tapestryfs-blog
tapestryfs-blog
Tapestry Financial Services
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Impartial Financial Advice from an Independent Financial Adviser (Please be aware that this page is part of Tumblr. Please note that Tapestry Financial Services are not responsible for the accuracy of the information contained within any other page accessible on this site).0800 368 8686     www.tapestryfs.co.uk
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tapestryfs-blog · 8 years ago
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Pension Transfer Values Going Up and Down – What are my options?
As I’m sure you’re aware, pensions are a minefield, especially after the new flexibility rules were implemented in April 2015. Since then, a lot has changed in financial services, and people are still trying to keep up with what happened in April 2015.
‘Baby Boomers’ are coming to the retirement phase of their lives, whereas ‘Generation X’ and the Millennials are starting to think, and plan towards their retirement. We all want our retirement to be as comfortable as possible, and to be enjoyable – one way of doing this is to plan, and to review. Receiving regulated advice, by a suitably qualified independent financial adviser is imperative.
It may be a little late for the baby boomers to review their current retirement provision, however understanding their options is essential. Six million people in the UK have seen a huge upsurge in the value of their pensions, especially regarding defined benefit (final salary) pensions – one of the reasons for this is low interest rates.
Generation X could be the last generation in recent times to earn more than their preceding generation. Although most defined benefit schemes are now closing and we’re moving towards large scale money purchase schemes, it is imperative that these pensions are reviewed regularly. Transferring pensions between providers could lead to increases in growth, and more suitability to the clients varying stages of life.
Millennials aren’t in a similar situation to Generation X. It has been widely reported in the media that Millennials are to be the first generation to earn less than their preceding generation, A report by the Resolution Foundation (HYPERLINK INSERTED), highlights this fact. It’s expected that because of this, and the new workplace pension rulings, that reviewing their pension provision, to make sure its performance is maximised, along with other considerations which a financial adviser can discuss with you, can be vital to future retirement provision – it is never too early to review.
Whether you are transferring your main pension, or reviewing your current pension provision with a view of planning for retirement, pension transfer is complex, and is personal to each client. It is important that every client thinking of transferring receives regulated independent financial advice from a qualified financial adviser.
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tapestryfs-blog · 8 years ago
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Why Most People Will Never Find A Good Independent Financial Adviser
Because most people don’t come to Tapestry Financial Services.
Financial advice is a minefield. There are different types and different specialities. Mainly, there are two types of financial adviser; restricted, and independent.
Broadly speaking, restricted advisers are tied to certain providers, whether this be the one provider, or if they work off a panel of a certain number of providers. Restricted advisers, impose restrictions on themselves for strategic or tactical reasons, and are therefore only able to place their clients with these providers. 
Independent advisers aren’t restricted, they’re whole of market. Independence is vital as the adviser will be doing the right thing by the client, instead of doing the best thing by the client within a range of limited providers. 
All firms are subject to the clients best interests rule, whether they be restricted or independent. This may mean that if a restricted adviser cannot find a suitable recommendation they may refer the client to an independent financial adviser.
Financial advisers must be qualified to Diploma 4 level to be able to advise on all areas, and it shouldn’t matter whether they are restricted or independent as to their level of qualifications. 
When will you need to use a financial adviser?
1.      Retirement Planning – pension providers will offer you an annuity, however this isn’t your only option. It is imperative that you use a financial adviser to understand your options when it comes to retirement
2.      Investment Planning – as we all know, interest rates on the high street are low. There is an indication in the general public that investments are high risk – this isn’t always the case. There is always a risk to investing, whether this be high street investing i.e. with your bank, or using a financial adviser. A good financial adviser should always take your attitude to risk into account.
The value of investments can fall as well as rise. You may not get back what you invest.
3.      Mortgage Advice – many people think the high street is the only means of lending, ‘if the high street says no, this means no’. This isn’t always the case, seeking advice can open doors you didn’t think could be opened.
Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The precise amount will depend on your circumstances, ask for a personalised illustration.
4.      Life Insurance – a very complex area. Hundreds of products, with add-on’s and flexibilities, but making sure the product is correct for your circumstances is invalid. We don’t charge a fee for advising on protection policies - we receive a commission payment from the provider.
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tapestryfs-blog · 8 years ago
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Beginners Guide to Equity Release
Equity release has been a widely discussed topic in recent years, however many people struggle to truly understand how it differs from conventional re-mortgaging.  Since its complete regulation in 2007 the equity release market has been rapidly increasing to an all-time high of 1.7 billion in 2015. With a market of this size, it is important that people understand their options, especially those coming up to retirement age.
What is equity release? Equity release is the process of obtaining a tax-free income or a lump sum by borrowing against the value of your house, whilst still being able to live in the property. However the lender is repaid the capital and the interest at death of the client or if they enter long term care. It’s typically seen in elderly people that do not intend or are not able to leave a large estate to their heirs when they die.  
It is common belief that equity release is available for anyone who is 55 years of age or above, however it’s important to note that only some of the products are available at this age. There are two equity release options, lifetime mortgage and home reversions.
A lifetime mortgage is the most common equity release product. A mortgage is taken out on the property to provide capital, either in a single lump sum or in drawdown facility to release further capital. The interest is traditionally rolled up and repaid when the homeowner moves out or dies, but can be setup so the interest is paid in monthly or yearly payments. A benefit that makes it attractive to so many is that the borrower remains the legal owner of the property. This type of equity release is typically available for those who are over 55 and up to 60% of the property can be borrowed. Although the amount that can be released is linked to life expectancy so a healthy 55 year old may only be able to release 25%.
Home reversion is a type of equity release where you sell part or all of your home to a provider in return for an income or a lump sum. You can expect to receive 20%-60% of the value of the property, but it is important to note that you are no longer the legal owner of the property. You are allowed to live in the property rent free until you move out or die, however you have to cover the cost of maintaining the property. Most providers will only offer this as an option if you are over 60 or for some providers 65.
Regulation of the equity release market is primarily done by the Financial Conduct Authority. They are supported by the Equity Release Council who are the industry body for the equity release sector. Its aim is to ensure all the equity products on the market are accessible and safe for customers.
The equity release market is a heavily debated subject, mainly due to companies in the late 1980s not offering a “no negative equity guarantee” leading to lenders chasing family members to cover the short fall. Today the market is different and the majority of providers now offer a “no negative equity guarantee”, making it a viable option for providing tax free cash or an income supporting people through retirement.
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tapestryfs-blog · 8 years ago
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Welcome to the Tapestry Financial Services Blog
Tapestry Financial Services is an independent financial advice company who work closely with Tapestry Care UK Limited. We aim to provide an exceptional service for clients from all walks of life and client satisfaction is paramount.
We are a firm of independent financial advisers dedicated to delivering unbiased financial advice and doing so in the manner that is most appropriate and convenient to clients. Everyone's needs and objectives are unique. This is why our belief in tailor-made, personal service lies at the heart of the Tapestry Financial Services approach.
(The guidance and/or advice contained in our website and blog is subject to the UK regulatory regime and is therefore restricted to consumers based in the United Kingdom)
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