COMPANY PROFILE

THE BEGINNING

Paul Schwer Financial Services was founded in 1990 by Paul Schwer, the principal and senior Independent Financial Adviser (IFA). The intention was simple; to provide quality independent financial advice for people in a professional yet personal manner, without salesmanship, hidden agendas or bias of any kind. In short, to provide a service on which our clients can rely, both at outset and in the months and years to follow.

WHAT DO WE DO?:

Basically, we provide personalised and impartial advice on;

♦ Lump sum investments and regular savings

♦ Pensions

♦ Life Assurance

♦ HealthInsurance and Income Protection

♦ Long term care provision

♦ Offshore Investments

♦ Income Tax, Capital Gains Tax & Inheritance Tax planning and mitigation

♦ Mortgages and House purchase

OUR APPROACH

We aim to offer a personalised service to find solutions individually tailored to your specific needs. We advise people, not products- We will work together with you in 'fact-finding' to give us an insight into your personal and financial circumstances together with your aims and objectives for the future, you can disclose as much or as little information as you wish.

We look beyond your immediate needs to ensure that any recommendations we make are tailored to remain responsive to your needs, whatever the future may hold.

Our independent status means we are not lied to selling one company's products giving us wider choice and flexibility.

We aim to keep right up to date with advancements in technology for comprehensive research through the internet and back office systems so we can regularly review your existing arrangements to provide on going advice as your circumstances change throughout life.

HOW DO WE GET PAID?

PSFS are refreshingly straightforward about how the services we provide are paid for. Every prospective new client is entitled to a free initial consultation to assess your needs and the potential services required, without obligation.

In most circumstances, you are then offered a choice of paying for the work provided on your behalf on a fee basis billed to you directly on hourly rales, or alternatively we can be paid indirectly through commission from the product providers with whom arrangements are transacted.

You will always be given information about the costs involved before you make any decisions so you will always know exactly where you, and we, stand.

THE PRODUCTS WE ADVISE ON

Arranging your finances efficiently to ensure you are making the most of your money can be a daunting task. Your choices can be made difficult with products that are often complex with jargon full brochures which are hard to understand. So, how do you make the choices which are right for you?

If you have asked yourself any of the questions below, explore the following links for simple, jargon free explanations and how to get advice on all the products available to you and how they can be tailored to meet your exact needs and ambitions.

How do you ensure that you are adequately covered financially should you

become unable to work tlirough ill health or injury or die prematurely and have a mortgage outstanding? Or you simply wish to ensure your loved ones are left secure.
Click LIFE ASSURANCE

What's the best way of retiring early and maintaining a comfortable lifestyle? How much income can I expect to live on when T do retire? Personal pension or Company scheme? Click PENSIONS

How can I get better returns on my long term savings than diminished interest rates on deposit accounts? Can I invest in stock markets around the world? Click INVESTMENTS

We love that house, but can we afford it? How can we reduce our monthly payments but still pay off the mortgage as planned? Click MORTGAGES

How can we get the best healthcare, now and in the future, for a reasonable cost? Click HEALTH

LIFE ASSURANCE

There is one thing certain about life, that is we will ail die. Hardly a pleasant thought bun inevitable aJl the same, creating a circumstance which you can fully plan for financially. Nobody wants to leave their loved ones struggling financially in the event of premature death. We can help you make sure that you have the right type of policy and enough cover to ensure your dependants live comfortably.

There are two basic forms of Life Assurance:

As the title suggests, term assurance provides you with life cover for a specific period of time. This Is particularly useful to provide high levels of cover when you need it most, for example when you have a young family and a mortgage. Term assurance is the cheapest form of life cover and there are numerous types of cover available:

Level Term (where the sum assured stays level throughout the term of the plan) 

Decreasing Term (where the sum assured decreases as the policy goes on, this is particularly useful in conjuction with a repayment mortgage)

Family Income Benefit (where the benefit is paid as an income, usually annually or monthly for the term of the plan). 

Convertible & Renewable (where you can exercise an option to renew the plan or convert it to a different form of life assurance at the end of the term).

