Pension tracing service

It’s not always easy to keep track of a pension, especially if you’ve been in more than one scheme or have changed employer throughout your career.
But, it’s important that you do claim your pension, so the sooner you trace a lost pension, the better. The first place to contact is the Pension Tracing Service at www.gov.uk/find-pension-contact-details
or call us on 03302 230 404 and we will be happy to help.

Once we find your old pensions, if you would like us to, we can carry out a review of them to find out what the costs of running the pension are, where your money is invested and how it has been performing. We can show you how this compares to the Lakeside Model Portfolios on a risk adjusted basis so you have a clearer picture of how things are going.

Contact: admin@lakesidefs.co.uk if you would like us to help you look for an old pension scheme.

Finance Q&A - Equity Release

Equity release offers a way to free up capital in your home without the need to sell the property. It does, however, come with its risks. Here, Lakeside Technical Specialist, Adam Chambers talks through the key considerations and possible pitfalls.

What is equity release, and how does it work?

A: Put simply it’s a way of using the equity in your property to provide you with a lump sum of money for your use, or an income without you having to sell your home.

Who is eligible, and what tend to be the key reasons for releasing equity?

A: Only those aged over 55 can apply for equity release. You don’t need to have paid your mortgage off in full, but there will be a limit to how much an equity release provider will lend you.
Common reasons for releasing equity include repaying a standard mortgage, consolidating debt, gifting to children or grandchildren or perhaps to supplement pensions or savings. Meanwhile, those who don’t have anyone to pass their estate onto when they die may release equity purely to enjoy the money in their later years, spending it on luxuries like holidays.

What are the key risks and costs involved?

A: Fees vary depending on the lender, but people applying for equity release need to be mindful of the fact they could incur valuation, legal, advice and lender fees.
When the property is sold, or the last occupant goes into long term care, the lender will need to be repaid. The amount to repay to the lender will be the original amount borrowed plus all of the interest which has built up over the years, this means that whoever inherits the property will not get the full value of the property.

What would your advice be to those considering equity release, and can you briefly outline the process of doing so?

A: First and foremost, we would always suggest discussing your potential plans with your family as it will affect the amount they will inherit.
It’s worth considering other ways to raise money before committing to an equity release, such as personal loans, remortgaging or possible government grants. You should also consider downsizing from your current property before looking at equity release.
It’s essential to speak with a qualified adviser to make sure you are aware of all the potential risks involved, along with the benefits. They can then handle the market research and much of the administration process for you.

Please feel free to contact us for further information: admin@lakesidefs.co.uk

2020/21
£20,000
annual ISA allowance

SALARY CAPPED
£40,000
annual pension tax relief

With the tax year end fast approaching we suggest reviewing your ISA and pension allowances to ensure you have made the most of the benefits available to you during 2020/21.

If you haven’t yet used up your current ISA and pension allowances, then time is of the essence as the deadline to do so is 5th April. In reality, it can take three to four weeks to process applications and payments, so, given the current lockdown, if you want to use any of these allowances, it would make sense to contact us by the end of the first week in March, so we have time to complete the work for you.

Contribution allowances 2020/21

The £20,000 allowance can be split between the following different ISA types: Stocks and Shares ISAs, Cash ISAs and Lifetime ISAs.

The maximum investment into Lifetime ISAs is £4,000 and, if used, would reduce the maximum amount that can be paid into the other types of ISA to £16,000.
The maximum you can contribute into pension and receive tax relief for this year is £40,000.

The annual allowance is reduced (‘tapered’) if you are a ‘high earner’ so if your threshold income is over £200,000 or your adjusted income is over £240,000 you need to let us know as early as possible for us to do calculations for you.

You may be able to utilise unused allowances from the previous three years if you want to invest more. If this is the case, please contact us so that we can calculate the maximum allowance that you have.

