JPS Wealth Management Ltd

Keir Starmer has warned that the Autumn Budget will be painful.

With changes to taxes and financial policies looming, it’s understandable to feel anxious about what’s coming on October 30th. But don’t worry—you’re not alone.

We’re here to guide you through these uncertain times. Our expert advisors are ready to help you understand how the new budget might affect you and, more importantly, how you can safeguard your financial future.

Here’s how we can help:
1️⃣ Personalised Tax Planning: Navigate new tax changes with confidence.
2️⃣ Budget Optimisation: Review your financial strategies for the upcoming year.
3️⃣ Long-Term Security: Ensure your savings and investments are protected.

My Name is Jayna Shah, founder and lead consultant with JPS Wealth Management. We exist to enable individuals to build, grow and protect their wealth in order to live a healthy, fulfilled retirement. Driven by the need to lift up our communities to facilitate financial well-being, not simply wealth accumulation. We strive to help our clients enjoy financial freedom and, where needed, successful inter-generational wealth transfer.

Relevant life insurance allows businesses to provide life cover to key employees, offering financial protection for their loved ones.

🐘 COVERAGE
Relevant life insurance provides a lump sum payment to the beneficiaries in the event of the insured person's death or diagnosis of a terminal illness during the policy term. The policy can be taken out on the life of an employee or a director, and the benefit is paid directly to the chosen beneficiaries.

🐘 TAX EFFICIENCY
Premiums paid by the business are typically tax-deductible as a business expense, which means the cost of the policy can be offset against the company's profits for tax purposes. Additionally, the benefit paid out to the beneficiaries is usually free from inheritance tax as the policy is written within a trust.*

🐘 INDIVIDUAL COVERAGE
Relevant life insurance provides coverage for individual employees or directors, rather than as a group scheme. This is beneficial for smaller businesses that may not have enough employees to establish a traditional group life insurance scheme.

🐘 TAILORED BENEFITS
The benefit amount can be set based on a multiple of income ensuring it meets the specific needs of the individual and their family. This can also help businesses to attract and retain key employees by offering a valuable benefit package.

🐘 PORTABILITY
Relevant life insurance policies can often be transferred into a personal policy, meaning the coverage can continue even if the insured individual leaves the company. The policy can be assigned to the individual, and they can continue paying the premiums personally, ensuring uninterrupted coverage.

It's important to note that relevant life insurance is subject to certain conditions and requirements set by HM Revenue & Customs (HMRC). These conditions include limitations on the benefit amount, the number of employees covered and the purpose of the policy. Therefore, it's advisable to consult with a financial adviser or insurance specialist who can provide advice tailored to your specific needs.

*Trusts are not regulated by the financial conduct authority.

ESSENTIAL FINANCIAL HABITS FOR BUSINESS OWNERS

🐘Securing customers and growing revenue is not enough to build your start-up – good financial management involves positive cash flow. Forecasting is important to make sure you have enough cash to pay your bills and operate the business.

🐘Put strong credit-control processes in place to avoid running into cash-flow problems and maintain the financial health of your company. Consider arranging to take an upfront payment of invoices or deposits with new customers making high-value orders.

🐘Separating personal and business expenses is vital. Putting personal expenses through the business can create difficulties down the line and make your company less attractive to investors or potential buyers.

READ MORE VIA OUR WEBSITE 🔗

Essential financial habits for business owners After your early-stage business has made some sales, it’s tempting to look at your bank balance and think you’re in a great position. However, even with healthy customer numbers and revenue, in a small and growing enterprise, things can get bumpy quickly if you don’t implement sound financial ...

What is the 60% stealth income tax rate?

The 60% tax rules aren’t published in any HMRC guidelines and that’s because it’s an unofficial effective rate of Income Tax.

Higher earners are subject to a tapering of personal allowances which can mean people earning between £100,000 and £125,140 can end up paying 60% tax.

HOW DOES IT WORK?
When you cross the threshold of £100,000 in earnings your personal allowance (the amount you earn each year without paying tax) of £12,570 is slowly reduced. Right now, it tapers off at a rate of £1 for every £2 you earn above £100,000. In real terms that means for every £100 of income between £100,000 and £125,140, you only take £40 home – £40 is deducted in Income Tax, while another £20 is lost by the tapering of the personal allowance. This amounts to a 60% tax rate. Once you’re earning £125,140 or more, you don’t get any personal allowance at all.

Topping up your pension before tax-year end can reduce the amount of tax you pay by reducing your taxable income.

