Frequently Asked Questions

The first question clients need to ask is, “How do I choose the right financial adviser?” Anyone can advertise themselves as a “financial advisor” but that does not necessarily indicate education or experience.

Here are the most frequently asked questions we receive from our prospective clients:

How Does Equity Release Work2021-06-10T12:58:31+00:00

Usually, equity release is packaged as a lifetime mortgage. This is a loan that is secured against your property. When you die or move into long-term care your home will be sold (or the debt bought by a family member) and the money will be used to pay off the loan and accrued interest. The contractual specifics depend on the package and the lender. Your advisor will be able to walk you through the equity release process in a way that is easy for you to understand.

Who Qualifies for Equity Release?2021-06-10T12:56:31+00:00

In order to qualify for equity release you must be a homeowner, and the property must be kept in good condition. Providers will also want to ensure that there is nothing outstanding, or a plan to clear the remaining borrowing. Equity Release typically requires the client to be at least 55 years of age, though some schemes may require you to be older.

How Much Could I Release?2021-06-10T12:54:53+00:00

This depends on a number of factors, including the age of the youngest homeowner, the value of your property and whether you have any pre-existing health conditions. Keep in mind that you should only initially release the money that you need. The more you borrow, the more interest you are charged and need to repay. Speak to an independent equity release advisor to learn how much you could release from your property.

Is Equity Release a Good Idea?2021-06-10T12:53:41+00:00

The answer to this depends on your specific circumstances, which is why you should always speak to an advisor first. For some, equity release is a great idea as it allows them to enjoy the later years in their life with extra cash. In addition, releasing money from your home by equity release is tax-free. It will however reduce the value of your estate, and it can also affect means-tested state benefits like pension credit or council tax reduction. 

A certified and experienced financial advisor will be able to advise you whether you should release equity or not.

Is it Necessary to Form a Plan with a Financial Advisor Shrewsbury?2021-06-08T11:43:22+00:00

People with a plan are much more likely to achieve their objectives. This is because it helps people focus on the tasks required to achieve the objective and to identify the obstacles that need to be overcome. Your finances determine a lot of your choices in life, so achieving your financial goals is clearly very important. With the aid of an expert Financial Advisor in Shrewsbury, you stand the best chance.

What Will a Plan Look Like with a Financial Advisor in Shrewsbury?2021-06-08T11:43:55+00:00

Every financial plan is unique and created around your needs. Typically, our financial advisors in Shrewsbury focus on your most pressing and important needs first. In terms of the scope of what is covered, we have developed a unique financial planning process that covers a number of key areas:

● Goal Planning
● Financial Forecasting
● Financial Organisation & Budgeting
● Emergency Funds
● Financial Protection
● Tax Planning
● Saving & Investment Planning
● Retirement Planning
● Debt Management
● Inheritance Planning
● Family Financial Planning

Do I Need a Financial Advisor Shrewsbury to Implement my Asset Allocation?2021-06-08T11:44:24+00:00

Within the industry, we know that the failure rate of this type of arrangement is a lot higher than one may think (Approximately 80%). Through our years of vast experience, our financial advisors in Shrewsbury have shifted our approach on this topic and believe that working collaboratively is key to success.

What Type of Client Would LG Embrey Like to Work With?2021-06-08T11:44:48+00:00

Finding the right fit for your financial planning needs is absolutely critical, and finding the right fit for client relationships is essential for us as well. Our ideal client is fun to work with and we are interested in you as a person, both personally and professionally, allowing us to get a better understanding of you and how we can help.

Our ideal client understands that the reason that they are coming to us in the first place is that they are not an expert and want to work with financial advisors in Shrewsbury to develop and implement a thorough financial plan. We also know the importance of having ongoing rebalancing and monitoring of these investments.

Do Financial Advisors Shrewsbury Form a Plan?2021-06-08T11:45:11+00:00

Financial planning looks at a person’s overall financial picture. Our financial advisors Shrewsbury will often ask a prospective client to participate in an extensive questionnaire to understand his or her financial needs and goals.

