
 
Article written by Steve Hopkins FCII.
If you wish to discuss any of the points raised in the articles above please do not hesitate in contacting me here at Firth & Scott Financial Services Ltd.   

 

Regards, 

 

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IMPORTANT NOTE

This newsletter is designed to provide you with general information only and does not attempt to give you advice on any particular investment or to recommend any particular investment to you.  If you have any doubt as to whether a particular investment is suitable for you you should contact Firth & Scott Financial Services Ltd for advice.

 

Firth & Scott Financial Services Ltd are independent financial advisers and are authorised and regulated by the Financial Services Authority.
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