Find out more in our blog:
https://jpswealthmanagement.co.uk/how-to-keep-your-tax-plan-agile-in-an-uncertain-landscape/

The new government has confirmed that the introduction of the 20% VAT on private school and boarding school fees will apply from 1 January 2025 – and will apply to pre-payment of fees.

There is also an anti-forestalling measure, so any fees pertaining to the term starting on or after 1 January 2025 will be subject to VAT from 29 July 2024.

A financial adviser can help you plan for your children's education. All parents want the best for their children and, at JPS Wealth Management, we can help you put the plans in place to give them the headstart they need!

This is “one of the most important moments in the history of women at the Olympic Games, and in sport overall” according to Thomas Bach, President of the International Olympic Committee (IOC).

For the first time in Olympic history, women athletes have as many places in the Games as male athletes.

This 50:50 allocation means the Paris 2024 Olympic Games is the first Olympics ever to achieve fully equal representation for both women and men in the arena!

Through the help of pensions tax relief, it only costs basic-rate taxpayers £80 for every £100 you invest. Higher-rate and additional rate taxpayers also benefit.

For example, it effectively costs a 40% taxpayer just £60 to get £100, assuming you reclaim your tax relief above the basic rate via your tax return and reinvest into your pension. And if you are in a workplace scheme, you usually get extra contributions from your employer: an absolute no-brainer!

And this is just one of several tax-efficient ‘wrappers’ – such as ISAs – all designed to get people saving and investing for later life.

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.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

We’re delighted to share the 30th anniversary edition of The Investor, dedicated to bringing Invaluable advice to life. Featuring real client stories that showcase the power of wisdom shared by their financial advisers, helping to improve their lives for the better.

Packed with valuable advice, this special edition features 31 pieces of Invaluable advice to live by to reach your life goals. From saving for retirement to ensuring the right insurance policies are in place, this issue covers so much.

Copy or click the link below:
https://indd.adobe.com/view/aecb2ddf-0a0f-495c-948d-ab1b5e1901c0?utm_source=e-briefing_service&utm_campaign=e-investor&utm_medium=email

Always take the long view 🌊

A long term approach to investing is essential to avoid the impact of the short term fluctuations of the stock markets.

Over short time horizons stocks and shares can be very volatile. But once we extend that timeline to 10, 15 or 20 years the more confident you can be of generating a strong return.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

LONG TERM THINKING 💭

Thanks to the power of compounding – where the returns on your investments are continually ploughed back into your investment portfolio – the earlier in life you start investing, the better your likely return over the long term.

For example, if you were to save £200 a month into a pension from age 20, your fund could be worth £349,000 by the
time you’re 67.
If you delay until 40, your pension pot could be worth just over a third as much – around £123,000.*

*This calculation is based on contributions invested each month, increasing by 2.5% a year, with growth after charges of 2.4% a year. These figures are examples only and are not guaranteed. All monetary values shown have not been adjusted for future inflation. 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.

"I sought Jayna Shah’s advice to transfer my pension provider so I could draw down my pension to support my critically ill mother. Jayna thoroughly explained the tax implications and provided sound advice, acting promptly to expedite the process. She was patient and understanding, making every effort to accommodate my changing circumstances. Thanks to her expertise, I received the drawdown as advised and am very satisfied with the outcome. Highly recommend Jayna for her professionalism and dedication." ⭐ ⭐ ⭐ ⭐ ⭐

THE DANGERS OF POUND COST RAVAGING! 💸

In life, timing is everything. Taking too much income too soon from your pension pot, especially in a falling market, means your pension has to work much harder to recover over the longer term. This is called pound cost ravaging. This chart shows the dangers.

MIND THE (PENSION) GAP! 🚫

The difference in private pension wealth between men and women at the current minimum pension age of 55 is 35%!*

The gap in retirement wealth is driven by various factors, including a gap in earnings and women being more likely to take time out of work for caring responsibilities.

*SOURCE: Department for Work & Pensions, 'The gender pensions gap in private pensions', June 2023.

Becoming mortgage-free feels fantastic! After all, a mortgage is often the biggest debt we ever take on – and it can take over 25 years to pay it off!

Paying off the mortgage often coincides with other important life stages. You may be approaching the peak of your earning power, enjoying bigger salaries or bonuses. Your day-to-day living expenses can start to go down, as children leave the nest. You might also come into a lump sum through an inheritance, or a savings account maturing.

Those few extra hundred pounds every month can seem quite a modest amount; certainly not like a life-changing lottery win. Which is why it can easily be ‘absorbed’ into the household budget or an extra lunch out.

