May 17, 2012

Phil Rogers, director at Taylor Patterson has achieved Fellowship status, the pinnacle standard for financial professionals, following a stringent examination process.

Phil is the first director at Taylor Patterson to achieve Fellowship. The award recognises the highest level of academic attainment and professional achievement.

Awarded by the Personal Finance Society (PFS) the financial services arm of the Chartered Insurance Institute (CII), Fellowship is held by fewer than five per cent of practicing advisers.

Commenting on his Fellowship, Phil said: “I’m delighted to have met the criteria required to achieve Fellowship status for the PFS. It’s an achievement acquired through a combination of exams taken over a four year period.

“I worked towards Fellowship as a benchmark for other Taylor Patterson advisers, to encourage them to participate in the program too”.

All Taylor Patterson advisers already hold at least a Diploma in Financial Planning which will become the compulsory minimum level of qualification in the industry from January 2013 as a result of the FSA’s Retail Distribution Review.

Gillian Bardin, Taylor Patterson Managing Director, said: “We are supporting all our financial advisers to achieve Chartered Financial Planner status which is above the standard required by the Retail Distribution Review.

“We very much welcome the requirement for a minimum level of qualification for advisers, and the many other changes to the industry that the FSA is implementing through the Review.  We believe it can only be a good thing to have a more open, clear and transparent financial services industry where excellent qualifications, professionalism and strong ethics are at the very heart of business.”

May 4, 2012

It’s a given that pensions are being squeezed for everyone and from every direction. But rather than despairing or planning a frugal retirement, what can we really do to provide a much-needed financial cushion for what should be our golden years?

Taylor Patterson has been working with its clients to take a fresh look at their portfolios and turn attitudes to later-life investments on their head.

The ‘traditional’ investment strategy

In the past some in the financial advice industry have set almost a blueprint for planning investments, whereby in our twenties and thirties we could invest aggressively, opting for high risk investments which are likely to yield substantial returns in the many years until retirement.

In later life, with less time for investments to come to fruition, investors would traditionally choose to minimise exposure to non-cash opportunities, minimising the risk of making losses to their pension pot just at the point when it is needed.

Often people would sell their investments and purchase an annuity, providing them with a steady and regular income through their later years.

A change in perspective

However, times are changing and Taylor Patterson is increasingly advising clients who are approaching retirement age to opt for a higher growth, higher risk approach to investments.

This change in perception has been heavily influenced by our increasing longevity. Many of us can expect to live for twenty or thirty years after retiring.

This, coupled with high inflation and low interest rates, means that minimal risk investments may now lose value in the decades after retirement.

Whilst a ‘safe’ option to invest in bonds may actually leave us worse off in the long run, many pensioners can instead be confident in opting for higher risk investments which are more likely to yield substantial results in ten years or more.

The balance of risk is key

Taylor Patterson associate director, James Thompson, says: “Pressures on pension funds from all directions mean that many people are changing tack in a major way when it comes to their investment portfolio.

“We’re increasingly advising our customers that simply because they are in or approaching retirement, they don’t necessarily have to swap their growth-based portfolio to one which offers less risk, and consequently less potential reward.

“In fact, taking a slightly higher risk than usual might be a better option in order to secure an income in retirement, although essentially, balance is key.”

Flexible access to your pension fund

Flexible drawdown is another option which can offer investors an income in retirement. It allows people over the age of 55, who can demonstrate that they have a secure minimum annual income of £20,000 or more, to take unlimited amounts of income from their pension fund.

“It’s important for people with large pension funds to know that there is now much greater flexibility available,” said Kerry Houghton, associate director at Taylor Patterson.

“Those eligible for this facility can withdraw a fund in its entirety, or take part withdrawals, as best suits their needs. This may be useful for clients needing to release capital for specific uses such as long-term healthcare costs, to pay university fees for family members or for that special trip of a lifetime.”

Another upside to income drawdown is that you retain control of your money, which means your partner or dependants will be able to benefit when you die – whereas, with an annuity, the insurance company keeps your cash.