Term assurance is an effective and affordable method of providing life cover and you can have extra forms of cover attached, such as critical illness cover, for additional cost. Although it can be argued that term assurance is limited as it can often run out just when it is needed.

Whole of life cover differs from term assurance mainly because it will cover you for all your life. This way, you or your dependants are sure of gaining some sort of financial reward. As the plan goes on, you build up a fund which subsidises the life cover hi your later years. Whole of life cover is more expensive but provides more security. As with term assurance you have the choice of adding extra features like critical illness cover and waiver of premium.

We can analyse your personal situation and work with you to calculate how much life cover you require and then research the market to find the best policy at the best price. Alternatively, if you know what sort oFpolicy you want, talk to us and see if we can save you money on the premiums.

Both types of policy mentioned above provide financial assistance upon death, but there are other policies available which cover for other incidents which may affect your ability to work and therefore your financial well being;

CRITICAL ILLNESS COVER

This cover pays a lump sum benefit upon diagnosis of a potentially life threatening illness or injury.

INCOME PROTECTION

Also known as Permanent Health Insurance (PHI), provides you with an income should you be unable to work and earn through long term illness or injury, You can insure for up to 60% of your salary and the benefits are paid in addition to any State benefit you may be entitled to.

REDUNDANCY, ACCIDENT fc SICKNESS COVER

Provides a similar type of cover as Income Protection but without the permanence of cover and this type of policy can usually only be written in conjunction with a mortgage to cover these costs in the event of a claim.

It is particularly useful to use independent financial advice when considering these forms of cover as different companies and policies offer varying levels of cover and not all provide cover for the same illnesses or Injuries. We research the market thoroughly and make recommendations to provide the right amount of cover for you and not just the cheapest premium.

The information provided is merely a basic guide to the various forms of cover available and is by no means a comprehensive list. For more information or a quote, send us E-MAIL.

PENSIONS

Recent Government policy and welfare reforms have made it clear that pension benefits provided by the State alone will no longer be sufficient to maintain a comfortable standard of living in retirement. It has therefore become vitally important for people to make provision during their earning years for their non earning years. We can offer impartial advice on the entire range of pension products for both the employed and self employed, including the highly complex area of pension transfers which requires specific exam success.

Most companies offer a pension scheme for their employees, it is usually beneficial to join these and there are two major categories of company pension;

Final Salary Also known as 'defined benefit' schemes. With this type of pension you gain benefit in accordance with how many years you work for the employer. At retirement age your pension is calculated in accordance with your length of service and salary. The maximum you can receive is two thirds of your final salary. You make regular contributions to the scheme throughout your working life, typically 5% of your salary per year, and your employer provides the remaining funds required to pay the pension due to you.

Money Purchase Also known as 'defined contribution 1 schemes. As in final salary schemes you pay regular contributions throughout your career which are usually matched or increased by contributions from your employer. At retirement, the fund you have built up is used to purchase an income for retirement. The difference being that there is no guarantee on how much pension you will receive in relation to your salary as there is in a Final salary scheme.

Not all people are eligible for their employer's pension scheme or there is no scheme offered and of course the self employed do not have the comfort of an employer's scheme. In this situation, it is possible to make your own pension provision using contracts such as Personal Pension Plans. These work in the same way as money purchase schemes and you can make regular contributions monthly, annually or on an 'ad hoc' basis whenever you have the money available.

You gain tax relief on all contributions to a personal pension at your highest rate of income tax. For the employed, this is taken at source with the Inland Revenue making up the tax relief on your contribution. For example, a basic rate taxpayer makes monthly contributions of £100 gross to a personal pension in the 1999/2000 tax year and gains tax relief on these contributions at 23% meaning the nett contribution which is actually paid in each month is £77. The Inland Revenue pays the extra £23 to make the contribution up to £ 100, Self employed people would gain the same relief but would not have the tax relief on each contribution, instead they must pay ihe gross amount each month and claim the tax relief from Lhc Revenue on their annual tax return.

