Importance of budgeting
What family protection needs might client have?
- protection against financial impact of death
- protection against accident, sickness or employment
What protection needs might businesses have?
- death of a key employee
- death of a business partner
- sickness of an employee
- sickness of a business partner
- sickness of a self-employed sole trader
What are the key considerations in relation to borrowing
1- the mortgage is affordable
2-choosing the right lender and product rate
3- option to remortgage if can’t keep up with repayments
What are the key considerations relating to investment
- regular savings
- level of risk
- accessibility
- taxation
- effects of inflation
What is the Real rate of return
How to measure returns of an investment
Calculated by subtracting the rate of inflation from the interest rate obtained on the investment.
Why is retirement planning so important?
- understanding your pension contributions
- what pension benefits are available to you
How can an advisor help with estate planning
- Has the client made a will
- Has the client taken steps to mitigate inheritance tax
Role of an advisor in tax planning
- Use if ISA and pensions to maximise tax free income
- non taxpayers can invest in offshore bonds which are UK tax free
- offshore considerations
Cross option method
A type of partnership protection which gives company an option to purchase deceased parters share rather than binding contract.
Deceased family receive business assets instead of cash so company doesn’t pay IHT
