Personal Investments

Robert Stone

Description

This Revised edition of A Guide To Personal Investments is a comprehensive guide to the complexities of personal finance in 2019. Written against a backdrop of low interest rates, high inflation and low returns overall the information contained in the book will be particularly invaluable. The book is suitable for small investors in all markets and also covers personal pensions, healthcare and education. It will prove an invaluable guide for all who are concerned to maximise returns from their investments.

Informations

• Publié par: Straightforward Publishing
• Date de parution: 25 mai 2019
• Nombre de lectures: 0
• EAN13: 9781847169747
• Langue: English

Extrait

A STRAIGHTFORWARD GUIDE TO PERSONAL INVESTMENTS
Robert Stone
Straightforward Guides www.straightforwardco.co.uk
Straightforward Guides
Straightforward Co Ltd 2019
All rights reserved. No part of this publication may be reproduced in a retrieval system or transmitted by any means, electronic or mechanical, photocopying or otherwise, without the prior permission of the copyright holders.
ISBN: 978-1-84716-913-6 (PDF) ISBN : 978-1-84716-974-7 (epub) ISBN 978-1-84716-980-8 (Kindle)
Editor: Roger Sproston
Printed by 4Edge Ltd www.4edge.co.uk
Cover design by Bookworks Derby
Whilst every effort has been made to ensure that the information contained within this book is correct at the time of going to press, the author and publisher can take no responsibility for the errors or omissions contained within.
CONTENTS
Introduction
Chapter 1- Financial Advice/Financial Advisors
Different types of advisors
Other types of advice
Fees and charges
Services offered by different advisers
Online advisor directories
Complaints
The Financial Ombudsman Service
The Pensions Advisory Service
The Pensions Ombudsman
The General Insurance Standards Council
The Property Ombudsman Scheme
The Financial Services Compensation Scheme
The Fraud Compensation Fund
Chapter 2- Mortgages and Financing a Property Purchase
The options available
How much can you borrow
Deposits
Help to buy schemes-how they work
Joint mortgages
Main types of mortgage
Complaints
Borrowing and the internet
Stamp duty
Solicitors fees
Advice for helping children on the property ladder
Chapter 3-Life insurance
Do you need it?
Different types of life insurance
Decreasing term insurance
Level term insurance
Family Income Benefit policy
Whole Life insurance and critical illness
Chapter 4- Maximising Your Savings
Cash returns
Tax on interest earned
The choice of accounts
Children s accounts
Instant access accounts
ISA s
Monthly income accounts
Notice accounts
Time deposits
Fixed-rate investments
Short-term fixed-rate investments
Escalator bonds
Fixed rate bonds
Guaranteed growth bonds
Guaranteed income bonds
National savings certificates
With profits savings plans
Friendly society plans
The purpose of saving
Peer-to-peer lending
Chapter 5- investing a Lump Sum
The options available
Tax implications
Crypto-Currencies
Chapter 6 -Protecting Your Income
What is IP insurance?
Cover offered by banks and building societies
Chapter 7 Borrowing money
Caution before borrowing
Comparison of costs
Payment protection insurance
Borrowing to pay off other loans
Overdrafts
Credit cards
Personal loans
Payday loans
Secured or unsecured loans
Interest free or low-start credit
Hire purchase
Credit unions
Borrowing through peer-to-peer lending
Credit scoring
Chapter 8- Income tax Generally-How it Affects You
Income Tax rates
Personal allowances
Married couples/Civil partners allowance
Blind persons allowance
The employed
The self-employed
Capital gains tax
Tax on dividends
Inheritance tax
Exemptions
Gifts made before death
Chapter 9-Funding Education
Generally
School fee plans
Bursaries, scholarships and other help
University
Student Loans
Chapter 10-Financing Health Care
Private medical care
Regulatory structure
Long-term care
LTC insurance
Immediate needs policy
Regulation
Chapter 11- Earning From Stocks and shares
The Individual Investor
Purchasing assets
Hedging and speculation
The speculator
The markets
How The Stock Market Works
What is a stock market?
The basic order types
Chapter 12- Unit trusts
Investment trusts
Unit trusts
Tracker funds
Open-ended investment companies
Exchange traded funds
Chapter 13- Benefits of Owning Shares
Owning Shares in a Company
Long-term investment
Short-term investment
Perks of owning shares
Chapter 14-How to Buy Shares-Taxation of Shares
Buying through investment trusts
Unit trusts
Investment clubs
The cost of dealing in shares
Commission
The spread
Income tax
Buying shares
Taxation of shares
Dividends
Capital gains tax
Ch. 15-Pensions and Planning for the Future
Sources of pension and other retirement income
The Pensioners Income Series
Average income of pensioners-projections
Ch. 16-How Much Income is needed in Retirement?
Income needs in retirement
What period to save over
Inflation
Stages to planning your retirement
The impact of inflation
Ch. 17-Sources of Pensions-A Summary
Sources of pension savings- The State Pension
The over pension
Occupational pensions
Stakeholder schemes
How much can be invested in a stakeholder pension?
Other ways to save for retirement
Ch. 18-The State Pension
Qualifying years needed to get the full State Pension?
Using someone else s contribution record
NI contributions counting towards a basic state pension.
Pension credits
The Guarantee credit
The Savings credit
National Insurance Credits
The State Pension age
Increasing your state pension
Filling gaps in your record
Deferring your state pension
Women and Pensions
Particular issues for women
Effects of changes to the state pension from 2016 on women
Ch. 19-Private Pension Savings-General
The lifetime allowance
Protecting the Lifetime Allowance
The annual allowance
Limits to benefits and contributions
Taking a pension
Useful addresses
Index
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INTRODUCTION
The main purpose of this book, updated to 2019 is to guide the reader through the maze of personal financial decisions which he or she or the family might have to make during a lifetime. After a prolonged period of low interest rates, savers and investors are still getting meager returns. That is why it is so important to understand the opportunities available.
I have concentrated heavily on specific areas such as pensions, savings and insurance, because these are areas which have undergone change following the 2015 budget in particular and which will have the most effect on you during the course of your working life. The book also discusses the operations of the stock market and how to invest wisely. There are also frequent references to financial advisors, ranging from the independent advisor to those employed by institutions such as banks. I have made repeated references because very often you will receive advice from such a person and will make decisions based on that advice.
As an individual, you could spend untold hours pondering over the various options open to you with regard to financial matters, only to find yourself more confused than ever due to conflicting advice received along the way. That advice will, quite often, be made in the best interests of the advisor, and his or her subsequent commissions, rather than in the best interests of yourself.
A Guide to Personal Investments will set out, in a clear and unambiguous way, the meaning and implications of the various financial options open to you, and should leave you in a better position to make an informed choice.
The main areas covered by the book are mortgages, life insurance, savings, investments, income protection, stocks and shares, tax wills and trusts and pensions. In addition, I have covered education and health care.
Because of the importance of receiving accurate advice from financial advisors, the book will begin by outlining the law that governs such advisors and also the types of advice given.
Ch. 1
Financial Advice/ Financial Advisors