Property to fund your retirement

Property can also offer a relatively secure investment for retirees, although maintaining an element of liquidity is key to ensure funds are available for unforeseen circumstances.

James Thompson continues: “There are a whole range of options on offer and it’s important to strike a balance between risk and reward, liquidity and long-term investments.

Take a look at your investments with Taylor Patterson

“Because of this, and because it is important to continually review a portfolio in light of changing economic and personal circumstances, Taylor Patterson is currently offering free portfolio reviews to anyone who would like to take a second look at their investments.”

Anyone who would like to receive a free portfolio investment from Taylor Patterson should contact James Thompson on 01772 555 073 or email mail@taypat.co.uk to arrange an appointment.

April 30, 2012

Staff from a Preston-based financial advisory firm will be putting on their trainers for the Preston Guild 5k to raise money for St Catherine’s Hospice.

Five runners from Taylor Patterson, Daniel Barrell, Kerry Houghton, Nick Howarth, Gwen Robertson and Neil Stewart, will be taking part in the road race on 7 May 2012. 

The event is the first of four runs which make up the 2012 Guild Road Race Series.

Taking part in a sponsored run for the first time, Gwen Robertson said: “I’m looking forward to this bank holiday 5k run. It’s a great opportunity to get involved in a Preston Guild event and to raise money for St Catherine’s Hospice, a fantastic local charity.”

Chris Bardin, director and charity champion at Taylor Patterson said: “Taylor Patterson is really keen to get involved in the Preston Guild. We’re delighted that a group of staff have volunteered to get involved in the 5k run and we’ll continue to encourage others to sign-up for future fundraising events.”

Lynne Whittaker, senior fundraiser at St Catherine’s said: “It’s great to have Taylor Patterson as one of our corporate fundraisers. As a local charity for local people, St Catherine’s couldn’t deliver the care we provide without the fantastic support from the community. We wish all the runners lots of luck!”

Taylor Patterson’s staff nominate a different local charity to support each year. This year the company has set a £5,000 charity fundraising challenge, and monies raised will be donated to St Catherine’s Hospice.

If you would like to sponsor a runner from Taylor Patterson please visit the company’s charity JustGiving page at

http://bit.ly/TayPatJustGiving

April 2, 2012 

SSAS, short for Small Self Administered Scheme has become increasingly popular during the economic downturn as it offers a range of benefits to smaller businesses.

Here Taylor Patterson provides an insight into SSAS and offer our top ten reasons for opting for a SSAS pension.

A SSAS is an occupational registered pension scheme that can be established by company directors and key employees.  It is ideally suited for shareholding directors of family and other privately owned small to medium sized limited companies. 

Taylor Patterson has developed its own SSAS pension as part of its services – the Taylor Patterson SSAS.

Taylor Patterson associate director, Kerry Houghton, says: “More and more of our clients are finding that SSAS pensions are right for them, helping them financially from both a personal and a business point of view.

“It’s been well publicised that many small business owners are finding it difficult to get loans from high street banks. A SSAS can be one way to address this as loanbacks are possible, meaning pension holders can lend money to their own businesses at more cost effective rates.

“SSAS pensions can also be used to purchase commercial property and lease it back to the company at market rates.  When times are hard this can also be an advantage as a SSAS-owned property can be better protected from company creditors.

“The details of what’s possible through a SSAS pension can be complex, hence we really encourage our clients to come and talk to us about their pension arrangements so we can arrange the best possible products for them personally.”

1. Beat the banks with a loanback

A SSAS can lend money to a connected business, providing both a good return for Trustees and cost-effective borrowing for the business.

2. Make property pay

SSAS members can directly purchase commercial property and lease it back to the business at good rates. There are a number of additional tax saving benefits of doing this including capital gains tax exemption and tax relief on pensions contributions.

3. Providing for all ages

A SSAS is a pooled fund, so, with careful cash flow planning, it can help provide for older members looking to draw benefits.  If the main fund assets are property, then older members can retire and use the rental income from the property to draw a pension.

