1: To protect your family

There are a lot of people trying to sell you insurance of one type or another but an adviser can tell you which one is actually worth buying. They will assess your position and guide you through the best options to protect yourself and your family - regardless of whether you are single, married, have children or they have long left home. Whatever your needs, an adviser can help ensure personal tragedy does not turn into financial crisis.

2: To help plan your spending – and saving

To secure your long-term future, you need to build some assets, initially to get you through the rainy days and then to pay for holidays and luxuries. Step one is to plan your spending so that you begin to save – and step two is to plan that saving so that you can build your wealth as efficiently as possible. Regardless of whether you currently have £10 or £10,000, a financial adviser will look at your situation and find the best starting point for you.

3: To secure your house

The mortgage market was complicated enough already, with its discounts and variables, AERs and caps, indemnities and early redemption fees. Then the credit crunch hit and things have got even worse. However, buying a house is still one of the most expensive decisions we make, and the vast majority of us need a mortgage. A financial adviser could save you thousands, particularly at times like this. Not only can they seek out the best rates, they can help you assess sensible levels of borrowing, make the most of your deposit and might also find lenders who would otherwise not be available to you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

4: To help you plan for retirement

Once you have sorted out your short-term saving needs, you can then start thinking about the long term – and most people these days realise they cannot rely on the State for more than the absolute basics. However, planning for retirement is a complex business and there are many different options available. Pensions have come a long way in terms of flexibility and transparency in recent years and also now offers a wide range of investment options. A financial adviser will not only help sift through the many rules and product options but also help construct a portfolio to maximise your long-term prospects.

5: To help meet your investment goals

As you progress through life, you begin to build your assets and your income begins to increase. You then start considering how you can enhance your position rather than simply consolidate it. This could mean anything from looking to retire early through to paying school fees for private schools or investing in overseas property. However your dreams evolve, a financial adviser can help assess what is realistically possible – and put the best plan in place to help you achieve it.

6: To find the right combination of assets

Investment is as much about protecting the potential downsides as it is about targeting maximum growth. With

high returns comes high risk – and not everyone is happy if their investment falls by a third or more overnight. A financial adviser will make a detailed assessment of your attitude to risk before making any recommendations. They will also ensure you don’t put all your eggs in one basket by helping you diversify not only across assets but also across accounts, individual funds and product providers.

7: To obtain an objective assessment

Every new product or investment opportunity is accompanied by hype, proclaiming it the best ever – but that does not mean it is right for you. Investors the world over have been and will continue to be caught out by market bubbles or high charges because they don’t take a step back. A financial adviser knows how products and assets work in different markets and can outline the downsides for you as well as the benefits. Between you, you can then make a more informed decision about what hype you can believe – and what products you really need to avoid.

8: To save money

Once your risk and investment assessments are complete, the next step is to look at tax and even the most basic

overview of your position could help. It may simply mean using ISAs or a pension plan to benefit from Government incentives or it could mean choosing growth assets over income to use capital gains allowances rather than pay income tax. Alternatively, for the more complicated arrangements, it might mean moving assets to your spouse or children to make full use of their personal allowances. A financial adviser will always have your tax position in mind when making recommendations and can help point you in the right direction even in complicated situations.

9: To keep you on track

Even when you have every product you need taken care of and your investments are set up and running to plan, someone needs to keep an eye on them in case markets or abnormal events push them off course. You can ask a financial adviser to do this monitoring work for you. They can assess the performance of individual investments against their peers, ensure that your asset allocation does not get distorted as markets move and also help you consolidate gains as the dates of your ultimate goals approach.

10: For peace of mind

Money is a complicated subject and there are many things you need to think about to both protect it and make the most of it. Markets are volatile and the media is prone to exaggeration of both the risks and the rewards. Employing a good financial adviser can take the emphasis away from you and move it into the hands of an expert. Whether you need general, practical advice or a specialist with dedicated expertise, the money you invest getting their advice could be paid back many times over in the long term.

If you would like to take a closer look at your own circumstances and discuss the best mix of investments to meet your needs, please give me a call on Scunthorpe 330088.

