Meridian Financial Management

To help provide valuable information on a host of subjects we have included a number of Financial Guides. These guides are designed to provide you with generic information. If you require more specific information or advice on your own particular situation please contact us. 

Savings
Most people recognise that it is wise to save a part of their income on a regular basis, to achieve their short or long term goals or to meet future income needs.
There are a number of different products that may be suitable for your savings. You can compare the terms offered by different companies through our financial planning services. We examine the interest rates offered by banks and building societies, and this allows you to check your savings are obtaining the best possible interest rates. Other savings opportunities, such as Unit or Investment Trusts and Life Assurance Endowment policies may be appropriate for your savings needs. However, these products are normally only suitable if you intend to save for a long period.
All governments recognise how important it is to encourage people to save and they normally achieve this by offering tax incentives on a whole host of savings products. These incentives range from reduced levels of Income Tax on Deposit Accounts for most taxpayers through to tax efficient investment growth on products like ISAs.
Equity based investments do not afford the same capital security as a deposit account.
Note: the effects of inflation can reduce the spending power of any savings or investments you choose to make. You should take these effects in to account in any long-term plans. Additionally, the value of some savings or investments plans can vary and even reduce in value. If you need an explanation of the risks involved with any savings plan please contact us.

Investments
Whether it’s because you've won money on the lottery or built up a tidy nest egg by saving on a regular basis, your money should be wisely invested so that its spending power is protected for the future. Leaving large amounts of money on deposit in banks or building societies may not be the best long-term answer.
Although these accounts are seen as the traditional safe haven, recent years have seen interest rates being reduced sharply and deposit accounts may not now even be keeping the value of your money in line with changes in retail price inflation.
Many people recognise that to achieve better long-term protection for their money against the effects of inflation, it is often worth considering 'equity' related investments. These are ones that are linked to changes in the value of company shares. You could gain access to the 'equity' markets either directly through buying shares or indirectly by investing in investment products such as Unit Trusts, Investment Trusts or perhaps even a Life Assurance policy.
Equity based investments do not afford the same capital security as a deposit account.
Please note past performance is not a guide to future performance.
We can provide access to information on many of the available investment products. If you are considering 'equity' related investments it is important to remember that the value of your investment and the income generated from it may fall as well as rise and that there is no guarantee you will get back more than you invested.
 
Online Banking
The opportunity to access Banking facilities via the Internet was first made available in 1990 by the Wells Fargo Bank in the United States of America. It was not until May 1997 that similar facilities were introduced to the UK by the Nationwide Building Society. Since that time other providers have launched banking facilities via the Internet and many millions of people have opened accounts with the online banking providers.
Many customers were first interested in these new services due to the highly competitive products offered by this new section of the banking sector. The product offerings have in the past reflected the lower running costs that the new Online Banking organisations have over the other banks that have a large branch network.
Attractive product offerings are not the only reasons some people have decided to change their banking arrangements. Internet banking offers a new level of control over your money. Those with Internet banking facilities can quickly and easily move money between accounts, which sometimes mean they can achieve better investment returns with their cash.
Internet banking customers also benefit from being able to pay their bills at a time that best suits their lifestyle, whether or not they choose to log on during normal banking hours.

Retirement
Most people recognise that it is wise to plan for their retirement. This is especially true for those who are hoping to retire before the usual State Retirement ages.
Putting aside a regular amount of money during your working life is probably the best method to ensure that you will have sufficient income during your retirement. Investing into a Pension plan has historically been the most popular method of making these regular commitments. The tax advantages offered by the UK Government provide the opportunity for your Pension Fund to grow with virtually no tax. You are also currently allowed to draw a significant amount of your pension fund as a lump sum with no tax payable. (NB. The levels bases and relief's from taxation may be subject to change).
We can explain the differences between the various types of pension arrangement, whether you are employed, self employed or taking time away from day to day working perhaps as a carer or to raise your children.
It is becoming increasingly popular for people to use other methods of saving money for their retirement, such as ISA’s. If you would prefer to use arrangements other than Pensions please refer to the sections of this website dedicated to Savings or Investments.

Personal Loans
Whether you are considering the purchase of a special gift, looking to pay for a holiday, carrying out home improvements or about to buy a new car; it is likely that you will need to borrow money in order to complete your transaction. When the loan is only for a short term, normally no more than five years, it will probably be established as a Personal Loan.
Personal Loans are normally provided by a bank, building society or specialist finance company. However it is common that when buying a large item, that retail shop will have arrangements with a finance company so that they can offer you credit facilities.
When considering Personal Loans the lending institutions will normally offer loans between the range of £1,000 to £25,000. Although many place a restriction on the maximum amount they are willing to loan at £15,000.
The high number of different loan types available on the market make it important for you to compare the terms, especially interest rates, under as many different loan products as possible.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Credit Cards
Put it on plastic. This is what the advertising slogans suggest and there is certainly no lack of choice on whose plastic to use. There are Credit cards, Charge cards, Debit cards or Store cards being offered by hundreds of different organisations, the choice is potentially mind-boggling.
You should consider carefully which of the cards best matches your needs. To do so you will need to take into account your personal circumstances. For instance do you intend to repay the whole of the outstanding balance at each payment date? The answer to this could be important when you decide between a Charge or Credit card.
You might also like to note that the use of Store Cards can be an expensive experience and you need to consider the interest rates charged very carefully.
Although the organisations that issue Credit cards tend to be part of one of the two major Credit card networks, e.g. Visa or Mastercard this does not mean that the terms and charges of the individual cards are identical. These differences have encouraged a number of people to consider transferring to a new provider.
If you have an outstanding Credit card balance, why not consider using our user-friendly calculator to see whether it would be better to arrange a Personal Loan to replace the outstanding credit card balance.

Wills
Surprisingly some people believe that by arranging a Will they will somehow hasten their death. There is no scientific evidence to back these beliefs. However there is plenty of evidence that not arranging a Will could mean the deceased person's assets are passed to the 'wrong' people. Alternatively and in addition the value of their estates could become subject to unnecessary Inheritance Tax.
Those people that die without having drafted a valid Will are considered to have died 'intestate'. In this situation the law lays down a standard set of rules for the distribution of their assets.
It is worth pointing out that dealing with the estate of a person who has died intestate can be very complicated. This is particularly true when the person has children, even grown up ones.
A Will can be prepared in a matter of hours with average costs starting at around £100. The potential savings from this initial outlay could be significant, as administration costs when dealing with your estate would be reduced and also Inheritance Tax planning schemes/arrangements can be put into place. You are strongly advised to consider drafting a Will. Should you need assistance please contact us and we can help you further.