mowatt financial Planning

mowatt financial planning
Mowatt Financial Planning: November 2010

Wednesday, 24 November 2010

Financial Planning Week - Savings Tips

By savings I mean the kind of savings account that you would have with a bank. Your savings could be for a rainy day or some specific goal that you have in the next few years. The intention is that there is no capital risk with this money.

Savings Tips
1 Consider using your annual Cash ISA allowance of £5,100. My thinking here is to cover your emergency fund of 3-6 months outgoings with a cash ISA.

2 If you are a couple then make sure that you spread your savings to minimise any tax that is taken. For example if one of the couple is earning and the other is looking after the family and does not have an income; the savings can be held in the non-earning person's name and the first £6,475 in income will not be taxed.

3 Spread your risk. Only hold £50,000 with one financial institution (each for a couple) to make sure that your savings are protected by the Financial Services Compensation Scheme. See Are Your Savings Safe? on the website.

4 Look at how long you can leave your money invested as you can get better interest rates for fixed term accounts. Personally I wouldn't fix for more than 3 years as you would be leaving your money for a long time and the future course of inflation is an unknown.

5 Shop around! Click on the link here to find a selection of current interest rates and compare this with the interest rate that you are earning. It's important to keep reviewing the rate you get. Check the rates you can get on the Moneyfacts site here.

Monday, 22 November 2010

Financial Planning Week

Today sees the start of Financial Planning Week (22nd to 28th November).

The Financial Planning 2010 survey shows that the need for Financial Planning is greater than ever:

The survey found that 43% of people worry about money "more often than not" and 17% worry about it "all the time".

The situation has got worse than in 2008 when 26% of people said they have financial goals they are working towards compared with just 14% in 2010.

More worringly, when asked how they intend to improve their future financial position, 36% of respondents said their hopes rest on winninmg the lottery!

There is a dedicated website where there are financial planning tools and tips.
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