wfs

Wellington Financial Services are a firm of Independent financial advisors based in Ayr and managed by Alan Murphy. With over 20 years experience in financial services we have developed long-tern relationships with a variety of clients and by applying our knowledge and professionalism we strive to ensure that our clients’ financial needs and objectives are satisfied, in all aspects of financial planning.

Whether you are looking to review, renew or source insurance, life assurance, mortgage, pension or investment plans, we are here to provide you with sound, independent financial advice that you can rely on. Our primary aim is to deliver unbiased advice and find a financial product or package that is specifically tailored to suit your needs and circumstances.

We provide specialist guidance and advice on your Investments Mortgage Pension Inheritance Savings Tax & Finance

Wellington

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Investment

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An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

The word investment can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of “investment” are more alike than dissimilar.

Generally, investment is the application of money or other assets in the hope that in the future it would appreciate or generate more income.

According to economics, investment is the utilization of resources in order to increase income or production output in the future. An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run are both examples of investments.

Mortgage

abbey-moneyproperty-mortgagesA mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise funds to buy real estate; by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property.

Mortgage loans are usually entered into by home buyers without enough cash on hand to purchase the home. They are also used to borrow cash from a bank for other projects using their house as collateral.

There are several types of mortgage loans and buyers should assess what is best for their own situation before entering into one. Types of loans are characterized by their term dates (usually from 5 to 30 years, some institutions now offer loans up to 50 year terms), interest rates (these may be fixed or variable), and the amount of payments per period.

Mortgages are like any other financial product in that their supply and demand will change dependent on the market. For that reason, sometimes banks can offer very low interest rates and sometimes only they can only offer high rates. If a borrower agreed upon a high interest rate and finds after a few years that rates have dropped, he can sign a new agreement at the new lower interest rate — after jumping though some hoops, of course. This is called “refinancing.”

Pension

pensions_savingA pension is a fund into which a sum of money is added during an employee’s employment years, and from which payments are drawn to support the person’s retirement from work in the form of periodic payments.

A defined benefit pension scheme – sometimes called a final salary pension scheme – is one that promises to pay out an income based on how much you earn when you retire.

Unlike defined contribution (DC) pensions, the amount you’ll get at retirement is guaranteed, and it will be paid directly to you – you won’t have to use your pension pot to decide your next move.

This guide explains how final salary schemes work, and how you can work out how much income you could get in retirement.

Inheritance

inheritance_blog_turbotax_intuit_com_Inheritance is the practice of passing on property, titles, debts, rights, and obligations upon the death of an individual. It has long played an important role in human societies. The rules of inheritance differ between societies and have changed over time.

All or part of a person’s estate/assets that is given to an heir once the person is deceased. An inheritance is typically a cash endowment given to younger heirs of the deceased, however any assets can be considered as part of an inheritance, such as stock certificates or real estate. If a will is not in place at the time of death, determining the rightful heirs of the deceased’s estate becomes a much more complicated matter.

Inheritances often can be in the hundreds of thousands of dollars in value and, in most countries, inheritances are taxable. An inheritance tax is not necessarily an estate tax, as the two can be defined differently. An inheritance tax would aim to tax the heir who has received the inheritance, while an estate tax would apply to the assets of the deceased’s estate.

Savings

savingsSaving is income not spent, or deferred consumption. Methods of saving include putting money aside in, for example, a deposit account, a pension account, an investment fund, or as cash. Saving also involves reducing expenditures, such as recurring costs.

Savings is the portion of income not spent on current expenditures. Because a person does not know what will happen in the future, money should be saved to pay for unexpected events or emergencies. An individual’s car may breakdown, their dishwasher could begin to leak, or a medical emergency could occur. Without savings, unexpected events can become large financial burdens. Therefore, savings helps an individual or family become financially secure.

Money can also be saved to purchase expensive items that are too costly to buy with monthly income. Buying a new camera, purchasing an automobile, or paying for a vacation can all be accomplished by saving a portion of income.

Tax & Finance

tax-returns_2384332b-large_transqvzuuqpflyliwib6ntmjwzwvsia7rsikpn18jgfkeo0Taxation in the United Kingdom may involve payments to a minimum of three different levels of government: the central government (Her Majesty’s Revenue and Customs), devolved national governments and local government.

Taxes are generally an involuntary fee levied on individuals or corporations that is enforced by a government entity, whether local, regional or national in order to finance government activities. In economics, taxes fall on whomever pays the burden of the tax, whether this is the entity being taxed, like a business, or the end consumers of the business’s goods.

There are several very common types of taxes:

  • Income Tax (a percentage of individual or corporate earnings filed to the federal government)
  • Sales Tax (taxes levied on certain goods and services)
  • Property Tax (based on the value of land and property assets)
  • Tariff (taxes on imported goods imposed in the aim of strengthening internal businesses).

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Office Location

Head office: 3 Wellington Square | Ayr | Scotland | KA7 1EN T: 01292 272151 | F: 01292 272150 | E: ifa@wellingtonfs.co.uk

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