Lifestyle - Ludlow

BOOK REVIEW BOOK REVIEW Learn more about mind, body and spirit THE HAPPINESS CURVE: WHY LIFE GETS BETTER AFTER MIDLIFE BY JONATHAN RAUCH This books aims to change your life by showing you how life changes. Award-winning journalist Jonathan Rauch draws on cutting-edge research to demonstrate that from your 20s into 40s, happiness follows a U-shaped trajectory which is often a long trough of middle age before rising again in your 50s. Apparently, this downturn is a natural stage of life and also an essential one too. Jonathan uses his own story and those of others to show how to come through the other side with practical ways to endure the dip and navigate through the forest of midlife, a journey Jonathan says we must not take alone. n MINDSET – UPDATED EDITION: CHANGING THE WAY YOU THINK TO FULFIL YOUR POTENTIAL BY CAROL DWECK FEEL THE FEAR AND DO IT ANYWAY BY SUSAN J JEFFERS THE ART OF STOPPING TIME BY PEDRAM SHOJAI If you feel starved for time, there’s often very little This is a classic thought to have you feel you can actually do about it. New York Times changed millions of people’s lives bestselling author Pedram Shojai reveals what it takes Stanford University psychologist Carol across the globe. Internationally to stop time. Understand how and where we spend Dweck has discovered a truly ground- renowned author Susan Jeffers has time, recapture lost moments and uncover how breaking idea – the power of mindset. helped millions overcome their fears, harnessing the secrets of time can help take back the She explains that it’s not your abilities whatever it is that they are afraid of, control in your life. and talent which brings success, but and heal the pain in their lives. how we approach them. With the right mindset, you can Learn to live the life you want Pedram introduces a 100-day Gong ritual where a set amount of time is allocated each day to everyday and improve your ability to handle tasks in which you’ll find your mind is calmer reach your goals and accomplish in any situation. Feel the fear and and clearer and you have the space you need to every area of your life. n read it anyway. n accomplish what you want. This is time well spent. n LIFESTYLE 07

INVESTMENT WEALTH JOURNEY Planning your long-term investment objectives SELECTING THE MOST APPROPRIATE INVESTMENT PRODUCTS AND UNDERTAKING THE RIGHT PLANNING AT THE RIGHT TIME TO MINIMISE THE AMOUNT OF TAX YOU PAY ARE KEY TO ACCUMULATING WEALTH OVER THE LONG TERM. 08 LIFESTYLE

