Be Prepared and Be Protected!

We never know what’s around the corner, we certainly didn’t foresee this current economic lockdown. It’s not healthy to worry about everything that could go wrong in life, but it’s sensible to have safeguards in case they do.

For instance, it’s pretty unlikely your house will burn down, but the consequences if it happens could be disastrous, so you take out house insurance. In the same way, if you’re wise, you’ll be putting money away for your retirement, but what happens if, for some reason, you have to stop working and therefore earning? If you’re under 55, you can’t draw from your pension, so what will you and your family live on?

Is it time to make a considered decision to protect your income? Maybe you’ve just signed up for a mortgage; maybe financial responsibilities are solely down to you? 

For younger savers, those who are some years away from retirement, we advise them to look at income protection insurance. This is particularly important if they have children who are still dependent on them.

Let us give you an example of real-life scenario, in which we have changed the name of the client: Richard Longford, in good health, married and with two young children. Richard set up an income protection policy in 2000, paying a monthly premium of nearly £11. Three years later, after a pay rise, he took out an additional second policy with a monthly premium of £13. As permanent health insurance is capped as a percentage of earnings, it can be cheaper to take out an additional policy. Additionally, this was set-up to pay the premiums through Richard’s business and is classified as a business expense.

In 2014, when Richard was in his mid-50s, he had an accident and suffered a serious head injury and is unlikely to be able to work again. At Reeves, we learned of Richard’s situation in December of that year and immediately offered to help and began to look at whether a claim was possible under the income protection policy.

Following Reeves involvement, the insurance provider accepted the claim and agreed to date payments back to the time of the original claim. Now Richard receives more than £900 a month under the two policies and this will continue for the next ten years.

If taking out an income protection insurance policy, Reeves will work with you to determine the level of income your family would need in the event of you being unable to work. Call us during this time of lockdown to get these ‘to do’ jobs done.

For younger savers with families or, clients who have the main financial responsibility of their household, this is a major consideration for your financial planning and Reeves will be happy to advise. Insurance doesn’t stop bad things happening, but it can help cushion the blow.


These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.

Everybody Needs Will Power

This period of lockdown has pushed many of us to consider our own mortality. Many clients, in conversation with us over the past 5 weeks, have brought up the topic of reviewing or making a will.

Most people understand the importance of making a will, that it’s the way to ensure their wishes are carried out after their death. Unfortunately,​ there’s a tendency for many to think that this does not apply to them or it’s another one of those jobs that they’ll ‘get round to’.  You may find yourself with a bit of extra thinking time at the moment, so why not put some thought to your will.

For example, there’s a common belief that if you’re married, you don’t need to make a will, but that’s a misconception that can lead to problems.

At Reeves, we had a client, Terry Robson, name changed,  who wanted to leave all his assets to his wife, Lorna, but he didn’t see the need for a will as he believed that, by law, everything would automatically go to her in the event of his death. We pointed out to him that this is not the case.

In the UK, the law says that if you die intestate – without leaving a will – while the first £250,000 will go to your spouse, any excess over that will be split, with half going to the spouse and half to any descendants. Any joint owned property will be inherited by the spouse. In the case of Terry and Lorna, they had a 25-year-old son from whom they were estranged and to whom they didn’t want to leave anything.  As clients, they were able to discuss this with us and, thanks to our advice, Terry and Lorna both made wills which reflected their wishes.

For obvious reasons, people don’t like thinking about making wills and put it off. Don’t, because the law won’t necessarily do what you intended and leaving it until it’s too late could cost your loved ones dearly. Take action now and tick this off your to do list.

At Reeves Independent we provide a will writing service. We are well placed to advise you on the provisions of your will, particularly if you are a client, as we are already aware of your financial circumstances and family priorities. We can point out things that you might otherwise over-look and we can advise on the most tax efficient ways of tax planning when it comes to inheritance.

We will also store your will securely for you. Just make sure your family knows about this. We’re not only here for you now, but also for your whole family when needed.

Please be advised that the financial conduct authority does not regulate tax and will planning.


These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.

Investments: What can we control in a time of crisis?

Worried about falling investments?


Reeves’ core message is do not panic, we have faced economic turmoil and pandemics before; in the long term the portfolios and the markets will recover. The question is: how long it will take for the markets to bounce back? This is something we do not know and cannot control. What we can control is the asset allocation; funds selected, and the level of risk taken.

Reeves has a plan in place, we have been more conservative in our decision making in the past few years. Our portfolios have been set-up where we have been overweight in cash and safer assets such as bonds for some time; because of this our portfolios haven’t dropped as significantly when we compare ourselves to the FTSE 100 & other UK Advisers. 

