Individual And Family Finances

Adrian Fellows

Description

A Straightforward Guide to Individual and Family Finances is a comprehensive guide to all aspects of the complex area of personal finances. The book is clear and concise and is intended for the layperson or student, although it can be utilised by the professional. It is ideal for anyone who wishes to obtain important practical advice concerning this area, particularly in the current turbulent climate where uncertainty concerning savings and investments is prevalent.

Sujets

• Personal finance
• Economics

Informations

• Publié par: Straightforward Publishing
• Date de parution: 25 avril 2015
• Nombre de lectures: 0
• EAN13: 9781847165688
• Langue: English

Extrait

A STRAIGHTFORWARD GUIDE INDIVIDUAL AND FAMILY FINANCES
Adrian Fellowes
Straightforward Guides www.straightforwardco.co.uk
Straightforward Guides
Straightforward Publishing 2015
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: 978-1-84716-503-9
ISBN ePub: 978-1-84716-568-8
ISBN Kindle: 978-1-84716-567-1
Printed by Grosvenor Press
Cover design by Bookworks Islington
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
Different types of advisors
Restricted advisors
Other types of advice
Independent and restricted advice-key differences
Fees and charges
Services offered by different advisers
Complaints
Complaint schemes generally
The Financial Ombudsman Service
The Pensions Advisory Service
The Pensions Ombudsman
The Mortgage Code Arbitration Scheme
The General Insurance Standards Council
The Property Ombudsman Scheme
The Financial Services Compensation Scheme
Pension Protection Fund
Chapter 2 Mortgages
The options available
Deposits
Help to buy scheme
Main types of mortgage
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
Critical Illness
Chapter 4 Saving and Different Saving vehicles
Cash returns
Tax on interest earned
The choice of accounts
Children s accounts
Instant access accounts
Internet accounts
ISA s
Monthly income accounts
Notice accounts
Postal accounts
Telephone 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
National savings pensioners guaranteed bonds
With profits savings plans
Friendly society plans
The purpose of saving
Chapter 5 premium/lump sum investments
The options available
Tax implications
Chapter 6 Income protection
Cover offered by banks and building societies
Chapter 7 Tax
Income Tax rates
Personal allowances
The employed
The self-employed
Capital Gains Tax
Inheritance tax
Exemptions
Gifts made before death
Chapter 8 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
Credit scoring
Chapter 9 Paying for Education
Generally
Bursaries, scholarships and other help
University
Student Loans
Chapter 10 Health Care
Private medical care
Regulatory structure
Long-term care
LTC insurance
Immediate needs policy
Regulation
Chapter 11 Stocks and shares
The Individual Investor
Purchasing assets
Hedging and speculation
The speculator
The markets
Chapter 12 The Stock Market
What is a stock market?
Other UK markets
The basic order types
Chapter 13 Shares and investment and unit trusts
Investment trusts
Unit trusts
Tracker funds
Open-ended investment companies
Exchange traded funds
Chapter 14 The Benefit of Owning Shares
Owning Shares in a Company
Long-term investment
Short-term investment
Perks of owning shares
Chapter 15 Costs of investing
Buying through investment trusts
Unit trusts
Investment clubs
The cost of dealing in shares
Commission
The spread
Income tax
Buying shares
Chapter 16 The Internet
Internet Broking
Chapter 17 Interpreting Financial Information
Interpreting the markets
The London Stock Exchange Market Information
Interpreting the figures
How to use the information effectively
Evaluation of weekly performance
Other share dealings
Trading volume
Share rises and falls
Highs and lows
Main movers
Indices
Chapter 18 Tax and shares
Dividends
Capital profits
Share schemes
Enterprise investment schemes
Venture capital trusts
Chapter 19 Pensions-Planning for the Future
Sources of pension and other retirement income
Income needs in retirement
What period to save over
Inflation
Chapter 20 Income needed in retirement?
Everyday needs
The impact of inflation
Chapter 21 Sources of pensions
The state pension
Pension credits
The savings credit
The guarantee credit
Personal pension arrangements
Occupational pensions
Stakeholder scheme
Other ways to save for retirement
Chapter 22 Women and pensions
Particular issues for women
Changes to state pensions from 2016
Chapter 23 The state pension
Qualifying for state pension
National Insurance contributions
Class 1 contributions
Class 2 contributions
Class 3 contributions
National Insurance contribution credit
The state pension age
State pensions for people over 80
Additional state pension
Contracting out
Increasing pensions
Deferring pensions
Changes to the state pension from 2016
Chapter 24 Job related pensions
Limits on pension savings
Qualifying to join an occupational scheme
Final salary schemes
Money purchase schemes
The cash balance scheme
HMRC limits on pensions
Chapter 25 Group Personal pension Schemes
Chapter 26 New duties for employers from 2012
Chapter 27 Protecting pensions
Occupational schemes
Other schemes
Personal pensions
Complaints
Chapter 28 Tax and pensions
State pensions
Occupational schemes
Personal pensions
Tax in retirement
Tax allowances for retirees
Income limit for age allowance
Useful addresses
Index
INTRODUCTION

The main purpose of this book 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. During the severe recession, from which we are now emerging and after a prolonged period of low interest rates, savers and investors are now 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 recent 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 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 Individual and Family Finances 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, health care, weddings and funerals.
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.
***************
1
Financial Advice and 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 0300 500 5957. 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
If you are getting advice about investing your money, you need to know there are two different types of financial advisers - independent and restricted - and this can affect the advice you are given. Some advisers can offer the full range of financial products and providers available, and are called independent advisers . But many ad