Pensions

 

Wealth Creation

 

The second part of the Wealth Management Process is Wealth Creation. This can be divided into two sub categories, Pensions and Savings & Investment.

 

Pensions

           

At BCK Wealth Management, one of our core businesses is pension planning - for employees, sole traders, and company directors. A pension plan is the most tax-efficient way for individuals to save for retirement, with the following tax advantages:

 

  • Tax relief on contributions of up to 41%
  • Tax free investment growth
  • Option to take a portion of the accumulated fund as a tax free lump sum at retirement.

 

For company directors, there is the added advantage of being able to extract funds from their business without paying any tax, and investing profits in an executive pension plan for their benefit. There is also huge scope for a company director to fund for a pension in retirement, as they are not bound by the tax relief limits that apply to personal pension plans, and can effectively turn large amounts of company wealth into personal wealth.

 

We would recommend that all our clients undertake a pension review at least once a year, to ensure that their level of funding and fund selection is still appropriate to their circumstances, and sufficient to provide them with the benefits they require in retirement.

 

BCK Wealth Management believe strongly in a well-diversified portfolio, with a risk strategy and asset allocation consistent with your goals and attitude to risk. This strategy should be reviewed and re-balanced regularly, with amendments where necessary.

 

 

 

Savings & Investment

 

We all have needs in the future that we need to save for, such as children’s education, moving home, holidays, new cars, etc. The benefit of regular savings can be seen over time through the effect of compound interest.

 

Saving is a discipline, which once entered into, can help us to realise our financial goals, and also to secure an emergency fund of capital, for use if that “rainy day” should ever arrive. We would recommend that all our clients have an emergency fund of at least 6 months salary for this purpose, as well as a fund for any unforeseen circumstances, should they arise.

 

Given the current low deposit rates on offer for investors, BCK Wealth Management offer alternatives that align themselves with your financial goals and objectives.