FAQs

Financial Services & Wealth Management FAQs

Click on the questions below to reveal the answers

Which is the best ISA?

Which is the best ISA?

Which is the best ISA, may seem a simple task. It quicky becomes more difficult once you discover that it is what is inside the ISA that counts. If you invest in a stocks and shares ISA, the value of the funds within will go up and down daily. At Woodward Financials, we use an active investment approach that has proven, in difficult market conditions, to give returns that would satisfy many investors that sought out the best ISA performance.

The best investment funds today are not likely to be the best in two- or three-month time, this is why an active investment approach champions a passive investment approach.

What is an ISA?

An ISA (or Individual Savings Account) is a tax-efficient way of saving money. You can save or invest any amount up to your annual ISA allowance each year, dividends are tax free along with income producing investments, exempt capital gains and tax-free interest.

Find out more about ISAs by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best pension?

Which is the best Pension?

Which is the best pension, Retirement will probably be the biggest thing you will ever need to save money for and choosing the best pension provider for your individual circumstances could save you thousands of pounds over time.

Decisions such as platform provider, fees and fund choices can all have a significant impact on your pension pot. At Woodward Financials, we use an active investment approach that has proven, in difficult market conditions, to give returns that would satisfy many investors that sought out the best pension performance.

What is a pension?

A pension is a place where you, and your employer (if your workplace is providing the pension) can pay into. You then get tax relief at your highest marginal income tax rate on each contribution, which helps you save for your retirement. To explain this in more detail:

  • Basic-rate taxpayers get 20% pension tax relief
  • Higher-rate taxpayers can claim 40% pension tax relief
  • Additional-rate taxpayers can claim 45% pension tax relief

In practise, this means that if you are a basic-rate taxpayer and contributed £100 from your salary into your pension, it would only cost you £80.

When you reach retirement age, you can draw money from your pension in several ways. The idea is that this pot of money should be sufficient to provide you with a comfortable standard of living until death.

There are limits to your tax-free contributions such as 100% of your earning in a year, £40,000 a year and the lifetime allowance currently £1,073,100

Many people assume that a pension is just something for older people to be concerned about, but this is entirely untrue. As with all investments, the earlier you start to save for your future, the longer your money is invested which means you can reap the reward of compound interest. As we all know, people are living longer and so it is more important than ever to ensure that you are setting aside sufficient provision for your retirement.

Find out more about pensions by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best investment bond?

Which is the best Investment Bond?

Which is the best investment bond seem an easy task. It quickly becomes more difficult once you discover that it is what is inside the investment bond that counts. If you invest in an investment bond the value of the funds within will go up and down. At Woodward Financials, we use an active investment approach that has proven, in difficult market conditions, to give returns that would satisfy many investors that sought out the best investment bond performance.

What is an investment bond?

An investment bond is a single-premium life insurance policy which is usually used to hold investments in a tax-efficient way. Investment bonds have tax rules that determine how they work and when you might have to pay tax. Investment bonds give you the potential for medium to long-term growth on your money, usually over 5-10 years or more.

Some investment bonds require a minimum investment term and may apply charges for cashing the investment bond early. It is therefore of utmost importance that you can afford to put your money away for the medium to long term before choosing to invest in an investment bond.

Find out more about investment bonds by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Venture Capital Trust?

Which is the best venture capital trust?

Looking for a venture capital trust can be a minefield and a decision to not take lightly, speaking to a financial adviser is a good start.

What is a venture capital trust (VCT?)

A venture capital trust raises money from wealthy or experienced investors and uses it to invest in innovative companies. When you invest in a Venture Capital Trust, you become a shareholder of the trust itself, rather than the individual companies that the trust invests in.

The government offers generous tax benefits for people wishing to invest in a Venture Capital Trust, which reflects the high-risk nature of the companies being invested in.

Find out more about Venture Capital Trusts by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Seed Enterprise Investment Scheme?

Which is the best SEIS?