INVESTMENT B ut you also need to take into account that same investment. Albert Einstein said, your quality of life during retirement, general economic factors, business ‘Compound interest is the eighth wonder of it’s essential that you diversify to help conditions and political events, which the world. He who understands it, earns it you achieve your desired returns while he who doesn’t, pays it.’ managing risk. Basically, diversification are just some of the things that can cause uncertainty and volatility in the markets. Over means balancing the investments you REINVESTING THE INCOME FROM YOUR INVESTMENTS have in your portfolio among different Reinvesting income can be another major in a given economic situation, they don’t CASH SAVINGS VULNERABLE TO EROSION BY INFLATION factor in long-term returns for investors. You all go up or go down together. Some investors often think of cash as a safe compounding if you reinvest the income from haven in volatile times, or even as a source your investments to boost your portfolio value REDUCING YOUR OVERALL INVESTMENT RISK OVER TIME of income. But the ongoing era of ultra-low further. The difference between reinvesting The term ‘correlation’ is used to describe interest rates has depressed the return – and not reinvesting – the income from how one type of investment behaves available on cash to near zero, leaving cash your investments over the long term can be in relation to another. If two types of savings vulnerable to erosion by inflation enormous. Reinvesting income from your investment behave similarly, they are said over time. With interest rates expected to investments enables you to buy more shares to be positively correlated. If they behave remain low, investors should be sure an which will potentially grow in value and boost differently, they’re negatively correlated. allocation to cash does not undermine their your overall returns. In simple terms, your long-term investment objectives. returns also earn returns. any given time period, the economy can also go through a series of ups and downs. Investors who have left their cash in categories, classes and industries so that can make even better use of the magic of It’s important not to forget that volatility So, whether the market is bullish or bearish, maintaining a diversified portfolio is essential to any long-term investment strategy. A the bank may have missed out on the in financial markets is normal, and investors diversification strategy can help you achieve impressive performance that would have should be prepared upfront for the ups more consistent returns over time and reduce come with staying invested over the long and downs of investing rather than reacting your overall investment risk. n term. Of course, there are also reasons to emotionally when the going gets tough. invest conservatively – market volatility and Market timing can also be a dangerous preserving the funds you have, to name habit. Pullbacks are hard to predict, and just a couple. But there is also a trade-off strong returns often follow the worst between risk and reward. returns. But some investors may think they can outsmart the market, or they THE MORE RISK, THE MORE REWARD POTENTIAL let emotions push them into investment decisions they later regret. Investing is often said to be a long-term consider? Firstly, the more risk, the more DIVERSIFY TO HELP YOU ACHIEVE YOUR DESIRED RETURNS reward potential; the less risk, the less While markets can always have a bad day, reward potential. It’s ironic that minimising week, month or even a bad year, history market risk can increase the probability of a suggests investors are much less likely to long-term retirement income shortfall. suffer losses over longer periods. Investors Even missing out on a few years of need to keep a long-term perspective. The activity. Why is this, and what should you INVESTING FOR A BRIGHTER FUTURE We’ll find the right investment solutions for you, whether you want to create or maintain a lifestyle, build a legacy or fund a long-term goal. To find out how we can help guide your wealth journey, please contact us. INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE. saving and growth can also make an last ten years have been a volatile and enormous difference to your eventual tumultuous ride for investors, with natural THE VALUE OF INVESTMENTS AND returns. Compound interest is essentially disasters, geopolitical conflicts and a major INCOME FROM THEM MAY GO DOWN. interest on your interest, or, put another financial crisis. way, growth on your investment taking into consideration the previous growth on When it comes to creating an YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED. investment portfolio to help you maintain LIFESTYLE 09

RETIREMENT WHO WANTS TO BE A MILLIONAIRE? Getting there could be easier than you think – but you’ll need to start young PARENTS COULD MAKE THEIR BABY AN ADULT MILLIONAIRE BY STARTING A PENSION POT WHEN THEY ARE BORN. CHILDREN BORN THIS YEAR COULD BECOME MILLIONAIRES BY THEIR 43RD BIRTHDAY IF THEIR FAMILIES CONTRIBUTE TO A PENSION FOR THE FIRST 18 YEARS OF THEIR LIVES[1]. 10 LIFESTYLE

