Simon Wade - J G Wealth Ltd

Last week I met with Fiona Moss of The Natalie Kate Moss Trust to present a cheque of £2,500 from the St. James's Place Foundation.

The Natalie Kate Moss Trust (NKMT) was set up in 2012 by the Moss family following the sudden death of Natalie at the age of 26 after an unexpected Brain Haemorrhage.

Focusing on turning this tragedy into something positive, NKMT's mission is to empower people to understand how to prevent lifestyle related brain haemorrhages from occurring, whilst generating funds to support ground breaking research to treat them when they do.
By joining forces with Manchester University, they support ground breaking research into Stroke at the University whose vision is to improve outcome after a brain haemorrhages.

This is a condition which is not discussed enough and may be prevented through raising more awareness which is a key focus for the charity. Please do take a look and spread the word: https://www.nataliekatemoss.co.uk/

The St. James's Place Foundation funds small and medium sized UK registered charitable organisations with four main themes;

Supporting young people - special needs or disadvantaged
Supporting people with cancer
Mental health
Hospices

If anyone knows of any small charities which need support and fall into one of the above categories, the foundation may be able to help. https://www.sjpfoundation.co.uk/

Hope everyone has a great Tuesday!

Estate planning is not just for the wealthy; it's for anyone who wants to ensure their loved ones are taken care of in the future.

First, consider who will benefit from your estate, create a will, consider establishing a power of attorney, and designating beneficiaries for your assets.

Consult with legal and financial professionals to ensure your estate plan aligns with your wishes and current regulations.

By planning your estate, you provide your family with the necessary guidance and support during what can be a challenging time.

Balancing your present needs with your future goals is essential for a healthy financial life.

While it's crucial to enjoy the present, it's equally important to plan for the future.

Find a balance between spending on experiences that bring you joy today and saving for the goals that will bring you fulfilment tomorrow.

By maintaining this balance, you create a sense of financial stability and ensure that you're prepared for both the expected and unexpected challenges that life may bring.

Retirement planning isn't just about financial preparation; it's also about envisioning the lifestyle you desire during your golden years.

Consider the activities, hobbies, and experiences you wish to enjoy and create a retirement plan that aligns with your aspirations.

Factor in potential healthcare costs, travel expenses, and any other lifestyle choices you foresee.

By incorporating your dreams into your retirement plan, you pave the way for a fulfilling and rewarding post-work life.

Understanding the intricacies of the tax system is vital for effective financial planning.

Exploring tax-saving investment options and strategies that can help reduce tax liabilities.

Consider maximizing contributions to pensions, taking advantage of the tax relief, and exploring other tax-efficient investment vehicles.
By optimizing your tax planning, you can potentially increase your overall savings and invest more towards your financial goals.

With a great focus on being more “eco-friendly” these days, we often have a great focus on recycling and using less plastics, however, how often have you thought about how your money is invested?

Sustainable investing allows you to align your financial goals with your values and contribute to a more sustainable future.

Consider incorporating environmental, social, and governance (ESG) factors into your investment decisions.

Look for companies and funds that prioritize sustainability and ethical practices. By investing in sustainable initiatives, you not only contribute to positive change but also potentially enhance your portfolio's long-term performance.

Understanding the power of compounding can transform the way that individuals approach saving and investing.

The earlier that you can start investing, the more time your money has to grow exponentially.

Even small, consistent contributions can lead to significant wealth accumulation over time.

By harnessing the power of compounding, you set yourself on a path towards a more prosperous financial future.

Planning for retirement may seem daunting, but starting early can make a significant difference.

Consider your desired lifestyle during retirement and estimate the expenses you'll incur.

Keep in mind that it's never too late to start planning for retirement, but the earlier you begin, the more time your investments have to grow.

Take that first step towards securing a comfortable and stress-free retirement.

Building an emergency fund is crucial for financial stability.

Life is full of unexpected events, and having a safety net can provide peace of mind during challenging times.

