Euro Vote and March Budget cause unease in financial sectors

The financial sectors are experiencing a period of uncertainty as the Chancellor begins to pack his red box with his March 16^th announcements and the gloves are off in the Euro campaign.

How might pension pots be affected? How might the stock markets react? How is stock market volatility affecting its value? Will our investments be at risk? Will we still be able to access 25% of our pension fund tax free?

Unfortunately, crystal balls will be of little assistance but perhaps history can provide a little help and insight as to how we might protect our finances.

Steve Robson, Managing Director of Capital Stackers, gives his point of view: “For decades, the UK stock market was seen as the standard way to make a steady return. Right up until the mid 1990s (October 1987’s Black Monday notwithstanding). It’s been a rollercoaster ride, to say the least.”

Pensions invested in the stock market, (in common with the vast majority of the British public), have seen gains and losses and, depending upon when you wish to access your pension, either way it could affect your cumulative total when you come to retire.

Steve continues: “Early suggestions show that 2016 is shaping up to be a bad year for British pension holders. In fact, some pensions funds may actually be falling in value.

“This is largely due to China’s internal economic struggles having a knock-on effect on the rest of the world.

“The following graph shows how much the FTSE has changed since 1984. It may be worth considering less capricious ways to invest your money.”

Review of Stock Market activity

Start Reviewing Your Pension Before March 2016

Last year, we saw some serious changes to the way pensions work here in the UK. The most notable of which is the right to draw your full pension fund from the age of 55 – with 25% being tax-free.

Steve continues: “It is widely expected that further changes will be announced in the March 2016 budget. Let’s look at two of the most detrimental revisions from the 2015 budget:

• Reducing the maximum that can be held in pensions without being liable for tax
• Slashing the amount that can be saved in a pension for those who pay the highest tax

These two changes alone ought to be enough to make you take stock. Are your pensions really working as hard as they can? There are alternatives that you may wish to consider.

“As part of your pension review, you should find out how it’s been performing over the last few years. If you find it’s not growing at least 5% (and realistically, a good deal more than that), you should seriously think about transferring to a SIPP – a pension plan that puts you in full control.”

A SIPP is a self-invested pension plan, which enables you to select and manage how your pension is invested. A SIPP enables you to place your pension through more innovative investment vehicles, such as a peer-to-peer lending platform.

Stockport based CapitalStackers is one such peer-to-peer lending platform focused entirely on real estate.

Steve explains further: “The people and businesses you lend to on this platform will only ever be experienced property investors or property developers – and your funds are secured on their property assets.

“It is not an alternative to bank finance; it actually enables developers and investors to work with the banks, building on their support, so that investors can lend directly to pre-vetted borrowers and create a mutually-beneficial solution.”

As with all investments there is an element of risk.

Tony Goldrick of Capital Stackers: “Although investing with CapitalStackers isn’t without risk, it does make understanding risk clear and simple, with no-nonsense, straight talking presentations that give you all the information you need.

“It gives you the means to monitor your investments. You choose your preferred management team, location, property type and level of risk. And, if necessary, you can choose to exit your investment early through our popular marketplace.

“By investing through your pension fund, you don’t have to pay tax on the 5%-20% interest your CapitalStackers investment generates.

“So, it could be worth seriously considering investing through CapitalStackers via a SIPP. Where else can you choose your own risk and reward, and earn a tax-free return of between 5% and 20%”?

Find out more at www.capitalstackers.com or
by calling ?Steve Robson on 07774 718947
or Tony Goldrick on 07788 373126.