Smart Money (Jan/Feb 2021)

Welcome to our first edition for 2021. In a year of renewal, hopefully we’ll see a world that is steadily returning to normal, while also rapidly accelerating into a transformed future.

Although lockdown restrictions have eased in some areas, the coronavirus (COVID-19) pandemic will continue to impact on our lives in many ways. Where will we be in six months, a year, ten years from now? One thing is certain, COVID-19 has reshaped all of our futures.

This global pandemic created overwhelming anxiety. Many people are anxious not just about the virus, but the resulting financial pressure and uncertainty. Getting our financial life in order will be a top priority for many as we enter 2021. On page 04 we focus on two key areas: goals related to being prepared for the unexpected this year, and those related to what you want to be different at the end of the year. 

There are many ways that you can save or invest. Individual Savings Accounts (ISAs) are an incredibly effective means of shielding your money from both Capital Gains Tax and Income Tax. To utilise your ISA allowance, you should make use of it before the deadline at midnight on Monday 5 April 2021. The date marks the end of the 2020/21 tax year. Read the full article on page 10. 

The Government has spent hundreds of billions on measures to support businesses and jobs, and fight the coronavirus pandemic. But how will it pay for these? We won’t know the extent of the final bill until long after the crisis is over. While the Chancellor is looking to reduce the tax gap, there are nonetheless still opportunities to review your financial arrangements for saving tax throughout the tax year. Find out what to consider on page 06. 

Holding cash or cash equivalents is not necessarily a bad thing, but holding too much or too little can put your long-term goals in jeopardy. On page 28 we look at the choice between holding large amounts of cash long-term in a savings account versus investing, and how it could have a big impact on your future wealth. 

Time to reassess how to shape your personal financial journey? 

The start of a new year is the perfect time to reassess how to shape your personal financial journey. Whatever your circumstances and needs, we’re here to listen to your future plans and support you in achieving them. We look forward to hearing from you.

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