Frost Magazine

Books and Lifestyle

Gift Ideas For a New Baby

Posted on December 30, 2015 by Frostie

Shopping for a new baby can be a minefield. Never mind that you might accidentally buy the same present as everyone else. To help out we scoured the internet and have came up with our top picks.

An ISA.

Starting, or putting money into, a junior ISA is a great idea which will have little ones set up for the future. It also stops the home of the new parents becoming cluttered. You can get a stocks and shares junior ISA from Chelsea Financial Services which invests in funds. Chelsea currently offer their junior ISA for no charge. All you pay is the fund managers charge which is typically 0.75% a year. The advantage of investing in a fund versus individual shares is that your money is invested by a professional and your investment will be spread over many different shares, so if one does badly it won’t bring down your whole investment. Chelsea have a number of ready made junior ISA portfolios selected by their research team if you don’t want to choose your own funds.

Investing early is extremely important because it allows the magic of compound interest to take hold, what Einstein called the eighth wonder of the world. By investing early a small amount of money can become much larger over time. The Junior ISA has the same advantages as a regular ISA. It has protection from capital gains and doesn’t need to be included on a tax return. The one disadvantage of a junior ISA is it cannot be taken out early and can only be withdrawn by the child after they turn 18. So if you want to save for school fees you would be better off investing in your own ISA.

Our other picks are from www.notonthehighstreet.com

Silver Engraved Noah’s Ark Money Box by MY 1ST YEARS. A great little keepsake.

From www.notonthehighstreet.com

Star Fleece Baby Wrap.

From www.notonthehighstreet.com

Personalised Hooded Fleece Dressing Gown.

From www.notonthehighstreet.com

normal_noah-s-ark-personalised-print

Personalised Noah’s Ark Print by PEPPER PRINT SHOP

From www.notonthehighstreet.com

Baby Hand And Foot Inkless Print Kit by ELIZABETH JANE. Remember how small those little feet really were forever.

From www.notonthehighstreet.com

Personalised Percentage Babygrow Or T Shirt by SIMPLY COLORS

From www.notonthehighstreet.com

Personalised Baby Keepsake Building Block by SOPHIA VICTORIA JOY. Unique and makes a great keepsake.

From www.notonthehighstreet.com

normal_personalised-little-nutbrown-hare

Personalised Nutbrown Hare by OH SO CHERISHED. Adorable and great for a cuddle.

From www.notonthehighstreet.com

Baby Hippo Hooded Towel by BATHING BUNNIES. So cute.

From www.notonthehighstreet.com

Add your own ideas below.

The Wealthy Women: A Man Is Not A Financial Plan Book Review

Posted on March 31, 2014 by Catherine Balavage

The Wealthy Woman is a book that is sorely needed. I have lost count of the amount of women I have met who are terrible at finance, and that is saying nothing for the ones that really do think that a man is a financial plan. I mean, they’re really not.

Relying financially on a man causes a lot of problems: he could leave you, he could lose his job, he could treat you badly and you feel you can’t leave because you would be too poor, he could think he has all of the power because he pays the bills…the list goes on. True freedom and happiness comes when a women is financially independent. Can this book help? Yes.

Some finance books can be scary but this one isn’t. In fact it is fun, concise, comprehensive and educational all at once. The author also takes two women, one savvy and one not-so-savvy, and follows them through the years and charts the consequences of their financial decisions. I found this particularly useful. I think a lot of women would read it and it will (hopefully) give them a wake-up call.

The book gives you financial advice for each decade of your life, and where you will end up. It let’s you know that only you can be responsible for your financial future and being an ostrich won’t help at all. It also helps you calculate your net worth, sort out your finances and get out of debt if you have it.

It also covers pensions, saving and investing. In fact, most things are covered in this excellent book. Buy it for yourself or/and the females in your life. It is packed with good advice and tips that could change your life for the better.

‘The Wealthy Woman – a man is not a financial plan’ by Mary Waring has worked with 100s of women helping them take control of their finances.

Far too many women find ‘dealing with the money’ a daunting task and leave it in the hands of their partners. However, this can leave them with little control over their own financial lives and sadly, if they then get divorced or are widowed, they are left floundering with little understanding of how much money they have, or don’t have, and what this means to their lifestyle.

