Podcast Summary
LinkedIn: The Essential Tool for Small Business Hiring and Finding Top Talent: LinkedIn is crucial for small businesses to find top talent, with over 70% of users not visiting other job sites. Inflation is eroding savings, making it vital to find the best savings rates. Consider investing in commodities to protect against inflation, and the Sleep Number smart bed offers personalized comfort solutions for better sleep.
LinkedIn is an essential tool for small businesses looking to hire professionals. It's like searching for your car keys in a fish tank if you're not using LinkedIn to find talent. Over 70% of LinkedIn users don't visit other leading job sites, making it the go-to place for finding top-notch candidates, even those not actively seeking new opportunities. Meanwhile, inflation is on the rise and poses a significant challenge for people's finances. Savings are being eroded due to low interest rates and higher inflation, making it crucial for individuals to find the best savings rates. Investing in commodities could help protect against inflation. Additionally, the Sleep Number smart bed offers personalized comfort solutions, making it an excellent investment for better sleep. Stay tuned to the FT Money Show for more insights on these topics and more.
Diversify investments to hedge against inflation and currency fluctuations: Consider investing in commodities, gold, index-linked gilts, equities, and inflation-linked annuities to protect against inflation and currency risks. Commodities and overseas assets can hedge against inflation and depreciation. Equities offer growth potential, while inflation-linked annuities protect income from eroding effects of inflation.
In the current economic climate, diversifying your investments can help protect against inflation and potential currency fluctuations. Commodities, investing overseas in appreciating currencies, gold, index-linked gilts, equities, and inflation-linked annuities are all options to consider. Commodities, particularly those not produced in the UK, can provide a hedge against inflation and currency depreciation. Gold, while historically a safe haven, has become more volatile due to the introduction of ETFs, making its value as an inflation hedge less certain. Index-linked gilts offer inflation protection, especially for high taxpayers, but their low prices and returns make them less attractive for significant investment. Equities can provide growth in dividends, making them a more flexible investment option compared to bonds or fixed cash deposits. For pensioners seeking to protect their income for the long term, inflation-linked annuities can help mitigate the eroding effect of inflation. However, they can come with lower initial income levels. It's crucial to consider inflation trends over the long term when making investment decisions.
Consider income drawdown, fix mortgage rate, and explore tax-efficient investments: Explore income drawdown for pension flexibility, secure a mortgage rate to shield from inflation, and investigate tax-efficient investment schemes like VCTs and EISs for potential tax savings and entrepreneurial opportunities
If you're concerned about inflation, there are several options to consider. You might prefer income drawdown from your pension instead of buying an annuity, allowing you to adjust your income each year based on your needs. Additionally, fixing your mortgage rate could be beneficial if you think inflation will cause interest rates to rise. The Office of Tax Simplification has reviewed tax reliefs, including Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs), which offer tax breaks for long-term investments. While there's a risk these schemes could be reviewed or tightened, they are popular among high-rate taxpayers and provide useful tax planning and opportunities for entrepreneurial investing. It remains uncertain if they will be scrapped altogether.
Reviewing VCT rules for potentially riskier investments: The UK government is considering tightening up VCT rules to focus on supporting small companies and startups, rather than low-risk investments in solar energy through government tariff schemes. Potential investors should carefully consider their motivations and the underlying investment opportunities before investing in VCTs.
The UK government is reviewing the Venture Capital Trust (VCT) rules, with a focus on potentially tightening up the schemes that seem too low risk for investors. Some VCTs, particularly those investing in solar energy through government tariff schemes, have come under scrutiny for not aligning with the original intent of the VCT program, which is to support small companies and entrepreneurial startups. While the rules currently make these investments attractive to tax relief-seeking investors, there's a possibility they could be changed, making it important for potential investors to consider their investment decisions carefully. It's crucial to remember that VCTs should not be solely based on potential tax benefits but rather on the underlying investment merit. Additionally, while some argue that the tax rules have changed frequently enough that tightening up the use of funds might be a more likely outcome, others point out that some VCTs have not historically delivered strong returns due to high charges and inexperienced managers. Overall, investors should carefully consider their motivations for investing in VCTs and the underlying investment opportunities before making a decision.
VCTs: Beyond Tax Relief: VCTs offer capital preservation, 30% tax relief, but require a 5-year holding period. Be cautious with foreign transactions due to currency fluctuations and hidden fees.
The Venture Capital Trust (VCT) industry has matured over the last 15 years, with experts adding value beyond the initial tax relief. For investors, VCTs offer capital preservation rather than massive capital growth or high risk. The 30% tax relief is a significant incentive, but it requires a five-year holding period to maintain eligibility. Analysts predict that the pound could strengthen against the euro and the dollar due to debt problems in the eurozone and quantitative easing in the US, which could benefit holidaymakers planning trips abroad. However, travelers are advised to carefully consider which bank cards to use abroad due to hidden fees on some credit cards from RBS, NatWest, and Tesco. While a stronger pound may make European and US shopping trips more cost-effective, it's essential to be aware of potential pitfalls. For more information on VCTs and travel tips, check out the money section in this weekend's FT and ft.com.
RBS Group Credit Cards Charging Hidden Fees on Foreign Transactions: RBS, NatWest, and Tesco credit cards apply hidden charges on foreign transactions through their own worse exchange rates, resulting in an effective increase of nearly 5% on top of typical fees. Experts advise using debit cards or finding alternative credit cards to avoid these charges.
Some credit cards issued by RBS Group, including those from RBS, NatWest, and Tesco, have been applying hidden charges on foreign transactions, leading to consumers losing millions of pounds collectively. These charges come from the banks' use of their own worse exchange rates than Visa or Mastercard, resulting in an effective increase of nearly 5% on top of the typical 2.75% currency loading. The banks had been quiet about this until it was exposed in the media, and they claim they gave notification but did not disclose the full impact of their actions. Smaller banks do not seem to follow this practice, and there is currently no talk of compensation. To avoid these charges, experts advise against using RBS and NatWest credit cards for foreign transactions. Instead, consider using debit cards, which use traditional Visa or Mastercard exchange rates, or find alternative credit cards with better foreign transaction fees.
Find the cheapest card for pure spending with Halifax Clarity: Halifax Clarity is a cost-effective option for cash point transactions, but consider all fees before deciding.
When it comes to finding the best card for pure spending, the Halifax Clarity credit card is currently one of the cheapest options, even though it may come with interest charges. This card is particularly beneficial for cash point transactions, making it a strong contender for those who frequently use cash machines. However, it's essential to consider the specific charges and fees associated with each card, such as transaction charges and currency loading, when making a decision. For a more comprehensive analysis, check out Steve's article in Feet Money this weekend. Remember, being savvy about your finances, even in small ways, can lead to significant savings. Additionally, in other news, Rust Oleum's new custom spray 5 in 1 offers five different spray patterns, allowing users to tackle various surfaces and shapes with ease and precision. And for those seeking to manage out-of-pocket healthcare costs, UnitedHealthcare's Health Protect Guard fixed indemnity insurance plans may be worth considering. Overall, staying informed and making smart choices, whether it's related to finances or home improvement projects, can lead to substantial benefits. Stay tuned for more financial insights and tips in the new year.