Searching for an SEIS that will give you a healthy return is like searching for a needle in a haystack, however if you do feel this is the right investment for you we can aid in your search.

What is a seed enterprise investment scheme (SEIS)?

The Seed Enterprise Investment Scheme (SEIS) was introduced in 2012 by HMRC to help small, early-stage companies raise funds through investors. The idea is to help smaller businesses raise money and grow.

You can claim relief on up to £100,000 invested through the scheme per annum and SEIS companies can be invested in directly or through a SEIS fund. As these kinds of firms tend to be riskier than established firms, the tax reliefs you can claim are greater than those offered by schemes such as the Enterprise Investment Scheme (EIS).

Find out more about SEIS schemes by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Structured Products?

Which is the best structured product?

Looking for the best structured product, we can help, structured products can be complex so it is always wise to speak to a financial adviser to make sure it is the right investment for you.

What is a structured product?

The term structured product broadly refers to fixed term investments that link their pay out to the performance of a particular index, such as the FTSE 100 or to shares in specific companies. This means that the amount you receive back from your initial investment will depend on the performance of the underlying asset.

Structured products are sometimes invested in by people who are looking for alternatives to deposit or savings accounts. When you invest in a structured product, you invest your money for a set period of time, such as five years, and at the end of the term, you get a lump sum.

Find out more about Structured Products by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Life Insurance?

Which is the best life insurance?

Looking for the cheapest life insurance can be a minefield; we listen to your needs and present the right policy for you whether it be for an individual life insurance policy or group life insurance policy. Without life insurance in place how quickly would this affect your family or families of your employees if they died. Life insurance is one of the cheapest insurance policies but there is more to life assurance than opting for the cheapest, such as should it be in trust?

What is life insurance?

Life insurance allows you to leave money behind for your family when you die and can be used in circumstances such as paying off an outstanding mortgage, covering the lost income or simply supporting them financially for a number of years.

When you take out life insurance, you pay a monthly premium. The cost of the monthly premium is determined by factors such as your age, lifestyle, general health and how much cover you need.

Find out more about Life Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Critical Illness Insurance?

Which is the best critical illness insurance?

Looking for the cheapest critical illness insurance, do not know where to start, we listen to your needs and present the right policy for you whether it be for an individual policy or group policy. Without critical illness insurance in place how quickly would this affect your family or families of your employees if they suffered a critical illness, take the worry away and avoid spirally debts and adverse credit, one thing to note is all critical illness are not included in the cheapest policy, a man may have the cheapest critical illness policy, but it may not cover prostate cancer. This is where we come in to get the right policy for you at possibly the cheapest cost.

What is critical illness cover?

Critical illness cover is designed to pay a lump sum if you are diagnosed with a specific critical illness which is covered by your policy.

Being diagnosed with a critical illness can have a severe and lasting impact on your finances as you may need to take time off work for treatment and recovery. A critical illness policy can help to minimise the financial burden on both you and your family and allow you to focus on your recovery. It may even allow you the time to downsize, relocate or change occupation.

Find out more about Critical Illness Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Income Protection Insurance?

Which is the best income protection insurance?

Looking for the cheapest income protection insurance can be a daunting task, we listen to your needs and present the right policy for you whether it be for an individual policy or group policy. Without income protection in place how quickly would this affect your family or families of your employees if they are unable to work. Take the worry away and avoid spirally debts and adverse credit.

What is income protection?

One of people’s biggest worries is not being able to pay their bills if they are unable to work due to an accident or illness. This is especially true in the current climate with the ever-increasing cost of living.

One of the ways that you can protect yourself from this is by taking out an income protection policy. This way, you’ll receive a regular, tax-free replacement income, enabling you to pay your bills. This leaves you safe in the knowledge that you and your family will be financially secure whilst you are unable to work.

Find out more about Income Protection Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Family Income Benefit Insurance?

Which is the best family income benefit insurance?

