With-profits performance

Whilst with profit funds are not entirely safe from market fluctuations since their underlying funds do contain exposure to equities and property, the stronger funds have outperformed the market and they are in a good position to continue to do so.

Since with-profit funds use a smoothing process much of the solid investment returns of the previous 5 years have yet to be passed on to investors.

Here is a table that shows some of the recent past returns…

Market Demand

Due to high levels of capital guarantee and smoothed returns provided by with-profits benefits which become even more attractive in the current climate of volatility - demand from Traded Endowments remains strong.

The most attractive are strong life offices such as Prudential, Legal & General, Aviva (CGNU) and Standard Life with smaller offices providing some valuable diversification.

Despite a healthy demand, buyers are seeking value due to uncertainty in the markets so prices paid above the surrender value are lower than in previous years. However if you still need to surrender for whatever reason you can still obtain a higher value through the traded endowment market.

Hope this gives you a timely snapshot of what you can expect regarding your own with-profit policy performance.

Bye for now…

]]> http://www.williamgeorgeifa.co.uk/2008/11/10/with-profit-endowments-market-update/feed/ http://www.williamgeorgeifa.co.uk/2008/10/20/my-latest-finance-guide-is-ready-the-salary-sacrifice-insight/ http://www.williamgeorgeifa.co.uk/2008/10/20/my-latest-finance-guide-is-ready-the-salary-sacrifice-insight/#comments Mon, 20 Oct 2008 12:52:52 +0000 William http://www.williamgeorgeifa.co.uk/2008/10/20/my-latest-finance-guide-is-ready-the-salary-sacrifice-insight/ Hi Folks,

it’s a busy, busy Monday but I thought I’d just get this out to you before I go for lunch. I’ve just finished putting the touches to my latest Finance Guide.

It’s called ‘The Salary Sacrifice Insight’. I hope you do find it just that - an insight.

Salary Sacrifice is at it’s heart a simple solution which is helpful to both companies and their staff too. If you’ve a group pension and you wish to encourage take up in it, or you’re an employee and you just want to gain an understanding of exactly what salary sacrifice is it’s worth reading this 11 page page report. You can download it on the link below.

You won’t have to enter an email address either, just click on the image on the next page and your download starts.

www.williamgeorgeifa.co.uk/salary-sacrifice

Until next time, have a great week.

In these difficult market conditions it is important that as IFA advisers we continually scour the market for new financial solutions, directions and possible opportunities for our clients. A soon to be launched fund from CF Arch Cru seems in my mind a wise fit in that sense. Modelled on a current, very successful fund aimed at institutional investors, Arch Cru have responded to calls from many IFAs to launch something similar to private investors.

This fund is designed to have extremely low volatility whilst at the same time providing positive (in the current climate, their profile actually looks very impressive) returns. The existing fund has returned over 25% since February 2007, in markets that have seen unprecedented volatility, banking failures and global financial pandemonium.

That’s correct – the money is still there, the credit crunch has not affected those 25% profits one iota.

Even with the UK Government’s quasi-nationalised bank bailout for RBS, Lloyds TSB and HBOS there’s no guarantee that things will stabilise any time soon – in fact as I speak I notice that shares in all these banks are down as they closed today and that’s after a £37bn injection of cold hard cash.

It may be that the European leaders announcement of a Europe wide rescue scheme for their beleaguered banks of £393bn today, may help stabilise things and get nerves settled somewhat, but as we all know – fear is easily spread and it’s the panic which does the most damage most quickly.

Hence we have a very good reason to step away from this volatile system to explore some of the benefits and opportunities of private finance investing. In my opinion one of the very best, most well run operations who’ve proven their expertise again and again despite financial pressures elsewhere are CF Arch Cru.

A Fund For Now

This is obviously a good time to launch a fund of this nature. The credit crunch means many existing lenders are starved of cash. Arch Cru are cash rich which means that they can access some of the best deals charging higher interest rates to borrowers, meaning better potential returns to our investors. The short term investment climate for private finance is outstanding.

Private Finance Explained

Private finance allows investors to participate in a very wide range of lending opportunities which offer the potential for high returns, low volatility and virtually no correlation to public markets such as corporate bonds or fixed interest. The Finance Fund will hold a very diverse selection of private finance deals, providing for diversification for investors.

Private finance is an alternative source of borrowing to mainstream banks and is sought for many reasons. A company may need to finance the purchase of stock or fund a temporary need for cash while awaiting payment for goods or services already delivered. Whilst banks can be cheaper they often take a long time to process deals and speed of service can often justify paying a higher rate of interest. Private finance experts, such as Arch, have an experienced team who have a very good understanding of the businesses they are lending too which often gives them an advantage over mass market lenders.

Any examples of Private Finance Investing?

A golf bag manufacturer has a major order from a supermarket chain. They need to buy in materials, but existing cash flow is insufficient. Given that the gross profit margin is 30%, they are more than happy to pay a rate of base rate plus 6% as they only need to borrow for 6 months to complete the order. The supermarket have set the delivery date and finance is not possible to be in place if they turn to their usual lender, their bank.

