Podcast Summary
Crocodiles can't extend their tongues, LinkedIn for hiring, and Inheritance tax rules update: New rules make inheritance tax more generous for homeowners, LinkedIn is effective for hiring professionals, and Crocodiles have immobile tongues
The discussion covered various topics including an intriguing fact about crocodiles, the benefits of using LinkedIn for hiring, and an update on the inheritance tax rules in the UK. For those intrigued by nature, it was revealed that crocodiles cannot extend their tongues. For business owners, it was emphasized that LinkedIn is an effective platform for finding professionals for hire. Lastly, an update on inheritance tax rules was provided, with the government introducing new rules to make it more generous for homeowners, with the threshold for inheritance tax rising to £175,000 for a couple. However, this allowance can only be used for the family home passed down to direct descendants, and there are restrictions and complexities to the policy. Overall, the discussion provided valuable information on diverse topics, from wildlife to business and personal finance.
New IHT rules for estates over £1,000,000: From 2022, homeowners with estates over £1,000,000 can pass on an extra £175,000 per person to their children, but only up to a certain limit, and those with larger estates won't benefit at all.
Starting in 3 years, homeowners with estates worth over £1,000,000 will be able to pass on an additional £175,000 per person, on top of the standard IHT allowance of £325,000, to their children without attracting Inheritance Tax (IHT). This new rule, however, won't apply to everyone. Those with estates over £2,000,000 will not benefit at all, and the allowance will be tapered away for estates worth between £2,000,000 and £2,700,000. The new rules also pose complications for siblings and unmarried couples. The FT reports that parents are projected to lend £6.5 billion to their children for property purchases this year, making them part of the so-called Bank of Mum and Dad. If you think your estate might be affected by these new rules, it's recommended to seek professional advice.
Bank of Mum and Dad's Role in UK Property Transactions: The Bank of Mum and Dad contributes 26% to all property transactions, with millennials under 30 receiving an average of £21k. Despite record-low mortgage rates, high house prices & student loans keep homeownership out of reach for many.
The role of the Bank of Mum and Dad in funding property transactions in the UK has significantly increased, with a 30% rise in the amount given or gifted to over 5 billion pounds this year. This accounts for 26% of all property transactions and an even higher percentage for first-time buyers, who receive an average of £21,000 from their families. Millennials are the primary recipients of this funding, with 79% of it going to those under the age of 30. While previous generations may have faced lower house prices and had more savings, today's first-time buyers struggle with high house prices, student loans, and lower pension benefits. Despite record-low mortgage interest rates, the need for larger deposits due to rising house prices keeps homeownership out of reach for many. However, it's essential to remember that money given or loaned by the Bank of Mum and Dad doesn't function like a traditional bank, and mortgage lenders will consider this additional borrowing when determining loan amounts.
Financial Planning: A Long-Term Process for Achieving Financial Goals: Financial planning is a personalized process for creating a roadmap to achieve financial goals, accessible to all, typically charged by the hour, and can lead to cost savings in the long run.
Financial planning goes beyond just receiving financial advice and selling specific products. Instead, it's a long-term process that focuses on an individual's aspirations and creating a roadmap to achieve their financial goals. Financial planning is not only for the wealthy, but also for those with debts and a desire to improve their financial future. During Financial Planning Week, UK listeners can access free financial planning sessions from over 40 firms, making it an excellent opportunity for those who may not have considered it before. Financial planners typically charge by the hour rather than requiring a retainer or percentage of assets under management. Once a plan is in place, frequent visits to the planner may not be necessary, making it a cost-effective solution for those looking to manage their finances more effectively.
Prepare for a free financial planning consultation: During Financial Planning Week, sign up for a free consultation, create a budget for short-term and long-term goals, and use the session to start planning your financial future.
During Financial Planning Week, it's a great opportunity for individuals to get a free one-hour consultation with a financial planner. To make the most out of this session, it's essential to prepare by creating a budget, both for short-term expenses and long-term goals. Consider where you want to be financially in the next 10 years and how a financial plan can help you get there. You can sign up for these appointments on the CISI website, and they can be done in person or remotely. Don't hesitate to take advantage of this offer and start planning your financial future. Remember, a solid financial plan is crucial for achieving both short-term financial stability and long-term financial goals.
Shopify for business growth and 1-800-Flowers for gift-giving: Shopify offers businesses a comprehensive platform to expand online and manage physical stores, while 1-800-Flowers' Celebrations Passport simplifies gift-giving with free shipping and rewards.
Shopify and 1-800-Flowers offer valuable solutions for different stages of business growth and personal gift-giving respectively. Shopify is a comprehensive global commerce platform that assists businesses in expanding from their online beginnings to managing physical stores and handling high sales volumes. Its checkout system is known for converting browsers into buyers, making it a preferred choice for businesses looking to grow. Shoppers can enjoy a one-month trial for a dollar at Shopify.com/work. Meanwhile, 1-800-Flowers' Celebrations Passport is a one-stop shopping site for gift-givers. This service not only offers a wide range of gifts for various occasions but also provides free shipping and rewards as users make more purchases. To learn more and enhance your gift-giving experience, visit 1800flowers.com/acast. Both Shopify and 1-800-Flowers demonstrate the importance of providing tailored solutions to cater to diverse needs and help their users achieve success in their respective domains.