4. Making company contributions flexible

There is no contractual commitment to pay a particular company pension contribution, so they can be varied in line with profitability.

5.  Spread your investments

The SSAS can invest in a range of investments, although there are some which may not be allowed on the grounds that they would be deemed taxable by HMRC, for example most forms of residential property. 

6. Protect your assets

Businesses can protect their assets against business creditors in an economic downturn by using a SSAS to invest in commercial property.  It is therefore possible to sell existing business premises to the SSAS at a market rate, whilst also providing cash for the business and a healthy retirement fund for business owners.

7. Keeping costs down

Annual administration costs are usually cheaper than operating several pension arrangements for each member of the SSAS scheme. 

8. Bigger benefits

The Taylor Patterson SSAS allows for withdrawal of benefits via scheme pensions.  This can be a big benefit for any scheme members in ill health and can provide higher income withdrawal limits than other pension options.

9. Keep your money in one place

Members can transfer funds form most types of UK registered pension schemes. They then be consolidated into one single SSAS and the funds used for new investments such as buying property or stocks and shares, or loans to the business.

10. Appoint your own advisers

Subject to prior approval by Taylor Patterson, scheme members may act as their own property manager, or appoint a solicitor, surveyor, property agent, stockbroker, accountant or tax and investment adviser to help manage the pension fund.

For more information on SSAS pensions or other alternative pension schemes, please contact Taylor Patterson’s dedicated team of SSAS technicians and administrators who can assist further on 01772 555 073 or email sippssas@taypat.co.uk

March 29, 2012

Taylor Patterson is encouraging companies of all sizes and in all sectors to begin to plan for changes to pension law which will be rolled out from October 2012 onwards.

The government’s auto enrolment plans mean that all companies must automatically include the majority of their employees into a workplace pension, a development which could have a significant impact on businesses’ financial plans for the years ahead.

The largest organisations will be required to do so from October this year, with smaller ones having longer to react to the changes.  The exact deadline for compliance by the smallest businesses has yet to be set by government.

Employers will be required to automatically enrol eligible employees into a qualifying pension scheme  - and pay employer contributions.  They must also register their compliance with the Pensions Regulator.

Taylor Patterson is advising companies to allow at least 18 months to prepare for the changes and stresses that it is important not to underestimate the time required to prepare.

Businesses that delay could risk paying higher costs for the scheme, as pensions providers become more selective as they struggle to cope with the demand for their products.

Paul Jackson, Employee Benefits manager at Taylor Patterson says:  “Although some of the smallest employers will not be required to implement these changes to their pension arrangements for some years yet, it is never too early to start planning.

“For example, companies that work in industries such as the construction sector may often have to bid for projects which do not yield income for four or five years.  They need to think now about how changes to pension law will impact  their costings and financial plans in the future.

“We’re encouraging our business clients to start talking to us now about how they will respond and plan ahead for the changes so there are no unpleasant surprises or last minute panics as deadlines come closer.”

For more information on auto enrolment to workplace pensions, contact Paul Jackson on 01772 555 073 or email mail@taypat.co.uk

March 28, 2012

Preston-based financial advisory group, Taylor Patterson, has strengthened its team with the appointment of three new recruits.

James McIntyre from Blackburn joins the firm as a financial adviser and will help to communicate Taylor Patterson’s new services to existing clients. Prior to taking up the role at Taylor Patterson, James worked at RSM Tenon and Nationwide Building Society.

Commenting on his appointment, James said: “I am delighted to join Taylor Patterson at this exciting time within the financial services industry. There are hundreds of clients that can benefit from the new fee-based service model and the excellent service the team has a long-standing reputation for.”

Andrew Jacques of Bolton brings over 16-years experience to his new adviser support role. Working within the employee benefits division, Andrew will help to look after a panel of Group Personal Pension schemes, Group Life, Group PHI and Group Healthcare schemes.

