AMG Wealth Solutions

You may become distracted from your financial objectives due to the regular ups and downs within the market. Therefore, the key to success as an investor may be to have a strategic, long-term focus.

Here are some benefits to long-term investing 📈

✅ Additional time to meet your goals
- The longer you remain invested, the more time your money could have to potentially grow.
- Over a long period, you have time to recover from factors such as market downturns.

✅ Compound Returns
- The main method of compounding is through dividend payments, which can be reinvested into increasing numbers of shares over time.
- Over a long period of time the returns can make a significant difference because your portfolio goes through a snowball effect.

✅ Time in the market matters
- Time in the market gives you a sense of perspective.
- A long term approach in the market can help you invest when valuations are more attractive.

✅ Protection of Inflationary Forces
- Investments like stocks, which have a high risk profile and potential for large returns over time, provide you with a greater chance of being protected against inflationary influences.

Long-term investing is important because it is likely to result in significant wealth creation. If you would like investment advice, we can help you take a close look at your financial situation and recommend solutions tailored entirely to your needs and tax position. Please contact AMG Wealth Solutions.

Simple End of Tax Year Tips that you should consider 📝

As we approach the end of the tax year (5th of April 2023), it is important to ensure that all tax reliefs and allowances available have been utilised.

1. Maximise your ISA savings 💷
- The annual ISA subscriptions is £20,000 for 2022/23 and any unused amount cannot be carried forward.
- You can maximise your allowance by investing in your ISA, which is one of the most flexible tax-efficient saving plans available and you won't pay any Income or Capital Gains Tax on the profits or withdrawals that you make.

2. Use your Capital Gains Tax allowance 📈
- The 2022/23 annual Capital Gains Tax allowance is £12,300, which enables you to make capital gains on investments up to that amount tax free.
- Although the allowance cannot be carried forward into the following tax year.

3. Review your Pension ✍️
- Any tax relief's is based on the circumstances of the individual.

4. Take advantage of your Dividend Allowance 💸
- If you have the option to receive dividend income from your investment portfolio or from a business you are involved in, this allowance can assist you in generating an income that is tax-efficient.

Make 2023 less stressful by adopting efficient tax habits that will help you boost your financial well-being.

If you would like advice on tax planning, please contact AMG Wealth Solutions.

Easy Steps to Save Tax ⚖️

Do you feel you pay too much tax? Would you like to find ways to cut your expenditure during these uncertain times? While taxes remain one of life’s certainties, there are still a number of ways in which the government allows and even encourages individuals to mitigate their tax bills.

Below are just some of the many ways in which you can reduce the tax you pay:

1. Tax-free allowances 💷
Making the most of basic reliefs and allowances can help individuals receive over £28,000 a year free of tax. There are tax-free allowances for savings income, dividend income and capital gains as well as the basic income tax allowance.

Marriage allowance also benefits couples where one partner earns less than the personal allowance and you can transfer any unused personal allowance from the lower-earning partner to the higher earner, up to £1,250.

2. ISA’s⏳
Invest in an Individual Savings Account (ISA) is a tax-efficient savings account with an allowance of £20,000 per each tax year.

Lifetime ISA’s (LISA), help those under 40 save for retirement or to buy a home. This account will let you save up to £4,000 per year and get a government bonus of 25% (up to £1,000). You pay no income tax on the interest or dividends you receive from the ISA or LISA.

Also, when making gifts to your own children, you can avoid paying tax on the interest by paying into a Junior ISA. The annual allowance for this is £9,000.

3. Pensions ⏰
The government encourages you to save for retirement by giving you tax relief on pension contributions. The relief either reduces your tax bill or increases the amount paid into your scheme.

Whether it is through simple tax planning, pension planning or investment advice, we can help you take a close look at your financial situation and recommend solutions tailored entirely to your needs.

Preparing for a return to the workplace post-lockdown will be a daunting prospect for many businesses. To help make this transition a little easier for business owners, we have compiled some important questions that require consideration by businesses during these uncertain times.

If you have been thinking about any of these then please do contact us!