Looking for the cheapest family income benefit insurance can be a minefield; we listen to your needs and present the right family income benefit insurance policy for you. Without family income benefit insurance in place how quickly would this affect your family if a parent was to die while the children are still financial dependent. Family income benefit insurance is one of the cheapest policies and something that should be considered. This can also be put in place for a loved one, if the spouses pension benefits would be insufficient on your death?

 What is family income benefit?

Family income benefit is a type of term life insurance policy. Unlike most other life insurance policies, it pays out a regular tax-free monthly income rather than lump sum if you die during the term of the policy. It is designed to replace the policy holders lost earnings or the income needed by the family.

Find out more about Family Income Benefit Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Mortgage Protection Insurance?

Which is the best mortgage protection insurance?

Looking for the cheapest mortgage protection insurance, is straight forward but there are many different elements to consider, such as the monthly wage into the household, especially if you have children. Without insurance in place how quickly would this impact your family. A decreasing term mortgage protection insurance policy is one of the cheapest protection policies, meaning that you may be able to afford a wider range of insurance to cover you for any number of unforeseen events in the future, whether it be health insurance, income protection or unemployment.

What is decreasing life insurance?

Decreasing life insurance is also known as mortgage life insurance. It is a type of type of term life insurance which decreases over time and is designed to help your loved ones pay off a mortgage or similar long-term loan if you die during the policy term.

Find out more about Mortgage Protection Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Mortgage Payment Protection Insurance?

Which is the best mortgage payment protection insurance?

Which is the cheapest mortgage payment protection insurance, having this type of policy would have given huge peace of mind during the pandemic, but is this the right policy for you.

What is mortgage payment protection insurance?

Mortgages are usually your biggest monthly outgoings and if you were left unable to work due to illness or redundancy, you would still need to be able to make your payments or be at risk of losing your home. Mortgage payment protection insurance provides a monthly benefit to allow you to continue paying off your mortgage and will generally pay out a set amount each month for up to two years.

Find out more about Mortgage Payment Protection Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Whole of Life Insurance?

Which is the best Whole of Life insurance?

Looking for the cheapest Whole of Life insurance can be a minefield; we listen to your needs and present the right Whole of life policy for you. Without Whole of life insurance your estate and beneficiaries may be more inheritance tax than they would without the protection of a Whole of Life policy?

What is whole of life insurance?

Whole of life insurance guarantees that an insurance provider will pay out a lump sum to your family or beneficiaries whenever you die, so long as you continue to pay your premiums. It is for this reason that it is generally more expensive than other term life insurance, which will only pay out if you die during the term of the policy.

Find out more about Whole of Life Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Business Protection Insurance?

Which is the best business protection insurance?

Looking for the cheapest keyman or best business protection policy can be a minefield, we listen to your needs and present the right policy for you. Not only can we put a policy in place for your current situation but also the unknown. How quickly will a bank turn off credit or call in your company overdraft if they discovered a director/key person critical to the business was to become seriously ill, the answer is immediately.

What is business protection insurance?

Business protection insurance helps businesses to plan for the unexpected and provides a financial safety net for your company in case shareholder, partner or key individual dies. Critical illness cover can also be added to pay out in case of a key individual suffering an illness such as a heart attack or stroke.  This ensures that your business continues to run and aims to minimise disruption. Business protection insurance can also be used in other circumstances such as repaying an outstanding loan. Put simply it is life insurance or critical illness cover for the life of either someone crucial to your business or your business owners.

Find out more about Business Protection Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Private Medical Insurance?

What are the benefits of having private medical insurance? also referred to as health insurance.

Avoiding National Health Service waiting lists is a big driving factor as to why people buy private medical insurance (PMI), since the pandemic, waiting list have increased exponentially, having private medical insurance gives peace of mind that that a delay will not worsen your medical condition.

Private medical plans are affordable but do increase with age, getting rapid access to expert medical care for any number of reasons such as heart disease, cancer, pregnancy and many more conditions could be money well spent, especially when you can be seen quickly and treated at the earliest opportunity.

