Wealth Management and Investments

Wealth Management and Investments

One of our key specialisms is in constructing and managing investment portfolios.  You may have acquired a number of different investments over the years and be wondering if you can achieve better returns. Or you may be facing certain investment decisions for the first time – perhaps in response to changing life circumstances such as the arrival of children or grandchildren. Whatever your circumstances, we take care to understand your investment goals and how comfortable you are with different levels of risk.  Here we explain the most common options when it comes to wealth management and investments.

You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

Warwick: Wealth Management Advice Services

Charlotte engaged the services of ASPL for wealth management advice after she had inherited a sizeable fortune. She was considering emigrating, and purchasing a number of properties where her children lived, in Asia, Australia and London.

She wanted to invest on a long-term basis, but also required a flexible, sizeable capital withdrawal facility to enable property purchases to be made, as and when she wanted.

Charlotte did not want to take much risk with the portfolio, and wanted income/capital withdrawals to be paid into her Guernsey bank account(s).

We have managed her capital and income without giving rise to any taxation liabilities, to date, and provided her with a suitably flexible and diverse portfolio, that meets her needs.

NB. Whilst the Client names have been changed for Client privacy purposes, these case studies are actual ASPL Client case studies.

Investing for You

You may have already accumulated a variety of investments and savings policies over the years and may now either require professional advice, require consolidation, consider alternatives, or simply want your existing portfolio managed and monitored.

You may be investing for the first time and require guidance. Should you be looking at Cash NISAs? Stocks & Shares NISAs? Or a Pension? Should you be paying down debt in the first instant?

ASPL currently look after in excess of £100 million (2014/15) and we believe that when the value of your investment portfolio or cash is at a certain size then a so-called “Wrap Account” is the best way to arrange, manage and monitor your wealth.

So what is Wrap? It is an online "Platform" that enables us to manage our clients' objectives  & run our clients' portfolios in an efficient way. Wrap provides a wide range of investment choice, which we tailor to suit each individual's needs. In addition to this, you can have access to your own Wrap account so you can view your portfolio and see how you investments are doing 24/7.

Please ask us for details about our Wrap Account (which can also be combined with other family members).

Investing for your Children

There are a variety of investments available to parents for them to invest in for their children. These include:

       Bank Deposit accounts, especially for children.

       National Savings & Investments, depending upon rates at the time.

       Pensions

       Child Trust Funds

       Junior NISAs

Pensions

For  long term investment,& taking into account the announcement of radical pensions reform from 2015, parents should consider a pension fund, whereby a one-off lump sum or regular contributions can be made. This of course will give children typically a 20-30 year head start upon parents’ retirement savings.

Child Trust Funds (CTF)

Child Trust Funds are available for children born between September 2002 and January 2011.(Children born after 1st January 2011 are not eligible).

CTFs are now being phased out and all Government contributions have now ceased. However, parents who had children before 1 January 2011 can still contribute into a CTF up to the maximum of £4,000 per annum (a year runs from birthday to birthday).

From April 2015, it will be possible to move money in a CTF to a Junior NISA (“JNISA”).In many cases, this will be the sensible thing to do.

Junior NISAs

JNISAs were launched in November 2011. The maximum that can be invested in a JNISA is £4,000 in each tax year. Income and growth in a JNISA remains tax free until the child’s 18th birthday when they can withdraw the funds or the JNISA will become an adult NISA.These are a useful tax-free way to save for your children’s future.

Children have a personal tax-free allowance each year (£10,000 for 2014-15), i.e. they can earn income (including interest) up to this amount within the tax year without paying any income tax.

Please note that if you give money to your children, or you invest it for them, you may have to pay tax upon any interest earned. Please speak to us for specific advice.

Please contact us for further advice on how you can invest in a tax efficient way for your children and at the same time provide them with a nest egg for their adult life.

Investing for your Grandchildren

Unlike parental giving, where the type of investment has to be carefully considered,you can give as much as you like to your grandchildren or other people’s children. The interest won’t be taxed as your income. However, the children may be eligible to pay inheritance tax on the amount they receive in certain circumstances and pay tax upon the interest from the income of their savings if it exceeds their personal tax-free allowance (£10,000 for 2014/15)

Therefore please speak to us about which route you take, or indeed whether you wish to consider investing via a Trust.

The Financial Conduct Authority does not regulate Trusts.

Investing for your Business

Businesses often accrue monies under deposit either because they are awaiting an investment opportunity or sometimes because they simply do not know what to do with it. There are a number of options open to businesses.

Investing company money that has built up within a business bank account poses a challenge to Company Directors. Whilst we are all familiar with Deposit Savings Accounts, rates of interest have been particularly poor for some years and remain so  (2015), but nevertheless it pays to shop around.

For longer term investment, Corporate Investment Bonds are available although different tax rules apply depending upon your accounting basis: if the company operates on a “fair value” accounting basis, Corporation Tax will typically be due on any increase in the value of the Bond from one year to the next. Those companies that apply the “historic cost” basis will continue to benefit from tax deferral in respect of the Bond (this is because the original value of investment is normally shown on the balance sheet each year until the Bond is finally encashed). This historic cost basis therefore gives you tax planning advantages as you will be able to control the point at which tax is paid. Also you will be able to control cash flow by taking profits from the Bond in a year when overall profits are lower.

It should also be borne in mind that how you invest your cash in the business, could have an effect on the tax rate you pay on the ultimate sale of the company. Where investments are made in the company we will work with your tax adviser to ensure that your tax position on exit is not jeopardised.

The Financial Conduct Authority does not regulate Tax advice.

Pension Schemes (Own Business)

As opposed to paying contributions yourself as an individual, have the company invest the pension contributions on your behalf (making sure that you follow the “wholly and exclusively” HMRC rulings to ensure a corporate tax deduction is available).

It is particularly useful to have the company pay the pension contributions when, for example, your salary is kept low because most of your remuneration is taken via dividends.

There is more information on our retirement and pensions planning pages but this requires specialist advice, so please contact us.

Investing for Trustees

ASPL run investment portfolios for many Trustees, whether these be family Trusts or groups of Trustees.

Our specialist investment advice service for Trustees helps to ensure the Trustees meet their Trustee Act 2000 obligations. Trustees must seek professional advice before exercising any powers of investment, or when reviewing the Trust investments. They must keep the investments under review. They must consider the need for appropriate diversification of investments etc.

We typically deal with Trustee monies of up to £5 million and are happy to refer larger Trusts to other professionals, if & when deemed appropriate.

Whether you wish us to take over an existing Trust investment, or whether the Trustees are considering investment of Cash deposits for the first time, please contact us for advice.

The Financial Conduct Authority does not regulate Trusts.

People

FCA Statement

Accreditations

Adrian Smith

Chartered Financial Planner
Chartered Wealth Manager
CFP-CM

Get in Touch