Issued by Marketing-hub.co.uk on behalf of your professional financial adviser. The contents of this document do not constitute advice and should not be taken as a recommendation to purchase or invest in any financial product. The value of a market investment can go down as well as up and you may not get back the full amount, particularly in the short term. Before taking any decisions, we suggest you seek advice from a qualified financial adviser. The Financial Services Authority does not regulate tax planning and tax advice.

The pound hit a 5 year low against the US dollar.

Tokyo’s shares plunged 24% during the week, double their fall in 1987.

Bank of England rate cut by 0.5% to 4.5% - this was not favourably received by the stock market, perhaps it was too little too late and I believe that further cuts are drastically needed to kick start the economy and the housing market. Neither this nor the bank rescue package had the positive effect which was hoped would see the FTSE begin to recover.

Volatile markets can test any investors resolve and 2008 has seen one of the most turbulent periods for many years. However, while the underlying causes this time are new short term dips in markets have been seen many times before and reinforce the need to keep a long term prospective.

To cap it all off, John Terry’s back injury means that he is unable to play tomorrow! Lets hope the rest of our boys have the lion in their hearts, even though they may have less in the bank then they did a few weeks ago, and manage to give us all something to cheer about when they play Kazakhstan.

I would reiterate my advice from Monday, DO NOT SELL, stick to the long term plan and hold your nerve. Now is not the time to move. On the other hand, this is the best sale for the last 20 years, a lot of good companies are grossly undervalued at present, buying today – particularly through an ISA or investment bond, could mean that you may see a good profit in years to come.

If in doubt I am only a phone call or email away.

Capital Economics research has shown that the S&P 500 rises on average 9.3% in election years; this is compared to 6.5% in other years. The group also found that there was a significant performance difference depending upon whether a Democratic or Republican president came to power. Generally, markets underperformed on the inauguration of a Democratic president and performed strongly in Republican years.

There is strong reasoning behind the performance of the stockmarket in US election years. To begin with, the administration tends to introduce economically favourable policies in order to secure votes. Also, although the Federal Reserve is independent, pressure may well be brought to bear to stimulate the economy ahead of an election.

Emotional factors are also at work. It was also found that the stockmarket showed gradual improvement as the election campaigns begin. It then has a brief gap before a last rally once the result has been announced. Investors then look forward to new policy initiatives and optimism spreads to produce renewed investor and financial confidence.

A further historical precedent is in favour of US markets. Just as the US leads the economy downturn, it’s also often the first to recover. Previous downturns have shown its stockmarket has tended to surge before others catch on. Stockmarkets tend to anticipate recovery 6-12 months ahead of time with the US doing this more efficiently than any other financial market. This is because US policymakers have acted quickly to promote growth with fast cuts in interest rates and by other measures. This means that the economy often falls harder and recovers quicker than elsewhere. It’s also because markets traditionally take their lead from the US.

The big question is - Will it be the same in 2008?

The Federal Reserve has been quick to cut interest rates and has shown that it is determined to avoid recession even if it means that inflation is a risk. In the past this has worked to boost the stockmarket and support the economy.

However, US markets have been hit hard and compared to history, valuations now look reasonable. George Bush has announced a new fiscal reform package, which has been designed to stimulate the economy through lower taxes.

However, the economy remains grim. The Federal Reserve has decided that avoiding recession is more important than fighting inflation, even though inflation levels are worryingly high and still rising. The housing market is still in turmoil and likely to continue to fall. The US government has had to take steps to protect mortgage firms and the dollar is still weak. This means that the US economic picture is weak for an election year and makes a pre-election rally less likely.

The US is also loosing ground to other countries. It has been the economic powerhouse and behind world growth, however, the growth stakes have now shifted onto a new generation of countries – China, India, Brazil and Russia, which have demographics and population on their side. This means that the US is less influential and may not lead markets up and down as before.

In the past the US economy has proved itself to be very adaptable. However, there are now big head winds. The US economy tends to outperform in election year as the economy also tends to do the same. Markets are given a lift by optimism that naturally surrounds a change in government, but with the weak economic data it’s unlikely. If 2008 follows history, investors need a significant improvement in the economic condition of the US.