But that extra money can be surprisingly powerful if saved or invested over a longer period.

If, for example, you pay off your mortgage at 57 and work until you’re 67, you could invest the money you save on your mortgage repayments over that ten years. You'll reap the benefit of compounding - essentially 'growth on top of growth', which means your investment could enjoy a bumper couple of years by the time you’re ready to retire.

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.

Come on England! ⚽ 🏴󠁧󠁢󠁥󠁮󠁧󠁿
Good luck to Kane's men tonight in the Euros semi-finals against the Netherlands!

Anyone with a challenging job knows how hard it can be to stay on top of things at home as well as at work. Keeping track of your finances and ensuring your money works as hard as possible can be tricky when there are other matters to think about. However, there’s no need to try and keep that extra plate spinning when you can delegate it to a specialist.

Those short-term challenges can make it difficult to take a step back, look at the big picture and plan for the life ahead. A financial adviser will help them understand what’s important to them and what good looks like in terms of when they can slow down later on.

Financial advice and planning isn’t just about money. It encompasses much more than that - hopes and fears, lifestyle and ambitions, security, and peace of mind. In that sense, financial advice isn’t so much the vehicle as the roadmap, helping someone get to where they want to go in life.

So, investing a bit of time and money in financial advice can play the same role for your financial wellbeing as exercise and a good diet can for your physical health.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

🔴 INVESTMENT IMPACT OF LABOUR'S WIN 🔴

At a glance:
🟥 Labour’s expected electoral victory could lead to a short-term uplift for UK shares.
🟥 The election outcome is unlikely to influence the short-term trajectory of interest rates or inflation.
🟥 Although Labour has some big plans, it will likely face financial constraints, so the Autumn Statement will be one to watch.

Labour’s decisive majority win in the General Election is likely to be initially taken positively by markets, according to St. James's Place (SJP) CIO, Justin Onuekwusi.

“The UK election has played out as expected and has consolidated our positive view,” he says. “The clarity of outcome and resultant policy certainty going forward should lead to confidence in the growth outlook for the UK economy. The new Labour government may be seen as a boon for broader trade relations though any planned policy changes are likely to take some time to implement, so there is unlikely to be any immediate economic effects from this election result.”

The election outcome may result in a short-term uplift, but Justin believes there are longer-term reasons to favour UK companies – of all sizes – post election.

Joe Wiggins, investment research director at SJP, adds: “The UK has been a deeply unloved area which is now trading at historically depressed valuations.” In his and Justin’s view, this should make it a reasonably attractive area for investors with a long-term mindset and the election result has not changed this.

At the heart of the SJP Investment Management Approach is the Investment Committee.

💡Selecting the best investment managers
📈 Continually monitoring the managers to ensure they stay at the top of their game
👥 Changing managers when necessary
📊 Making sure you have the right spread of investments by providing a comprehensive range of funds and Model Portfolios.

St. James's Place believes its investment process gives you the best chance of achieving high returns in the medium- to long-term.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.

📈 High inflation rates and other cost of living pressures in recent times are keeping confidence down among SMEs. Taking steps to keep a lid on fixed costs can help you maintain profits when margins are under pressure.
💰Having a full understanding of your cost base will reveal where you could afford to cut back. You can also look at ways to improve efficiency, for instance by encouraging collaboration across teams.
🖥️ Finding ways to reduce waste, for example by using tech to eliminate errors, and disciplined financial planning can also help.

Folow the link to discover our six step solution:
https://partnership.sjp.co.uk/jaynashah/article/detail/sjpp/how-to-deal-with-rising-costs-six-ways-to-boost-efficiency-for-your-business.html

By 2034, more than one million families will include at least two retired generations – an increase of nearly one third (32%) on today.*

Multi-retiree families will need their collective finances to stretch further than ever before, and for longer, impacting both inheritances and day to day expenditure.

Financial advice can help the whole family look forward to a retirement on their terms, and financial security that protects the welfare and wellbeing of each generation.

We believe financial planning should stretch across generations, to ensure the wellbeing and security of everyone, whatever life stage they’re at, and however long they live.

Visit our website to start your journey.

*Source: Research conducted for St. James's Place by Opinium, among 4,000 UK adults between 27th February – 8th March 2024. All results are weighted to nationally representative criteria. Estimating the number of families with multiple retired generations relies on looking at the age of children of the eldest age groups and projecting how changing demographics will impact these figures. We know approximately how many older age groups have a child aged 65 and above currently, and we have applied those percentages to the ONS projections of increased numbers of adults aged 80-89 and 90+, to ascertain future numbers of families with more than one generation in retirement.