As you may know, Reeves has started to execute the plan and we have made our first batch of changes to capitalise on ‘buying cheap’ for Tactical clients. This is to capitalise on assets that have dropped significantly; we have confidence in these holdings and believe they will perform over the long term. Now is an opportune time to purchase, it is the best buying opportunity we have had in recent history. 

If markets continue to fall, or, if we see opportunity for you to benefit, we will send you a new proposal. The investment team are meeting daily and making calls as to what we do next for each client bank whether they are – Adventurous / Balanced / Cautious, or, Retired, 5 years to retiring or 20 years to retiring!


These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.

Here for you now

Reeves: Here for you in a time of need


Coronavirus has brought an unprecedented period of uncertainty, anxiety and a level of disruption that will affect clients and businesses across the globe. At Reeves Independent we are working to keep our staff and your finances safe, and remain wholly committed and capable to continue to support you through these challenging times.

Our staff are already enabled to work from home with the same level of effectiveness as in an office environment. Our telephone, email and digital platform is fully cloud-based keeping communication with us straight-forward and effective.

You, possibly more than ever, need reassurance and expert advice to cope with financial disruption and difficult financial decisions. To this end we are closely monitoring coronavirus developments across the globe, and have been reviewing our business continuity plans, to ensure our service levels will be maintained. We can run our entire business using this new operating model for as long as is necessary, and do not expect any disruption to our service.

Please do get in touch with us, no matter how minor you feel your financial problem may be, and you can contact us as normal and be absolutely assured that we will be doing our very best to ensure our excellent service levels are maintained during these difficult and unprecedented times.


These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.

Make the Most of Your Extra Day

One day that could save you thousands.


We thought we should remind you that on February 29th, 2020 we have an extra day, and it’s on a Saturday! Just think how you could use those additional 24 hours, (suggestions welcome in the comments below). However, if you find yourself with time on your hands, why not use it to start getting a grip of your finances and even prepare yourself for the end of the tax year on April 5th. As the saying goes, ‘use it or lose it’.

Why should you take advantage of this? It gives you another 24 hours before the end of the tax year on April 5. If you’re saver paying UK tax, April 5 is probably the single most important date in the year, because, by making full use of all your allowances before that date you can potentially save yourself thousands of pounds.

For retirement planning, if you’re still working, the most important of these is the personal pension allowance of £40,000. You can pay this amount into your pension scheme in any given tax year and receive a generous bonus from the taxman in the shape of 20% tax relief. This means that HMRC will add £8,000 to your £32,000 contribution – and potentially double that, if you’re a higher rate tax payer.

Not only that, but if you haven’t used your allowances for up to the previous three years, this is your last chance to take advantage of them. If you haven’t paid in anything this year, or for the previous three years, you could pay in up to £160,000. This means that if you make a contribution of £128,000, the taxman will top it up with another £32,000.

Also, if you’ve already reached retirement and have no earned income, you can still contribute up to £4,000 gross a year to your pension and benefit from the tax relief.

Not only that, but if you haven’t used your allowances for up to the previous three years, this is your last chance to take advantage of them. If you haven’t paid in anything this year, or for the previous three years, you could pay in up to £160,000. This means that if you make a contribution of £128,000, the taxman will top it up with another £32,000.

Also, if you’ve already reached retirement and have no earned income, you can still contribute up to £4,000 gross a year to your pension and benefit from the tax relief.

You also have a personal annual ISA allowance of £20,000. Within the shelter of an ISA, any dividends, interest or capital growth are income tax and capital gains tax free. They can be an attractive savings vehicle, particularly if you’ve used all your personal pension allowance. You can contribute up to £20,000 to your ISA or ISAs in any tax year, but this allowance can’t be carried forward.

Of course, you also have your personal income tax allowance of £12,500. If you’re drawing down your pension, make sure you have made full use of this year’s allowance and – as with all allowances – don’t forget to ensure your spouse makes full use of their allowance too.

Finally, there’s a annual Capital Gains Tax Allowance of £12,000, which could be relevant for some people.

With low interest rates, savers are seeing historically low rates of return on their investments and this means that these bonuses from the taxman can be the equivalent of several years of returns earned purely by your investments. No saver can afford to neglect them.

The tax year ends on April 5, but don’t leave it until the last minute to take advantage of these personal tax allowances. At Reeves, we will be only too happy to advise you on how these allowances can best be used in your own personal circumstances, but do try to get in touch with us before March 20. Remember, you have an extra 24 hours this year – make the most of it.

Reeves Independent offers a free review of your pension situation. Click the button below to get started.


These articles are for information only. These articles are based on specific clients and their situation may be different from yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.