By understanding your finances and taking control you can make your money work for you. That’s the message in Mary Waring’s new book ‘The Wealthy Woman: A Man is Not a Financial Plan: A Woman’s Guide to Achieving Financial Security’.

“Many women tell me that they simply don’t do maths – and this mental block seems to be an epidemic among women everywhere. However, these are often admirable women with high-level jobs. My message is simple – you are more than able to handle all of your finances,” says Mary Waring.

So, do you want to be more confident about your finances? Do you want to be a wealthy woman?

“Wealthy” will mean different things to different women. It doesn’t necessarily mean “rolling in it” and having so much money that you’ll enter The Times ‘rich list’. It may simply mean you feel confident you will have enough money to do the things that you plan to do in the future, no matter how lavish or frugal a lifestyle you lead.

Mary’s book will guide you on your journey to become a wealthy woman by showing you how taking small steps on a regular basis can lead to a significant increase in your wealth.

If you currently have such a lack of control over your finances that you are too afraid to open your credit card statement at the end of the month, this book will show you how to take control.

“The Wealthy Woman” will encourage you to think about your attitude towards money and your relationship with it.

As Mary says; “It’s easy to be wealthy just as it’s easy to be poor. There’s very little difference in the way you can become either. You are in a position where you can improve your wealth. Whatever your dreams and aspirations around money there is nothing to stop you moving towards those dreams.”

Mary Waring is an independent financial adviser and the founder of Wealth For Women, specialising in financial advice to women going through divorce. She is both a Chartered Financial Planner and a Chartered Accountant, being one of only a handful of advisers in the whole of the UK with this high level of qualification.

Mary is passionate about changing the way women think about finance. Too many women stick their head in the sand and ignore it. Or…rely on a man to sort it for them.

‘The Wealthy Woman: A Man is Not a Financial Plan: A Woman’s Guide to Achieving Financial Security’ is available from Amazon and all good bookstores.

For more information see: www.mary-waring.co.uk

Royal Mail to float – what interested investors should do

Posted on July 17, 2013 by Frostie

The biggest privatisation for two decades

· Royal Mail to float

· What interested investors should do

· IPO Q & A

Today the Government have announced plans to float the Royal Mail in what could be the largest privatisation for two decades. The state-owned postal service could be valued up to as much as £3 billion in an initial public offering (IPO) taking place this year.

Richard Hunter, Head of Equities, Hargreaves Lansdown;-

““The success of the Direct Line Group & esure share offers has reignited private investor interest in IPOs. The offer of shares to the public is reminiscent of the float of British Gas in the 1980’s which was accompanied by the “Tell Sid” Campaign. Shares will be marketed to the public and any investors aged over 18 will be able to apply for shares.

What interested investors should do

Richard Hunter

“We don’t have the details of the IPO yet. Investors can register their interest with a stockbroker now and when a prospectus and application pack becomes available they will contact you with all the information needed to invest.”

Tell Sid? – Investing in an Initial Public Offerings (IPOs) Q & A

From the first “Tell Sid” privatisation of British Gas in the 1980s, flotations and Initial Public Offerings (IPOs) have always been of interest to the investor. Richard Hunter, Head of Equities, explains how they work.

What is an IPO?

An Initial Public Offering (IPO) is where the owner(s) of a company sell all of part of their stake to the public in order to raise money. This cash can then be used to grow the company or simply be returned to the owners. An IPO is also commonly called a flotation.

An IPO may only be made available to institutional investors or to a mixture of private (retail) and institutional investors. An IPO happens in three stages.

1. The Intention to Float – The company announces to the stock market, public stating they wish to float the company

2. Preparation of Prospectus – The company will then prepare and release a prospectus. This aims to be the definitive document relating to the launch and will describe the offer in detail. Applications to buy shares in an IPO should always be made on the basis of the information contained in the prospectus

3. Sale of shares – The company and their advisers invite applications for the shares. The IPO will be open for a fixed time known as the Offer Period

When will the share price be known?

In some cases fixed price offers are made and the investor will know the share price in advance. Alternatively the share price will not be known until the date the company floats. In some cases the company will provide an indicative range for the flotation price of the shares e.g. £2.00 to £2.20. The precise price won’t be fixed until near the listing date and may depend on demand for the shares. Once the share has floated on the open market, the price will the rise and fall as all other shares do.