(Source: Taken from HubNews Issue 2 - September 2008)

I offer the a completely free first half hour initial consultation on Pensions and Investments so we can access your financial situation and help you understand what choices you have available in order to maximise your return on investment or pension.

Don’t hessitate to call today and book a free initial consultation on 01724 330088
(Unfortunately I cannot give a free initial consultation on mortgages)

Since The Pensions Act 2007, it has been much easier for women to build up entitlement to the Basic State Pension. This has been done by reducing the qualifying number of years of National Insurance contributions from 39 to 30 years, as well as  giving more credits from unpaid carers. With the basic state pension being indexed in line with earnings rather than prices and moving S2P so that it is flat rate in the long term also helps women, whose pensions are made up by a higher proportion of state pension income, than that of men.

However, improvements in state pension benefits have not been matched by women increasing their own pension/retirement savings. Between 2006 and 2007, the gap between men and women privately saving for retirement increased from 8% to 13% (Source: Scottish Widows UK Pensions Index based on over 30s earning at least £10,000 per annum).

Basically, we all need to take control of our pension and retirement planning.

Young Women Action Plan

Start saving as early as you can – money saved when you are in your 20s has much longer to benefit from investment growth. You could also find that saving is interrupted in your 30s and 40s by looking after children.

Ensure you are claiming any benefits available at work – Ask your employer is there is a pension scheme, which they might even contribute to if you agree to start saving. All firms with 5 or more employees must have a stakeholder pension scheme in place. Personal pension contributions benefit from tax relief! A £100 contribution costs a basic rate taxpayer £80 and a £500 contribution costs a higher rate taxpayer £300!

Think long term – If you want to get maximum benefit, you need to think and act long term. It might seem selfish to lock away some of your money until retirement when you have children to worry about, but planning for your retirement is a basic financial need.

Pension contribution sharing during marriage­ – Where one of you has given up full time work to look after children, the main earner could easily contribute to a pension on your behalf.

Women over 50 Action Plan

Think about your state entitlement – Starting with how much state pension you are entitled to would be a good starting point. It may be possible to make up shortfalls of broken years of national insurance contributions. Contact the DWP (Department for Work and Pensions) or your financial advisor for further details.

Pensions Tracing – Currently, billions of pounds worth of pensions are unclaimed. This is mainly due to people moving jobs throughout their lives and not keeping in touch with pension providers or previous employers. You can trace lost pensions through www.thepensionservice.gov.uk

Pension-sharing on divorce – while this applies to women of all ages, it is more likely to be significant to those who are nearing retirement. These women have less time to build up their own pension pot before they reach retirement, so should not be so quick as to waive their rights to any pension savings which have been built up during their married life.

Inheritance – don’t count on it – Windfalls at or in retirement could easily be spent on other things, such as long term care and other unforeseen expenses.

At what age should I retire? It pays to delay – With over 1 million people of retirement age still in employment , deferring your pension could increase your benefits. By starting your pension at age 65 instead of age 60 could give you the potential of a large increase in income by way of extra growth, further pension contributions and a potentially higher annuity rate. This could prove to be an effect way of making up any shortfall you may have in retirement income.

Generating income in other ways – Did you know that over half of women over the age of 50 own their own home outright? The value of this asset could be used in different ways to increase your retirement income.

Obtain 2 or 3 valuations from different agents – don’t just go for the highest valuation, choose the most realistic and try to negotiate the fee.

Before the photos: -

v     Tidy the garden – make sure that the front garden is tidy and has kerb appeal. Plants in pots are a quick and simple way to spruce up; they can also be taken with you when you move.

v     Sort any minor repairs – fix any loose roof tiles, faulty gutters, tidy any paintwork.

v     De-Clutter – remove any clutter and excess items of furniture. Make the space look spacious. Put items into storage if necessary.

v     Treat any serious problems – such as damp or dry rot. Don’t try to hide anything like this as a surveyor will pick up on them anyway.

Check agent’s description – make sure that the estate agents description is accurate and check dimensions. Make sure that the photographs are clear and show plenty of the room and not just one item of furniture in there.

