As we near the end of January and the gyms start to return to normality, most people’s dry Januarys have ground to a halt, and the majority of New Year resolutions have been broken, we wanted to issue our 5 Top Tips for the year. For those regular readers, hopefully, most of this won’t come as a surprise! For those nearing retirement, I would encourage you to at least look at Top Tip 4, as this is possibly something you haven’t considered.
Top Tip 1
Ignore anyone who predicts how this year’s stock markets are going to play out. For anyone who would like evidence on just how bad even the ‘experts’ are at predicting stock markets, have a read of our blog from January 2024. We could write an almost identical article reflecting on 2024 rather than 2023 and all we would have to do is change some numbers. The bottom line is no one knows what stock markets will do in the short-term but history tells us those willing to stay invested and ride out market volatilities have the best opportunity for long-term success.
Blog – Market Outlook 2024
Top Tip 2
Start planning for the end of the tax year. We will be working with our clients as we approach April 5th to ensure annual allowances such as ISAs and Pensions are fully utilised. With last year’s Autumn budget still ringing in our ears, gifting allowances are also not to be sniffed at. We discussed this in more detail in last year’s Tax Year End blog, and these rules remain unchanged and in place.
Blog – Tax Year End Thoughts
Top Tip 3
- Avoid Costly Errors
- Don’t Speculate – Invest
- Be Wary of Claims of Outperformance
- Invest in Stock – And Stay Invested
- Don’t Be Tempted to Pick Stocks
- Stay Calm When Others Panic
Blog – Six Tips from Warren Buffett
Top Tip 4
This Top Tip is a bit specialised and new for this year, but if it applies to you, it’s definitely worth exploring further.
A few years ago the Government changed the rules around how you could top-up your State Pension. In summary, you are entitled to the full State Pension if you have 35 years of National Insurance contributions or equivalent credits (these could be if you’re registered for Child Benefit or Carer’s Allowance). If there are gaps in your records, you could pay Class 3 Voluntary NI contributions to top up missed years going all the way back to 2006/07.
However, having already moved the deadline once due to the level of demand for their checking service, the new deadline of 5th April 2025 is fast approaching. Beyond this date, you will only be able to go back six years to top up any gaps If you think there is a possibility you might be affected by this, read the following article, and feel free to reach out if you have any questions.
Article – State Pension Top Up
Top Tip 5
And finally, a top tip on how to make 2025 a great year. Firstly, read over our ‘18 Summers’ blog and then start planning how you are going to make the summer of 2025 one that will live long in the memory.
Blog – 18 Summers
Footnotes
None of the above should be treated as advice.