Find out more about the benefits of having Private Medical Insurance by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Tracker Mortgage?

Which is the best tracker mortgage?

Looking for the cheapest tracker mortgage may not be as easy as you would think, taking into account fees, rates and economic climate. Speaking to a financial adviser before committing to a tracker mortgage is worth a call, as there maybe alternatives mortgages that you may not have considered.

 What is a tracker mortgage?

A tracker mortgage is a type of mortgage where the interest rate you pay is linked to an external rate, usually the Bank of England base rate. The lender also adds on a set percentage on top. The Bank of England Base rate is reviewed eight times a year, so a tracker mortgage has the potential to change eight times per year, although this is very unlikely.

Most lenders that offer tracker mortgage apply a collar, which is the minimum rate you will pay, regardless of what the Bank of England base rate does. Some lenders will also offer a cap, which is the maximum interest rate you will pay, although interest rates tend to be higher where a cap is offered, because of the security that comes with it.

Find out more about Tracker Mortgages by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Fixed Rate Mortgage?

Which is the best fixed rate mortgage?

Looking for the cheapest fixed rate mortgage may not be as easy as you would think, taking into account fees, rates and how long you should fix for. Speaking to a financial adviser before taking a fixed rate mortgage offer is worth a call, is inflation rising or likely to fall, should you put a larger deposit down are just some of the questions you may want answering.

What is a fixed rate mortgage?

A fixed rate mortgage is a type of mortgage which guarantees that the interest rate will remain the same for a fixed period of time.

This can offer you peace of mind as you know exactly what your mortgage repayments will be throughout that period, as they are guaranteed to remain the same. This is different to tracker or standard variable rate mortgages, in which interest rates can go up or down throughout the term.

Find out more about Fixed Rate Mortgages by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Buy-to-Let Mortgage?

Which is the best buy to let mortgage?

Looking for the cheapest buy to let mortgage may not be as easy as you would think, taking into account fees, rates and minimum rentals. Speaking to a financial adviser before embarking on becoming a landlord is certainly worth a call, as there maybe alternatives investments that you may not have considered.

What is a buy to let mortgage?

If you would like to buy a property as an investment and have the intention of not living there and collecting rent, then you will not be able to fund the purchase through a conventional mortgage. Instead, you will need a specialist type of mortgage, known as buy to let mortgage.

Most buy to let mortgages are interest only, meaning that you will only pay the interest each month and none of the capital. Whilst this helps to keep repayments low, you will need to have a plan in place to repay the balance at the end of the term. Some people choose to put the rent money away each month to pay off the loan at the end of the term, whereas others may simply sell the property to cover the cost.

Like all mortgages, buy to let mortgages come with varying terms and rates, so it is really important that you find the best deal, as it could save you thousands of pounds over the years.

Find out more about Buy-to-Let Mortgages by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Home Reversion Plan?

Which is the best home reversion plan?

Which is the cheapest home reversion plan, as an independent financial adviser I see this as a last resort product, we explore all other option before suggesting this as a solution.

What is a home reversion plan?

A home reversion plan allows you to sell a stake in your property in return for a cash lump sum, whilst retaining the right to live in it for the rest of your life. You give up a percentage of your property in exchange for cash, which is based on its current value, but the ultimate cost is based on your properties value at the end of the deal.

An example would be if you sold 40% of your property, the provider would get 40% of the sale price of the property. Generally, you can sell between 25% and 100% of your property to a provider, but the amount of cash you get in return will generally be less than market value. This is because you do not pay interest on the money and the provider cannot sell the property until you either move into residential care or pass away. During this time, house prices may rise or fall and so the provider takes this into account when calculating how much you will get.

As with a lifetime mortgage, generally, the older you are, the more of your property you will be able to sell.

Find out more about Home Reversion Plans by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Lifetime Mortgage?

Which is the best lifetime mortgage?