Our financial advisors Shrewsbury will usually put together a detailed, short-term 5-year plan designed to improve the client’s overall financial position. That may be followed by a long-term plan, along with suggestions about how to save and invest for retirement and a child’s college education (where applicable) at the same time.

Financial advisors Shrewbury will also look at ways to reduce current and future tax liabilities and protect assets by having the proper life, health, disability and long-term care insurance coverage in place. Finally, our financial advisors Shrewbury will also make suggestions from a real estate perspective.

Why Should I Hire a Financial Planner to Manage My Money?2021-06-08T11:45:49+00:00

Our financial advisors Shrewsbury will be able to connect all of the financial dots to provide you with an overall plan to meet your financial goals. Our financial advisors Shrewsbury have training and experience in various kinds of financial products and financial aspects of your life – equities, bonds, insurance, taxes, and estate planning – to make the right recommendations for your personal situation. A financial advisor Shrewsbury can also save you thousands in tax deductions and find higher-yielding investment products at little or no extra risk.

When is the Right Time to Contact a Mortgage Advisor in Shrewsbury?2021-06-08T11:46:08+00:00

Involving a mortgage advisor early on in the application process maximises our opportunities to help you, and allows you to reduce the risk of frustration, disappointment, and rejection while searching for a mortgage. In short, the earlier you contact a mortgage advisor, the better!

We’ll help you to understand what you can afford, so the information we give will ultimately dictate the price range of properties you can look to buy. If you’ve already got your heart set on a new home before speaking to an advisor, there is every possibility that you may have overestimated what you can afford, rendering your choices unsuitable. This can be deeply demoralising and frustrating, not to mention a waste of your time.

And it’s not just your price range that we advise on. We’ll also offer a more comprehensive understanding of the other costs involved in the application process: things like mortgage account fees, arrangement fees, booking fees, legal fees, local authority fees, and more.

Speaking to a mortgage advisor in Shrewsbury early in the process is recommended for the best experience and results. Contact us today or at your next earliest convenience for professional advice.

Will you Take my Individual Circumstances into Account?2021-06-08T11:46:26+00:00

Yes. Before showing you the products available, our Shrewsbury based mortgage advisor will take time to understand your individual circumstances. This helps us to find a deal that works for you and your family. We’ll assess what you can realistically afford and offer advice accordingly. If we aren’t confident that you could comfortably afford repayments for the duration of the mortgage, we won’t recommend that product.

In order to give tailored, comprehensive advice on mortgage products directly suited to your individual circumstances, our mortgage advisor will look to understand your situation and needs. With this information, the challenge of choosing the right mortgage becomes that little bit easier.

We’ll start the process with an extensive conversation with you to establish what you are borrowing for, what your budget is, and any individual circumstances that may affect your ability to borrow. Keep in mind that the more information we have, the more we can personalise the deal to you!

Are Comparison Sites Just as Good as Using a Mortgage Advisor?2021-06-08T11:46:53+00:00

No. While comparison sites may be useful for conducting some initial self-research, they aren’t nearly as sophisticated as the specialist mortgage search tools designed and used by our advisors.

As a leading mortgage advisor in Shrewsbury and the surrounding areas, we have access to exclusive deals which are not generally available to the public directly. Unlike arranging your car insurance, finding the right mortgage deal requires thorough expertise and detailed knowledge of the financial markets and of each lender’s specific underwriting criteria. Small differences in rates can result in huge differences in repayments, so there are substantial consequences if you get even a small detail wrong.

Above all else is the personal service that our mortgage advisor in Shrewsbury can provide you with. There is a lot of complex paperwork involved in the mortgage process that we will expertly complete for you. This is something that you can’t do with just a comparison site.

How can a Mortgage Advisor in Shrewsbury Help You?2021-06-08T11:47:09+00:00

Our mortgage advisors in Shrewsbury act as the middleman between the lender (banks and building societies) and the borrower (you). We are completely independent meaning that we act in the interests of the borrower and not the lender, while offering the widest possible consumer protection.

In the past, you might have been able to speak to your bank manager about getting a mortgage, but this is less common nowadays. Additionally, unlike banks, our mortgage advisors provide advice from products across more than one lender, offering a much wider choice.