Make a list of likely questions viewers may ask – these may be nearest shop, petrol station, details about school catchment area and public transport.

Showing the property: -

v     Clean the kitchen and bathroom – make sure that these rooms are bright and sparkling clean. Traditionally, buyers pay the most attention to these 2 rooms.

v     Create a pleasant atmosphere – consider putting out fresh flowers to brighten up the property. Put a coffee percolator on or fresh bread in the oven.

v     Have utility bills to hand – to answer any questions about council tax banding and cost of gas and electric.

v     Make it clear what you are leaving – advise potential buyers which carpets, curtains etc you are leaving or willing to negotiate on. Also any built in electrical appliances.

Do’s and Don’ts

Do – use the local paper and estate agents to compare and research the prices of similar properties. If you want a quick sale, put yours for sale at slightly less.

Don’t – if possible try not to sell in the slow months – November and December, July and August when people are usually away on holiday.

Do– make sure that the photographs of your house are bright and clear and don’t show any mess or clutter. There is also nothing worse than seeing someone’s washing on the line or airer. Make sure exterior shots are taken on a sunny day.

Don’t – be temped to fully redecorate. Buyers may think you are trying to hide something and they are likely to change things to their own taste at a later date anyway.

Do – answer all questions honestly and openly. If you are seen as co-operative and friendly, buyers are more likely to make an offer.

Don’t – hover around while viewer’s look around, let them go at their own pace, they will find you if they have any questions.

Another reason for thinking about life cover is that it can help take care of some of the worries of funeral costs. With the average UK cost for a burial standing at £3,222, and cremations typically costing £2,130*, it’s an added financial burden for your family at such a stressful time. You should also consider the effect of inflation as it will reduce the buying power of any lump sum payable in the future.

Guaranteed acceptance without a medical

For most types of life cover you may have to undergo a lengthy medical with intrusive questions to answer. Each year, many people find obtaining life cover difficult because of pre-existing medical conditions such as asthma, angina, cancer or heart problems. With this plan, this simply isn’t an issue. As long as you are a UK resident aged between 50 and 80, you’re guaranteed to be accepted without a medical or any intrusive questions.

About the premiums

Premiums start at just £10 a month, but you can choose to pay up to £50 a month which, naturally, would make a big difference to the amount of life cover you receive. The level of cover depends on the premium chosen and your age, gender and whether or not you smoke. Please ask for further details. Once you have selected your premium it’s guaranteed not to rise. And as long as you pay your premiums until your 90th birthday, you’re covered for life. After 90, your premiums stop altogether, but your cover continues. Of course, if you stop paying your premiums before your 90th birthday, your life cover will cease. Please note, depending on how long premiums are paid for, the total premiums paid may be more than is paid out on death.

Examples for information only: -

Female – Non-Smoker – Age 50 - £30 per month – Cover of £14,836

Female – Non-Smoker – Age 55 - £30 per month – Cover of £11,539

Male – Non-Smoker – Age 50 - £30 per month – Cover of £12,057

Male – Non-Smoker – Age 55 - £30 per month – Cover of £9,052

How the Cover works

In the first two years of your policy, if you die from natural causes, the plan will pay back all the premiums you paid plus half again. If you die as a result of an accident in the same period, the plan will pay out either three times the life cover amount or £32,000, whichever is lower. After the initial two year period, the chosen sum assured will be paid to your estate. Please bear in mind that, as explained earlier, over time inflation will reduce the buying power of the amount payable on your death. This whole of life insurance plan pays out on death and it has no cash-in value at any time.

Summary

v     You are guaranteed to be accepted without a medical regardless of any pre-existing medical conditions

v     Premiums start at £10 a month and are guaranteed never to rise

v     Available to any UK resident aged 50-80

v     A tax-free cash lump sum for your family

v     Provided by a leading mutual society

v     Premiums will stop at the age of 90 but the cover continues

v     The lump sum could be used to help with funeral costs

v     Add to your existing life cover

*Brahm research December 2007 carried out on behalf of engage Mutual Assurance.

* Source: Liverpool Victoria, Annual cost of a child survey 2007, to age 21.