DIY InvestorMagazine
/
March2014
6
‘MONYAMICKLEMAKSAMUCKLE’
Welcome to the
firsteditionofDIY
InvestorMagazine
– theelectronic
publication
dedicated toself-
directedsavingsand
investment.
DIY InvestorMagazine
is designed to
educate those new to
savings and investment as well as inform experienced
investors – it unites a community of DIY investors and
encourages crowd sourced decisionmaking.We save
becausewe have to – lifestage events such as tuition
fees, weddings, property purchase and retirement are all
far less traumatic if they are seen as keymilestones on a
structured financial journey.
Our core ethos is found in the archaicNorthern or
Scottish saying ‘mony amicklemaks amuckle’ – i.e. many
small things combined over a long period of time create a
larger thing – does what it says on the tin.
WHATATIMETOLAUNCH!
TheGovernment’s Retail Distribution Review (RDR) has
brought pricing transparency and certainty to a previously
murkyworld of hidden commissions and bungs.
Those advisers that have chosen to take the newQCF
Level 4 qualifications are now obliged to declare the
fees they charge and far from achieving one of its core
objectives of delivering universal access to good quality
financial advice, up to 5.5million adults in theUK have
fallen into an ‘advice gap’ by dint of either refusing to pay
for what was previously a ‘free’ service or being cast aside
as unprofitable by their adviser.
A recent survey byDeloitte indicated that up to 2.2
million of these ‘orphaned’ clients will take partial or
total control of their financial affairs. Education and
engagement is the absolute key to ensuring that this
growing band of DIY investors are empowered tomake
the informed investment decisions that will shape their
financial future.
Long term saving into a tax-efficient ISAwrapper is one of
the key components in aDIY investment strategy and this
edition is intended to deliver a clarion call to action as the
tax year draws to a close – it’s ‘ISA season’ and if youmiss
the deadline the 2013/14 tax-free allowancewill be lost to
you forever.
WHAT
ATIMETOLAUNCH!
GeorgeOsborne’s 2014 Budget speech delivered the biggest
shot in the arm to savers and investors in livingmemory and
drove a coach and horses through the pensions industry. As
well as removing the 10% rate of tax on savings, Osborne
announced that from 1st July savers would be able to invest
in a “NISA” – a new ISAwrapper that allowsmore flexibility
in terms of its combination of cash and stocks and shares –
with annual contributions of up to £15,000.
Junior ISAs received a boost with an increase in the annual
allowance to £4000 and in the biggest shake up of all,
subject to parliamentary decree, theoretically it will be
possible for savers to take their entire pension pot at age 55
and seek investments that will deliver a better return than
themeagre yields that have been delivered by annuities in
recent years.
It really is an exciting time to become aDIY investor and
by delivering education and content from industry experts
wewill bewith you every step of theway. Over timewe
will look at setting financial objectives, explain various
investment types, look at some techniques to help you to
construct andmonitor your portfolio and explore issues
such as tax and retirement planning.
If you have any topics youwould like us to consider in
future issues, would like to contribute or join the debate,
wewouldwelcome your thoughts to
. Alternatively to Steve
Haysom at
