Informed Choice Radio Personal Finance Podcast

In this episode of Informed Choice Radio, Martin talks about Financial Planning Week 2016 and we get an investment market outlook from Kevin O'Nolan, a portfolio manager at Fidelity Worldwide Investment. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. Financial Planning Week & Investment Market Outlook In this episode of Informed Choice Radio, it’s Financial Planning Week 2016 and we get an investment market outlook from Fidelity Worldwide Investment. Martin was a guest on the Morning Money show on Share Radio very early on Monday morning, at the start of Financial Planning Week 2016. He shares a recording of the interview with Share Radio presenters Nigel Cassidy & Emma Wall during which he talks about the value of Financial Planning. Also in this episode of Informed Choice Radio is an investment market outlook from Kevin O'Nolan, a portfolio manager at Fidelity Worldwide Investment. Kevin joined Fidelity Solutions in 2008, and is Portfolio Manager across a number of multi asset strategies. During his time at Fidelity Solutions Kevin has been instrumental in the development of their Tactical Asset Allocation capabilities. Martin asked Kevin for his general outlook before chatting about how this has changed over the past year, how much of an influence the EU Referendum is having on markets, and whether commodities are now staging a recovery. Personal finance news update -Chartered surveyors are predicting a short-term fall in UK house prices, prompted by the EU Referendum and a cooling down of the housing market following the stamp duty increase on second homes in April. -You can now buy gold bars from The Royal Mint to hold within your pension fund. -A new survey for The Times has found that a third of middle-class families would need to borrow money in order to pay an unexpected bill of £500. -European political leaders need to do more to reform their economies to create more jobs, as part of an effort to save the region from its ageing crisis. -Concerns have been raised by The Treasury Committee about the extra burden placed on small businesses by ‘Making Tax Digital’. Help us spread the word! Thank you for listening to this episode of Informed Choice Radio. Please use the comments section below to share any feedback you have. If you enjoyed this episode, please share it by using the social media buttons on this page. If you enjoy the show, please subscribe in iTunes and write us a review! Reviews really help us stand out from the crowd and reach more listeners. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice.   

What happened when a financial journalist Googled ‘getting rid of stuff’ and decided to spend twelve months buying nothing? In this episode of Informed Choice Radio, I speak to the personal finance journalist Michelle McGagh. Six months ago, Michelle embarked on a personal challenge to dramatically reduce her spending and buy nothing other than the essentials. In this interview, we talk about what inspired this challenge, the consequences of stepping out of the consumer rat race, and how Michelle reduced the number of her possessions by 80%. Welcome to the year of buying nothing with Michelle McGagh, in episode 085 of Informed Choice Radio. You can get in touch with Michelle on Twitter @mmcgagh Some questions I ask -What inspired such a dramatic lifestyle choice? (05:09) -What's it like living with someone who is free to spend money on anything, when you've chosen not to spend? (10:04) -Do you risk becoming a bit of a hermit, when you're not spending money on going out? (12:36) -Have you ever come close to breaking your spending rules? (13:24) -What's the plan for all of the money you have saved during this challenge? (15:28) -What happens at the end of the year? Have you planned an epic shopping trip? (16:10) Useful links mentioned in this episode -Buy Nothing Day -Stuffocation: Living More With Less by James Wallman -The Minimalists Podcast -Skint London Help us spread the word! Thank you for listening to this episode of Informed Choice Radio. Please use the comments section below to share any feedback you have. If you enjoyed this episode, please share it by using the social media buttons on this page or by sending a tweet. If you enjoy the show, please subscribe in iTunes and write us a review! Reviews really help us stand out from the crowd and reach more listeners. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice.   

