Podcast Summary
Hiring on LinkedIn: Access Unique Talent: Small businesses can hire professionals exclusively on LinkedIn, accessing a unique pool of talent not found on other job sites. Consider maximizing pension contributions before potential tax relief changes.
LinkedIn is a valuable resource for small business owners looking to hire professionals. With over 70% of LinkedIn users not visiting other leading job sites, this platform offers access to a unique pool of talent, including those who aren't actively seeking new opportunities. Posting a free job on LinkedIn can help you hire professionals like a professional. Meanwhile, in the world of finance, there's been speculation about potential changes to pension tax relief in the upcoming emergency budget. While the exact details are uncertain, it seems likely that the income limit for higher rate relief will be lowered. This means that those earning above this limit may want to consider maximizing their pension contributions before any changes take effect. However, it's important to note that this is just speculation, and the final decision has yet to be made. Stay tuned for more updates on this developing story.
Consider contributing to your pension early if concerned about changes to tax relief: If financially able, contributing to a pension early can be beneficial, especially if concerned about potential changes to tax relief. However, consider retirement goals and tax situation before deciding.
If you have the financial means and are concerned about potential changes to pension tax relief, it may be a good idea to contribute to your pension as soon as possible. The debate around capital gains tax and selling investments at the wrong time is different from pension contributions, which generally have no bad time to make. However, if you think you'll be a higher rate taxpayer when you retire, it might not make sense to pay into a pension. This could significantly impact the demand for self-invested personal pensions and company pension schemes. Many firms are exploring alternatives to pension schemes, such as Employer Funded Retirement Benefit Schemes (EFIRBs). Overall, it's essential to consider your financial situation and retirement goals when making decisions regarding pension contributions.
Seeking Safer Investments Amid Market Volatility: Amid market uncertainty, experts advise staying patient, diversifying investments across various asset classes, including gold, US dollar, and absolute return funds, and considering alternative pension arrangements for high earners.
With the increasing volatility in the stock market and uncertainty in government bonds, investors are seeking safer alternatives for their investments. While traditional safe havens like gilts and US Treasury Bonds have seen an influx of funds, analysts warn that these markets could also experience turbulence. Adrian, an expert on the matter, advises remaining patient and diversifying investments across various asset classes, including traditional defensive elements like the US dollar and gold, as well as absolute return funds, which can protect investors from market downturns. For those earning six figures or more, it's a good time to consider alternative arrangements to pensions, including self-invested personal pensions, as tax changes may impact pension planning. Stay tuned for more insights on FT Money.
Expectations for next year's portfolio returns and safe haven assets: Investors may see single digit returns from diversified portfolios, with potential for more from crisis resolution. Gilt prices falling, bond funds recommended. Emerging markets, Asia Pacific to outperform with higher volatility. US gov't bonds still a safe haven.
Investors may expect single digit returns from a well-diversified portfolio in the next year, with the potential for higher returns depending on the resolution of the Greek and Spanish crisis. Gilt prices are likely to continue falling and yields to rise, making strategic and dynamic bond funds a better option. Emerging markets and the Asia Pacific region are expected to outperform as they have lower debt levels and stronger growth potential, although they come with higher volatility. US government bonds, while not as safe as they once were, are still considered a relatively safe haven due to the US's leading role in the global recovery. The Aberdeen Emerging Markets and First State Asia Pacific Funds are recommended for exposure to these regions.
Shift towards DIY investing and mistrust towards financial advisors: The trend towards DIY investing continues due to ease of online management and past mistrust towards financial advisors, but upcoming RDR regulation may offer opportunities for advisors to regain trust by providing comprehensive advice and services.
While the US treasuries remain a relatively safe investment, the low returns make it an additional consideration for those seeking safety. On the other hand, there's been a significant trend towards DIY investing since the credit crunch, with nearly half of private investors now managing their own money. This shift can be attributed to both the ease of managing investments online and the mistrust towards financial advisors due to past issues like misselling. However, the upcoming Retail Distribution Review (RDR) regulation may provide an opportunity for financial advisors to win back trust by offering more comprehensive advice and services beyond just investment recommendations.
Seeking Professional Advice for Complex Financial Matters: While managing simple investments independently is possible, it's essential to seek professional advice for complex financial matters like inheritance tax, trusts, and pension planning to avoid potential risks and misunderstandings.
While some individuals prefer to manage their money completely on their own, many others find it beneficial to seek advice from financial advisors for complex matters. The recent survey suggests that while nearly half of the respondents manage their money independently, a significant portion still relies on advisors for certain aspects of their financial planning. The complexities of areas like inheritance tax, trusts, and pension planning make professional advice indispensable. Adrian emphasizes that attempting to handle the unknown or complex matters without proper understanding can lead to potential risks and misunderstandings. Therefore, seeking a second opinion or advice from a financial expert is a wise decision. DIY investing can be suitable for simple investments, but when it comes to more complex financial matters, it's crucial to have professional guidance.
Stay updated with FT.com's Money Matters, Shopify, and 1800flowers.com: FT.com offers financial news, interactive content, and live Q&A sessions. Shopify helps businesses grow online and offline. 1800flowers.com delivers smiles through gifts.
FT.com's Money Matters page is now the go-to destination for all your weekday news updates, interactive web content, and live Q&A sessions on various financial topics. You can engage with the latest blog posts, columns, beginner's guides, top tips, and even ask questions or share your thoughts. Don't forget to join the next live Q&A session on investing in gold on June 10th. Shopify, on the other hand, is a global commerce platform that helps businesses grow, from launching an online shop to managing a physical store and even handling high volumes of orders. Lastly, 1800flowers.com is a one-stop-shop for all your gift-giving needs, with a focus on delivering smiles through their carefully curated selection of products made with love.
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