Ruby Wealth Management

Ruby Wealth Management

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Wealth management advice tailored to meet the financial objectives of individuals & businesses in an

26/08/2021

If you are putting off starting a pension, or unsure about whether to invest more into one, here’s why you shouldn’t delay.

The effect of compounding returns is a powerful force in helping build the fund you need for a retirement that could last 30 years or more.

These figures are examples only and they are not guaranteed, they are not minimum or maximum amounts. What you get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than this.

20/08/2021

The creation and retention of wealth are goals many of us aspire to. However, when our objectives change and it comes to providing for successive generations, it is the protection of accumulated wealth which becomes important, including the incidence of Inheritance Tax (IHT)

Inheritance Tax (IHT) is charged at 40% on all assets above an allowance known as the nil-rate band (NRB), currently set at £325,000. The NRB can be up to £650,000 for married couples and registered civil partners where the exemption is not used on first death.
There are three practical courses of action that may be taken to preserve and enhance your wealth for your heirs:

make sure your financial affairs and your will are arranged to ensure the tax-efficient transfer of your assets on death

transfer assets before your death through the prudent use of lifetime gifts

create a tax-efficient fund to provide a legacy or to enable the beneficiaries of your estate to meet any IHT liability.

Visit our protection page to see which product might be best to suit your needs, or contact us today:
https://www.rubywealth.co.uk/advice-and-services/protection-planning

18/08/2021

Completing the repayments on your mortgage is a major personal achievement; you may have spent 25 years or more setting aside income, considering interest rates and calculating mortgage deals. And while this landmark may be less romantic than that first date, in many ways it’s no less life-changing.

Not only will you own outright what is probably your biggest asset, you also will have access to a sizeable sum each month that previously was earmarked for your lender. And while it might be tempting to use this newfound cash on a holiday, a car or a home extension, it’s a golden opportunity to talk to an adviser to review your current budget, savings and retirement plans to see if you’re using it most effectively.

When you pay off your mortgage, you’ll have upwards of hundreds of pounds per month that are freed up by no longer having mortgage payments.

Rather than see this money dissolve into a household budget or day-to-day spending, consider how powerful it could be if you invested it.

A financial adviser can assess your current budget and retirement plans, and help you navigate the different options available to make the best use of this extra money.

16/08/2021

We realize that money is not actually a goal, but a tool to help us along the way. Our goals are flexible and can be adjusted to fit our own financial circumstances.

13/08/2021

Five things to consider when saving money into a pension:

1️⃣ Start saving into a pension as early as possible, even with relatively small amounts
2️⃣ If you have the ability, try to maximise your annual allowance
3️⃣ Carry forward unused pension allowances, if you have the earnings to support it
4️⃣ You can bring your taxable income down by paying into a pension
5️⃣ Review your investments to see if they are still appropriate

11/08/2021

1️⃣ Lesson 1: Leave a well-written Will and avoid intestacy
It is no secret that it is so important to leave an up-to-date Will with clear instructions on how you would like your estate to be dealt with when you pass away. This ensures that your estate is distributed in line with your wishes and your loved ones rightfully inherit your legacy.

Furthermore, a Will makes the process of handling your affairs, known as ‘estate administration’, easier for your loved ones and prevents unnecessary stress at an already difficult time.

2️⃣ Lesson 2: Create a lasting power of attorney
Creating a lasting power of attorney (LPA) is often not thought about until we get older or gradually become ill. Less than 1% of the adult UK population has an LPA, according to the Office of the Public Guardian (January 2021).

An LPA is a document that allows a person, known as the ‘donor’, to give one or more people, the ‘attorney(s)’, the legal authority to make decisions on their behalf. This would apply if the donor ever lacks the physical or mental capacity to make decisions for themself.

https://www.rubywealth.co.uk/advice-and-services/other-services/will-writing

09/08/2021

We are increasingly accruing workplace pension pots – and then losing trace of them: how can you track down your money? 🚩

If you’ve worked for more than one company during your career then it’s likely that you’ve paid into several different workplace pensions.
What happens to our pensions when we leave? They’re all out there, waiting to be claimed.

To locate your pensions go to the gov.uk Pension Tracing Service at www.gov.uk/find-pension-contact-details ,you will need the names of companies who have employed you. This will work even if the company no longer exists.

Note that the service will not tell you whether you have a pension, or what its value is. What it will do is tell you the name and contact details of who’s running the company pension scheme.

💭 So once you have found your pensions what do you do next?

You could decide to consolidate your pensions. This can lower charges and avoid dealing with several providers. Transferring out of recent schemes is relatively straightforward, as they are more flexible. Switching can be difficult from older schemes, as some may still impose punitive exit penalties. Also, some schemes may offer valuable benefits that you couldn’t match today, such as guaranteed annuity rates.

We offer comprehensive pensions advice, so if you need any advice about is it right to consolidate your pension. Then please get in touch:
https://www.rubywealth.co.uk/

06/08/2021

Becoming wealthy actually starts way before you open that investment account or make that first deposit into your savings account.

It starts with a simple decision, which in itself is a very profound one. It's deciding that you are going to be wealthy and that in turn means deciding to commit to the journey and trust the process.

Deciding you are going to be wealthy (with full conviction) is an incredible boost to your mindset. This is because with this decision, you are telling yourself you can do it.

Unless you believe you can be wealthy, you probably won't be inclined to do what it takes to actually build wealth.

04/08/2021

It's easy to compare your financial situation to those in your family, friends or co-workers.

This can create feelings of lack, envy and despair concerning the state of your finances. Consider your personal financial goals for yourself, not as they should be in relationship to what you see in others.