Andrew said: “I am very pleased to have joined Taylor Patterson as I have known and dealt with the company for a number of years whilst previously working at Friends Life.”

Taylor Patterson also welcomes Natalie Hall who joins the company as part of its apprenticeship scheme. Throughout the training programme, Natalie will be involved in various business administration projects with an emphasis on human resource support. The scheme involves attending college one-day each week to complete the BTEC Business and Administration Level two qualification.

Natalie from Preston said: “I am delighted about joining Taylor Patterson. I feel very fortunate to work for such a reputable company and I’m looking forward to developing new skills and forwarding my career.”

Managing director of Taylor Patterson, Gillian Bardin, said: “It is great to have James, Andrew and Natalie on board with us. We pride ourselves on being one of Lancashire’s leading financial advisers and the new recruits bring a blend of experience, knowledge and ambition to learn which will prove very valuable at a time of growth and expansion for the company.”

March 23, 2011

With each year’s budget announcement the natural response is to estimate its effect on you, your family and your business. This year the real financial impact of George Osborne’s budget on 21 March is a little harder to measure than usual.

With cuts to tax and child benefit as well as cuts to personal tax allowances for pensioners, many have argued that this budget gives with one hand and takes with the other, leaving many in a ‘neutral’ position.

Glynn Bartley, director at Taylor Patterson said: “It’s been very much a neutral budget.  We thought this would be the case as the chancellor simply does not have much to give away. Most of our clients, when they crunch the numbers and consider the impact of the budget, will find that that their financial situation is largely unchanged.”

Kerry Houghton, associate director at Taylor Patterson adds: “It’s a relief that some of the announcements which were suggested beforehand didn’t appear in the final budget – namely the threat of reducing annual allowances for pension contributions.”

Here’s a snapshot of some of the key budget implications…

Personal tax allowances

The abolition of the 50p tax rate was well publicised before the budget and Osborne followed through with this reduction. HMRC said that the yield from the band was lower than forecast as many in this bracket took greater steps than usual to avoid paying tax, such as through drawing dividends from investments in the previous tax year.

The personal allowance was raised to £9,205 from April 2013 for basic rate taxpayers but 300,000 more people will be drawn into the 40 per cent tax band as the threshold is reduced from £42,475 to £41,450.

What about businesses?

Corporation tax will be cut to 24 per cent from April, and then again to 22 per cent by 2014. Companies with a turnover of less than £77,000 can breathe a sigh of relief as the government takes steps to simplify the tax system for small firms. Osborne also announced £150m of tax increment financing to help councils promote development.

Impact on pensioners

Pensioners will no longer receive a larger personal income tax allowance than people of working age. Currently, over 65s can earn £10,500 before tax, and over 75s can earn £10,660.  These will be removed for new pensioners from April 2013.

Estimates show that 360,000 individuals aged 65 will lose an average of £285, while 230,000 people will be brought into income tax for the first time.

Stamp duty changes

The government has already taken the step of implementing a new stamp duty level of seven per cent on homes worth more than £2m. This is an increase on the previous rate of five per cent.  Any homes which fall in to this category which are bought through companies will pay 15 per cent.

Parents feel the pinch

The furore over the proposed cut to child benefit proposed earlier in the year has been reduced somewhat as the government has opted for a sliding scale of benefits.  Where one parent earns more than £50,000, families will see their child benefit entitlement decrease incrementally up to £60,000 where it will be cut altogether. 

Fuel, cigarettes and alcohol

Unfortunately, there are no changes to existing plans on fuel duty and the 3.02p per litre increase will go ahead in August.  Meanwhile, vehicle excise duty will rise in line with inflation but will be frozen for road hauliers.

Smokers are being hit hard by this budget. Duty on all tobacco products rose by five per cent above inflation as of budget day. There is to be no change to plans on alcohol duty, which is set to rise by two per cent above inflation.  

For more information about pensions, investments, tax allowances and more, contact Taylor Patterson on 01772 555073. 