In this episode of Informed Choice Radio, Martin talks about what happens when your defined benefit pension scheme goes bust. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. What happens when your pension scheme goes bust? Retail giant BHS going into liquidation is clearly bad news for its 11,000 employees, but what about the 20,000 members of its pension scheme? There are around 6,000 defined benefit pension schemes in the UK. The majority of these are in deficit, which means they don’t have enough assets to cover their liabilities. The latest estimates suggest it would cost £571m to fully cover the BHS Pension Scheme liabilities, using insurance or a buyout. That money simply isn’t there, so what happens to members of the BHS Pension Scheme? There is a lifeboat scheme in the UK, it’s called the Pension Protection Fund. This was established to pay compensation to members of eligible defined benefit pension schemes, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation. In this episode of Informed Choice Radio, Martin explains how the Pension Protection Fund works, who pays for it and what level of compensation the members of bust pension schemes might expect to receive. Personal finance news update -The most expensive seaside town in the UK is Sandbanks in Dorset, closely followed by Salcombe in Devon. -Older investors appear to be holding their nerve ahead of the EU Referendum, with almost three quarters not changing their investment strategy since the vote was announced. -The final design for the new £5 bank note has been revealed, before it enters circulation on 13th September. -Bond giant Pimco has warned that a "radical" political party taking power in the eurozone could tear the bloc apart. -Department store giant BHS is going into liquidation, after attempts to find a buyer for the stores failed. -A vote to leave the European Union could result in a 10% fall in the value of the FTSE 100 index during the next year. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice. 

In this episode of the Informed Choice Podcast, Martin talks about what will happen when you retire. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. What will happen when you retire? More than half of people expect to continue working during what might have previously been viewed as a traditional retirement. 18% of those who expect to continue working plan to stay in full time employment and one in four plan to work on a part time basis to boost their income in retirement. Those who can afford to retire might not choose this option. The average retiree gets bored of not working after only ten months and will then look for other ways in which to fill their time. Martin talks through the seven things people typically miss about working when they retire. 1 – workplace banter and colleagues 2 – their job title and the feeling of importance that goes with it 3 – the stress and satisfaction of a job well done 4 – the routine of a 9-5, five days a week 5 – time away from the other half 6 – being kept busy and out of the house 7 – salary! If you’ve already retired, what did you miss most about working and what steps did you take fill those gaps? Personal finance news update -The price of oil has reached $50 a barrel for the first time this year, following disruptions to supply and a continued recovery in global demand for the commodity. -The Financial Conduct Authority is considering plans to introduce a maximum exit charge of 1% on pension pots. -A vote for the UK to leave the European Union could result in a big fall in house prices. -Insurance giant AXA has announced it will stop investing in the tobacco industry, selling investments worth more than £1.3bn as a result. -One in five investors are deferring their investment decisions ahead of the EU Referendum. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice. 

In this episode of the Informed Choice Podcast, Martin talks about selling an investment portfolio in May and staying away from the equity markets until after a horse race has finished. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. Sell in May You might have heard investors and commentators talk about the old adage ‘Sell in May and go away, come back on St Leger Day’. This is based on a theory that November to April is has significantly stronger investment growth, on average, than May to October. So if you follow the sell in May strategy, you would sell your equity holding at the start of May and keep that money in cash over the summer months, before reinvesting it after St Leger Day. St Leger Day refers to the St Leger Stakes, a flat horse race in Doncaster, which takes place each year in September. So does this investment theory stack up? Should you be rushing out to sell your investments in May and keeping them all in cash until after the last of the British Classic Flat Races? In this episode of the Informed Choice Podcast, Martin examines the research and shares his thoughts on whether this investing strategy make sense.  Personal finance news update -Payday lenders will no longer be able to advertise their services on Google, as the search engine giant attempts to limit what it calls a ‘harmful’ industry. -The number of people looking for a new home to buy has fallen to its lowest level since 2008, according to a survey by the Royal Institution of Chartered Surveyors. -UK industry has slipped back into recession for the third time in eight years, according to the Office for National Statistics. -Tens of thousands of property purchases fall through between offer and exchange of contracts each year, as the average time it takes for property lawyers to progress to this stage takes just shy of three months. -Only 1% of people know all of their loved ones’ funeral wishes. -Adults in the UK spend more time organising their music collections, photos, and wardrobes, than they do reviewing their pensions and long term savings plans. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitteratwww.twitter.com/informedchoice.