Why would investor want to get buy shares at IPO?

An IPO allows investment in a company when it first enters a stock market.

When will shares go on sale?

The timetable for an IPO generally spans four weeks. An Intention to Float announcement is made and then around two weeks later the prospectus is issued and the offer period starts. It is during this period investors can apply for shares.

Where can investors get a prospectus for an IPO?

Interested investors should contact a stock broker who will be able to register your interest in receiving a prospectus. In some cases a stock broker will provide research and updates as information becomes available. For example, Hargreaves Lansdown has been involved in the majority of IPOs over the last 30 years.

How do investors buy IPO shares?

Investors can buy IPO shares through a stockbroker. A share dealing account should be opened and money deposited to buy the shares. This can be done online or over the telephone using a debit card, or alternatively a paper application accompanied by a cheque can be used.

How many shares can investors buy from an IPO?

There is normally a minimum number – If the offer is oversubscribed investors may not be able to buy all the shares they want to buy. If this is the case the balance of money can be used to buy other shares or can be refunded.

Can investors buy IPO shares through an ISA, SIPP or Junior ISA?

In some cases money in an ISA, SIPP or Junior ISA can be used to buy IPO shares. This depends upon which market the company is listing upon and the type of IPO.

What dealing costs are paid?

Buying IPO shares is often free for investors.

Hargreaves Lansdown’s charges are as follows:

IPO share purchase Free

Share account charge Nil (Other charges to hold shares may apply e.g. in ISA and SIPP (ISA – 0.5% capped at £45 a year, SIPP – 0.5% capped at £200 a year).

Selling IPO shares will be subject to a dealing charge from £5.95 and no more than £11.95 (online).

Buying IPO shares after the offer period, when the shares are available in the market, will be subject to a dealing fee of no more than £11.95 (online) plus stamp duty of 0.5%.

Is there a minimum holding period? How quick can an investor sell?

There is no minimum period, but generally it takes 3 working days from the date of the float to issue the shares and selling cannot practically happen before then.

How will investors be able to sell IPO shares?

This is easy. Simply choose when and how many to sell, and execute the deal online or alternatively instruct a sale over the telephone. Dealing online is almost always cheaper than dealing over the telephone.

Will there be a dividend from IPO shares and if so, how will they be paid and when?

This depends upon the company. The prospectus will normally detail any proposed dividend policy.

How will investors find out if there are any special discounts or shareholder perks?

If there are any, they will be detailed in the prospectus

What are the risks?

The value of shares will fall as well as rise, so investors may get back less than they invested. Dividends are not guaranteed and, if paid, are variable. During the period between the Intention to Float being announced and the start of the offer period, the intention may be withdrawn. This rarely happens.

A company which is the subject of an IPO may not have a long track record and could be difficult to value or calculate a fair price. In many IPOs investors do not know the share price before committing to buy and therefore may end up buying at a higher price than they wished.

Investors should read the prospectus and any supplementary documentation as this will include the main risks of investing.

Last minute ISA Ideas for 2012/13 Tax year

Posted on March 27, 2013 by Frostie

· ISA ideas for different types of investors

· 14% of all HL ISAs opened in the last week of the tax year

· HL Opening Times

Adrian Lowcock, senior investment manager at Hargreaves Lansdown offers his ISA ideas as this year’s deadline approaches:

“In the last two tax years 14% of all new ISAs opened on the Hargreaves Lansdown Vantage platform were opened in the last week. Make sure you take out your ISA as once the tax year ends you have lost that allowance. To take out an ISA all you need is your national insurance number, debit card and cleared funds in the bank.”

Income investor

Invesco Perpetual Distribution – This fund aims to provide a regular stable income this fund invests in a mix of bonds and income-producing equities. Approximately two-thirds is invested in corporate bonds with the remainder invested in equities. Income is its primary aim and it makes payments to investors monthly.

Defensive investor

Newton Real Return – This fund is for investors who may need access to some of their capital in the medium term (but still in at least 5 years’ time). It therefore tries to offer some sheltering of capital and aims for more modest growth. The manager invests in a variety of assets and uses sophisticated techniques to try to profit from assets which fall in value.

Medium Risk investor

Troy Trojan – This fund is defensively managed and provides the potential to achieve a reasonable level of return over the medium term with a little less volatility than the very long-term, more aggressive portfolios.

