Since you ask.Byline: By Peter Rutherford Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there.
Miss L G from Cramlington writes: I am arranging a mortgage with my new partner and I've been told we should arrange a mortgage protection policy. I'm very wary about making sure we get the best deal so can you tell me how the policy works and whether one company's policy is better than anothers?
Answer: Mortgage decreasing term life assurance, to give it its proper name, pays out a lump sum Lump sum
A large one-time payment of money. to cover your mortgage debt (which decreases in time) if you or your partner dies during the term. Be careful not to confuse con·fuse
v. con·fused, con·fus·ing, con·fus·es
a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off.
b. it with mortgage payment protection which covers your payments in case of illness or unemployment.
As there is no investment element, policies pay off just the value of your mortgage. It is therefore a case of the cheaper the better and any independent adviser will be able to check this very easily.
Mr & Mrs C F from Alnwick writes: With investment conditions appearing to improve we now want to take some of our money out of deposit accounts and put it into something which will give us a better income. In the past we had money in corporate bonds which did reasonably well and didn't seem to be as volatile as equities. Have you any recommendations in this area?
Answer: It is certainly the case that corporate bond funds tend to be less volatile than equity funds and can therefore be viewed as lower risk.
A number of funds are available and these can generate an estimated gross income yield of more than 7pc. There is also the potential for modest long-term capital growth but you will appreciate this would not keep pace with an equity fund if the stockmarket were to strengthen further. You will also appreciate that unlike your deposit account, a corporate bond fund has a capital value that may well fall as well as rise.
MR L W from North Heaton North Heaton is a ward of Newcastle City Council Council in Newcastle upon Tyne. It covers the northern part of the Heaton district as well as High Heaton. writes: My brother and I are both aged 69 and we were in business together for many years. We both have personal pensions and up until now we haven't done anything to take an annuity. We are both a bit worried as we have been told we must take the annuity before we reach 70. Is this information correct?
Answer: The information you have received is not correct. As you both have personal pensions you have until age 75 to convert to an annuity. I would certainly suggest you both speak to an Independent Financial Adviser in the near future to discuss your options.
* Investor's Guide, incorporating A Guide to ISAs, is a booklet with information on all aspects of investment and available to readers. To apply for your free copy, freephone 0800 074-5489 or write to me at Rutherford Wilkinson plc, 21A Bridge Street, Morpeth, Northumberland Coordinates:
Morpeth is a market town in Northumberland, England, on the River Wansbeck, which flows east through the town. The town is a mile from the A1, which bypasses it. , NE61 1NT. Please also write with any queries.