As qualified mortgage specialists, it’s our responsibility to search the mortgage market to find you the best and most suitable product for your circumstances. Choosing to take on a mortgage is one of life’s big decisions and we are the authoritative experts on the subject; let our mortgage advisor in Shrewsbury, Shropshire help you to make the right choice.

When Should I Start Planning for Retirement?2021-06-08T11:47:22+00:00

It’s never too early to start preparing for retirement. Really, it should be something you consider from when you have your very first job. Enrolling in the company’s pension scheme is a vital first step, and from then on it’s important to keep track of your contributions and overall pot so you know whether you’re on track for the retirement you want.

Naturally, the closer you get to retirement age, the more attention you’ll pay to it. You’ll need a clear overview of your current pension savings and an idea of what you’ll do with your pot when you retire – will you opt for an annuity, for example, or is income drawdown your preferred method of securing a retirement income? Are you considering equity release in order to boost your cash reserves, or perhaps you want a retirement interest-only mortgage to repay an existing commitment?

Whatever option you’re considering, having the right support is key. Call us today to speak to a retirement planning specialist in Shrewsbury.

Tax considerations when preparing for retirement

There are a lot of tax considerations to think about in your retirement planning. Such as how to ensure you’re saving in the most tax-efficient manner (ideally through making the most of tax relief in a workplace pension, and/or utilising an ISA), as well as the tax implications of withdrawing your eventual pension income.

You’re free to withdraw 25% of your pension savings as a tax-free lump sum, after which any further withdrawals over your annual income tax allowance (either via drawdown or an annuity) will be taxed at your nominal rate. The exception to this is if you choose to forego the lump sum and instead want to use your pension savings more like a bank account, in which case 75% of each withdrawal will be taxable with the other 25% being tax free.

When it comes to tax considerations for retirement, the best way forward is to seek professional retirement planning advice. Contact us today for retirement planning in Shrewsbury.

How Much Will I Spend in Retirement?2021-06-08T11:47:37+00:00

This will vary for everyone, but most people’s spending remains at around the same level as pre-retirement. You might notice a change in your spending in the following areas:

  • Changes in the amount of travel spending
  • Costs for any care needs
  • Changes in your housing costs, possibly based on downsizing or paying off your mortgage
  • Expensive new activities or hobbies (e.g. golf, shopping, etc)
What do I Need to Consider for Retirement Planning in Shrewsbury?2021-06-08T11:48:02+00:00

The first step is to decide what you really want to achieve financially. Financial goals might include early retirement, travel, a holiday home, protecting your family’s financial future, planning for the care of elderly relatives or building a family business.

Some common things to consider are:

  • Planned Spending (living expenses and any large one-time expenses)
  • Financial Assets and Liabilities
  • Retirement Income Sources

As specialists in retirement planning in Shrewsbury, speaking to us is the best way to get an accurate picture of what your retirement finances will look like.

Do I Have Enough Money to Retire?2021-06-10T13:09:54+00:00

The amount needed to retire will differ for everybody, depending on their individual (and family) requirements. While some may have enough money to retire comfortably whenever they please, most of us are not in that situation, so retirement is something that needs to be planned carefully.

Some might use spreadsheets for planning, which can offer a false sense of security because they assume a consistent return on investments each year. There are too many variables, such as one-time inflows/outflows, inflation, and the variability of investment returns. The best projections are created using retirement planning software that can run hundreds or thousands of scenarios, using randomized investment returns. This type of retirement planning will give you a range of outcomes: the median (most likely) outcome, and the probability of success (i.e., not running out of money).

If you’d like help with retirement planning in Shrewsbury to know if you have enough money to retire, get in touch with our team.

Can I Gift My House to My Children to Reduce Inheritance Tax?2021-06-10T13:10:27+00:00

The answer to this isn’t straightforward. In order to avoid the IHT liability, the gift must be made with no strings attached. If the gift has conditions, or you benefit from the home in some way such as continuing to live there, it will be known as a “gift with reservation of benefit” and will remain subject to IHT. There are, however, ways to avoid such a benefit but these are complex and so we would recommend seeking professional advice from us to discuss your particular circumstances.