Should I pay to top up my State Pension?

🐘 You’ll be eligible for a full State Pension if you’ve made National Insurance contributions for 35 years. If you’ve paid in for between 10 and 35 qualifying years, you could make additional contributions to top up your pot.
🐘 The government scheme to make voluntary National Insurance contributions going back as far as the 2006/07 tax year has been extended. It will now run until 5 April 2025.
🐘 While there are clear benefits to maximising your State Pension, it’s important to discuss it with us as there may be additional implications – for example, around tax.

Read more in this article:

https://partnership.sjp.co.uk/jaynashah/article/detail/sjpp/should-i-pay-to-top-up-my-state-pension.html

Taxation rules can change at any time and are dependent on individual circumstances.

Should I pay to top up my State Pension? To get the full State Pension, you now need 35 qualifying years of NICs. If you’ve got between 10 and 35, you’ll get a pro rata amount, but if you’ve got less than 10, you won’t be eligible for any State Pension.

GOAL! ⚽

We're all routing for England this evening and hoping they score those all-important goals!

Goals are something we talk a lot about here at JPS Wealth Management. When we meet you for the first time, we'll ask you about your goals. Financial planning should underpin your Life Plan. So whatever it is you're aiming for, we can help you make sure you have the right plan and strategies in place to make your dreams come true! 💫

You’ve done your bit. Now sit back and let us do the rest. Let us help you secure and grow your future, so you can achieve the things you deserve!

Visit our website to find out how.

Happy Father's Day to all the fathers, grandfathers and father figures in our lives.

Happy Birthday King Charles III!

Thank you Anna for your kind words! ✨

It's common for workers in Brighton and Hove, and especially for women, who may have had a career break, to have more than one small pension pot. Anna was able to move all her pensions under one roof and align her investments and cover with her retirement goals!

Independent school fees are still soaring with the average cost per child at a private boarding school now £37,032.*

Fees jumped by an average of 5.1% in 2022, according to Schoolfeeschecker.** The average cost per child is now £6,944 a term for day pupils, and £12,344 a term for boarders.*

Spending money on private education is often seen as the best way to set your children up for future success. But if you thought choosing the right school – and getting in – was hard, the scale of the fees and the financial commitment required is enormous.

However, private education can be affordable, providing you plan properly and give yourself as much time as possible to save.

Read more here:
https://partnership.sjp.co.uk/jaynashah/article/detail/sjpp/how-much-does-private-education-cost.html

Sources: *Schoolguide, accessed April 2024.
**Schoolfeeschecker, accessed April 2024.

How much does private education cost? Spending money on private education is often seen as the best way to set your children up for future success. But if you thought choosing the right school – and getting in – was hard, the scale of the fees and the financial commitment required is enormous.

🌈 PRIDE MONTH! 🌈

Estate planning can be complex for LGBTQ+ couples, especially those not married or in civil partnerships.

For those deciding to live or retire abroad, lack of recognition of same-sex marriage in some countries further complicates spousal pension rights.

It’s vital to have a Will to ensure your assets are passed on as you wish.

At JPS Wealth Management, we can help you to overcome some of these challenges and achieve your financial goals. Together, we can create a brighter financial future.

Advice relating to Wills necessitate the referral to a service that is separate and distinct to those offered by St. James’s Place. Wills are not regulated by the Financial Conduct Authority.

Leaving behind a clear and accessible record of digital accounts is almost as important as making your Will.

Here are 6️⃣ steps to leaving a good digital legacy:
💻Include your digital assets – social and financial – in your Will and leave a record of your personal wishes regarding what should happen to digital assets such as social media accounts, photographs, or videos.
💻Store your digital account details securely and in a hard copy. Make a backup of key personal assets such as photos for your family or friends.
💻Talk to your family about your plans, and how they can access key online accounts when the time comes.
💻Make a Power of Attorney that includes your key digital asset information so it’s ready, should you need someone else to manage your affairs.
💻If you have an Apple ID, set up a digital legacy contact who can access your accounts if necessary.
💻Take professional advice on your digital legacy planning.

The digital world evolves at lightning speed, so your approach to digital legacy planning needs to be proactive and continue to evolve, to ensure it stays fit for purpose.

A robust digital legacy helps protect your digital self as carefully as you would your physical self.

Will writing and Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James's Place and are not regulated by the Financial Conduct Authority.