In this episode of the Informed Choice Podcast, Martin talks about a big night at the Toast of Surrey Business Awards 2016 and Nick appearing on BBC Radio 4's Money Box Live. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. And the winner is... In a bit of a catch-up episode of the podcast, after missing an episode last Friday, Martin shares highlights from Informed Choice over the past fortnight. Informed Choice won the top prize at the Toast of Surrey Business Awards 2016 last week. Martin shares audio from the night as the award was announced. Nick was a guest on BBC Radio 4's Money Box Live with Paul Lewis, answering questions from listeners about access to free financial guidance and paid financial advice. Martin finishes the episode by revealing some plans to improve the podcast in the future. Do let him know what you think. Personal finance news update -UK economic growth has nearly stalled, with uncertainty about the EU referendum partly to blame. -The average cost of renting a property outside of London has risen by 5.1% during the past twelve months. -Global food prices rose again April, but remain around 10% lower than a year earlier, according to the United Nations food agency. -Almost two thirds of UK adults do not have a will and could therefore be at risk of losing control over their estate if they die. -The Bank of Mum and Dad is set to lend adult children £5bn in 2016. Get answers to your personal finance questions Do you have a personal finance or investing question for Martin? Email martin@icfp.co.uk or ask on Twitter @martinbamford. You can call our dedicated podcast voicemail line on 020 8144 2745 with your question or visit www.speakpipe.com/InformedChoicePodcast to leave an online voicemail. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter atwww.twitter.com/informedchoice.

In this special episode of the Informed Choice Podcast, Martin interviews Simon Ferrar and Adrian Shaw of Clandon Wood about Naturial Burial. Clandon Wood is a 31 acre natural burial site in the Surrey Hills, named Cemetery of the Year in 2014. It’s a nature reserve for natural burials. Their website at clandonwood.com explains, the creation of a self-sustaining, wildlife environment is the answer to the enduring question: how do we find enough space to accommodate human burials responsibly? The site consists of wildflower meadows, a lake and wetland. Martin interviewed Clandon Wood founder Simon Ferrar, and his colleague Adrian Shaw, in their striking glass and timber frame pavilion. This was Martin’s second visit to Clandon Wood. He interviewed Simon for his documentary about retirement planning back in 2014, and at the time was impressed with his approach to end of life planning and natural burial. This interview and episode of the podcast is, we think, important for everyone to listen to and we hope it will get you thinking about some of the most important questions in life. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter atwww.twitter.com/informedchoice.

In this episode of the Informed Choice Podcast, Martin talks about mortgage freedom day and the cost of living. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. Mortgage freedom day & cost of living The UK’s Mortgage Freedom Day is calculated as the date when the average new mortgage borrower – covering both first-time buyers and home movers taking out a mortgage in the final quarter of last year – will have paid off their annual mortgage payments. It is calculated on the basis that all their earnings from the 1st January are devoted to mortgage payments until these annual payments have been paid in full. This year, mortgage freedom day was earlier this week on 19th April. The date is calculated by mortgage lender Halifax. It’s based on the average annual mortgage repayment cost of £7,584 and the average net annual income of £26,023. Halifax calculated that homeowners with a mortgage will have by 19th April earned enough on average to cover their mortgage payments for the rest of 2016. Mortgage Freedom Day this year occurs just a day later than in 2015, when it fell on 18th April as a result of average annual mortgage repayment edging up by £17 during the year. They also calculated Rental Freedom Day, which is calculated using annual rental payments as a percentage of average disposable earnings. This doesn’t come around until 5th May, 16 days later than Mortgage Freedom Day, greater burden of renting rather than buying a property. Rental Freedom Day is also a day later than it was in 2015. Martin talked about regional variations in these mortgage and rental freedom days, as well as some financial rules of thumb designed to allocate your net monthly income to different costs such as housing, necessities, luxuries and the future. After recording this episode, he calculated his own mortgage freedom day this year as 19th April, the same as the national average! Do you know when your mortgage or rental freedom day is? We would love to hear from you. Drop Martin a line at martin@icfp.co.uk or say hello on Twitter @martinbamford. You can also leave a voicemail message for the show, which we will play in a future episode. Visiticfp.co.uk/podcast and scroll to the bottom of that page to use the Speakpipe plugin, which allows you to record a voice message for the show using the microphone in your computer. Personal finance news update  -Young women are at risk of pension poverty in retirement, because they are cutting back on their savings to pay for childcare. -The over-40s might be best suited to working a three day week, according to new research. -The price of crude oil rose to $46 a barrel following an announcement by the International Energy Agency about supply expectations. -Offshore companies buying UK property could be forced to reveal their ultimate owners, as a result of a new crackdown on tax evasion and money laundering. -Pensioners will be able to cash in their annuities from April 2017, as part of ongoing reforms to the pension system. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter atwww.twitter.com/informedchoice.