Please feel free to contact us for further information: admin@lakesidefs.co.uk

INVESTMENT MANAGEMENT UPDATE

As you may know, Lakeside FS converted our model portfolios to discretionary model portfolios some time ago, primarily so that you no longer had reply to emails giving us permission to make changes with your investment funds. This work was done in conjunction with Copia which was founded by Henry Cobbe. Henry left Copia last year and so in order to continue to work with Henry, we have now formed Lakeside Portfolio Services Ltd. to provide the ongoing portfolio services.

Henry will continue to work as one of our external consultants to provide continuity. You won’t notice any changes and the investment decisions will continue to be made by the same team but if you do have any questions, please feel free to contact us.

LAKESIDE TEAM Q&A - Matthew Hibbert

Lakeside Practice Principal Matthew Hibbert joined the family business as a teenager handling financial admin and has since worked his way up to lead adviser in investments and estate planning. Here, he shares the key elements of his role and pinpoints what sets Lakeside apart from the competition.

Tell us a little about your background and how you came to join Lakeside.
I came to Lakeside after completing my A-levels. We are an independent, family-run company, initially set up by my dad. I started in admin before qualifying as a financial adviser, gradually gaining qualifications in the different areas, including mortgages, protection and investment. Lakeside has evolved considerably, and my dad has now passed the business onto my brother Nathan, and me.

What are the key responsibilities within your role?
I now lead the investments team here at Lakeside, predominantly dealing with investment and estate planning. Most of my time is spent interacting with new and existing clients. Typically I get to know a client and their circumstances and then put a strategy in place for them. From there, I maintain ongoing contact, keeping them updated and acting on any changes at their end. Meanwhile, behind the scenes, we are constantly monitoring changes in the market, to best look after a client’s investment and manage portfolio risk.

And what would you say is the most rewarding part of your job?
I enjoy delivering a service to clients and coming up with a solution which genuinely improves their circumstances. Some people can be wary of investment, so it means a lot when a client comes to trust in the service we provide and sees the value of getting financial advice.

Tell us about what you feel sets Lakeside apart from other financial advice companies.
Two key factors set us apart. Firstly, we genuinely care about the outcome for clients, and so we advise, we don’t just take instructions. Everything we do is geared towards getting the best result for them as an individual whilst trying to make sure they have first-rate financial advice experiences. Secondly, as an independent company, we have various ways of controlling and reducing costs by handling elements in-house rather than outsourcing. When we find ways to reduce costs, we aim to pass these savings onto our clients, which means the overall costs to clients remain competitive and offer real value for money.

How do you spend your downtime when away from work?
It’s a rather hectic job, so when I get free time, it’s all about enjoying family days out with my wife Charlotte, and our two young sons, Ethan and Eli.

What are your top goals for 2021?
Hopefully, a personal goal is to leave the house freely and make up for time lost in 2020 by travelling more. Business-wise, I want to communicate to clients that we do more than investments and pensions. As such, we will be increasing communication with clients to inform them of the full breadth of the advice we can offer, including wills and estate planning, business protection, and broader financial planning.

If you would like to discuss Lakeside’s investment and estate planning services, contact the office at admin@lakesidefs.co.uk

SERVICES

Just some services we offer at Lakeside

At Lakeside our clients benefit from bespoke financial solutions and pro-active, ongoing advice as well as access to exclusive products and services with extremely competitive pricing and charge caps. We offer the following services to all our customers:

  • Investments
  • Pensions
  • Insurance
  • Mortgages and Lending Options
  • Wills
  • Lasting Powers of Attorney

Visit the ‘News’ section of our website for further articles and updates on the portfolio of services that we offer.

 

First published on February 16th, 2021

The information provided above is believed to be correct at the time of publication and is provided for information purposes only, it does not constitute advice. Any reference to interest rates or growth rates are examples only and are for illustrative purposes only. You should seek independent financial advice before making any decisions about your finances and financial products. We accept no liability for loss as a result of any action taken based on the information on this page where appropriate independent financial advice is not taken from Lakeside FS Ltd.