Celebrating 25 years of providing Independent Financial Advice
April earlier this year marked 25 years since John ‘retired’ from being a Bank Manager and set up his own Independent Financial advice firm in Oswestry. The office has moved several times but is now established in Willow Street opposite the Post Office. There have been many changes in financial services over this time but the provision of personal friendly service has been constant. The main changes during this time, have revolved around technology and legislation.
Mortgages. Currently there are far more mortgages available, catering for almost any type of borrower, with a surprising difference in costs depending on your deposit, job, employment status. 25 years ago, we would complete a handwritten mortgage application and wait with bated breath for a decision, which may take up to 7/10 days. The choice was inevitably of a variable interest rate or a choice of one fixed term. There are so many choices nowadays, applications are submitted on-line and we may have confirmation within 24/48 hours.
Retirement. 25 years ago, the only option at retirement was really to take an annuity. Returns were high and a typical £100,000 pension pot might have produced a guaranteed income of around £9,000 per annum for life. Nowadays there are far more choices available and annuities have become less popular as returns are much lower. £100,000 now may produce only around £5,000 per annum. Specialist advice is even more essential now that there are more options.
Equity Release. This was in its infancy 25 years ago and wasn’t so heavily regulated. Nowadays, regulation is thankfully much tighter and these plans enable you to stay in your own home and use the equity you have built up over the years to fund anything you like from helping grandchildren get on the property ladder to a world cruise. They offer a no negative equity guarantee to protect against a fall in house prices and there are no monthly repayments unless you choose to make them.
Perhaps one of my grandchildren will update you on further changes in another 25 years!