When Should I Seek Assistance with Inheritance Tax Planning?2021-06-10T13:10:46+00:00

When it comes to inheritance tax planning, the sooner you do it, the better. If you delay making plans for a number of years, your options could potentially be reduced, and costs could be increased. For example, making a gift to a beneficiary could potentially reduce or eliminate your IHT bill. However, you have to survive a minimum of seven years for this to take full effect, otherwise IHT may be payable on the gift.

Act now by getting in touch with our team here in Shrewsbury to discuss Inheritance Tax Planning.

What is the Residence Nil Rate Band?2021-06-10T13:11:12+00:00

The residence nil rate band has been gradually introduced since April 2017. This is added to your existing threshold. The initial allowance was £100,000 in 2017, then it was raised to £125,000 in 2018/19. It will be £150,000 in 2019/20 and the final amount will be £175,000 in 2020/21. This new allowance will only apply if you want to pass your home to a direct descendant like a child or grandchild, therefore not everyone will be able to take advantage of it.

When added to your existing threshold, this could potentially give you an overall allowance of £500,000 if you are single or divorced, or £1 million if you are married or in a civil partnership.

How Can I Reduce Inheritance Tax?2021-06-10T13:11:36+00:00

There are numerous ways that you can reduce or even avoid IHT. Tax legislation constantly changes and evolves, and so up-to-date financial advice is always required to ensure your plans are tailored for your particular circumstances and wishes.

We provide a specialist Inheritance Tax Planning service to help you protect your assets in the case of your death.

Who Pays the Inheritance Tax?2021-06-10T13:11:50+00:00

If there’s a will, it’s usually the executor of the will who arranges to pay the IHT. If there isn’t a will, it’s the administrator of the estate who does this. You can pay IHT from funds within the estate, or from money raised from the sale of the assets.

In actuality, most IHT is paid through the Direct Payment Scheme (DPS). This means, if the person who died had money in a bank or building society account, the person dealing with the estate can ask for all or some of the IHT due to be paid directly from the account through the DPS.

The liability will typically need to be paid within six months from the date of your death, and failure to settle the bill will result in interest being charged by HM Revenue & Customs. Once the liability has been paid, your executors can apply for a Grant of Probate which will allow them to legally access the rest of your assets.

Once the tax and debts are paid, the executor or administrator can distribute what remains of the estate.

How Much Inheritance Tax will I Have to Pay?2021-06-10T13:12:15+00:00

Inheritance tax is calculated at 40% of the value of the possessions over and above the IHT thresholds. The rate may be reduced to 36% if 10% or more of the estate that is above the threshold is left to charity. So if the value of your estate is above the NRB, then the part of your estate above the threshold might be liable for tax at the rate of 40%.

As an example, if your estate is worth £525,000 and your IHT threshold is £325,000, the tax charged will be on £200,000 (£525,000 – £325,000). The tax would be £80,000 (40% of £200,000).

What is the Inheritance Tax Threshold?2021-06-10T13:12:28+00:00

Currently the IHT threshold is £325,000 for an individual and £650,000 for a married couple or civil partners. If a person is widowed, it might still be £650,000 depending on how much of the allowance was used when their partner passed away.

What is Inheritance Tax?2021-06-10T13:12:38+00:00

Inheritance Tax (IHT) is a tax payable on the value of a person’s estate when they die. It is paid if the value of their possessions (their estate) exceeds their IHT thresholds (also known as nil rate bands) and exemptions. If your estate is large enough to incur Inheritance Tax, you can reduce or even avoid it in a number of ways with the help of a financial adviser.

If you are married or have a civil partner, then you can leave your entire estate to your spouse or partner free of inheritance tax. But if you want to leave some or all of your estate to family and friends, then it may be liable for inheritance tax.

What is an Independent Financial Advisor?2021-06-10T13:12:49+00:00

An independent financial adviser in Shrewsbury, Shropshire is a professional person who offers independent advice on financial matters. The advice that is given to clients is based on the independent financial adviser research that will be carried out and also a full review of the current financial market.