RETIREMENT T he analysis found that parents or the last thoughts to cross the majority of grandparents contributing 2,880 people’s minds. Yet, provided growth rates per year ( 3,600 after tax relief) until remain at current levels, it could make a their children turn 18 years old could create millionaire of a child born today by the time a pot of 1,021,837 by 2061. The figure they hit middle age from a relatively modest assumes a total contribution of 51,840, a 51,840 over 18 years. It’s the power of growth rate of 8% per annum, and is net of compounding interest in action. product charges. One of the biggest obstacles to passing on wealth tends to be the parents or SUBSTANTIAL POT OF CASH grandparents worrying that their younger This assumed growth rate may seem high, family members will ‘waste’ the money but data from Moneyfacts, the comparison on frivolous purchases. But pension website, showed that average returns contributions guarantee that their children from pension funds were 10.5% in 2017 won’t be able to use the proceeds until they and have seen double-digit growth for six are of pensionable age. ON AN AVERAGE 5% GROWTH RATE, THE CHILD WOULD BE A MILLIONAIRE BY THE TIME THEY RETIRE IN 2083 (65 YEARS OLD), WITH A PENSION POT OF 1,089,067. BY THE SAME MILESTONE, A GROWTH RATE OF 8% WOULD CREATE A PENSION POT OF 5,555,260. consecutive years. While lower growth rates reduce the TAX-EFFICIENT SAVINGS Source data return, they would still leave children with a If they don’t want to exert that amount of [1] Figures taken from Brewin Dolphin’s ‘Mind substantial pot of cash to help them retire. control, they can look at other ways too. the generation gap’ research, which included a Average growth rates of 2% and 5% mean Junior ISAs offer tax-efficient savings until a that, by the time the child reaches its 55th child is 18, albeit with no tax relief. However, birthday (2073), they would have a pot of if they want to be very specific about what 171,086 and 668,592 respectively. their money pays for, discretionary trusts are another option, keeping it vague about LOVED ONE’S PENSION who benefits and in what capacity. On an average 5% growth rate, the child For most parents, saving regularly is an would be a millionaire by the time they integral part of securing their child’s financial retire in 2083 (65 years old), with a pension future. Making regular contributions to pot of 1,089,067. By the same milestone, a child’s pension may not seem like the a growth rate of 8% would create a pension obvious choice. However, given the flexible pot of 5,555,260. nature of pensions and the tax relief offered Previous research found that very few by the Government, they can provide a very people would consider contributing to a simple way of securing children’s financial loved one’s pension – only 2% of over- future in retirement. n 55s said they would support a relative by putting money into a pension fund. By contrast, 68% said they would leave their family an estate when they pass away, compared with 34% who would help their family with ongoing gifts of any kind. COMPOUNDING INTEREST Despite its obvious advantages, contributing to a family member’s pension is one of detailed survey of 11,000 people. A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. PENSIONS ARE NOT NORMALLY ACCESSIBLE UNTIL AGE 55. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX MAKING THE MOST OF RETIREMENT SAVINGS Saving for a child today is a wonderful gift for their future. There’s no time like the present to take steps towards making the most of retirement savings for your children. To discuss your options, please contact us. LEGISLATION AND REGULATION, WHICH ARE SUBJECT TO CHANGE IN THE FUTURE. THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE. LIFESTYLE 11

ALDER HEY ALDER HEY Sarah Robinson joins leading hospital charity’s board SARAH ROBINSON, A SENIOR CONSULTANT AT LUDLOW, HAS BEEN APPOINTED TO THE BOARD OF A CHARITY FOR ONE OF EUROPE’S LEADING CHILDREN’S HOSPITAL. SHE JOINS ALDER HEY CHILDREN’S CHARITY AS DIRECTOR AND TRUSTEE AND WILL HELP GUIDE AND SUPPORT ITS VISION IN HELPING RAISE VITAL FUNDS TO ENSURE ALDER HEY CHILDREN’S HOSPITAL REMAINS A TRULY WORLD-CLASS, PATIENT-FRIENDLY HOSPITAL FOR THE 275,000 PATIENTS AND FAMILIES IT CARES FOR EVERY YEAR. F undraising plays a vital role in Alder an on-site magician, ward musicians, and Hey’s existence. Without the support play specialists on every ward. Its ground- of charitable donations, many of the breaking ward-based chefs programme outstanding facilities and innovations at ensures the hospital is delivering healthy Alder Hey could not be achieved. and nutritionally balanced food to all of its patients, each and every day. CUTTING-EDGE TECHNOLOGY Supporters have recently enabled the Since April 2013, the charity has raised over Trust to complete its 6 million appeal 43 million for a range of life-saving medical to build a new research and education equipment and facilities that are making facility, The Speakman Building, and the a real difference to families every day. charity remains committed to supporting It helps to fund a range of activities and cutting edge research at Alder Hey. 2006. Sarah said: ‘We know first-hand projects that are designed to enhance and The Hospital itself was founded in what a fabulous hospital Alder Hey is and improve the lives of the hospital’s amazing 1914 and has led the way in paediatric specifically the remarkable staff that have young patients. This includes the funding healthcare, from the early use of penicillin Max’s best interests at heart. Our family is of specialist medical equipment to ensure in children, to establishing the first neonatal indebted to the support and expert care its brilliant surgeons and clinical staff have surgery unit in the UK. he’s been given, and I’ve always wanted to the most up-to-date and cutting-edge get involved to help promote what fantastic work Alder Hey does. distraction technology designed and proven PIONEERING THE NEXT GENERATION to reduce pain and anxiety in patients. Sarah and her family are frequent visitors so many people who all have the same to Alder Hey, where her son Max has goal and that is to see Alder Hey improve been receiving corrective surgery since children’s health by using cutting-edge technology available and funding hi-tech The charity also funds a range of programmes and special projects such as 12 LIFESTYLE ‘It really is a privilege to work alongside

