Woodruff Financial Planning   financial independence newsletter
January 2010
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The Woodruff Financial Planning blog is born

If you are reading this newsletter, then the chances are that you are interested in financial planning, and what it can do for your financial future.

Newspaper

If so, you will be happy to learn that we have now launched a blog service for our contacts, so that you can read daily news and comment on financial planning issues.

We will be posting daily updates on issues such as financial planning, investments, pensions, mortgages, protection and inheritance tax planning.

Take a look at our financial planning blog here.

free investment portfolio review

Get a FREE investment or pension portfolio review
We have just launched this free initiative, designed to show prospective clients what we can do to help you keep on track towards your investment and
pensions goals.

What's in the review
OK, it's free, so we won't do a full review (as in our Portfolio Management service). What we will do is give you an overview of your investment portfolio, how it has performed over the last 5 years, and an analysis of the risks both now and for the future.

How to get your review
If you have investments or pensions, and want to review how well your funds are doing, then this is for you.

Simply contact us, and we will arrange to do a basic review of your investment portfolio.

questions and answers section

Questions & Answers
Here we seek to answer the questions you have on financial matters. To submit a question, click here.

I am about to retire, and need to take an income from my personal pensions. How do I go about this?
Mr B - Essex

Answer
When you come to your selected retirement age your pension companies will write to you to offer you various options. These will be:

  • To keep the plan going (until age 75 at the latest)
  • To take an income (annuity) from your current provider
  • To take an income (open market option) from another provider

We would say that in almost all cases you are better off by taking the last of these options. Under the open market option you are allowed to take your fund and shop around for the best income available; nearly always this is better with another provider.

You should take advice on your options at retirement because many of these decisions cannot be reversed once taken. Click here to read our basic leaflet on retirement decisions.

I have seen some competitively priced flats in my area. I am thinking about buying one as a buy to let investor. What do I need to think about?
Mrs G - Essex

Answer
Buying property can be a great long-term way of building up assets for your financial future. This is especially so given that if you rent out the property, you can hopefully get someone else (the tenant) to pay the costs of your mortgage.

However, buying investments through debt can be a risky venture if you do not open your eyes to all the risks. Think about some of the following:

  • Diversification
    If your property goes down in value, so will your investment; try to diversify wherever possible.
  • Property valuations
    Remember that prices can go down as well as up. You need to be in it for the medium to long term to avoid any short term fluctuations.
  • Gearing
    Buying through debt can increase your risk since your debt will remain the same no matter what the value of your asset.
  • Tenants
    They are not always perfect, so you need to think about the costs of renovation, decoration and some months without rent.
  • Costs
    Many buy to let investors forget about added costs, such as mortgage fees, solicitors costs, tax, estate agency fees, letting fees etc.

Click here to read a basic leaflet on the risks of buy to let.

click here for our financial navigation service
click here for our portfolio management service click here for our financial advice service

I didn't know you did that!

Many people do not realise all the areas in which we offer advice, so here is a comprehensive list!

  • Comprehensive financial planning
    Working towards your long-term financial goals;
  • Investments
    Including: portfolio management, ISAs, investment bonds, unit trusts, investment trusts, OEICs, fund supermarkets;
  • Pensions
    Including: personal pensions, stakeholder pensions, Self-invested personal pensions (SIPPs), Executive pensions (EPPs), Unsecured pensions (drawdown), Annuities, Small Self Administered pensions (SSASs), Retirement annuity contracts;
  • Mortgages
    Including: mortgages, remortgages, buy to let mortgages, commercial mortgages;
  • Protection
    Including: life assurance, critical illness cover, income protection, family income benefit, keyman cover, unemployment cover, private medical insurance;
  • Inheritance tax planning

Contact us to find out more!

the explainer

The Explainer This seeks to bring you an easy to understand explanation of some of the jargon used in the financial news.

The Retail Distribution Review
You probably started yawning when you read this title. Actually, this will result in fundamental changes to the way Financial Advisers will work in the future (from the end of 2012).

The review is being pushed through by the Financial Services Authority, who want to ensure that consumers get the right advice from suitably qualified advisers, in a fair and balanced way. The main areas of interest for you are:

  • Qualifications
    Most advisers will need to raise their qualification levels.
  • Remuneration
    Advisers will be forced to stop being paid by commission
  • Scope of advice
    Advisers will only be able to offer either independent or restricted advice
  • Professional standards
    Advisers will be forced to adopt ethical standards similar to other professions

You won't be surprised to know that we already meet all of the proposed changes. Click here to see more information.

quiz Quiz
Test your knowledge of financial planning with our quiz - just for fun!

According to the Department for Work and Pensions in 2007, which of the following was more likely?

  1. Claiming on a life cover policy
    i.e. the risk of early death.
  2. Claiming on a critical illness plan
    i.e. the risk of getting a serious illness.
  3. Claiming on an income protection plan
    i.e. the risk of being off work for a long time.

Click whichever link you think is the correct answer.

Contact us Unsubscribe

© Woodruff Financial Planning
The Colchester Centre, Hawkins Road, Colchester, Essex, CO2 8JX
Telephone: 01206 266882 Email: click here.


This newsletter is for information purposes only and should not be relied upon as financial advice. The newsletters are topical in their nature and are accurate at their date of issue, but we do not undertake any obligation to update articles. Legislation is subject to change at any time.

Principal: D Woodruff
Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority.