Ashtree Financial Services is part of the Autoline Insurance Group
OCTOBER 2011 Ashtree Financial Newsletter - Issue 1
A warm welcome to the first edition of the Ashtree Financial Services Newsletter. A quarterly bulletin keeping you informed with articles on topics relevant to the everyday concerns of businesses and individuals A warm welcome to the first edition of the Ashtree Financial Services Newsletter. We look forward to providing you with a quarterly bulletin keeping you up to speed with informative articles on all aspects of Financial Planning for businesses and individuals. Ashtree Financial Services is the Financial Planning division of the Autoline Group. We have a team of highly qualified financial advisers providing independent advice and guidance to clients across the Province. We combine specialist training and ongoing development with numerous years of
experience to ensure our clients receive expert and impartial advice. We understand that Financial Planning is the basis on which individuals and businesses make decisions to secure their financial future, so we ensure our advice covers all aspects of financial planning to provide you with a complete service. From simple life assurance, to protect your family and financial commitments, to complex investment, tax and pension planning, we can tailor our solutions to help you achieve your personal or corporate financial goals.
Our goal is to help you look after your finances, which is why we integrate Financial Planning with Tax Planning to provide a complete Wealth Management Service. We are happy to work with your accountancy and legal advisors, and at all times we seek to maximise tax efficiency, minimise cost and balance risk and reward for our clients. You can be confident of our expertise and commitment to the highest levels of customer care. I hope you enjoy your read. If you find something of interest and have further questions, or there is an area that you would appreciate some information on, please do not hesitate to give us a call. I look forward to Ashtree providing an invaluable service to you in the coming years. Kevin Curran B.Sc. (Econ) M.A., Client Services Director, kevin.curran@ashtreefinancial.co.uk
See Kevin's biography on page 6
Business Protection – Make it your Business
Is your business properly protected? Have you ever stopped to think about what might happen to your business if you lost one of your key members of staff? You might already have insured your premises, equipment and stock, but what about the people who play the biggest part in your organisation’s success? If, for example, your best sales person died or became critically ill, how would your business replace the income they generate? Does anyone else in your business have the same expertise or relationships with customers? You might think “It will never happen to me”, but statistics show that in a group of four business partners all aged 30 there is a 68% chance of one being diagnosed with a critical illness during their working life (Munich Re 2009). Despite this, Institute of Directors research (January 2011) found 58% of firms have no formal arrangement to deal with the death or serious illness of key staff.
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Is it time to review your current planning? With banks still reluctant to provide funds to even the financially strongest businesses, have you thought about what would happen if: • your business needed funds to replace the income generated by a key person?
However, assistance is available in the event of any of these potential catastrophes. Key Person Protection Your business receives a cash injection if one of your key people dies or suffers a critical illness. This could help to reduce the impact of a reduction in cashflow. Shareholder / Partnership Protection The business owners receive a payment to assist in the purchase of a deceased or critically ill shareholder's, or partner’s, interest in the business. Executive Income Protection Your business receives a regular income to assist with continuing salary payments for key staff during long term illness. Ashtree Financial Services can offer impartial advice on choosing and implementing any of these arrangements.
• or had to purchase the shares of one of the business owners, either following their death or if they become unable to work because of a critical illness? • or had to support you, or one of your key staff, financially in the event of a serious accident or prolonged period of ill-health? Could your business afford to borrow, or would your bank be willing to lend funds at times of such uncertainty?
Article by Gary Neill ACII Dip PFS, Senior Financial Planning Consultant, gary.neill@ashtreefinancial.co.uk
Ashtree Financial Services - www.ashtreefinancial.co.uk
OCTOBER 2011 Ashtree Financial Newsletter - Issue 1
Open Market Option (OMO) Research from the Association of British Insurers (ABI) shows that 68% of pension policyholders buy their annuities from the company they saved with rather than check market rates for a better deal. Article by Karl Murphy Cert PFS, Financial Planning Consultant, karl.murphy@ashtreefinancial.co.uk
Differences between the highest and lowest annuity rates can average 25%, meaning significant potential losses in retirement income. The loss may be even greater if you are eligible for enhanced annuity rates due to ill health but your pension company does not offer them.
you a taxable income for the rest of your life. It is a common misconception that you can only purchase your annuity from your current pension provider. In fact you are free to buy your annuity from any company offering the best rate for your needs. This is widely known as taking the Open Market Option.
