Download Royall Wealth Newsletter - July 2015

julY 2015
THE
royall wealth
partnership
BRIngIng YOu OuR lATEST nEWS AnD InFORMATIOn On HOW TO BRIng YOuR MOnEY TO lIFE
Welcome
to the first edition of our newsletter
e Royall Wealth Partnership has been
launched to help people achieve greater
financial security and economic well-being.
reflect his key values, which includes
transparency and treating the client and
consultant relationship as a partnership.
He said: “Our goal is to build a firm that
works in partnership with its clients to
achieve common goals of financial security
and personal financial well-being. We
believe in transparency, which is reflected
in our charging structure. We use fixed
charging, rather than a percentage of funds.
e exception may be with smaller
investment portfolios, where a percentage
charge may be more cost-effective.”
e firm is expected to grow in future years
and is set on achieving Chartered status
over the next year. is will show its
commitment to raising standards of
knowledge, capability and ethical practice.
e firm was set up by Derrick Royall, 49,
who has worked in financial services for
over 30 years.
Derrick, who is an associate of the
Chartered Insurance Institute, said: “I enjoy
working with people and helping make
their dreams a reality through financial
planning. We all have different needs and
goals and it is important to fully understand
this in order to offer top quality,
personalised and independent advice.”
Derrick, who lives in Bitton with his wife
of 26 years, Karen, and their two children,
has worked with a number of leading
accountancy and wealth management firms.
He created e Royall Wealth Partnership to
Bristol City football fan Derrick enjoys
running his own company and believes it
helps him to better understand the needs
of other business owners. He said: “I
understand the challenges business owners
face, such as juggling time and resources to
achieve an end result. I personally like the
flexibility and freedom that running your
own business brings. It means you do not
have to compromise on your own values.”
Pension freedom
and responsibility
Changes to pension regulations for the over
55s came into force on April 6 – meaning
people reaching retirement age can now use
their pension pots however they choose.
Former Pensions Minister Steve Webb said
pensioners could spend their savings on a
lamborghini. But what you can do and
what you should do are perhaps two
different things.
People no longer have to buy a guaranteed
annual income, an annuity, and have much
greater choice. But with choice, comes
responsibility. Your options include: taking
the whole lot out, with just 25 per cent tax
free; drawing a regular income; or passing
your untouched pension onto an heir.
If you take the money out, you could blow it
on a sports car. However, let’s say this will
cost £100,000 – only £25,000 will be tax free.
e remaining £75,000 is taxed at your
marginal income-tax rate – around £23,000.
Also, the value of the car will, of course,
depreciate.
Or you could take the money out to invest,
in a buy-to-let for example. But you would
need to have a substantial amount to make
it worthwhile. Also, you would need to
factor in costs, such as insurance, and not
expect to see a return any time soon.
e Department of Work and Pensions
(DWP) has said that anyone applying for
means-tested benefits will have their
pensions treated as though it still exists –
even if they have long spent the money.
Derrick is a volunteer with the Young
Enterprise and Bristol Musical Youth
Productions, of which his son, Tom, is a
member. He is also a member of the
community networking group, What’s
Right. e group raises money for good
causes through its business connections.
On the other hand, withdrawing money
patiently over a number of years would
lower the tax rate below 40 per cent and
leave you with a much lower tax rate.
You could also look to combine these
options, by taking a sum of money and
buying an annuity.
Derrick is a member of the Rotary Club of
Bristol Breakfast, which supports charitable
projects in the local and wider community.
However, your best option will depend on
your circumstances and needs. Pensions
are not simple and you may wish to seek
independent advice in order to get the
most out of yours.
Find more information on our new website www.royallwealth.com
What does a Conservative government mean for your finances?
e Conservative party has won the uK
election and David Cameron has returned
to Downing Street. Whatever your political
preference, the Tories’ majority should
enable us to plan our finances with more
certainty than a hung parliament. We look
at what to expect for your finances in the
next five years:
1. Inheritance Tax
e pledge has been to push the total taxfree allowance from £650,000 per married
couple to £1m. An extra allowance would
apply only to people’s main homes. However,
the devil will probably be in the detail. One
way it could work is if a couple has £500,000
of savings and investments and a £500,000
home, their estate would pay no death duties.