Start small by setting aside a portion of your income each month and gradually increase your savings over time.

By prioritizing an emergency fund, you prepare yourself for the unexpected and ensure your financial well-being remains intact.

Budgeting is more than just tracking your expenses; it's a powerful tool for understanding your spending habits and making informed financial decisions.

You can start by categorizing your expenses and analysing where your money goes each month.

Identify areas where to cut back without sacrificing your lifestyle. Consider setting up a budgeting system that works for you, whether it's using apps or spreadsheets.

By taking control of your finances today, you pave the way for a more stable and fulfilling tomorrow.

I do have a budget spreadsheet which I am happy to share if anyone would like to use it!

Setting financial goals is the first step towards a secure future. Whether it's saving for a dream holiday, buying a house, or planning for retirement, clear goals provide direction and motivation.

It’s often good to take some time to visualize your aspirations and create a roadmap to achieve them.

Break down your goals into smaller, achievable milestones and celebrate each success along the way. Remember, every step you take today brings you closer to the financial future you desire.

Now that the clocks have turned back it feels like we can settle in to the colder months ahead.

When the talk of Christmas starts to come up more often and we start to have a view of closing out the year.

This can often be a time for reflection on the year which is coming to a close and considering the changes which we will make for the year ahead.

I personally will be making some changes to spend more time with family and friends.

What changes will you be making going forward?

📷 my recent trip to the Norfolk Broads, fishing with my dad where we had one of our best morning
sessions on the River Bure.

🚫 Myth: Retirement planning can wait; I'm too young to worry about it. 🚫

🔍 Fact: The earlier you start saving for retirement, the more time your money has to grow. A child can have a pension from birth.

Even small contributions early in life can make a significant difference in your future.

🚫 Myth: Having multiple credit cards boosts your credit score. 🚫

🔍 Fact: While having some credit cards can be beneficial, too many can hurt your credit.

Focus on managing a few well, and make payments on time for a healthy credit score.

A lot of us don’t think twice about buying a daily coffee. But have you ever considered the potential savings if you channelled your daily caffeine expenses into an investment?

Well, we have and the below results are staggering!

Although, I'm not sure where you can buy a latte from for £3.00 these days!

🚫 Myth: All debt is harmful to your financial health. 🚫

🔍 Fact: Some debts, like high-interest credit card debt, can be detrimental.

However, low-interest mortgages or student loans can be strategic investments in your future. It's about managing and using debt wisely but not being dependant on it to live.

🚫 Myth: Saving alone will secure your retirement🚫

🔍 Fact: While saving is crucial, it's essential to invest your savings wisely to outpace inflation.

Diversify your investments and consider retirement strategies using tax wrappers such as personal pensions or even ISA's.

Dramatic events across the globe last week had a notable impact on investment performance.

The developing situation in the Middle East is likely to put pressure on oil prices. Brent crude prices rose nearly 5% at the start of Monday in the aftermath of the weekend attacks.

Concerns relating to future demand weighed on sentiment, bringing down oil prices last week. Despite ongoing supply cuts by production giants Saudi Arabia and Russia, a surge in treasury yields and the negative impact that a higher-for-longer interest rate environment could have on the global economy hit prices last week. Overall, the price for Brent Crude oil fell 11.3% from Monday to Friday.

With oil prices showing some signs of weakening, equity markets managed to deliver ‘mixed’ performance. In the US, the S&P 500 managed to break its four-week losing streak with a 0.5% gain. This was driven by a number of large technology companies, that significantly outperformed the wider market.

Part of the challenge facing US equities is the ongoing strength of the US economy, which has been driving the ‘higher-for-longer’ narrative around interest rates. For example, last week saw US job figures released. 336,000 new jobs were created during September, nearly double economist expectations whilst the previous month’s data was also upgraded.

🚫 Myth: You must earn a high income to start investing. 🚫

🔍 Fact: Anyone can start investing with as little as a few pounds.

