‘Cashing In’ – 5 Ways to Make More from Cash Savings

Monopoly go

We all like to have a bit of money tucked away in case of emergency. Expecting the unexpected is a sensible approach to take – having the money to pay for urgent repairs to your home, to have on hand for any unplanned purchases or to dip into if planning a big holiday provides peace of mind.

However, how much cash do you really need to keep in reserve?

If you’re receiving a regular income from working or drawing down from a pension, your cash funds can quickly accumulate. Upon review, we sometimes find that clients have cash funds well in excess of even a generous emergency fund!

We all know that interest rates on cash are pitifully low at the moment. Here are 5 ways in which you can better use surplus cash reserves.

Explore your ISA options

Although lots of people like the straightforward nature of cash ISAs, there are now so many more options to consider. If you are under 55 and still working, you might want to consider a Lifetime ISA.  Alternatively, if you anticipate saving for more than 5 years, a stocks and shares ISA is statistically likely to deliver a return on investment.  These can also be a good bet as any growth in the value of the shares, or any income you receive, is tax-free. If you’d like to put some money aside for younger relatives, JISAs can be good savings vehicles.

Remember that any contributions made into an ISA held in your name count towards your annual £20,000 ISA limit.

Investments

Investing directly in the stock market comes both with risks and potentially significant rewards. The markets have enjoyed a good run over the last 12 – 18 months, delivering generally strong returns.  Whilst investing in the markets can be a bumpy ride, especially to the unexperienced investor who lacks access to all the tools a professional analyst has, the long-term results speak for themselves. However, due to volatility in the markets, if you want the flexibility of accessing your money in the short term, investing in the stock market may not be the best route to take.

Top up pensions

Personal pension contributions can significantly reduce income tax liability. There are a number of ways in which tax relief can be achieved but, most commonly, basic rate tax at 20% is automatically claimed from HMRC by your personal pension provider and added to your pot.

If you’re a higher or additional rate taxpayer, you can claim further tax relief from HMRC.

Business cash

Cash doesn’t only mean money sat in your personal account – if you have a business, large amounts of cash in your business account could be put to good use. For example, making either regular or lump sum payments into a pension rather than drawing down as dividends has many positive outcomes. Not only can you save income tax , you are also moving money into an environment free from Inheritance Tax.

Spend it!

Yes, you heard us right! Having a ‘saving’ mindset is commendable, but not if it’s to the detriment of enjoying life while you can. After all, money is only one source of wealth – experiences and living a fulfilled life is another (arguably better) one.

To discuss any of the above strategies, please contact your usual adviser.

This entry was posted in Financial Planning. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • CPD training for professionals

    Gresham Wealth Management is one of the few financial planning firms in the North West that are registered to deliver CPD training. Committed to supporting fellow professionals with their ongoing professional development and understanding of key financial planning measures, our team have delivered training to over 350 accountants and solicitors in the region. Not only do these sessions help to keep you and your team ‘in the know’ on current legislation, they also help to identify potential benefits to your firm and your clients. Get in touch with us to discuss arranging a tailor made session for you and your team.
  • Keyman Protection

    The death or prolonged illness of a key employee can put your business under financial strain. Keyman insurance compensates a business for the financial loss brought about by death or long term illness of a key employee.

    It provides a valuable cash injection to the business which can help with a potential loss of turnover and/or to provide funds to replace the key person.

  • Shareholder/Partnership Protection

    One of the great risks of a partnership or limited company is that one of your colleagues may die, with their share of the business passing to someone else. That person may have little interest in the business or be unable to meet the requirements of running the business. Equally a partner or shareholder who suffers a serious illness may not want to continue in the business after treatment and look to be compensated for their exit from the business.

  • Personal Injury Trusts

    Without a personal injury trust in place, you can lose entitlement to present and future means-tested state benefits, including local authority contributions to the cost of long-term care. We offer simple, jargon free advice to check if a personal injury trust is required on receipt of a claim, generally at no cost to you.
  • Retirement Planning

    Retirement Planning is a complex area which means different things to different people. How you plan for retirement can be wide and varied, but it must be planned for well in advance.

    You may have existing pension plans in place, like a company pension or personal pension plan or perhaps you’re just starting to save. Whatever your situation, Gresham Wealth Management Ltd can provide the right advice to create a retirement plan that’s tailor-made for you.

  • Ask the Experts…




    captcha

  • Client Testimonials

    Before I chose Gresham I spoke to a number of IFA’s but none of them gave me the same confidence I had when I spoke to Morven. Everything, both written and spoken, is explained in an easy to understand way. All my pensions have been dealt with extremely efficiently and I am very happy with the service I have received from everyone at Gresham.
    We are both very grateful for the time you spent with us in explaining various options. We certainly feel we now both have a much better understanding of our situation & the decisions which we need to consider moving forward.
    I’m really impressed by how responsive you have all been to get this through against such a tight timescale.
    A very personalised service… All advice is tailored to my needs with great consideration to issues I may not have thought of myself. I feel confident about my future finances.
    My current investments are well on the positive side and I do thank you for your care and management of my financial affairs. I simply wouldn’t know how to manage them myself, and feel secure and confident knowing you are looking after these matters so professionally.
    The professionalism of your service continues to give me confidence that we are pursuing the optimum route with our finances. The sound advice you provide is more critical than ever in the current climate.
    Whilst my client’s situation is obviously very complicated, you made it very straight forward – quite an art!
    Morven’s guidance about pensions and investments has provided us with excellent returns, even during the recent turbulent financial times. She has been a helpful and friendly advisor for many years and we wouldn’t hesitate to recommend her.
    It’s lovely for us to have nice friendly advisors like Jonathan and Morven.
    On behalf of Walk & Talk Group, I would like to thank you for the most informative, enjoyable and appropriate presentation you gave. Members found the session of great value and very useful.
  • Twitter

  • Contact Details

    Telephone:
    0161 973 9150

    Fax:
    0161 941 6591

    Address:
    Cecil Court,
    28-36 Cecil Road,
    Hale,
    Altrincham,
    WA15 9PB

    Find Us

Main Menu