2. Income Tax
e Conservatives have promised legislation
which would prevent any increase in
income tax, national insurance and VAT
within this parliament. e tax-free
personal allowance is to rise from £10,600 to
£12,500 by 2020. e higher 40 per cent rate
of income tax earnings threshold will
increase from £42,385 to £50,000. e
higher tax rate allowances could encourage
people to aspire to earn more. But tax
freezes could make it more difficult to tackle
the deficit and it is possible the government
could find other ways to collect the funds.
3. Duty Freeze
Around 60 per cent of petrol is tax. e
freeze on fuel duty rises are believed to help
you save around £10 every time you fill up
your car. e Conservatives have put into
law that energy companies must offer
customers the lowest tariffs and reduced
green taxes. It is also freezing rail fares in
real time until 2020. is will save most
people money.
4. Mortgages
e top-end of the housing market (those
who own properties worth £2 million or
more) will have breathed a sigh of relief that
they will not be penalised by a mansion tax
and the Conservatives have promised
mortgage rates will be kept lower. However,
low interest rates will continue to cause
problems for savers, and investors could be
forced into riskier assets in order to achieve
a reasonable income in retirement.
5. Pensions
Over-55s can now get their hands on their
pension funds – rather than being restricted
on the amount that they could withdraw
or having to purchase an annuity.
e Conservatives pledged to reduce the
amount of annual pension tax relief
available to the highest earners down to
£10,000 a year. e change affects people
who earn more than £150,000 a year.
Overall, the party has pushed through
more flexibility. But with that comes
more responsibility.
6. Savings
Interest rates are at an all-time low, but the
Conservatives have abolished a 10p tax rate
on savings. e party also plans to introduce
a new personal savings allowance that will
take around 95 per cent of people out of
savings tax altogether. is means savers
will not need to mess around with tax
planning as much to save tax on their
savings interest- assuming interest rates
remain at historic lows.
7. Business and Employment
e Conservatives pledged to create two
million new jobs with the aim of achieving
"full employment". Businesses are set to be
offered competitive taxes, with a major
business rates review to help smaller firms.
Support has also been promised to provide
three million new apprenticeships. A focus
on educating potential employees in a way
that employers need will be beneficial to
businesses and the economy as a whole.
To see the full report of how a Conservative
government could affect your finances, visit
www.royallwealth.com
Music for Charity
A charity reception organised by the awardwinning Bristol Musical Youth Productions
(BMYP) during its West Side Story
performance has raised £500.
Derrick Royall, who is a volunteer with
BMYP and whose son, Tom, played the lead
role of Tony in the show, presented a cheque
to Children’s Hospice South West. He said:
“We’re delighted by the amount raised and
it’s great to see such a worthwhile cause as
the hospice benefit. It was a fantastic show
and everybody who took part on stage and
behind the scenes should be congratulated.”
e reception was organised jointly with
networking group What’s Right, of which
Derrick is a member. e group includes
businesses from various industries, which
raises money for good causes by donating
funds from work generated as a result
of membership.
Above: From le to right: What’s Right members
Derrick Royall, john Tiley and David Wragg
presenting a cheque to Kate Fisher, corporate
fundraiser for Children’s Hospice South West.
Top le: e cast from Bristol Musical Youth
Productions (BMYP).
le: Tom Royall, who played Tony in BMYP’s
West Side Story.
We hope you’ve enjoyed the first edition of e Royall Wealth Partnership News.
We welcome any feedback you may have or if there are any topics you would like us to cover.
e Royal Wealth Partnership Limited | 19 Portland Square, Bristol, BS2 8SJ | 0117 944 3030 | www.royallwealth.com
e Royal Wealth Partnership limited is an appointed representative of In Partnership the trading name of e On-line Partnership limited which is authorised and regulated by the Financial Conduct Authority.
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