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Green Bank, Green Pension?

Green Bank, Green Pension?

Green Bank, Green Pension?

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Child in a maze

Green Bank, Green Pension?

Kudos to Make My Money Matter (again!) for their ranking of how green UK pension providers are.  It’s a welcome insight into the ethics, policies, and intentions of these companies.

 Similar comparisons of banks have been around for a while, with https://bank.green/ being an excellent example of this.

However, it’s important to be aware of the differences that exist between choosing a green bank and choosing a green pension.

When you have money in your bank accounts, it will be the policies of the bank itself that determines how that money will be used by them.  So, you can have peace of mind that having an account with a “green” bank will mean that your money isn’t been used for loans to fossil fuel companies or similar.

A pension is different.

Yes, it’s important to consider the credentials of the provider itself.

However, it’s the funds that you invest in where the true impact occurs.  Holding an unsustainable fund with a high-ranking provider won’t be as positive as holding a sustainable fund with a low-ranking one.

Think of it like a supermarket.

You probably shop with a company that has ethics, policies, and intentions that you’re comfortable with.  But if you choose to buy products from them that contradict this, then you’ve not had the impact you’d intended.

So do make sure that your pension provider is one with whom you’re comfortable.

More importantly, make sure that the funds that you have within your pension are aligned with your expectations.

 Don’t know where to start?  Here are a few tips:

  • Investigate Your Current Investments: Start by finding out what funds your pension is currently invested in. Your pension provider’s regular valuations or online access should provide this information. Look for the fund factsheet, which outlines objectives and may include a breakdown of the top 10 holdings.

(Tip: Use codes like SEDOL or ISIN for easier online searches. If a direct link to the fund factsheet isn’t provided, use search engines like Ecosia for assistance.)

 Assess Your Satisfaction with Current Investments: If you find your current fund(s) align well with your sustainability criteria, that’s excellent news. However, if changes are needed, explore alternative funds offered by your pension provider. You’ll find information on what these are either on your documentation, online, or by giving them a call.

 Seek Financial Advice with a Sustainability Lens: If you feel overwhelmed, seeking financial advice is a valid option. However, it’s crucial to choose a firm with strong sustainability credentials. Check their website for details on impact, independent accreditations, and other relevant information before engaging with them.

 

*All investments carry risk and past performance is no guarantee of future returns. Our fossil-fuelled past is very unrepresentative of the future we need to build and adapt to. The timing and speed of our transition to a new economy makes short to medium term returns more uncertain.

 

Steve Day
Independent Financial Adviser

 

 

“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

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Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Mind the Gap

Mind the Gap

Mind the Gap

Written by

women and dad

Mind the Gap

“My investments have reduced in value”.

In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice.

No-one relishes seeing red when logging in to see their investments.

However, it’s important to see this in the context of a long-term financial plan.

Markets go down and up, and not necessarily in that order.

How one behaves in such circumstances is key.  We spend a lot of time educating and informing clients to help ensure that decisions aren’t taken that will have long-term negative consequences.

The above chart is a good way to illustrate this.

This details the maximum fall during the year (red dots) and the overall change in the entire year (blue bars) across a mixed investment of mainly equities and fixed interest assets (e.g. bonds).

 What it shows is that in every year of the past 25, the year has ended with the portfolio in a better relative position to its lowest point. 

In 2020, the portfolio fell by 15.4% during the early stage of COVID but recovered to end the year up by 5.3%.

During the financial crisis of 2008, the portfolio ended the year down 21.5% but this was still higher than the low point of 25.8% reduction.

And now we’re seeing the same in 2022.  The lowest point reached so far this year was 12.8% down but we’re on track to end the year around 8.8% down.

What’s the takeaway from this?

Resist the temptation to react and “cash-out” at the bottom of the market.

History shows that portfolios recover, often in the same year and then in the years after.

Minding this gap may well be what enables success in your long-term financial plan.

 

Please note: Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

 

Steve Day
Independent Financial Adviser

 

 

Switchfoot Wealth Limited Independent Financial Adviser
“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

Read More

Related Articles

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Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Why did Switchfoot Wealth choose to work with Sense Network?

Why did Switchfoot Wealth choose to work with Sense Network?

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Switchfoot Wealth Limited Independent Financial Adviser

“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

Read More

Related Articles

Browse All Categories
Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Retirement and Pensions: Considerations for Business Owners

Retirement and Pensions: Considerations for Business Owners

Retirement and Pensions: Considerations for Business Owners

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 Retirement and Pensions: Considerations for Business Owners

When you run your own business, there’s no grand pension scheme or guaranteed retirement age. Instead, you are completely responsible for your retirement planning, including your pension fund. You may need to implement a pension scheme for the workers in your business, and you can pay into this too, but you also need to have a clear retirement plan, which might sit alongside the exit plan for your business.

Why think about retirement now?

If you’re a business owner, you’re likely to be immersed in business plans, new products or services, managing your employees and more. So ‘retirement’ might seem a long way off, and way down your list of priorities.