Annuities are provided by insurance companies. The company you choose promises to pay you a regular income in exchange for your pension fund, no matter how long you live. However, because the income is fixed it is important to choose your options carefully. Once an annuity is set up it cannot be changed.
It is estimated that more than 150,000 people each year fail to benefit from the most competitive annuity rates, and this can mean missing out on potentially thousands of pounds in lost income. Given the importance of the decisions you need to make, and the range of options available, we believe it’s vital to seek expert advice from an independent financial adviser. Ashtree Financial Services offers advice on the full range of annuity options as well as alternatives to buying an annuity.
Under normal circumstances, you can start taking an income from your personal pension at anytime from age 55. When you do this, 25% of the fund is generally taken as a tax-free lump sum. The remainder of your pension fund can then be converted into an annuity which pays
Asset Finance Services We are Independent Asset Finance Brokers specialising in vehicle, industrial, plant and agricultural machinery finance. Article by Mel McMurray, Financial Services Director, mel.mcmurray@ashtreefinancial.co.uk
Hire Purchase Hire Purchase offers a straightforward way to spread the cost of your purchase. With this method of finance you have a fixed rate of interest with fixed monthly payments. At the end of the contract period the asset becomes your property.
Tel: +44 (0) 28 3026 2026
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Benefits: • Low deposit • • • • • •
Fixed monthly payments You retain ownership of the asset Tax allowances for business users Access to a variety of lenders Very competitive rates available Immediate decisions, usually within 2 hours • Prompt efficient service
Fax: +44 (0) 28 3025 6220
Ashtree Financial Services is part of the Autoline Insurance Group
Equity Release - Unlocking the Value in Your Home We are all aware of the impact of an ageing population and the difficulty of maintaining living standards in retirement. These are just two of the many contributing factors to the significant growth in the Equity Release market over the past 10 years. And while house prices are falling in many parts of the country we have still seen over 200% growth in the past 15 years, meaning that for many people their most valuable asset is the equity in their home. However, with the growing problem of making adequate financial provision for retirement, being ‘asset rich and cash poor’ is becoming an ever greater issue. For many people the answer to this could be Equity Release.
What is Equity Release? Equity release allows you to free up money from the value of your home and use the extra cash during retirement without having to leave your home. An Equity Release lifetime mortgage is taken out and secured on your property. You do not make immediate repayments; instead interest is rolled up to be paid when the scheme is ended. You continue to own and live in your home. After you and your partner have died or moved into long-term care, your house is sold and the amount you borrowed, including rolled-up interest, is paid to the lender. Anything left over, after costs, passes to your or your partner’s estate. Equity Release can provide the following benefits. • Unlock part of the value tied up in your home. • Continue to live in your home and benefit from any further increases in its value. • Flexibility to take a cash lump sum, receive “drawdown” payments on a regular or ad hoc basis to improve your finances. • A guarantee that the remaining loan can never exceed the value of your home. At Ashtree Financial Services we have qualified advisers who can advise you on all aspects of Equity Release. If you are aged over 55, own your own home and are looking to add to your retirement income we can help you decide if Equity Release could work for you. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
Article by Gordon Storrie CeMAP CeRER, Sales Director, gordon.storrie@ashtreefinancial.co.uk
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £199.