There are many ways to purchase financial products nowadays, either through the Internet or by telephone. However, when considering more complex financial issues, it is evident that professional advice is needed. There are numerous advantages to using financial advisors, one of the main ones being that you will have extra protection if things go wrong. The first step towards finding a good advisor is considering which type is likely to provide the service you need. Like solicitors and other professionals, financial advisors do specialise and you would have to find the correct advisor for your needs. It is also very important to discover whether or not the advisor is properly authorised and registered and approved by the correct bodies. Nowadays, advisors and the companies that they work for must be authorised by the financial services watchdog, the Financial Conduct Authority (FCA). The FCA is responsible for the conduct of advisors. To be on the safe side you should always check with the FCA. You can also find out what type of business the advisor is authorised to do. These details are held on the FCA s register. Its public enquiries helpline is on 0800 111 6768. It is important to be aware of the distinctions between different types of advisors, the services they are likely to provide, and how they are likely to be paid, before narrowing your choice down.
Different types of investment advisers
Financial advisers come in different guises and aren t always called financial advisers . Sometimes they are named by their specialism such as mortgage adviser , investment adviser , pension adviser or financial planner . Sometimes they are known as brokers - often when dealing with products like home and car insurance, mortgages or investments like shares.
Advisers who deal with: Investments; pensions; retirement income products (such as annuities) and general financial planning
Advisers recommending these types of products must charge a fee for the advice they give and carry higher levels of qualifications.
In reality, advisers who provide advice on the products listed above, might also provide advice on protection insurance (such as life insurance) and sometimes mortgages. Many offer holistic financial planning, where they will advise you on all aspects of your financial needs. Advisers in this category are classified as either independent or restricted.