May/June 2016 Newsletter

 Welcome to our latest issue in which we look at the major talking points that could impact on your financial plans both today and in the future, especially as we enter a new financial year and take stock of the announcements from Budget 2016 – and then there’s the matter of ‘Brexit’.

With an increasing focus on ‘Brexit’, our investment clients will naturally be monitoring the impact on financial markets ahead of the referendum scheduled for Thursday 23 June. The nature of investment is long term. On page 06, we look at why constantly making changes to take into account short-term events often proves to be counterproductive in the long term. Movements in currencies and shares are often fairly short-lived, as the result of the Scottish referendum showed.

The State Pension changed on 6 April 2016. If you reach State Pension age on or after that date, you’ll now receive the new State Pension under the new rules. The aim of the new State Pension is to make it simpler to understand. But there are some complicated changeover arrangements which you need to know about if you’ve already made contributions under the previous system. Read the full article on page 03.

The introduction of the new Lifetime Individual Savings Account (LISA) next year is aimed at helping young people save flexibly for the long term throughout their lives, and simultaneously enabling them to save for a first home and for their retirement without having to choose one over the other. Find out more on page 04.


Top 100 Advisers

We are proud to announce that KPW Investments made it to the top 100 Financial Advisers in the UK as selected by New Model Adviser


KPW Investments, Glasgow

Glasgow-based KPW Investments owes its success to a bold marketing strategy, fruitful acquisitions and strong ties to a local university.

The firm’s partners Eddie Kelly, Russell Provan and Stephen Wright have a modern approach to marketing, with advertisements on local television and a strong emphasis on social media sites such as LinkedIn, Twitter and Facebook.

May/June Newsletter

As the days are staying lighter for longer and the weather begins to warm up, we are also experiencing some major changes on the financial landscape post-Budget 2015: the start of a new financial year, ‘pensions freedom day’ and a General Election. The enclosed publication was produced prior to the General Election outcome, so we’ll look at how the results could impact on your financial plans in the next issue.

Most people now have more options when it comes to their retirement choices. But generally they’ll still want their pension income to last their lifetime – so careful planning is a must. Since 6 April, when Britain’s pension system underwent a seismic change (known as ‘pensions freedom day’), we’ve been asked many different questions by our clients about the breadth of the reforms and how they may affect them. On page 04, we provide answers to our top ten most frequently asked questions.

In his final Budget speech to parliament on 18 March, the Chancellor of the Exchequer, George Osborne, announced that Britain was ‘walking tall again’ after five years of austerity. We’ve provided our summary of the ten key announcements that could impact on your personal financial plans, both positively and negatively. Turn to page 10 to find out more.

Now that we’ve entered a new tax year, if you are already planning how you are going to fully utilise your current Individual Savings Account (ISA) tax-efficient allowance, it’s not just about picking investments wisely – it’s also important to make sure you hold them in the most suitable place. On page 06, we look at the top ten highest performing sectors over the previous decade.

In a survey by the National Association of Pension Funds (NAPF) of people aged 55-70 with private pensions, 47% who had a private pension were worried people would be mis-sold unsuitable products due to the new pension rules, 44% felt people might make bad financial decisions and two thirds (36%) were worried about pension scams. Read the full article on page 07.

We hope you enjoy reading this issue and find it informative. To discuss any of the articles featured, please contact us on 0141 2484982 or

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November December 2014 Newsletter

As we approach the end of 2014, the news is awash with stories about pension reform, pension freedom, inflation and funding long-term care. It can be very confusing with the number of conflicting viewpoints given, so in this issue we aim to bring some clarity to them.

In Budget 2014, Chancellor George Osborne promised greater pension freedom from April next year. On page 10, we look at the reforms that will allow people to access as much or as little of their defined contribution pension as they want and pass on their hard-earned pensions to their families tax-free. 

Mr Osborne has also brought forward the expected announcement on the tax charge that applies to certain individuals’ pensions on their death. The new rules will simplify the existing regime and come into force from April 2015, abolishing the 55% tax. Read the full article on page 05.

Significant changes to existing intestacy rules came into force on 1 October 2014 in England and Wales. On page 04, we consider the far-reaching consequences for you and your loved ones, and how this should make things simpler and clearer.

Today, the cost of care is a major concern for many people, with the average level of pension savings unlikely to be enough to cover any long-term care requirements in addition to providing a retirement income. So why is care fee planning catching so many people off guard? Find out on page 06.

Also inside this issue, six years after the start of the financial crisis, we ask on page 08 what lessons should we have learnt from this seismic event?

We hope you enjoy reading this issue. To discuss your financial planning requirements or to obtain further information, please contact us on or 0141 2484982.

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September/October Newsletter

On 10 July this year, the Office for Budget Responsibility warned that many of us might not be eligible for a State Pension until we reach the age of 70. That’s the minimum age the Government will be able to afford to pay our pensions by 2063 if it is also to stop the national debt spiralling out of control. Read the full article on page 08.

Most investors are used to hearing the term ‘diversification’ – but it has a broader meaning than many realise. On page 10, we explain the importance of diversification as investors potentially face further new challenges this year and next.

The new Individual Savings Account (NISA) rules were introduced in July. On page 11, we explain how savers and investors now have more flexibility and a larger tax-efficient allowance than ever before.

Retirement should be an exciting time, and these days there’s more scope than ever to arrange your finances the way you want them. On page 06, we consider why the financial decisions you make need careful consideration.

A full list of the articles featured in this issue appears on page 02.

We hope you enjoy reading this issue. To discuss your financial planning requirements or to obtain further information, please contact us.

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3rd Quarter Market Update

MARKET UPDATE (3rd Quarter 2013)

Markets were fairly muted through the summer which isn’t out of the ordinary through the traditional holiday period.  Mark Carney’s appointment as the new Bank of England Governor on July 1st went past with little or none of the fanfare that usually accompanies such an appointment.  His appointment should be seen as a safe pair of hands for the UK after helping Canada avoid the worst impacts of the financial crisis that began in 2007.  Through some bold decision making Canada outperformed any of its G7 peers during the crisis and was also the first country to see its GDP and employment figures return to pre-crisis levels.  In September we finally saw some good news seep out of the Eurozone with indicators showing that they have finally emerged from their long lasting recession although this news should be tempered somewhat as the region still has a long road to recovery ahead.  Angela Merkel once again kept her position as Chancellor of Germany and although failing to win enough votes to form a majority government will remain one of the most powerful politicians in the world.  US politicians have done their usual acts of brinkmanship to try and destabilize things.  At present their government remains closed and they only narrowly avoided default on the nation’s debt although this particular issue has simply been deferred for another few months.

Cash & Interest Rates

No change to interest rates with the Bank of England Governor committing to holding these until unemployment reaches 7%.  At present they are 7.7% after seeing them fall for the three months ending August.  Cash will remain a place for emergency monies only for the foreseeable future as it’s going to prove difficult to find cash based investments that will keep pace with inflation, currently 2.7% (September figures)

Outlook & Investment Opportunities

Although we have seen another slight rise in the value of the FTSE 100 and also the Dow Jones setting new records the markets remain relatively well valued moving forward.  We have got to bear in mind that we are currently still in a recovery period and as domestic and global data improves this should encourage into expansion by the private sector.  Not every asset class or geographical location offers potential for good returns but KPW Investments feels that the UK, US and Europe remain attractive to investors.

Any questions about the article please contact your adviser.