Selling your Law Firm will be one of the biggest decisions you ever make. Once you have reached that point you are moving into a new phase where the asset that produced your income may now be providing you with a lump sum of capital (or a series of lump sums).
Having focussed so much of your time and energy on your firm, and then the sale of your firm, you now need to ensure that you are able to make that capital work for you. There is an important step between agreeing and completing the sale, and being able to pursue the next phase of your life.
For those wanting invest or for those where it is suitable to invest, that step is having a comprehensive investment strategy to enable you to fund your next life phase, and that can be a daunting prospect, especially if you have been used to controlling your assets yourself. Big decisions should be made over a period of time and accompanied with expert advice. In the meantime, you need to find a safe place for your money until you are ready to invest it.
The good news is that interest rates have rapidly increased since the start of the 2022, with the most notable indicator being the base rate which has increased from 0.10% to 3.5% since December 2021. (Bank of England) With so many different banks and building societies offering products – each with its own unique terms and conditions - it can be quite challenging to know the best home for your hard-earned cash.
There are 321 banks authorised to accept deposits in the UK and 43 building societies, however these won’t all appear on a comparison website. These numbers continue to grow, as new specialist lenders enter the market. The most recent entrant being Middlesbrough based GB Bank, which is focussed on property development finance. Such banks may be unknown names to you, but typically they can offer higher rates than the better-known banks in the market. It’s also worth noting the benefits of the Financial Services Compensation Scheme, which protects eligible deposits up to £85,000 per person or entity per banking licence. This can help you to manage your risk by keeping within the protection limits but earning much higher returns too.
The rates are starting to settle at a new norm. For individuals, rates are around 3% on Instant Access, 4.36% on 1-year fixed terms and are just shy of 5% on 5-year fixed terms. Businesses and charities can earn up to 2.36% on Instant Access, 4.31% on a 1-year fixed term and 4.9% on a 5-year fixed term. The returns from shopping around have never been greater. At Armstrong Watson we work in close partnership with the UK’s leading cash management provider and in doing so, we can provide access to the widest range of savings products on offer from Instant Access accounts through to 5 year deposit account, providing solutions for all types of savers including individuals, directors, trustees and pension holders too. This means we can help generate the highest returns possible, as well as the greatest level of diversification for peace of mind. Our Financial Planning Consultants will work closely with you to identify your cash needs and we’ll assist in opening your new savings accounts. This will involve us submitting applications to your chosen providers and providing you with the instructions you need to transfer your money into your new accounts.
Your money will remain under your sole instruction at all times, and you’ll have direct legal relationships with each provider, meaning there are no hidden charges or middle-men involved. At Armstrong Watson our objective is to be with you throughout the whole financial journey, a cash management service fits in between the expert corporate finance and tax advice available when structing your firm’s sale to and our expert financial planning and wealth management service that will support your long term financial needs.
For support in exploring your options contact Justin Rourke on 01768222071 or email justin.rourke@armstrongwatson.co.uk.