2 Ashtree Enterprise Park, Rathfriland Road, Newry BT34 1BY
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Ashtree Financial Services is part of the Autoline Insurance Group
Ashtree can now provide an exclusive foreign currency exchange service offering significant savings on foreign exchange. About Currency1st Small to medium-sized enterprises have never been afforded the level of service and keen pricing enjoyed by some of the larger companies in the Northern Ireland market place, but that has now changed… Currency1st provides all clients with exchange rates previously only available on the largest transactions. Currency1st is a leader in the provision of commercial foreign exchange services, bank beating service standards and timely market information. Clients can benefit from: • Highly competitive rates • Major savings on Bank Foreign Exchange Rates • No commission • Personal currency dealer • Same day transfers • Spot Trades, Forward Contracts and Limit Orders • 100% safe and secure
At Currency1st we deal directly with the London interbank market to offer our customers highly competitive foreign currency rates and outstanding savings. Currency1st have relationship managers available across the province so our clients can meet and talk to an adviser face to face when required. So whether you are importing wood from Canada, exporting food to Europe or even buying property overseas, we are here to help you squeeze the most out of your currency requirements.
CONTACT INFORMATION Contact Mel McMurray at Currency1st to see how much you could save
028 3025 9009 or 077 1219 4696
www.currency1st.co.uk
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Ashtree Financial Services - www.ashtreefinancial.co.uk
OCTOBER 2011 Ashtree Financial Newsletter - Issue 1
Staff Profile
Kevin Curran B.Sc. (Econ) M.A. Client Services Director Tel: 028 3025 8970 kevin.curran@ashtreefinancial.co.uk
Kevin joined the Autoline Group in 2007 as Client Services Director and now heads up the Ashtree Financial Services team providing advice on all areas of financial services. A graduate of The London School of Economics (LSE), and with a Masters in History from Kings College London, Kevin has almost twenty-five years experience in Financial Services. This includes working in the City as an investment analyst for a London Stockbroker
across Northern Ireland, as well as the broader UK market.
Ashtree Financial Services is the Financial Planning division of the Autoline Group. Autoline Insurance Group is one of the fastest growing financial services companies offering a broad range of insurance, mortgage and financial products to both personal and business clients
Established in 1975, Autoline is now widely regarded as a leading broker, enjoying strong partnering relationships with Lloyds of London as well as most of the world's largest insurers, including Allianz, Aviva, AXA, Royal & Sun Alliance and Zurich. Autoline specialise in both personal and business insurance offering award winning service teamed with expert advice. Call today for a competitive quote on 08452 30 30 30
Issued by Ashtree Financial Services. Autoline Insurance Group and Ashtree Financial Services are a trading name of Autoline Direct Insurance Consultants Ltd which is authorised and regulated by the Financial Services Authority – 300071. The contents of this newsletter do not constitute advice and should not be taken as a recommendation to purchase or invest in any of the products mentioned. Before taking any decision we suggest you seek advice from an independent financial advisor.
and, prior to joining Ashtree Financial Services, a Financial Adviser role with the national accountancy firm Grant Thornton. Having returned to home turf with his family Kevin now specialises in Investment planning and Inheritance Tax mitigation. He works predominantly with personal and corporate clients introduced by accountancy firms and legal practices. Outside work Kevin has run marathons (slowly!) for local charities and acted as a Career Academy mentor for local students in the Southern Regional College.
CONTACT INFORMATION Head Office Ashtree Enterprise Park, Rathfriland Road, Newry, Co Down, BT34 1BY. Tel: +44 (0)28 3026 6333 Downpatrick Office 12 Irish Street, Downpatrick, Co Down, BT30 6BP. Tel: +44 (0)28 4461 5221 Ballymena Office Braid River Business Park, 101a Railway Street, Ballymena, Co Antrim, BT42 2AF. Tel: +44 (0)28 2565 2424 Coleraine Office 38 Railway Road, Coleraine, Co Londonderry, BT52 1PE. Tel: +44 (0)28 7034 4321 Email: enquiries@autoline.co.uk
2 Ashtree Enterprise Park, Rathfriland Road, Newry BT34 1BY
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