Attorneys empowered to seek alternative investment providers
A change to guidance on financial Lasting Power of Attorneys has been made that will make it easier for families to ensure any monies they are in charge of can be managed by the best-value, best-performing providers. We’ve heard from a number of individuals acting in this capacity who are seeking alternatives now that LPA rules are changing to make this easier.
From 2015, it had been the case that attorneys who were unhappy with a discretionary investment manager could not change provider unless a specific clause had been included in the original LPA. As many would not have known these clauses were required, individuals were often left only with setting up a new LPA or applying to the Court of Protection (both costly and time-consuming) and becoming embroiled in lots of bureaucracy if the individual in question had lost capacity. Although the Office of the Public Guardian (OPG) has yet to formally update its guidance, it is thought that verbal confirmation is from now sufficient to instruct a discretionary investment manager in the interim period.
Cognitive decline, in all its permutations, is a major and growing killer; more and more families are being affected by the financial complexities that go alongside managing the health and financial needs of the older generations. In response, several wealth managers have set up entire teams to help client deal with these
Cognitive decline, in all its permutations, is a major and growing killer; more and more families are being affected by the financial complexities that go alongside managing the health and financial needs of the older generations. In response, several wealth managers have set up entire teams to help client deal with these. Let us know if you have a complex wealth management situation to address; the leading providers on our panel are sure to be able to help, so why not get in touch for an informal chat so we can assess your needs and help you find the right professional wealth manager.
Readiness to tackle tax, pension planning grows
Plenty of people come to us for entirely happy reasons, like they have received a lump sum which they are looking to deploy optimally. However, there has been a marked increase in people who are mentioning worries about what they previously considered to be solid wealth management plans when we take enquiries.
Research indicates that a quarter or more of individualsi have had to change their financial affairs (or those of a family member) as a result of the pandemic, and although this has often for the better – many saved and began investing for the first time – some have had serious flaws in their strategies exposed.
It is thought that over half of us have felt stressed by financial issues occasionally or even regularly, with the more affluent by no means immune. Inflation is seen by 50% of Britons as the biggest threat to their retirement plansii and the wealthier can often tend to get harder hit by inflationary forces due to their spending patterns (private school fees are notoriously prone to outsize increases, for instance).
Research indicates that a quarter or more of individuals have had to change their financial affairs (or those of a family member) as a result of the pandemic, and although this has often for the better – many saved and began investing for the first time – some have had serious flaws in their strategies exposed
Potential tax hikes, and sooner rather than later, are another key area of worry. The Spring Budget may have been relatively benign for higher-rate tax payers, for instance, but the Government’s continued largesse in not increasing taxes directly (in favour of fiscal drag as many would argue) depends on the performance of the UK economy; and the Centre for Economics and Economic Research (CEBR) predicts the UK’s Gross Domestic Product (GDP) will be just 3.1% for 2022, down from 7.4% in 2021.
Many of our users want to be ready to adjust their tax planning strategy if necessary and so are looking to have an adviser on hand who knows their situation comprehensively and so can make strategic tweaks without delay. The best time to appoint an adviser is well before you urgently need one to make a tactical change, is always our advice.
Top Tip
We welcome changes which will allow those with Lasting Power of Attorney responsibilities to seek a better investment manager for their loved ones when the service, performance or fees are unsatisfactory. We have certainly helped users with this kind of issue previously and would welcome to opportunity to help more people to connect with the wealth managers on our panel which are highly experienced in this area (and there are quite a few). Why not let us arrange some no-obligation discussions with leading wealth managers, fast and free?
Lee Goggin
Co-Founder
Property’s prospects a cause for concern
It is normal to have much of your wealth tied up in the family home, but many people come to hold a disproportionate amount of their wealth in the form of property, particularly if they have inherited tooProperty is often regarded as only rising in value, but of course that is not necessarily the case and particularly not so in the short term. It is normal to have much of your wealth tied up in the family home, but many people come to hold a disproportionate amount of their wealth in the form of property, particularly if they have inherited too. In fact, 21% of Britons say that property investment is a main reason for their wealth, rising to almost a third for entrepreneursiii. Appropriate asset allocation which diversifies wealth among asset classes, markets, sectors, instruments and currencies drives returns to a very great degree, as well as being critical to managing risks. Having to sell a property in a downturn to meet a need which could have been met another way if planned for in advance is a common situation which many of our users are trying to avoid. IHT concerns are also an issue since property reliefs for family homes may be under threat.
Consider if you ought to optimise now
There is lots of negative news continuing to flow amid war and expected inflation volatility. Yet as wealth management experts continue to remind us in their investment commentaries, there are also investment opportunities to be sought amid the gloom.
More often than not, it takes relatively little to optimise an investor’s financial arrangements and put their mind completely at rest that they have done their utmost to protect and grow their wealth
More often than not, it takes relatively little to optimise an investor’s financial arrangements and put their mind completely at rest that they have done their utmost to protect and grow their wealth. Why not join those who are probing their portfolios for weaknesses and anticipating changes to the tax regime and investment environment well ahead of time?
i Schroders Personal Wealth “Money and Mind Report” April 2022
ii My Pension Expert, April 2022
iii Brown Shipley, March 2022
