HMRC Pension Transfer Guidance May Change
The rules relating to pension transfers and inheritance tax could be set to change after HM Revenue & Customs (HMRC) announced that it is to review its guidance on the matter following a number of concerns raised by the Office of Tax Simplification (OTS) in a review published on July 5 2019.
One area that the OTS has earmarked for examination involves the rules relating to pension transfers made within two years of a person's death. Such transfers can result in the deceased person's remaining defined contribution pot being subject to 40 per cent inheritance tax unless the estate can prove to HMRC that the pension transfer was made without the intention to deliver gratuitous benefit.
Growth Stocks vs Value Stocks: What’s Your Approach to Investment Management?
Investment management is the practice of buying, selling, and trading financial assets, with the intention of securing a greater return than the amount paid in. Not everybody is experienced in understanding how investment management works, so it’s important to consult a financial advisor if you’re uncertain.
Good investment management is about looking after your money and will involve finding the investment style to suit your character and risk tolerance as well as your overarching retirement financial goals.
One aspect of this process is finding the right balance of growth stocks v value stocks for your portfolio - but what are they? Below we take a look at the difference between value and growth stocks, and their relevance to successful investment management.
Understanding Risk in Retirement Investing
Life is inherently risky: if we did not accept risks as an inevitable part of life, we would never leave our homes or attempt to alter or improve the circumstances which lie ahead. So, we must negotiate a certain amount of risk while avoiding the most obviously dangerous situations.
Investing for retirement in stocks, shares and other commodities is similar; we need to accept the risks. By making calculated decisions we can hopefully avoid making detrimental investment decisions.
Unfortunately, those who don't know how to invest for retirement, or those who receive bad, fraudulent or unregulated retirement investing advice, may be tempted by the promise of so-called "guaranteed" returns or unrealistically high dividends only to find that they have sacrificed their life savings for fool's gold.
MiFid II – What’s Next for Regulations?
After the announcement in January 2018 from the Malta Financial Services Authority, stating the significant pending changes to Maltese pension and MiFid regulations, both companies and advisers alike felt the net tighten around their daily practices.
The statement started one of the most significant shifts for the industry and sparked apprehension around those ill-equipped to provide fully compliant financial advice in light of the revised regulatory standards.
How to Decode and Check a QROPS
As an expat your pension choices can seem labyrinthine. You may have been a member of one scheme over your entire career or perhaps you have paid into several smaller workplace schemes across different countries. Knowing what to do can seem like an enigma.
There are several types of expat pension transfer available, but knowing whether a transfer is right for you will take some investigation (and almost certainly expert advice).
Here we take a look at QROPS: what is a QROPS, are they a good idea and are they a suitable retirement savings vehicle for you if you intend to move abroad or already have done so?
The Key to a Healthy Retirement Planning? Balance
"Fortunate, indeed, is the man who takes exactly the right measure of himself and holds a just balance between what he can acquire and what he can use." These words, written by The eighteenth century English physician and educator Philip Latham, could just as easily have been written about trying to achieve the balance between spending happily in the present and saving prudently for retirement.
However, the question of how to do this effectively is not one that is easily answered. As it happens, too many retirement savers find that they either spend profligately in the present, thereby jeopardising their retirement lifestyle, or they prepare with too much caution, experiencing years of unnecessary frugality only to reach retirement with more money than they really need.
Finding Old Pensions Before Making a Pension Transfer Overseas
The days of the "job for life" with a single employer are, for most of us, long-gone and we are now far more likely to have multiple jobs paying into a number of different pension schemes. This means tracing old pensions when you retire - whether defined benefit, defined contribution or private stake holder. In order to get an accurate and full idea of your pension wealth it is essential that you begin finding lost pensions to factor every single one into a total valuation.
Pension transfers are a hot topic at the moment, especially if you're an expat and want to transfer pension pots overseas. And if, like many, you have lost track of the various pension pots you have amassed throughout your career, it can be hard to gather together all the information you need to decide whether a pension transfer would be in your best interests.
Five Key Retirement Questions for Expats in Spain
If you live in Spain, or are thinking of moving to Spain for your retirement, it is essential that you seek expat financial advice in order to give you the best possible chance of successfully protecting and growing your wealth.
Blacktower Financial Management has offices in Barcelona as well as Costa Del Sol, Costa Blanca, Costa Calida and on the Balearic Island of Mallorca. From these branches, our team members can help expat retirees throughout Spain take care of their wealth management and retirement investment needs.
In this guide we take a look at some key questions for expats in Spain.