You may see someone driving the latest car and feel jealousy, however, you may not see they are just barely scraping together the money to make the payments every month. Yet, as you compare your situation, it shifts your mindset from being appreciative for what you have to now being insecure about what you don't have.

Money is personal and best kept that way to avoid a negative shift that will inevitably affect your financial situation.

26/07/2021

Have you ever tried to estimate how much Inheritance Tax (IHT) may be due on your estate? You may wish to use our 'ready-reckoner' to calculate how much IHT might be due - the result may surprise you.

This is provided as a quick guide only - it does not include other reliefs and exemptions that may be applicable. It is also important to note that any gifts made in the past seven years, or entitlements you may have in existing trusts** are not included in this calculation. These may further increase your liability to IHT.

For married couples/civil partnerships, any liability to IHT may not arise until the second death, depending upon the provisions of Wills.

https://www.rubywealth.co.uk/advice-and-services/calculators/iht-calculator

20/07/2021

What are they? - An intergenerational mortgage is when a parent or grandparent 👴👵helps their child or grandchild buy a property. 🏡
It aims to help families to pass assets onto younger generations in a tax efficient way.

Why it helps with
IHT? - Intergenerational mortgages can help you to plan
your tax affairs and potentially mitigate any Inheritance Tax liability 💰 as the money gifted falls outside of your estate. Intergenerational mortgages will still allow you to continue your own financial planning and reach your own financial goals while helping your loved ones.

How does it work? - One option is a joint mortgage application where the parent or grandparent applies for the mortgage with the young relative. If approved, you would be liable for the monthly repayments if your relative fails to pay them. You are not always required to be registered on the property deeds which means you avoid Stamp Duty and any tax implications of you purchasing a ‘second property’.🏠 Please note that although you may not appear on the property deeds, jointly obtaining a mortgage may affect your credit score.

Another option is contributing towards the house deposit so that they can get a more affordable loan-to-value mortgage. This will reduce the interest rate and monthly payments.

There are many different types of Intergenerational Mortgages, it is important you speak to an adviser to determine which is most suitable for you circumstances.









The home on which the mortgage is secured may be repossessed if the mortgage borrower(s) does not keep up repayments on the mortgage.

14/07/2021

Junior ISAs are a great way to put money away for a child’s future. The tax advantages and flexibility they provide make them the first option for most savers. Any returns are free from Income Tax and Capital Gains Tax.

The value of starting early.
Investing just £150 per month from your child’s birth till they are 18 will give your child a substantial fund to assist with university life or a generous pot building for their first house deposit.

Setting aside funds from the early years means that even modest amounts invested on a regular basis will benefit from the effects of compound growth and reduce the risk of investing more significant amounts at the wrong time or during periods of market volatility.

To learn more about JISA’s visit our advice page Guide to Junior ISAs:
https://rubywealth.co.uk/advice-and-services/investment-planning/junior-isas

05/07/2021

Entrepreneurs often assume that their business will make enough money for a comfortable retirement – but what if things don’t go to plan? If you are relying entirely on your company and it fails or doesn’t perform as well as you’d hoped, you could be left with very little in later life.

With uncertain trading conditions over the next few years, a pension is a useful way to spread your risk away from your business and is an extremely tax-efficient method of extracting capital from it. That’s because of the very generous tax relief that companies enjoy on pension contributions.

Corporation tax is currently 19%, so for every £100 your company earns as profit, you’ll pay corporation tax of £19, reducing the amount you can take as a dividend to just £81. But when the company pays £100 into your pension, it effectively only costs £81 because of a reduction in corporation tax.

In addition, a pension allows you to take a comparatively large sum without being liable for higher-rate income tax. You could, for example, pay yourself salary and dividends of £50,270 and the company could pay up to the annual tax-free allowance of £40,000 (or 100% of earnings if less) into your pension. In fact, you can carry forward any unused annual allowance from the previous three years, meaning that the company could potentially pay you a pension contribution of up to £160,000 in a single year, with a corresponding reduction in corporation tax.

Photos from Ruby Wealth Management's post 04/07/2021

Some more really nice testimonies from our clients.

If you are an existing client and would like to share your positive experience please leave us a google review.

https://search.google.com/local/writereview?placeid=ChIJhZC1AByFdUgRq9uJPKn9K9M

28/06/2021

Do you need to access the money potentially or are you certain you will not need it until after age 55? What is your tax situation? Do you have other investments and pensions?

By looking at your aims and objectives, your financial and personal situation we can help you answer that question yourself – it might be the answer is you should be putting into both!

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

25/06/2021

The most obvious answer is an Individual Savings Account (ISA), but not the only answer. A £20k ISA allowance is available to all adult UK residents and for children the limit is now £9k per annum. Investing in an ISA allows your money to grow free from any tax implications and is often overlooked when it comes to retirement planning. Your retirement pot will go a lot further if you do not have to pay on all of the income!

It is also important to think about whether there are any other unused tax allowances that could be made use of. Particularly useful when financial planning for a married couple or civil partnership is the ability to transfer assets without giving rise to a tax liability. In addition, couples should think about who falls into the lowest income tax bracket and consider investing in their name to maximise any income tax relief on interest for example.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

25/06/2021

This quote, from the former first lady of the USA Eleanor Roosevelt, is a good reminder that you can procrastinate and think about doing something or you can actually use that time to plan on doing it.

Having hopes and dreams is great, but having plans to achieve them is better. If you find you're spending a lot of time thinking about doing something, turn it into a plan.

14/06/2021

What is the cost of delaying your investments?

If you are putting off starting a pension, or unsure about whether to invest more into one, here’s why you shouldn’t delay. The effect of compounding returns is a powerful force in helping build the fund you need for a retirement that could last 30 years or more.

These figures are examples only and they are not guaranteed, they are not minimum or maximum amounts. What you get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than this.

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