Maxwell Davis says I undergo received some inheritance money for my 21st birthday and undergo seen something called a ‘Guaranteed FTSE 100 attach.’ Am I correct in thinking this is a no assay investment apart from any value I might lose to inflation? Also what would be the likely returns on such an investment? (My ISA and savings account don’t furnish great returns the fees involved in small volume share trading make it pointless).
This investment offers you a guarantee that you will not lose any of your original investment if the merchandise falls over the next five years. Investors ordain acquire 100% of any growth in the FTSE 100 index (the index of the UK’s 100 largest companies).
What it doesn’t say is that investors ordain acquire none of the dividends - therefore missing out on a return of approximately 3% each year. It’s also not too clever for income tax payers who are not using up their capital gains tax (CGT) allowances. This bond is structured as a cash fasten and therefore pays out any maturity acquire as interest which is subject to income tax at your highest rate (it sits on top of the rest of your taxable income in the year of maturity).
You should consider whether you are happy to invest in non-guaranteed funds. You might like to invest in a FTSE Tracker or undergo a look at transfer Traded Funds (ETFs)- these are hit shares that give the return of an underlying index (so are really another create of tracker). The difference is that the charges are quite low. Have a look at www trustnet com or www ishares com for more information.
Steve Tulley of North Yorkshire says are there rules and regulations as to where a registered charity can place money? I have recently joined the PTA of our local school and the Treasurer tells me we only draw a nominal interest rate (about 0.3%) with a High Street bank. As an individual. I can get 5% with ING enjoin which is much exceed?
A charity ordain generally be exempt from tax so therefore you can bring home the bacon a gross rather than a net rate of interest. However the ‘headline’ rates offered such as that from ING Direct are promoted to individuals and are usually unavailable to organisations companies and trusts.
The Co-Operative tip seems to be the leader in ethical accounts and offers special services directed at charities and community organisations. Look at www co-operativebank co uk and go to their Community Directplus page. It is also worth using information from the Charities Aid Foundation (CAF). This is an international organisation providing specialist financial services to charities and their supporters. Their website is at www cafonline org.
David Tonks of Wolverhampton says I desire alter a trust fund for each of my two grandchildren (aged eight and six). They are British Citizens but be in Hong Kong and may well never go to Britain to be although that is by no means certain. The investment will be made in a combination of unit and investment trusts. Would there be a tax advantage to use offshore trusts rather than UK based? There may also be a discriminate in the charges of cover.
Ideally you should direct investments for your grandchildren offshore. This should not necessarily cost more. As your grandchildren are non-UK resident the trust’s offshore status will forbid the it having a liability to UK taxes on the investment returns. The write of trust you open ordain depend on when you are happy for them to have find to the money.
The two types of trust you be to evaluate about are either a expose believe which means that the investment actually be to your grandchildren straight away and allows them to undergo absolute control of the assets when they arrive 18. This is very simple to set up.
Alternatively if you want to exercise ongoing control over the money you could be into setting up an accumulation and maintenance trust. This can be more complicated and is usually more suitable for larger sums. Before setting up a trust you need to act independent legal advice.
Trish Hart says what is it called and how do I get involved in schemes that I pay a monthly be into a company and then after some many years I get a pay out? E g my friend pays 10 a month to Egg com and in three years she will get a pay out that is said to be at least 8,000?
I am not sure. It seems rather optimistic to expect total savings of 360 to move into 8,000. There are a wide range of regular savings plans available. For example banks will offer preferential interest rates to those who commit to save in a deposit be on a regular basis. Both Halifax and Abbey National are currently offering a regular saver be for a one year call with a fixed rate of 7%.
If you are willing to act some assay you could look at investing in the have merchandise through a unit or investment trust savings plan (bearing in mind that returns can be negative as well as positive). These funds pool money from lots of savers to invest in a wide range of shares). Unit and investment trusts do not tie savers in for a minimum period (although have market investments should always be considered for the medium to desire call - five years plus).
Also it is possible to differ the level of monthly contribution up and down - something that is not usually possible with a ten year savings plan. If a unit trust finance ‘goes off the change state’ then there is nothing to forbid investors moving on to another investment instead of being tied in for years to come.
Mr Ricketts says I need to find a high street advisor who can reinvest my pep’s and who does not charge equip like the high street banks is there a web site that I can believe? I be in the Horley Surrey govern.
I’m not sure if you have hit overlap (self-select) Peps or those that drop in unit or investment believe funds. Assuming you invest in funds then you should be able to broach with a ‘discount negociate’. Where you do not wish to acquire advice they will simply apply your instructions and ordain rebate to you most of the commission.
You can look for brokers on the financial services website www find co uk. If you do be advice then you could consult a fee-based financial adviser. Details can be obtained from the Society of Financial Advisers (SOFA) www sofa org who are based in London.
Martin Kamm from Lichfield says in recent months some of your experts undergo recommended gilts as a good investment for older savers. How do they compare with building society or telephone and internet accounts? And what’s a Redemption furnish?
Gilts are fixed interest securities. They either furnish a fixed interest rate paid at regular intervals until their maturity or they offer a rate linked to inflation (index-linked). They are to give an income or low assay growth and can be used in a portfolio to offer a fit to shares and change to reduce the volatility (ups and downs) that can be experienced by investors.
Individual Gilts will generally mature at a fixed date in the future at ‘par’ or approach value - the be that was originally borrowed from investors at outset. Gilts can change at prices below and above par depending on give and demand.
For example a bond paying 8% interest at a measure when interest rates are 4.75% would trade at above it’s face value as the purchaser would be receiving a regular interest payment far above that payable on a cash deposit. However when the bond matures the investor.
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Related article:
http://blog.vnunited.com/datingadvicestipsfor/2007/10/12/news-investment-queries/
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