In this episode of the podcast, Martin talks to Sophie Robson, Public & Regulatory Affairs Consultant at MRM London about Generation Austerity and her latest Young Money Report. There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. Generation Austerity & Young Money In this episode of the Informed Choice Podcast, Martin talks to Sophie Robson, Public & Regulatory Affairs Consultant at MRM London about Generation Austerity and her latest Young Money Report. This is the third Young Money report produced by MRM London, and it examines four main areas – pensions and benefits, saving and spending, investing and the economy, and advice and access. Martin talks to Sophie about the background to this report, the definition of Generation Austerity, some of the challenges faced by young people when it comes to their money, and some suggestions for improving access to financial advice for younger people. Get answers to your personal finance questions Do you have a personal finance or investing question for Martin? Email martin@icfp.co.uk or ask on Twitter @martinbamford. You can call our dedicated podcast voicemail line on 020 8144 2745 with your question or visit www.speakpipe.com/InformedChoicePodcast to leave an online voicemail. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice.

In this episode of the Informed Choice Podcast, Martin talks about the personal finance things you need to know in the new tax year.  There is also a roundup of the latest personal finance news and an update from the world of Informed Choice. Things you need to know in the new tax year The new tax year started on 6th April 2016, bringing with it some changes to tax rates and allowances, as well as some investment and pension changes. As promised in the podcast, here are the facts and figures you need to know. The new personal allowance for 2016/17 is £11,000, up from £10,600 last year.  There is no more age-related personal allowance for people born before April 1938, removing the dreaded age-allowance trap. Higher earners face an income limit of £100,000 with their personal allowance reduced by £1 for every £2 of income over this limit, so earn over £122,000 and your personal allowance is reduced to zero. The personal savings allowance is now in force, giving tax-free savings interest to those with taxable income of less than £16,800, or a £1,000 tax-free savings allowance for basic rate taxpayers and £500 for higher rate taxpayers. Dividend income is subject to a new tax regime, with a £5,000 tax-free allowance and then income tax charged at 7.5% for the basic rate, 32.5% for the higher rate and 38.1% for additional rate taxpayers. The marriage allowance increases from £1,060 to £1,100, allowing unused personal allowance to be transferred to a basic rate taxpayer. Landlords and second-home buyers will pay a 3% stamp duty surcharge, applicable on completions from 1st April 2016 onwards. For existing landlords, the 10% wear and tear allowance is removed in 2016/17. Capital gains tax rates are reduced from 20% to 10% for basic rate taxpayers and 28% to 18% for higher rate taxpayers, with the exception of capital gains on residential property sales (other than your principle private residence). No change to the ISA allowance this tax year, which stays at £15,240. The Junior ISA allowance remains at £4,080.  The new tax year saw the launch of the new Innovative Finance ISA, allowing peer-to-peer lending to be held within an Individual Savings Account for the first time. The pension lifetime allowance is reduced from £1.25m to £1m for 2016/17. The annual allowance is reduced to as low as £10,000 for higher earners. Listen to episode 68 of the Informed Choice Podcast for more on these pension changes and to hear about the protection options available. Personal finance news update -The new state pension was introduced this week, offering a single flat-rate income to new pensioners from 6th April 2016. -Fewer people are cashing in their pension savings, one year after the launch of new pension freedoms. -The new National Living Wage has come into force, with workers over 25 now receiving a minimum income of £7.20 an hour. -Over 11.5 million confidential files have been leaked from the database of international law firm Mossack Fonseca, revealing details of how the rich exploit secretive offshore tax regimes. -HM Revenue and Customs has received more than £4bn in inheritance tax receipts during the past year, the largest amount ever received by the tax man in a twelve month period. Get answers to your personal finance questions Do you have a personal finance or investing question for Martin? Email martin@icfp.co.uk or ask on Twitter @martinbamford. You can call our dedicated podcast voicemail line on 020 8144 2745 with your question or visit www.speakpipe.com/InformedChoicePodcast to leave an online voicemail. Martin and Informed Choice Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets. Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement. “Bamford excels at making even the dullest topics interesting” – Pensions Management Visit www.icfp.co.uk to find out more about Informed Choice, or follow us on Twitter at www.twitter.com/informedchoice.