Personal Finance

‘HOMEOWNERS are more than £10 billion a year worse off than in 1994 as a result of changes to the government tax policies, new research has found.

The Council of Mortgage Lenders (CML), which represents most of the UK’s banks and building societies, yesterday joined critics of Gordon Brown, who say that the Chancellor has squeezed homeowners to help balance his books.

Government policies are unfairly penalising home-owners and keeping many people off the housing ladder, the CML said.’

Read more at Houseowners £10bn a year worse off

‘Q - I am job hunting and want to find a company that provides a good traditional pension. How can I locate one?

A - My first thought was to list some companies. But the more I considered it, the more I came to think that trying to hook up with an old-fashioned pension just doesn’t make sense anymore.

That’s not the standard view. It’s more common to bemoan the decline of the traditional pension, which offers a set monthly retirement income guaranteed by the employer and insured by the federal government.

In its place, many companies are using 401(k)s and similar plans whose retirement payouts depend on the employee’s investing skill and luck.’

Read more at Personal finance: Traditional pensions vanishing

‘Almost half of U.S. consumers say retirement planning is harder than raising a child, a survey found.

The ING Financial Planning and Investing Study, conducted by Roper GfK, surveyed 1,000 Americans and concluded that consumers want financial services firms to be easier to deal with.

Seventy percent said they would switch to a financial services firm with a reputation for making the financial planning process easier.’

Read more at Personal finance planning too hard

‘It seems simple. In order to save money, you need to have “extra” cash, right? This is a common misconception. Having a spending plan (aka “budget”), will help you create money for savings. Most of us, by setting spending goals, can manage to save regularly, so if you’re tempted to hit your back button because you simply don’t have enough money to have a formal savings plan, STOP! This article will tell you the “secrets” to savings.’

Read more at The Secret To Saving Money: How You Can Save For Your Future

‘Australians continue to be cautious about borrowing, with the value of personal finance falling 1.6% in seasonally adjusted terms in November to A$5.68 billion, official figures published Thursday show.

The decline in personal finance comprised a 0.3% fall in revolving credit and a 3.3% fall in fixed lending, the ABS said in a statement posted on its Web site.

“The new era of consumer conservatism is showing no signs of ending,” Commsec equities economist Andrew Mitchell said.

“Australians are saying no to debt, shunning new loans and repaying existing commitments.’

Read more at Australian Personal Finance Down 1.6% In Nov

‘Question:I know it’s important to keep my investment portfolio in balance, but how often should I do it?

Answer: Most experts agree that the single biggest factor in long-term investment performance is the way the portfolio is balanced between stocks, bonds and cash.

A typical portfolio might have 60 percent of its assets in stocks or stock-holding mutual funds, 30 percent in bonds, and 10 percent in cash, with younger investors putting more into stocks and less into bonds, and older ones doing the opposite….’

Read more at On Personal Finance | Your portfolio balancing act

‘THE financial services sector raked in more than £550 million last year from penalty fees and charges, researchers today revealed.

New figures show that one in five people paid charges on financial products during 2005, shelling out an average of £70.70 each.

Within this total, 22 per cent were forced to hand over more than £100 after falling foul of the terms and conditions of products, according to the research by financial information group Defaqto and product comparison website MoneyExpert.com.’

Read more at Lenders cash in on late credit card payments and overdraft breaches

‘DEBT advice lines have reported a surge in calls during the first two weeks of the year as consumers take stock of their borrowings after Christmas.

The Consumer Credit Counselling Service said it took 9,310 calls during the first nine working days of the year, nearly 14 per cent more than during the corresponding period of 2005.

National Debtline also reported huge demand, receiving just under 13,000 calls between 3 January and lunchtime last Friday.’

Read more at Boom time for debt advisers as Christmas bills roll in

‘PRIVATE client stockbroker Christows has launched an inheritance tax (IHT) portfolio service and an Enterprise Investment Scheme (EIS) service. The former aims to provide the potential for IHT savings for investors without the need to gift assets or use trusts, while the latter offers the ability to defer unlimited capital gains.’

Read more at Portfolios to save inheritance tax

‘CONSUMERS who buy their protection policies online could find themselves with no cover and no comeback, according to a new report.

The report, issued by life insurance specialist LifeSearch, raised the issue after recent figures revealed consumers do not fully understand exactly what they are buying when they opt to purchase policies online.

Linda Tyson, policy adviser for LifeSearch, explained that consumers are largely unaware of how costly buying online can be. She said: “If you buy on the internet, you lose the right to redress from the Ombudsman because you haven’t taken advice. If you get it wrong, you can’t complain to anyone because there is no-one to rule against.”’

Read more at Online buyers may miss out on key protection, warns specialist