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'Keep calm and carry on' is the message to investors; Advertising Feature Independent financial advice.

WITH the recent turbulence in the financial markets, Glyn Jones, of Vale Financial Services, advises investors and people concerned about their pension pots not to panic.

He comments: "Billions wiped off the value of pensions, screamed the headlines, even in so-called serious newspapers! Well, that will encourage you to save for your future, won't it?" Glyn says, as he has written before, talk of billions means nothing to most of us. So what if a few dealers are seen panicking? Should you panic as well? And if you did, what action would you take? He says the facts are that most people are investing their savings and pension money for the longer term, and events like those of the past few days become less significant over time.

So the message once again is "keep calm and carry on"!

He reports that what is highlighted, however, is the need to put your money with successful fund managers who know how to take advantage of different market conditions, and also how to shield your money in volatile markets.

Glyn says equity release, ie, . releasing money from your property, seems to be gaining attention at present, and there are several reasons why this can be an attractive option for many people. And he stresses that an IFA will make sure you consider all the alternatives, understand the product thoroughly, and, if considered appropriate, discuss it with the family.

He says your solicitor will also ask questions, so nobody should feel uneasy about these products once they have taken professional advice. He stresses that you should make sure that your adviser uses a company that is a member of SHIP (Safe Home Income Plans), as their plans will have to include valuable guarantees.

Glyn says these include a "no negative equity guarantee", which means that, when the loan is repaid, there can be no claim on your estate beyond what the property is worth at the time.

If you are approaching retirement, you have more options available to you than ever, with new products arriving on the market.

No longer do you have to buy an annuity fixed for life, although we should remember that this is quite often the preferred option!

For example, he says, new plans can allow you to access the pension commencement lump sum, without starting to draw an income. This is being looked at by more people who may have a use for a lump sum but do not necessarily need the income immediately.

And he adds: "Another recent innovation allows for fixed- term annuities, rather than the 'fixed for life' approach. These allow you to take an income for a set number of years, with the option to fix again then. One possible benefit from this approach is that your health at that time might qualify for an enhanced rate. As ever, ask all these questions and be comfortable that you understand what you are buying."

* VALE Financial Services is a trading style of pi Financial Services, which is authorised by the Financial Services Authority.


Equity release seems to be gaining attention - Glyn Jones, of Vale Financial Services, Denbigh
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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Aug 24, 2011
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