Long-Term investor

CF JM Finn Global Opportunities – This suggestion is for investors with a long time horizon. Therefore the focus is on more risky areas with greater potential to build wealth over the long term.

Junior ISA / Investing for Children

Lindsell Train Global Equity – The managers invest in global equities and have a long term buy and hold approach. This compliments those investing for children who often have very long-term goals in mind.

Hargreaves Lansdown end of tax year opening hours

Monday 25 – Thursday 28 March 8am – 7pm

Easter Bank Holiday weekend every day 9am – 6pm

Tuesday 2 April 8am – 8pm

Wednesday 3 April 8am – 8pm

Thursday 4 April 8am – 8pm

Friday 5 April 8am – Midnight

ISA deadlines

Stocks & Shares ISA

Online Friday 5^th April – 23:45 www.hl.co.uk/ISA

Telephone Friday 5^th April – 23:55 0117 900 9000

Postal Friday 5^th April

Bed & ISA

Funds on Vantage Wednesday 3^rd April – 17:00

Shares on Vantage Friday 5^th April – 12:00

Funds/ shares certificated Wednesday 3^rd April

ISA Contribution limits

2012/13 2013/14

Stocks and Shares ISA £11,280 £11,520

Junior ISA £3,600 £3,720

Tax year end: last minute pension planning tips

Posted on March 25, 2013 by Frostie

Investors are urged not to forget the ‘forgotten’ allowances
Falling annual allowance emphasises the importance of making hay while the sun shines
50% tax relief is only available until 5^th April
Bed and Sipp

Use your earnings related pension contribution allowance. For the past three years, we have seen a steady erosion in pension contribution allowances, with both the annual and lifetime allowances being cut. Both the Liberal Democrats and Labour have threatened to go further and limit the rates of tax relief available on pension contributions. If you have spare capital which you are looking to invest for your retirement, then it makes sense to get on and do it before 6 April.

Tom McPhail, Head of Pensions Research “Pensions are sometimes the forgotten allowance at this time of year when attention tends to be focused on ISAs, but with retirement saving tax breaks coming under increasing pressure from the Chancellor, wise investors will make hay while the sun shines. If you don’t use the allowances now, you may not get the chance next year.”

Non-earner’s pensions

It makes sense to share household retirement savings to take full advantage of the tax free personal allowance in retirement. Non-earners can contribute up to £3,600 a year to a pension and enjoy tax relief on their contributions. With personal allowances set to rise to £9,440 in 2013/14, a couple in retirement could enjoy a household income of nearly £19,000 a year without having to pay any tax – but only if they have shared their pension saving equally between them.

It is also possible to make pension contributions for your children – an effective way to give them a head start on their own retirement saving, as well as reducing a potential inheritance tax bill.

Bed and Sipp

Use existing investments to make a pension contribution. Even if you don’t have cash available to invest in a pension, you can potentially use other investments.

For example: Peter has some shares which he bought 10 years ago for £10,000. Today they are worth £15,000. He sells the shares, realising a gain of £5,000, which falls within his Capital Gains Tax allowance of £10,600. He invests the proceeds in his pension and immediately repurchases the share portfolio within his Sipp. As well as having now sheltered his investment within a pension for tax purposes, he also benefits from immediate tax relief of £3,750 which is added to his pension. If he is a higher rate taxpayer Peter can claim a further £3,750 after the end of the tax year.

Take advantage of the 50% tax rate.

For the (un)lucky few who pay 50% income tax, it makes sense to invest in a pension before the end of the tax year. Any contributions made from 6 April onwards will only be eligible for relief at 45%. If using carry forward as well, this could mean up to an additional £10,000 in tax relief.

Carry forward unused relief to boost contributions. If you have the capital to spare, then provided you also have the earnings to justify the contribution, it is possible to carry forward unused pension tax relief from up to 3 years ago. This means it is possible to make a pension contribution of up to £200,000, which for a 50% tax payer could then result in up to £100,000 of tax relief.

Plan ahead for flexible drawdown.

You’re not allowed to make any pension contributions in the same tax year in which you start flexible drawdown. So anyone planning on using flexible drawdown may want to top up their pension with any final contributions before 6^th April – any contributions after that date could mean having to wait up to another 12 months before getting full access to their pension funds.