You are also restricted on the amount you can contribute to pension policies each year and this is dependant on your age and is calculated as a percentage of your pensionable salary. The table below outlines the limits;

Age

Maximum annual contribution

(% of salary)

Under 35 17.5%

36-45 20%

46 – 50 25%

51-55 30%

56-60 35%

61-74 40%

All personal pensions must be 'vested' when you reach 75, this means the fund must be used to purchase an annuity to provide you with an income for the rest of your life. The Inland Revenue are currently reviewing this situation with a possibility that the maximum age may be raised from 75 to 80.

Through your personal pension you can invest in a wide range of underlying investment funds from cautious deposit to speculative equity based funds. We can help you decide what risk profile you are comfortable w rith for your pension fund and research the market to find suitable products and providers.

Personal pensions are the most common form of saving for retirement although there are numerous other policies available to suit everyone's needs;

Executive Personal Pensions are a form of occupational money purchase scheme which are only made available for senior members of staff in a company.

Self Invested Personal Pensions (SIPPs)

Allow you to choose the underlying investments which the policy invests in> this can include equities, collective Investments such as unit trusts or OEICS and even commercial property.

Small Self Administered Schemes (SSAS)

SSASS’s are occupational schemes where the company makes the investment choices for the scheme and this can again include commercial property. These are particularly useful for smaller businesses and there are numerous advantages to this type of scheme. Contact us 10 find out more about how we can advise on these specialist arrangement5.

Pensions are one of the most important areas of financial planning, particularly with recent government reforms to the State pension provision. Take advantage of our experience and expertise to help you ensure you make your retirement years are as comfortable as possible. Our consultation can be as detailed as you require and we have specific software to help you decide how much you need to save now to fulfill your dreams.

INVESTMENTS

Recent economics have seen interest rates fall from.......In the late 1980s to

......in 1999. The interest earned on building society- accounts has also reduced significantly, meaning you must look to other forms of investment to achieve satisfactory rates of capital growth so your savings grow and do not fall in value in the future. After taking into account the effects of inflation, that is.

Mini ISAs, Maxi IS As, TESSAs, PEPs, Capital Investment Bonds, Maximum Investment Plans, Unit Trusts, Investment Trusts and so on.....

There are literally hundreds of different investment products available on the market from hundreds of different providers. So how do you choose the investment that is right for you? You may be a cautious investor who wants a guarantee that your investment can't decrease in value. Or you may have some 'mad money' which you would like to take a speculative approach with on an international stockmarket. For either of the above scenarios and anything in between, we can analyse your needs and make recommendations that are individually tailored for you. Below are brief introductions to some of the products avail able, contact us for personalised advice and to find out more;

BANK/BUILDING SOCIETY ACCOUNTS

The safest form of saving as there is little risk to your capital and interest is added on an annual is ed basis. As mentioned, we have seen returns on deposit accounts dwindle with recent economic pressures but there are still reasonable rates of interest available, particularly from postal, telephone and internet based accounts- A deposit account is still the most suitable home for 'emergency funds' and money that is needed in the short term as there is instant access available to capital.

ISAs (Individual Savings Accounts)

ISAs replaced PEPs 8l TESSAs in April 1999 and are basically 'wrappers' around other forms of investment which make all growth achieved or income received completely lax free.

ISAs come in two forms, either Maxi or Mini and are comprised of three different components; these are Stocks/shares, Cash & Insurance. The stock/shares element can be invested in shares and more commonly in collective equity based investments such as unit and investment trusts (see later sections). The cash element invests in deposit or bank accounts and Is very similar to the old TESSA. Finally, the insurance element can invest in insurance funds, such as with profits. The choice of provider and underlying investment for all the components is huge and the market is very competitive. Saving in an ISA can be done as lump sum or regular (monthly) investments.