It's about strategy, consistency, and smart choices, not just your income level.

There’s more choice and flexibility than ever before when it comes to accessing your retirement savings. but deciding which option is best for you can be overwhelming.

In the UK, you can withdraw money from your pension pot, but you must have reached a certain age to do so – this is usually 55 years (set to rise to 57 in 2028). You may be able to withdraw your pension earlier if you’re disabled or seriously unwell, but the rules depend on your pension scheme.

Beware of pension scams as you’re nearing pension age. Criminals are more likely to approach you to try and convince you to withdraw or invest. They may falsely claim you can access your pension before you’re 55. If you’re ever unsure, talk to your adviser.

Another option might be an annuity. This is a product you can buy with your pension funds, which converts your pension pot into an annual pension, giving you a guaranteed income for life.

Although the popularity of annuities has declined in recent years, they should not be dismissed as an option – especially as part of a diversified approach to retirement planning.

Rates tend to be better the older you are, and it’s always worth looking for an enhanced annuity to improve your rate further.

Have you thought about how you would access your pension benefits?

🚫 Myth: Renting is a waste of money; you should always buy a home. 🚫

🔍 Fact: Renting can be financially savvy, if it fits your lifestyle and budget better than homeownership.

There are pros and cons to both renting and buying.

Your credit score plays a vital role in your financial life.

Learn what factors affect it, how to improve it, and why it matters for everything from loans to job opportunities.

Pension Awareness Week is back!

Regardless of where you are in life, it’s good to have an idea of just how much money you’ll need for a comfortable standard of living once you’ve finished working.

Of course this brings on the question.

What is a "comfortable" standard of living?

What is "comfortable" for Lionel Messi and Taylor Swift may (and most likely is) very different to what is "comfortable" for someone earning £35,000 per year.

Understanding the numbers behind the lifestyle is step one in retirement planning. This helps establish what the destination looks like.

Navigating the best route to that destination is often the challenging part!

In all the excitement and exhilaration of getting a brand new job, or a big promotion, it’s easy to overlook your death-in-service benefits. Negotiating your new salary or flexible working is, understandably, front of mind. After all, new jobs are all about the future, not the outside possibility that you may die while in employment.

A death-in-service benefit is often offered as part of an employee benefits scheme. It’s a lump sum pay-out to your loved ones if you die while on the company’s payroll. Most death-in-service benefits are a multiple of your salary – typically between two and four times your annual gross income – paid to your chosen beneficiary.

But that large lump sum can have an unintentional side effect – leaving your loved ones with a higher Inheritance Tax bill down the line.

Many employers’ death-in-service schemes are written under a trust arrangement, which means the money won’t be liable for Inheritance Tax (IHT) when your estate is being wound up.

If the money is then paid as a significant cash lump sum to your next of kin, it will inflate their estate, potentially adding significantly to their own IHT bill.

Do you know how your Death in Service benefit will be distributed, and what the potential tax implications on your loved ones may be?

Over time, inflation means that even everyday items will become noticeably more expensive.

This means it’s important you take care to grow your wealth, with an eye on the long term.

Have you given any thought towards the effect this has on how much you may need in retirement?

It is commonly misunderstood just how much is required in retirement savings today, however, what is required in the future could be an entirely different figure due to inflation.

It's worthwhile considering these factors with any sort of long term planning.

If you had money to invest today, where would be the best place to invest?

This is a question which I am asked often.

The answer is....

Not straightforward.

It depends upon many factors.

Your age, your timeframe for investment, your current tax position, what your future tax position may be, how liquid you need an investment to be, how you cope with value fluctuations, what is the objective of this investment, to name a few.

Only when you have the answers to those points can you answer the question of "where" you should invest, or more specifically "what" you should invest in.

What do you think is the best type of investment at the moment?

What will retirement look like for me?

For many people, pensions are something they and their employers pay into each month with the “hope” that there is enough there for them to retire as and when they wish. If this thought process is maintained though, many people could be in for a great shock.

