Answering your problems on personal finance; Where would my savings grow best?Q I HAVE seen the interest on my building society money steadily falling. I have pounds 10,000 that could be put aside for a few years if it could provide a better return. I don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. think I have sufficient funds to try the stock market. A IN the majority of cases the possibility of high returns involves an associated degree of increased risk. A lot of people, especially those retired with limited capital and needing an income, are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. something less volatile. A very popular compromise between security and growth is the "With Profit Bond". These offer bonuses which are added to your capital and there may be a "Terminal Bonus" added after a set term. Many investors' money is pooled together and spread over a very wide range of assets looking for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth so that the benefits of stock market potential are tapped into without suffering erratic er·rat·ic adj. 1. Having no fixed or regular course; wandering. 2. Lacking consistency, regularity, or uniformity: an erratic heartbeat. 3. stock market fluctuations. For basic-rate taxpayers there is no further income tax to pay and you don't have to worry about capital gains tax either. One of the most attractive is offering a first-year effective return of up to 10.25% net which, combined with no initial charge, makes it very tempting indeed. Readers can get a free copy by ringing 0800 544644. Keep cash in family Q WE have a sizeable estate and our concern is that our children may have to give a large proportion to the taxman when we die. Naturally we would rather see our own family benefit, but we cannot afford simply to give the money to them at the moment as we require the capital to provide additional income. Can you suggest any solutions? K.C., Hinckley A WITH property prices rising so rapidly, huge numbers of people are now being caught in this Inheritance Tax inheritance tax, assessment made on the portion of an estate received by an individual; it differs from an estate tax, which is a tax levied on an entire estate before it is distributed to individuals. trap which was previously thought only to affect the very wealthy. In fact most people who make wills leave everything to the surviving spouse spouse A legal marriage partner as defined by state law and then to any children and this means that only one person's "tax-free" allowance is ever used. As the allowance is currently pounds 231,000 which includes the whole estate, ie the house, cars, belongings belongings Noun, pl the things that a person owns or has with him or her Noun 1. belongings - something owned; any tangible or intangible possession that is owned by someone; "that hat is my property"; "he is a man of and investments and cash, it is becoming a common problem. It is especially galling after having worked and saved all your life that 40 per cent of anything over this amount will go to the State rather than your family, particularly as you have probably already paid tax on it. One highly efficient way round this is to use an Estate Planning Estate Planning The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death. Notes: Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the Bond which can have a wide variety of benefits. It immediately reduces the estate's liability, all benefits are tax-free to the beneficiaries if you live for seven years and it gives you access to income during your lifetime. There are several schemes available but one of the best offers something very important indeed - a choice of where the money is invested using such specialist names as Fidelity, Schroders, Flemings, Perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. and Invesco. It is a complicated area and professional independent advice should be sought. Information on the Estate Planning Bond can be obtained by ringing 0800 544644. Illness plan poser Q I HAVE been looking into taking a critical illness plan and have also been offered a life insurance which includes a "terminal illness" benefit which appears much cheaper. Is there any difference? S.B., Leamington A YES. A critical illness policy may or may not include significant life cover, but it is designed to pay out a lump sum Lump sum A large one-time payment of money. if you suffer a serious condition such as a heart attack, cancer or stroke and survive. A "Terminal Illness" feature would only pay out if your life expectancy Life Expectancy 1. The age until which a person is expected to live. 2. The remaining number of years an individual is expected to live, based on IRS issued life expectancy tables. was less than 12 months. You need to get independent advice to make sure that what you are signing up for is what you need. A free factsheet on Critical Illness can be obtained by ringing 0800 544644. Pension options Q I HAVE a number of private pension plans that mature in June when I am 65. They have all offered me various types of pension and also mention something called an "Open Market Option". Could you explain what this is? R.D. A AN "Open Market Option" means that instead of buying the pension or "annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. " from the same company, you can take the cash values of all the various companies and shop around to find the company that will give you the best pension. I am sending you our "Best Annuity Form" which can show you who will offer the most pension for your funds. Other readers can obtain a free copy by ringing 0800 544644. |
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