So the company turns to private finance as a deal can be put in place in a week, secured on the golf bag materials before delivery, accounts receivable after delivery and other assets (such a the factory or the company itself, personal guarantees etc) to ensure the lender is substantially over secured i.e. if the company defaults there is more assets available than the outstanding loan.

Demand from the corporate sector has not diminished, so with cash to lend the CF Arch Cru Finance Fund is, we believe, extremely well placed to secure the best deals in terms of security and interest rate.

If you require more info on this fund or any other please get in touch on 0800 321 3508. Please remember past performance is not necessarily a guide to the future performance but I certainly do rate CF Arch Cru as among the very best of my portfolio recommendations.

Until next time, take care…

Yesterday in response, unconvinced financial minds, brokers and investors forced the FTSE to a gloomy new record - Monday 6th October 2008 saw the lowest drop in the FTSE value in one day that it has ever experienced.

The Asians are not convinced the cash injection has done the trick either - yesterday the Nikkei dropped to it’s lowest level since 2004. The Yen is rising whilst the Euro and GBP head in the opposite direction. Government Gilts are being snapped up as folks scramble for security.

Covered bonds are in sharp focus too. These are mortgages/loans to the public sector - which are ’secure’ or ‘covered’ by a pool of assets. They are subject to stiffer regulation and those issuing the bonds must make sure their assets reserves consistently cover/back their covered bonds. Institutions which have access to them are set to fare better in weathering the worsening credit/mortgage crisis here in UK.

For example when the UK Treasury nationalised the Bradford and Bingley PLC it guaranteed their covered bonds. If anything does go wrong the investor can call on the asset pool and the issuer to recoup their investment. Perhaps the most important point though is that under performing loans must be replaced within the asset pool to ensure it’s continued financial viability. Therefore how successful each financial product is, directly relates to how good their issuing institution is in keeping this asset pool in tip top shape.

Here in Europe The European Covered Bond Council (ECBC) was set up by the European Mortgage Federation (EMF) in 2004 and brings together covered bond issuers, analysts, investment bankers and rating agencies throughout 16 European Countries - in today’s turmoil it’s more important than ever.

By the looks of things Gordon Brown’s meeting with New York City Mayor Michael Bloomberg today is tricky too - as I write I’ve just heard that Mayor Bloomberg is even talking of a realistic threat to the banking system actually shutting down and denying any loans to consumers and businesses.

If that’s so and not more hysteria to add fuel to the fire, Covered Bonds could well be the only way some struggling banks may be able to secure the lending they require to keep their operations going.

You can discover more about European Covered Bonds here at http://ecbc.hypo.org where you can also download a free PDF which explains in detail what they do.

Simply put there’s no cash in the western system, even Asia is jittery, and the Chinese powerhouse is slowing too. So what to do - especially if you find that all this financial malaise is really getting you down?

These five steps should set a foundation…

1. Don’t be driven by fear regarding shares - mass hysteria triggers mass fear. If you are in shares for the long term, this huge shake out, will likely do you good in five years or so when this is all finally out in wash and the dirty linen gets ‘clean’. Don’t be afraid, any under-strength banks have gone down already and those that stay should receive Government backing. Jumping now doesn’t make sense when we could be at the lowest point anyway.

2. Short selling and dumping shares has been conducted for the most part by large financial institutions which in turn is triggering panic in private investors - you may wish to sell if you see values plummeting if your investment was just short term to raise money quickly for you. If this is the case then you may need to sell to recoup at least some of your original investment money. In time you could well look back and realise that buying shares at this time could have meant bargain prices with the wonder of hindsight when markets improve.

There is one thing to watch closely for though - as the Government moves in to purchase chunks of shareholdings in Banks, the overall value of the shares may devalue or dilute. Worse still if they completely nationalise them, their share value could well be nigh worthless - if you think that’s likely to happen to may wish to sell as quickly as you can before the double edged sword which will both save and slaughter the value of these stocks is wielded.

3. Don’t reduce your Pensions Savings - in fact these testing times may just be the right time to consider upping the stakes a little by setting up your earnings in a Salary Sacrifice Scheme. I’m preparing a PDF very shortly which will explain fully why it’s more than a little worth considering if you wish to be conscientious about your retirement planning options.

4. Shine a spotlight on the underlying liquidity and solidity of the funds you and your pension funds are invested in - asset reallocation is probably needed in a lot of cases reading this article. Speak to an Independent Financial Adviser - you need to know excatly what’s happening in detail with your pension fund, don’t leave it until you see it flash up on BBC Business News.

5. Get a regular check up with your Financial Adviser - with the astonishing volatility of what UK investors are facing, this is no time to go it alone. And as I mentioned in my last article, we are helping our clients fireproof their investments with the very havens we are using to ensure the continued viability and value of our own personal holdings. Be assured simple, solid and safe holdings are available - and please ignore the biggest fear of all, fear itself. Without fear you’ll make far wiser financial decisions, you can be sure of it.