When it comes to retirement planning, the State Pension is only one (usually small) element to overall retirement income, in addition many people may wish to retire before they reach State Pension Age, only to find out closer to the time that they do not have that option due to the lack of other provisions.

Whilst workplace pensions are a fantastic idea, they do need to be kept on top of.
There’s an estimated 1.6 million unclaimed pension pots in the UK, worth £19.4bn. With auto-enrolment being mandatory for many employers the amount of pension pots from prior jobs is likely only to increase with people moving around over the course of their careers.

Many people do not know how many pension pots they currently have, in addition, do not know if the existing pots will be sufficient to achieve their retirement goals.

After more than a year of inflation dominating market performance in Western markets, the past week saw the emergence of deflation, raising its unwelcome head.




The causes of inflation in the West are relatively well known by now. Coming out of COVID-19, pent up demand exploded, and it took longer for supply chains harmed by the pandemic to catch up. At the same time, the war in Ukraine caused a number of commodities, including fuel and food, to go up in price.



However, the Chinese market has had a slightly different timeline. It only left its version of lockdown (known as the zero-COVID policy) at the end of 2022. While some hoped this would lead to an economic bounce, instead it emerged into a weak global market, with cooling demand in many cases. China’s property market, which had been struggling for some time, failed to revitalise, and youth unemployment ramped up. In fact, China recently suspended reporting this last figure.



Official figures show China slipped into deflation in July, as consumer prices fell by 0.3%. While the high inflation in the West might pose problems, deflation can also create its own issues. Prolonged deflation can cause consumers and companies to cut back on spending and production, which in turn can lead to increased unemployment and reduced growth.



Whilst higher interest rates now are starting to give savers more incentive to remain in cash, this is believed to only be short term and always need to be considered along with inflation rates at the time.

Do you know what the new Consumer Duty Regulations are and what it means for the advice industry?

The FCA has greater rule making powers under the future regulatory framework legislation, they will be able to do more. They've already announced that, to get ready for these changes, they want to carry out a holistic review of the boundary between advice and guidance. The aim with this is to understand where existing regulation may carry a disproportionate burden, and to explore ideas to reduce that burden, whilst continuing to provide the right level of consumer protection.

As a starting point, the weight of regulation should be proportional with the level of risk to the consumer. This is likely to mean a move away from some of the more one-size-fits-all aspects of the existing MiFID regime. However, consumer circumstances and needs vary across and between individuals, and indeed for individuals throughout their lifetime.

It is a step in the right direction for client outcomes, we will see how this develops over the next few years.

Much of 2023 has been fairly bleak for those in the UK. Inflation has remained above its developed market peers, as the cost-of-living crisis has continued for longer than many hoped. At the same time, rising interest rates and weak equity performance have only added to these woes.

Last week, however, there was some good news for the country. One example of this was the progression of the England Women’s football team into the World Cup semi-final against Australia.

And there was also the news that the British economy grew by 0.2% in Q2.

This compared to consensus expectations of zero growth. This was also up from the 0.1% recorded in the previous three months. It was also the best quarterly reading in more than a year.

Although 0.2% isn’t exactly high by historical standards, it still demonstrates that the UK economy remains more resilient than many anticipated. Many economists had expected the extra bank holiday in May to have a larger impact on GDP, as similar additional public holidays had done so in the past. Economists were also caught by surprise by a strong 0.5% growth in June, helped by the warm weather.

The growth also gives the Bank of England a bit more wiggle room to increase interest rates. In its most recent meeting, the Bank agreed to increase rates by another 0.25%. Following both pieces of news, Azad Zangana, Senior European Economist and Strategist at Schroders noted: “The latest GDP figures suggest more monetary tightening is required to slow domestic demand, and to in turn ease domestic inflation pressures. Indeed, financial markets have responded to the latest figures. Gilts yields across the curve are higher, and the pound has strengthened against both the euro and US dollar.”