Typically an independent financial adviser in Shrewsbury will conduct a detailed survey of a client’s financial position, preferences and objectives; this is sometimes known as a fact find. The independent financial adviser in Shrewsbury will then recommend appropriate action to meet the client’s objectives, and if necessary recommend a suitable financial product to match the client’s needs. An independent financial adviser will always make sure that the plan is suitable for the client based on their personal circumstances.

An independent financial adviser in Shrewsbury will also advise both individuals and businesses. They may be consulted for such matters as investment, insurance, retirement planning, protection and mortgages (or other loans). Independent financial adviser in Shrewsbury also can advise on some tax and legal matters.

How Do I Find an Independent Financial Advisor in Shrewsbury?2021-06-10T13:13:06+00:00

We first recommend checking out an independent financial advisor in your local area, enter independent financial advisor in Shrewsbury, Shropshire as see who comes up.

Before choosing an independent financial advisor in Shrewsbury, we always recommend arranging a short meeting with them, see if they would be a good fit for you. When meeting the independent financial advisor, we advise you to take financial information with you.

You can take savings, mortgage and insurance paperwork as well. Before attending the meeting, make sure you know what you want and what your goals are.

The last bit of advice we would give is to ask a lot of questions, do your research and know what you want to achieve. If you are looking for an independent financial advisor in Shrewsbury, then why not give us a call today?

What are the Benefits of Getting Independent Financial Advice?2021-06-10T13:13:26+00:00

If you choose to buy an investment product based on financial advice and a recommendation, you should get a product that meets your needs and is suitable for your particular circumstances.

Depending on the type of adviser you use, you might also have access to a wider range of choices than you’d be able to assess realistically on your own.

You also have more protection if things go wrong if you buy based on advice. For example, protection would be given where unsuitable advice was given, or your adviser is found to have not acted in your best interests. Similarly, non-advised investors would also be protected if they were misled or mis-sold a product.

Types of Financial Advisers2021-06-10T13:13:36+00:00

Our independent financial adviser in Shrewsbury offers services ranging from general financial planning and investment advice to more specialist advice, such as the suitability of a particular product such as a pension.

In the case of investment products, some advisers are ‘independent’ meaning they offer advice on the full range of investment products from the market or a specific market segment (e.g. pensions), while others offer a ‘restricted’ service meaning that the range of products or providers they will look at is limited.

If you have any more questions about the types of Independent financial advisers in Shrewsbury, Shropshire, then get in contact with us today.

Why Financial Planning is Important?2021-06-10T13:13:49+00:00

The financial planning service we offer helps you pinpoint the most important things to you in life. With our financial planning service, we can help you identify and achieve your desired lifestyle by implementing a plan on how you can get there.

Using our cash flow modelling forecasts we can look at your current financial situation and then your desired income in retirement and this modelling will help us put in a realistic plan in place.

Here is a list of common things that are most important to our clients are:

  • To spend your time how you want
  • Reassurance and security of financial independence and have a destiny in your own hands
  • To have time to travel and visit different parts of the UK or the rest of the world
  • To be your own boss and the freedom that comes with this

But there can be many more reasons than this and it’s good to think about the things that are most important to you. Take some time and speak to us with some ideas and goals that you want to achieve.

Once we have got a good idea of your objectives and the things that are important to you, we’ll look at any potential stumbling blocks that could get in the way that might stop you from achieving your long term financial plan. Our independent financial adviser in Shrewsbury, Shropshire will work closely with you annually to help you achieve your goals, we feel this is important as even the best plans can be disrupted by everyday life, and this is a chance to see if the financial plan is on track.

What do Independent Financial Advisers in Shrewsbury, Shropshire Do?2021-06-10T13:14:05+00:00

It is the role of the independent financial adviser in Shrewsbury to carry out a detailed analysis of your financial situation. We may ask you questions about:

  • Your circumstances?
  • What you hope to achieve and how?
  • How much risk you are able and prepared to take with your investment.

After speaking to you and better understanding your financial situation, we would recommend financial products that are suitable and affordable for you.

Arrange a personal consultation

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