ALDER HEY technology and developing new ways to treat patients. I am really proud to be involved with the charity’s board, representing an organisation which is helping to pioneer the next generation of treatments and medicine.’ n If you would like to help Alder Hey Children’s Charity, please visit https://www.alderheycharity.org/ where you can make a donation online. From left to right: Hayley Thomas Head of Corporate Fundraising, Sarah Robinson Senior Consultant, Ludlow Wealth Management and Lynn Hitchen Acting CEO and Head of Operations Alder Hey Children’s Charity LIFESTYLE 13

INHERITANCE TAX KEEPING IT IN THE FAMILY Careful planning can reduce or even eliminate the Inheritance Tax payable INTERGENERATIONAL PLANNING HELPS YOU PUT FINANCIAL MEASURES IN PLACE TO BENEFIT YOUR CHILDREN LATER IN LIFE, AND POSSIBLY EVEN YOUR FUTURE GRANDCHILDREN, SO IT’S IMPORTANT TO START PLANNING EARLY. Y For estates worth more than 2 million, the tax relief is tapered away. There are legitimate ways to plan to reduce the amount of Inheritance Tax you may have to pay. We can advise you on the ways that you may mitigate any exposure, ou may want to keep an element debts and funeral expenses can be of control when passing on your deducted from the value of your estate. assets. You may want your money including these: MAKE A WILL as paying for school or university fees or LEAVE YOUR INTEREST IN THE FAMILY HOME for a first property deposit. Or you may Commencing 6 April 2017, an additional most of the Inheritance Tax exemption just want to make sure your money stays ‘residence nil-rate band’ (RNRB) allowance that exists if you wish your estate to pass within the family. was introduced if you leave your interest to your spouse or registered civil partner. in the family home to direct descendants For example, if you don’t make a Will, Tax could become payable on your taxable (such as children, step-children and/or then relatives other than your spouse or estate that you leave behind when you pass grandchildren). This only applies to your registered civil partner may be entitled to a away. Your taxable estate is made up of all main home but can be available even if that share of your estate, and this might trigger the assets that you owned, the share of any home had been sold after July 2016. an Inheritance Tax liability. to be used for a particular reason, such Without appropriate provision, Inheritance assets that are jointly owned, and the share Dying intestate, or dying without a Will, means that you may not be making the The RNRB is being phased in gradually. of any assets that pass automatically by For the 2018/19 tax year, the maximum MAKE LIFETIME GIFTS survivorship. Careful planning can reduce or additional allowance is 125,000, increasing Gifts made more than seven years before the even eliminate the Inheritance Tax payable. your total Inheritance Tax allowance to donor dies, to an individual or to a bare trust, 450,000 ( 900,000 for a married couple). are free of Inheritance Tax. So, it might be first part of the value of your estate – the The maximum allowance will rise by appropriate to pass on some of your wealth ‘nil-rate band’. The nil-rate band is currently 25,000 each tax year until it reaches while you are still alive. This will reduce the 325,000. If the total value of your estate 175,000 in 2020. This will give you a value of your estate when it is assessed for does not exceed the nil-rate band, no potential total Inheritance Tax allowance of Inheritance Tax purposes, and there is no Inheritance Tax is payable. Outstanding 500,000 or 1 million for a married couple. limit on the sums you can pass on. Inheritance Tax is not payable on the 14 LIFESTYLE

INHERITANCE TAX You can gift as much as you wish, and this is known as a ‘Potentially Exempt away but continue to benefit from it. This is you set up a trust, it is a legal arrangement known as a ‘Gift with Reservation of Benefit’. and you will need to appoint ‘trustees’ who Transfer’ (PET). If you live for seven years are responsible for holding and managing after making such a gift, then it will be LEA

LIFESTYLE magazine is published for Ludlow Wealth Management Group Limited by Goldmine Media Limited. All enquiries should be addressed to LIFESTYLE magazine, c/o Goldmine Media Limited, Basepoint Innovation Centre, 110 Butterfield, Great Marlings, Luton, Bedfordshire LU2 8DL. Your Finances Under Control