More on Financial Services

Investment planning and portfolio construction

We recognise that when you are investing substantial sums of money, you need the confidence that your investments will be professionally managed. Creating tailor-made solutions, we combine first-class investment management with a personal service to enable private clients to fulfil their long-term financial objectives.

Having ascertained carefully a clients individual requirements - whether for capital growth, income, or a combination of the two and the appropriate risk profile - we will construct a personal investment portfolio comprising carefully selected investment funds from leading investment providers. Such investments are usually unit trusts or open ended investment companies and provide access to equities, commercial property, gilts and fixed interest and corporate bonds whilst reducing the risks associated with direct investment.

With changes in investment markets and general volatility it is important the portfolios are regularly reviewed to ensure that the risk profile is still appropriate. Over time the risk profile of a portfolio can become completely out of line with that which was set at outset, this makes review vital.

Pension planning and retirement options

Planning for retirement is a complex process but, considering a pension wrapper is one of the most tax efficient homes for your investments, is well worth undertaking. At Pannone's, our knowledge of the complex web of regulations enables us to create strategies that will allow you to achieve your financial goals and is complemented by our absolute independence in providing best advice. Some of the areas where we can advise you include:

• Reviewing your pension portfolio and potentially consolidating and simplifying your benefits within one flexible wrapper. This may help reduce charges, provide greater investment choice and retirement flexibility, as well as ensure death benefits are outside of your estate on death. There would be many factors to consider before transferring and professional advice should be taken.
• Registering your pension savings with HM Revenue and Customs before April 2009 to protect them from the new lifetime allowance charge and/or protecting existing tax-free lump sums that are greater than those permitted under the new legislation. Taking no action or taking the wrong course of action before registering could mean you lose valuable benefits.
• Providing advice on funding your pension. The new legislation provides much greater flexibility on the level and timing of your pension contributions, which are fully relievable against your marginal rate of income tax. We can help you structure these payments to make the most of the available tax relief and also undertake modelling to ensure your pension can provide the income you require in retirement.
• Advising on your options for drawing retirement benefits. We can advise you on the most suitable and tax efficient method of taking an income and lump sum from your pension benefits.
• Provide, in conjunction with our Probate Team, integrated estate and pension planning. Pension funds are deemed to be outside of your estate for inheritance tax purposes before benefits commence. They are therefore a major consideration when undertaking inheritance tax planning.
• Designing and implementing pension investment strategies to suit your objectives and attitude to investment risk, and which will also dovetail with your non-pension portfolio. The income and gains produced by the investments within your pension portfolio will be free of tax*.
• Advising on pension options during and after divorce. Depending on your circumstances you may be better off with either an earmarking order, a pension sharing order or even offsetting pension entitlements with other assets. If a pension sharing order is established, then we can advise you whether to transfer this to another provider and then which provider is most suitable. This can often be a good time to review the rest of your pension portfolio and possibly consolidate benefits into one flexible plan.

*Dividend income from equity investments will carry a non-refundable 10% tax credit.

Structured settlements and personal injury trusts

Because Pannone LLP Financial Services Department is part of a law firm we have a huge amount of experience of dealing with the investment of damages received from successful litigation cases.

Many advisers who do not have the benefit of working within a legal practice are unaware of the procedures and requirements when investing such damages. Many also do not appreciate the implications receipt of lump sum may have upon a clients state benefits or the ongoing care and support certain clients need.

We work very closely with our Wills and Trust department and are well aware of the importance of structuring investments in the correct way and how using trusts can help clients retain their means tested benefits.

We regularly submit our investment reports to the courts for approval and have built up an enviable reputation for providing comprehensive investment planning backed by legal expertise.

Life assurance and critical illness cover

Many individuals take out life cover, and sometimes critical illness cover, when they arrange a mortgage. This is very good financial planning but is the cover adequate? Generally speaking the answer is 'no'.

Statistics show that the majority of people in the UK are massively underinsured. This will leave many families in financial hardship should something happen to one of the bread winners.

As we have access to all the product providers within the financial services marketplace we can select the right level of cover at the most competitive premium available. As we have a great deal of experience of dealing with trusts we can ensure that, in the event of a claim, the policy proceeds are paid out to the correct individual very quickly and in a tax efficient manner.

Even if you have cover in place already it is important to make regular checks to confirm that the premium is still competitive. Life assurance rates have reduced significantly recently and many policies taken out a number of years ago, or taken out through a bank or building society, may not be offering good value. We offer our clients a review service where we check any existing cover against the rates which currently available.

Income Protection

We are all aware of the importance of ensuring our homes, their contents, our cars etc. are covered by insurance, however, not many people insure the most important asset they have - their income.

How would they continue to pay the insurance on those items together with their general monthly living expenses if they could not work through accident or illness? The majority of people could manage for a certain period of time, but if the illness or disability lasted for a more than a few weeks most people would start to deplete their savings, assuming they had any in the first place.

We can provide help and advice regarding the required cover and, as we are independent financial advisers, we can offer this cover at the most competitive rate available. Even employees who get some assistance from their employer will generally only be paid for a certain length of time. Once that has been exceeded they will be on their own. We can make arrangements for a tailored package of cover which would ensure that there would not be any gap in earnings which provides peace of mind and family security.

Pannone LLP is authorised and regulated by the Financial Services Authority.

Call us now 0870 164 2372 for a consultation with a Pannone Financial Services Advisor.