Which is the cheapest lifetime mortgage, as an independent financial adviser I see this as a last resort product, we explore all other option before suggesting this as a solution.

What is a lifetime mortgage?

A lifetime mortgage is the most popular type of equity release which allows you to borrow some of your home’s value at a pre-determined interest rate, which is usually higher than those on standard mortgages. The loan is repaid when either you sell your home or go into long-term care.

With a lifetime mortgage, you can usually borrow between 18 and 30% of the value of your home and generally the older you are the more you can borrow.

The amount you owe the provider will grow with the addition of interest. Some providers will give you the option to pay off the interest as you go to stop the compounding effect, whereas others will not and so you will end up paying more overall.

Find out more about Lifetime Mortgages by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Annuity?

Which is the best venture Annuity?

Looking for the highest paying Annuity? We can help you with that, even though buying an Annuity is not as popular as it once was, purchasing an Annuity is still right for some people.

What is an annuity?

One of the most important decisions when you retire is how to make sure your pension pot gives you sufficient income to last you for the rest of your life. One of the options available to you is to swap your pension pot for an annuity. This is a type of insurance that allows you to trade your pension pot for a guaranteed regular income for the rest of your life.

Find out more about Annuities by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Things to consider when making a Will?

Preparing to write a will?

Children

If you have minor children, you can appoint Guardians in your will. The appointment would normally only take Effect after the death of any surviving Parent.

If your children are to receive money or property under your will, would you want them to inherit at the age of 18, or would you prefer the age of 21 or 25?

If you have children from a former relationship, your estate can be left to your spouse or partner during their lifetime and after their death, your children will inherit. You can control the ultimate destination of your state in this way.

Find out more thing to consider when making a will by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which Power of Attorney?

Different types of power of Attorney?

Which power of Attorneys are there, from time to time clients of Woodward Financials approach us with the need to appoint someone to look after your affairs. If for whatever reason, you are unable to do so yourself. Perhaps you are going abroad, and things will need to be looked after while you are away or you are concerned about illness or mental capacity.

Your spouse, partner or next of kin does not automatically have legal authority to deal with your financial or personal affairs which is why a power of Attorney can be so useful.

If you have a power of Attorney and at some point in the future you suddenly become ill or suffer an unexpected accident, your attorney will be able to step in and look after everything until you recover. If you lose mental capacity, it would be too late to appoint an Attorney after that time.

After mental capacity has been lost, the Court of Protection may need to be involved in making decisions on your behalf unless there is a lasting power of attorney in place or an older style known as an endearing power Attorney.

In this way a lasting power of Attorney can significantly ease the administrative burden on family members, especially in the event of loss of mental capacity.

Find out more about Powers of Attorney by clicking the button below (the page will open into a new tab).

FIND OUT MORE

What is Probate?

What is probate?

A Grant of Probate is a document which confirms that the executors have the legal authority to deal with the deceased’s estate. Probate will be granted to the people named in the Will as Executors or the person appointed by the Court if there is no will. From time-to-time Woodward Financials do lose clients through illness or natural causes and the below is a great help when a family goes through this difficult time.

Without the ‘Grant of Probate’ you may not be able to sell or deal with the assets. The procedure which is often referred to as “Probate” mean identifying and gathering in all the money and other assets of the deceased person, paying off any debts and distributing their estate. This is referred to as “administering the estate”.

Find out more about Grant of Probate by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Which is the best Business Loan?

Which is the best business loan?

Looking for the cheapest business loan? we can help, we work with a range of loan provider to make sure the right solution fits your needs.

What is a business loan?

A business loan is a way for businesses to access funds. Most business loans will allow you to choose how much you would like to borrow and what period of time you would like to pay it back over. Lenders will then charge the business interest on the loan.

Find out more about business loans by clicking the button below (the page will open into a new tab).

FIND OUT MORE

Live your best life

We focus on your financial needs and aspirations. Offering you the best wealth management service to help you preserve and manage your future. Giving you the time to focus on the important things in life.