But it should be at the top of that list. Why? Because it’s likely that your business will provide the foundation for your retirement plans. And how can you plan to grow your business if you don’t know what you want from it at the end of your career?

The sooner you think about retirement and pension planning, the sooner you can start to build up funds and investments that will give you the lifestyle you need in retirement and support the plans and dreams you have for you and your family.

Don’t put all your retirement eggs in one basket

Many business owners think: “I’ll sell my business and that will fund my retirement”. But this can be a dangerous route to take. To begin with, it relies on your business being stable and successful until you retire – and then being saleable at that point. However much we love our businesses, they are not always the big-ticket vehicles we would like them to be. And, as we have seen in 2020, factors outside your control can affect the profitability and even the viability of your business, so instead of banking on selling your business, take the time to do some long-term planning instead.

Think about the tax implications

Retirement and pensions planning isn’t all about working out how you can pay for that round-the-world cruise. It’s also about making sure that your planning – for your business and your personal wealth – is as tax efficient as possible. That’s why you need to talk to an independent financial adviser. They can help you put together a plan that is workable and affordable and has your retirement goals in mind. Working with your business accountant, you and your adviser can see how to structure, grow and manage your business so that it can provide the income you need in the most tax-efficient way.

For example your business could make employers pension contributions to your personal pension which allows for significant tax efficient company pension contributions. By managing your ongoing pension contributions and investments, and having a clear plan for post-retirement investments, you can plan for a secure retirement sooner rather than later.

Investment for good

The way you invest your pension funds can have a significant sustainability and social impact.  Many business owners are making the switch to a sustainable investment strategy and this can align with your business’ mission and make an impact on your sustainability goals read more.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). Your capital is at risk. The value of your investment (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

 

*with thanks to the Centre for Ageing Better Age Positive Image Library for the featured image.

Switchfoot Wealth Limited Independent Financial Adviser
“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

Read More

Related Articles

Browse All Categories
Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Are You Financially Resilient?

Are You Financially Resilient?

Are You Financially Resilient?

Written by

gifting

Are you financially resilient?

We hear a lot about resilience. It’s one of the key things we’ve credited with getting us – and continuing to get us – through the Covid pandemic, and it’s becoming one of the characteristics that we use to judge our own actions and those of others.

What is resilience?

Usually used during times of difficulty, ‘resilience’ is about being able to adapt to circumstances, and having the flexibility to be able to see things differently or work differently in order to manage when things get tough.

So financial resilience is applying that same adaptability to your business and personal finances when times are hard.

So, when things have an impact on your busines or your assets, how able are you to change tack, diversify and cover your costs?

Building financial resilience

As we’ve seen over the past 12 months, it’s incredibly important to plan ahead when you can so that you have a financial cushion both in your business and in your personal finances. There are several ways to manage this, and it’s best to have a long-term plan that takes a range of possible scenarios into account.

Whilst it’s true that even the most forward-looking financial planner would have been unlikely to predict the circumstances that we’re in now, those people who have a plan in place should have savings or investments that they can use to plug any gaps now. They should also be getting advice on how they can plan to replace those assets over time. For business owners, this is a two-pronged approach: looking at what your personal financial plans and needs are, and seeing how your business can adapt to provide for those needs.

Tips for financial resilience

Here are a few tips to help you become more financially resilient. There’s no one-click wonder here; building financial resilience takes time and effort.

  1. Have a plan. This is the most important thing you can do. You can’t make any decisions until you know what the ‘end points’ are. By sitting down and thinking about what you need now – to cover mortgage payments, bills, school fees and other expenses – and also what you want for the future, you can set some realistic goals and then see how you can meet them.
  2. Reduce debt. Where you can, reduce your debts. No matter what happens in the world around you, your debts will still exist. So it’s a good idea to see which debts are costing you the most and getting rid of them if you can.
  3. Take a good look at your business. Is it helping you as much as it could? Could you increase your income by diversifying or your profits by reducing costs? Is your tax planning as efficient as possible? Do you have an exit strategy? If your business is your main source of income, you need to make sure it’s working really hard for you.
  4. Save and invest where you can. We know that building up savings and investments relies on your having excess income. How you manage that excess income can make a real difference to your long-term financial resilience. Professional advice will help you to see how you can make the most of your money, and how you can use it to give you additional security now and in the future.

The value of independent financial advice

To ensure that your financial resilience is properly planned, it’s a good idea to talk to an independent financial adviser. With the experience and market knowledge to ask the right questions, help you see where gaps in your financial planning might exist and work with you to plan a way forward that gives you the financial support and protection you need.

Switchfoot Wealth Limited Independent Financial Adviser

“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

Read More

Related Articles

Browse All Categories
Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Salary Planning

Salary Planning

Salary Planning

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​

Business owners – what’s the best way to pay yourself?

At Switchfoot Wealth we receive regular referrals from accountants to produce a ‘personal financial plan’.  We help business owners like you to document your personal financial needs, both now and over your lifetime.

