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Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation & investment risks.
Whatever your level of wealth, there is nothing wrong in deciding to prepare a risk aversion strategy. This is reasonable and prudent for anyone who is sure that they already have ample to provide for themselves and their family into the future.
All businesses are exposed to risks in their day-to-day operations. Without insurance cover to provide protection against some of these risks, businesses would find it difficult to operate efficiently and profitably.
Adequate insurance is therefore not a luxury - it is an absolute necessity.
These days, many people are not afraid to seek compensation.
If you're over the age of 55, equity release offers you a way to use the value of your home to raise money.
There is a range of equity release schemes available on the market offered by reputable equity release providers, and they fall into two main categories, Lifetime Mortgages and Home Reversion Plans.
Professional Financial Planning is the process which aims to help you realise your ambitions. As professional financial advisers we can help you make informed decisions about your financial future, short, medium and long term.
You will almost certainly have plans of some kind - buying a home, starting a family, living abroad, perhaps retiring, but such ambitions have financial implications and you can't leave it all to chance.
This is an area of financial planning that is often overlooked. Traditionally, we have our buildings and contents insurance with our mortgage lenders, which may be uncompetitive in a very competitive marketplace. It may also be the case that a property may be underinsured, due to decoration, extension or the increase in house prices.
In addition to home insurance, we can also provide access to ...
Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious financial implications for you and your family.
Most people will be aware that Health Insurance can cover the cost of private medical treatment for any acute conditions you may suffer in the future. However, there are a number of other types of Health-related Insurance policies.
The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.
It can provide the reassurance of financial protection for you, your family and your business associates.
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored to your needs and requirements?
We are not tied to any particular lender, which means that we have the ability to act on your behalf, representing your best interests, in order to establish the most appropriate mortgage solution for you.
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large windfall, you need to provide yourself with a secure income for the rest of your life.
A well prepared pension plan which is regularly reviewed should go some way to providing this.
When someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments, such as deposit accounts, term bonds etc.
Investing is what you can do with the savings you have - if you are looking to generate a greater return on your money than is available to you through your savings instruments.
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die.
Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances. An expert will be able to help you plan your taxes in advance ...
Fixed interest investments is the term used to describe Government and Corporate bonds (which should not be confused with ‘investment bonds’ which are a kind of life insurance policy).
These kinds of bonds are loans to governments or companies that guarantee to pay the bondholder a specified level of income (called the ‘coupon’) for a specified period of time. At the end of that time, the bond issuer will repay the capital loaned.
Fixed-interest securities are important in diversified investments and investment strategies by:
The risk of fixed-interest investments is that the bond issuer defaults on either the interest payments or the repayment of capital. Historically speaking fixed interest investments have not provided the same levels of return as equity investments, but the risk to an investor’s capital is generally lower.
As a rule of thumb, the rate of interest offered increases with the risk of the issuer defaulting.
Generally speaking, fixed-interest investments are divided into 3 groups:
Most governments issue bonds. UK government bonds are called Gilt Edged Stock or "Gilts" and are considered to be some of the lowest-risk investments. Generally speaking, bonds issued by governments represent a lower risk than bonds issued by companies. Consequently, the interest paid by governments tends to be lower than that paid by companies. It must be remembered that one needs to consider the individual government issuing the bonds, as some governments have defaulted on these types of securities or are at risk of defaulting.
These are bonds issued by companies with good financial strength and credit ratings. While generally considered to be riskier than Gilts, they are still low risk compared to investing in equities or commercial property. The rate of interest on these kinds of bonds will normally be higher than that paid on Gilts, but lower than that paid on ‘Sub-Investment Grade Bonds‘.
It should be noted that ‘Investment grade bonds’ can become ‘sub-investment grade bonds’ – at the time of issue the company may have been understood to be on a firm footing but during the term of the bond they may lose their credit.
These are also known as ‘High-Yield Bonds’ or even ‘Junk Bonds’.
These bonds are higher risk than Gilts or Investment grade bonds and tend to pay greater rates of interest. They will normally be slightly lower risk than equities, but will normally be used to provide opportunities for growth and income in a portfolio rather than to provide some capital security.
The amount of risk will depend on the individual company issuing the bond. Companies that are considered to be at a greater risk of default, need to pay a greater rate of interest to attract people willing to lend them money, thus the rule of thumb is that the greater the risk of default, the greater the rate of interest, or ‘yield’ (and vice versa). This gives rise to the common term of ‘high-yield bonds’.
The term ‘junk bonds’ can be used to describe any ‘sub-investment bond’, but is most commonly reserved for bonds of those companies who are already, or are in imminent danger of, defaulting or having to restructure the company and/or debt.
All fixed-interest securities can be traded on stock markets. They may be sold on these markets at a value that differs from the issuer's value. If an issuer of bonds has become more attractive (e.g. the company’s fortunes have improved and/or the rest of the market is considered to be riskier than before) then you may be able to sell the bonds for more than their face value. Alternatively, if the issuer has become less attractive (e.g. the issuer is in financial difficulties) then the value of the bond would be less than the face value (assuming a buyer can be found).
THE VALUE OF INVESTMENTS AND THE INCOME THEY PRODUCE CAN FALL AS WELL AS RISE. YOU MAY GET BACK LESS THAN YOU INVESTED.
Currencies
Value | Move | % |
0 | ||
1.179 | -0.005 ![]() | -0.459 ![]() |
GBP/NOK | ||
13.868 | 0.348 ![]() | 2.575 ![]() |
0 | ||
12.919 | 0.123 ![]() | 0.96 ![]() |
GBP/USD | ||
1.298 | -0.012 ![]() | -0.917 ![]() |
Stocks
Value | Move | % |
FTSE 100 | ||
8137.23 | -337.51 ![]() | -3.983 ![]() |
FTSE 250 | ||
18475.05 | -735.459 ![]() | -3.828 ![]() |
FTSE 350 | ||
4432.8 | -182.81 ![]() | -3.961 ![]() |
FTSE All Shares | ||
4384.08 | -180.23 ![]() | -3.949 ![]() |
Dow Jones | ||
39568.86 | -977.07 ![]() | -2.41 ![]() |
Nasdaq | ||
16090.065 | -460.54 ![]() | -2.782 ![]() |
Contact Us
Neales Financial Management Limited
Suites 32/33, Pure Park
137 Pastures Avenue
Weston Super Mare
Somerset
BS22 7SB
T: 01934 806578
Email : Email Us
The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
Neales Financial Management Limited is authorised and regulated by The Financial Conduct Authority. Neales Financial Management Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 191772.
Registered in England under reference 3878665
Registered office address: Belmont House, 8 Frog Lane, Felton, Bristol, BS40 9UN