Making additional pension contributions could mean lowering your effective tax rate
For many earners in England, Wales or Northern Ireland, the highest Income Tax rate is 45%. However, while 45% is the highest ‘official’ rate, some individuals effectively pay a tax rate of 60% on part of their income. This phenomenon, commonly called the ‘60% tax trap,’ affects those earning over £100,000 and applies to their income between £100,000 and £125,140.
Reinvesting dividends can significantly boost your investment returns over the long haul
When most people think of dividends, they associate them with generating regular income. However, dividends offer much more than that – they can be a valuable ally in growing your wealth over time. The strategy of reinvesting dividends, where you use the cash payout to buy additional shares rather than taking it as income, can significantly boost your investment returns over the long haul.
Estate planning is often misunderstood as a concern only for the affluent. However, the reality is that managing your assets and final wishes is something everyone should contemplate, irrespective of their financial situation. A robust estate plan acts as a financial safeguard, ensuring your family’s wellbeing after your passing while also facilitating the smooth handling of your affairs.
Taking the first proactive step towards protecting what matters most
Estate planning is an essential process that enables you to maintain control of your assets, express your wishes clearly and alleviate the burden on your loved ones during challenging times. It equips you with the means to protect your financial and personal legacy, ensuring your family is well taken care of and your wishes are honoured.
Estate planning is never straightforward. It involves many considerations, and adopting a one-size-fits-all approach is rarely effective. Every individual’s estate plan should be uniquely crafted to reflect their personal goals and circumstances.