The Personal Financial Plan is often the starting point for many complex areas of accountancy and business advice delivered by your accountant, but why do they need to understand your personal financial plan?  And how can Switchfoot Wealth liaise with both you and your accountant to ensure that your personal financial planning is mapping to your business planning and working in harmony?

One key area often mentioned is salary planning.

If you’re a business owner, you need to balance your finances carefully. On one hand, you want your business to be healthy, so re-investing profits into the business rather than taking them out seems like a good idea. On the other hand, you own a business in order to make a living, so you also want to take a salary – in a tax-efficient way.

Are these two options mutually exclusive? Not necessarily. It all depends on the profits your business is making and what sort of lifestyle you want to lead. Generally speaking, the most tax-efficient way to pay yourself is to take a minimum salary of £12,500 and minimum dividends of £2000. However, most business owners want – and need – to see a larger income than that.

There are, in fact, a variety of ways to pay yourself from your business. These include:

  • Salary
  • Dividends
  • Pension contributions
  • Repayment of director loan accounts
  • Electric cars
  • Other benefits such as tax-efficient life cover and flexible benefits packages

 

Working out what is best for you will depend on your business and your specific requirements, which is why it makes sense to work with an independent financial adviser, to develop a personal financial plan.  If you can clearly and concisely articulate how much money you need, when and in what tax wrapper – then your accountant will be in a much better place to advise you and the business about the most efficient way to pay yourself.

How can your business meet your needs?

What business owners really need to know is: “How do I pay myself as tax-efficiently as possible, whilst still meeting my lifestyle needs now and in the future?”

That’s a more complex question, and it’s one of the reasons that savvy business owners turn to independent financial advice. It’s more than thinking about pensions and investments; it’s about looking at your current financial needs – paying the bills, going on holiday, covering school fees – and at what you would like in the future – moving to a bigger house, taking the family on the holiday of a lifetime, affording hobbies and interests and of course funding retirement.

From this, you and your accountant can start to plan how hard your business needs to work for you in order to provide you with the income you need. This is where you start to really link the performance of your business with the benefits you get from it. Your personal income and your business success are inextricably linked, and good financial advice can help you define what you need, and suggest ways in which your business can support those needs.

This is particularly important for people in areas where housing and lifestyle is expensive, such as the areas of Surrey that we work in – the areas surrounding Guildford and Farnham. Independent financial advisors need to be aware of market conditions in the areas they work in; a certain level of income is needed to afford housing, for example.

Working closely with your accountant

This is where your various professional advisers can work together to help you achieve your goals. Your accountant is far more important to your business than just the person who sorts out your end of year accounts and your tax bills. She is the person who can help you make and implement strong business strategies that will give you the business that supports your personal needs.

Bringing together your personal and business financial plans is the obvious way to ensure that you are making the best possible plans for your long-term future.

Tax-efficient financial planning

Of course, all business owners and individuals want to make sure they are tax-efficient. This requires specific planning based on a clear understanding of income, outgoings and needs. This gives you a platform from which you can make plans for your business, ensuring that you are making business decisions that help to support your own financial goals.

Ready to make a start?

If you want to find out how to pay yourself tax-efficiently and meet your financial needs, we start with a detailed analysis of what you need and when – the personal financial plan. We’ll then work together with your accountant to explain your plan so that she can help devise a strategy to meet your needs. Input from all three parties (accountant, financial adviser and business owner) is needed to make your financial plan become a reality.

 

Switchfoot Wealth Limited Independent Financial Adviser
“

I started Switchfoot Wealth to offer financial planning that matches the way we live and work today. Using the best technology and offering expertise gained through both formal qualifications and years of working closely with clients, we are bringing financial planning into the 21st century, helping people, businesses and professional advisers make the most of their time and their money.

– Sebastian Ewell

Switchfoot Wealth Founder

Read more about Switchfoot Wealth

Read More

Related Articles

Browse All Categories
Webinar for home care providers

Webinar for home care providers

Mar 3, 2023

We welcome SOLLA Affiliate member Claire Edwards of Claire Edwards Eldercare for a presentation designed for home care providers.  We discuss the benefits of SOLLA and being a SOLLA Affiliate and also discuss how to support people with continuing health care funding...

Mind the Gap

Mind the Gap

Dec 14, 2022

Mind the Gap “My investments have reduced in value”. In 2022, this has been one of the main reasons that new clients have shared as to why they are now seeking financial advice. No-one relishes seeing red when logging in to see their investments. However, it’s...

SwitchFoot Wealth Limited is an appointed representative of Sense Network Limited which is authorised and regulated by the Financial Conduct Authority. SwitchFoot Wealth Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference number 808196.
Registered Address: 28 Upper Hale Road, Farnham, Surrey, GU9 0NS. Principal Office: 147 Frimley Road, Camberley, Surrey, GU15 2PS. Registered in England & Wales No.: 11220173.
The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services business aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.