Archive for December, 2008
Written by richard on 20 December 2008
Sorry, to bore you with a headline from one of the tabloids, but it seems the Housing Market may well be showing a glimmer of hope. My thinking is that once we see some sense back in the Mortgage Market we will see normality return. However like all Bargain Hunters, the First Time Buyers could save the Housing Markets proverbial bacon.
First Time Buyers are back, well kind off.
Happy New Year and a Great Christmas.
Richard Smith
0800 781 2031
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Written by richard on 19 December 2008
It seems that the High Street is not affected. I have one comment ’smoke and mirrors’.
Further detail from the Times.
Richard Smith
Independent Financial Adviser
0800 781 2031
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Written by richard on 18 December 2008
Whilst I usually avoid any immediate comment to change I felt that this was worthy of a quick update.
Now from my simplistic perspective what has happened in the US is is a hope by the Federal Reserve that it will hope to put the economy over there back on some kind of even keel. Interest Rates have been set at between 0% and .25% which is of course a record. Now it seemed not to work in Japan in the 90’s but I clearly think that this is the right thing to do, it seems. As we all know though, hope is not a plan!
It also looks like the Bank of England will be cutting rates sometime soon, and it course remains to be seen what effect this will have.
Importantly much of the UK Banking Sector is now owned by us the Taxpayer, and the greatest impact on the UK Personal Finances are the cost of Housing, Mortgages in particular. So some pressure to bear on them to reduce Mortgage Rates would make more sense. Especially as they are likely to need more money from us over the coming months.
Whilst I agree that Depositors are not happy with lower interest rates and for good reason, it would seem that there will be more pain and for a lot longer if we continue to to keep rates artificially high.
John Major (former PM) and Wizard of Economic Management has also advocated more Tax Breaks to help out. Will be interesting to see how much he is listened to. After all, his Bedroom Partners we not chosen at all wisely (IMHO).
So what to do, well fundamentals of planning have not changed, spend less than you earn, focus on the medium term, manage your taxes, invest wisely and hold on as it could be a rough ride.
Richard Smith, Independent Financial Adviser
0800 781 2031
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Written by richard on 11 December 2008
To all clients old and new, I would like to wish you a healthy and relaxed Christmas Period.
Please enjoy.
I look forward to speaking to you in the New Year
Richard Smith
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Written by richard on 10 December 2008
As always I will try and keep this as balanced as possible.
First Point which springs to mind is I hope for all us this plan works.
In simple terms the Chancellor could have had a word with all of the Banks and Building Societies and asked them to pass on the Full Interest Rate cut from last month, which would have given an immediate boost (before Christmas) to most borrowors. Cost to the Treasury – nothing.
He could have then reduced Fuel Duty, with the money saved.
Instead we have a little ill thought out tweaking, with massive costs to Industry for a little reduction in VAT.
Anyway with my gripe over, it seems like we are now back to a Traditional Labour Goverment, IMHO after 16 years we now have some truths, Tax the Rich, give it to the poor, but not all of it.
So opinion out of the way.
Pensions – Lifetime Allowances have been pegged get your Pension Checked NOW.
Discretionary Trusts – Small Increase in Taxation if you have one of these in place, take advice immediately.
Higher Rate Tax Payers - will have more Income Tax Due on income from Stocks and Shares, etc, they are also having their Basic Allowances withdrawn slowly.
State Pensions – up slightly
Tax Credits - up slightly
Lets hope this plan works.
As always if you have any queries or questions please call.
Richard Smith
Independent Financial Adviser.
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