March 22, 2012 

A Preston financial adviser is amongst the first to gain a new endorsement in the industry, a full year before being required to do so by the Financial Services Authority (FSA).

Greg O’Brien, wealth management adviser at leading Preston-based financial advisory group Taylor Patterson, has received the Statement of Professional Standing by the Chartered Institute of Insurers.

The Statement will become compulsory for all financial advisers from 1 January 2013 as a result of the FSA’s Retail Distribution Review, which aims to make the sector more open and transparent.

The Statement of Professional Standing provides customers with evidence that their financial adviser is properly qualified and keeps their knowledge up to date in an industry which is continually changing as a result of new legislation and complex financial markets.  Advisers will be required to reapply for The Statement each year.

All Taylor Patterson financial advisers will apply for the Statement of Professional Standing over the coming months, which also requires they sign up to a code of ethics.  All Taylor Patterson advisers already hold at least a Diploma in Financial Planning which will become the compulsory minimum level of qualification in the industry from January 2013.

Greg says: “I am very pleased to have received the Statement of Professional Standing well ahead of time.  It will be an excellent development when all financial advisers are required to have the certification from January next year.  It will reassure clients that advisers are highly qualified with well-rounded and in-depth knowledge of the financial services industry.”

As well as raising the standard of qualification for financial advisers, the Retail Distribution Review stipulates that sales of financial services should be separate from advice. The FSA will also be implementing changes to the way in which commission is charged on financial advice.

Gillian Bardin, managing director at Taylor Patterson says: “We are very pleased that Greg has met the criteria required to receive the Statement of Professional Standing. Taylor Patterson is supporting all its financial advisers in gaining their Statement in the near future.

“We very much welcome this new indicator of adviser professionalism, and the many other changes to the industry that the FSA is implementing through the Retail Distribution Review.   We believe it can only be a good thing to have a more open, clear and transparent financial services industry where excellent qualifications and strong ethics are at the very heart of business.”

March 1, 2012

Taylor Patterson’s SIPP & SSAS scale of charges provides for fees to be increased on the 1^st August each year by reference to the rise in National Average Earnings Index.

The fee schedules were amended on the 1^st July 2009 and no increase has since been applied.

A review of the scale of charges has been carried out, and as a result, a new scale has been prepared which came into effect from the 1^st March 2012.

There is no change to our basic annual administration fee however a number of changes have been made for additional services. In some instances the fees have increased whilst others have decreased.

Taylor Patterson has also revised its SIPP & SSAS key features documents which summarise the main points of how the various pensions operate. These documents are now structured in a more accessible ‘question and answer’ format.

Copies of these new documents have been sent out to all of our existing clients and are available on the Taylor Patterson SIPP & SSAS website http://sippssas.taypat.co.uk/technical-centre/key-feature-documents/  

We trust these documents will be useful. Should you have any questions, please contact the SIPP & SSAS team on 01772 555073 or email sippssas@taypat.co.uk 

March 1, 2012

Legislation changes introduced in the Finance Bill 2011 have reversed the historic lack of flexibility around pension income options. A facility referred to as ‘flexible drawdown’ allows people over the age of 55, who can demonstrate that they have a secure minimum annual income of £20,000 or more, to take unlimited amounts of income from their pension fund.

Income streams eligible to form part of the minimum income include:

• final salary pensions
• pension annuities
• scheme pensions
• state pension benefits

It isn’t possible to start flexible drawdown if contributions have been made to any pension in the same tax year and, once in flexible drawdown, it is not possible to make further pension contributions.

“It’s important for people with large pension funds to know that there is now much greater flexibility available,” said Kerry Houghton, associate director at Taylor Patterson.

“Those eligible for this facility can withdraw a fund in its entirety, or take part withdrawals, as best suits their needs. This may be especially useful for clients needing to release capital for specific uses such as long-term healthcare costs, to pay university fees for family members or for that special trip of a lifetime.”

For more information about flexible drawdown please contact Kerry Houghton on 01772 555073.