The main difference between Maxi & Mini ISAs, are the limits imposed on how much can be invested in each component, the table below highlights the main points:

ISA Component Maxi ISA Mini TSA

Investment £7,000 for 1999/2000 £3,000

£5,000 from 2000/2001 less any amount to other components

Cash £3,000 for 1999/2000 £3,000 for 1999/2000

£ 1,000 from 2000/2001 £ 1,000 from 2000/1

Insurance £1,000 £1,000

UNIT TRUSTS

A unit trust is a collective investment and can be made up of a wide range of underlying holdings including company shares, fixed interest securities, corporate bonds, cash holdings and deposits to name a few. Unit trusts were invested in the 1970s to encourage people to invest in stockmarkets and can be considered less risky than individual company shareholdings because of their collective structure. Most trusts invest In a large number of holdings and usually do not invest more than about 5% in any individual stock or company, reducing the downside effect if a holding loses value. Unit trusts are a convenient and efficient method of investing in stock markets and there is a massive range to choose from to suit any risk profile and financial aim,

INVESTMENT TRUST

Investment trusts are a similar concept to Unit trusts and use a collective structure to purchase holdings, it's the oldest form of collective investment dating back to the 19 th century. Again, there is a vast range and a suitable trust can be found for most individual requirements.

INVESTMENT BONDS

A bond is basically defined as a single premium investment. It is technically a life assurance contract; although the main use is for long term investment There are a wide range of underlying funds to invest in to suit all risk profiles. There are specific tax advantages in this type of policy, particularly as a means to save for income during retirement, outside your pension arrangements or For Inheritance Tax planning. There are various forms of bond available, some have guaranteed returns and some last for a specific period of time. For more detailed information and advice, please contact us.

These are merely brief descriptions of some of the investment products available and should by no means be considered as a comprehensive list or recommendation for a particular product. Please contact us for further information on any of the products mentioned, or for products not listed here and independent advice tailored to your requirements, E-MAIL.

MORTGAGES

A mortgage is basically a loan secured on a property, usually taken out to help fund the purchase of a property and they can be used for residential and commercial properties. There are two repayment methods for mortgages, these are:

Capital & Interest (Repayment - where you pay the interest on the loan each month and a small amount of the loan itself, meaning at the end of the mortgage term, the loan is paid off in full

Interest Only - where you only pay the interest on the loan each month. At the same time a savings vehicle, such as an ISA, endowment or unit trust can be set up to run alongside the mortgage to build up a fund which will eventually repay the loan at the end of the term.

Both types of mortgage usually require life assurance to be in place to ensure the mortgage is repaid should you die during the repayment term.

After the choice has been made between repayment and interest only, the choice must then be made on what type of mortgage scheme is desired;

Fixed Rate - As title suggests the interest rate, and therefore the monthly payments, are fixed at a defined rate for a certain period of time. Useful as the monthly payments are known in advance and can not change for the fixed period.

Discounted - The variable interest rate is discounted for a certain period of time, the payments will move in line with any increase or decrease in the variable rate but the discount will still apply. Useful as good value and you will benefit if the variable rate should fall, however payments will increase if the variable rate increases.

Capped and Collared - With this scheme, is guaranteed by the lender that the mortgage payments will not go above or below specified levels, even if the variable interest rate means you would normally have to pay at a higher level. Useful for expense calculation, or if you feel interest rates are due to rise.

Variable - Standard rate of interest, you merely follow the lender's base rate of interest whether it rises or falls.

Most mortgages require life assurance to run alongside the loan and other forms of insurance can also be taken out to cover your mortgage payments if you are unable to work or to pay off the mortgage if you suffer illness or injury; see LIFE ASSURANCE. We also provide advice on Buildings & Contents insurance.

We do charge a modest fee for advising on mortgages, for details of how we can help you move into your dream home or realise some of the equity within your property E-MAIL US.

CONTACT FORMS: Long;

(IS IT POSSIBLE TO HAVE DIRECT LINK TO FFF OR MAYBE SHORTENED VERSION??)

Short; Name DoB Address

E-mail address

Specific; areas requiring advice

INVESTMENT Lump sum Regular saving Investing for growth

Investing for income

LTFE ASSURANCE Life/Critical illness Income protection/Medical

PENSIONS & RETIREMENT PLANNING MORTGAGES

TAX PLANNING Capital Gains Tax

Inheritance Tax Income Tax