Until next time, take very good care…

For us mere mortals however, boy oh boy there’s a storm brewing - and as I’ve just noticed over at Reuters not even $1TRILLION Dollars may be able to fix it. Has the credit crisis on the other side of the Atlantic just lurched nearer to pushing the entire western world off the edge of the precipice where it appears to be hanging by it’s fingernails, down into complete financial meltdown? Pretty dramatic statement I know… sadly quite possibly accurate though.

Last night as Jeremy Paxman showed the front page of the next day British newspapers on BBC Newsnight - they trumpeted as a ‘done deal’ the $700 Billion dollar bailout for the USA Banking system… it seems that it’s not gone as sweetly as Bush, Paulson and Bernanke were hoping for.

Terrible when you get knocked back for a loan eh gents!

They had hoped that the extreme nature of the crisis the USA (thereby the whole of the West by proxy) would be the ‘Gun to the Head’ to essentially force the hand of Congress to accept their request for this huge loan which will in effect amount to about $1Trillion (by the time other monies have been counted which have been added to shore up industries such as the US car industry etc).

It appears they may have miscalculated the ire of many in US politics - not to mention the growing anger of both rank and file Conservative Republicans, not just Democrats as well as ordinary citizens sick and fed up with some of the chicanery they’ve witnessed over the past three months.

As of today, while I write this, various sources comment that if this US deal doesn’t go through then the FTSE-100 could drop between 600 - 1000 points next Monday. A lot of folks are pulling their investments out and sticking them into government bonds and buying gold etc for safety.

After all, if this thing explodes into widespread panic and begins triggering hysterical market impulse actions then there could be a huge run on the American Banks. Heady stuff…

At the very least analysts are predicting economic woes akin to the downturns of 1974 - 1975 or 1981 - 1982. What seems to be so concerning is the ‘black hole’ nature of the wound they seem to be trying to stop with the money that Henry Paulson is seeking to acquire - there is no guarantee that the $700 Billion is anywhere near enough - and they don’t appear to know what they will be doing with it when they get it either! The chorus being chimed is “‘trust us’… even if we don’t quite know what we will find when we open the lid on this economic tale of woes and look a little closer.” This from the leaders of the US Treasury folks!

If you think I’m exaggerating how serious this has become in the States I wish I was - can you imagine last night Henry Paulson, the US Treasury Secretary was reported to have got down onto one knee to beg Nancy Pelosi the US House Speaker to agree to approve his request for the loan!

Can you imagine that!

At the moment all we can do here in the UK is hunker down, watch and wait - in the US savvy investors are loading up on investments in safe havens such as Treasuries or Treasury-only money funds.

If you’re worried about what to do, give me a call because boring as they may be - solid, safe liquidity rich havens run by managers which have been warning all about this very financial meltdown is where our money is already. I call them boring because your returns are only between 10% - 13% per annum, but a heck of a lot safer than what’s swilling about on the financial high seas just now.

Until next time take care - and I’m serious by the way. If you need help on a proven safe haven for your dropping investments, then call me on 0800 321 3508 - it’s not a time to mess about.

So Who Are They?

Fannie Mae is short for Federal National Mortgage Association. It was founded in 1938 at a time when it was very difficult to obtain funds for mortgages. It was a government agency until 1968.

Freddie Mac or Federal Home Loan Mortgage Corporation to give it it’s proper name was founded in 1970 to provide competition.Both these organisations do not actually lend money direct to mortgage applicants. Rather they they buy mortgages and sell them on to investors.

Nearly half the US mortgage is owned by them and this equates to roughly $6 trillion. Given this staggering figure it easy to see why the future stability of these companies is so central to US and World economics.

We shall wait with baited breath as to what the future for the beleaguered UK mortgage market holds on the back of this announcement, but even though things may be more stable in America after the rally on the Dollar the Eurozone may face choppier waters yet.

One thing is for certain here in UK - house prices continue to tumble and getting a mortgage without a substantial deposit and a watertight case regarding your finances is as difficult as ever for those desperate to own their own home.

Watch this space.

This is a very common question and one I deal with on a regular basis. As ever there isn’t only one set answer. The first thing you need to establish is what type of policy you hold.Is it a With Profits or Unit Linked policy?If it’s a traditional With Profits policy then it can be sold on the open market. Selling it on the open market often means you you can significantly improve on your offer from the Life Company.

This depends on which company you hold your policy with as been taken out with of course. Some companies will perform better than others therefore making them more attractive to potential buyers.

Here are the current top ten, in demand endowment policy companies at the moment…

1. Clerical Medical

2. Scottish Widows

3. Prudential

4. Norwich Union

5. Scottish Amicable

6. General Accident

7. Cooperative

8. Standard Life

9. Friends Provident

10. Commercial Union

A simple way to sell your endowment policy to the highest bidder is by using a trading platform which offers it to the marketplace on your behalf. These trading platforms will place your policy on bid and let you know who has offered the highest bid, usually within 48 hours. It’s a very simple way of selling your endowment policy. We have good long standing connections with several of these companies so if it’s something you are actively considering, then give me a shout.

If selling is not for you then surrendering is your other option. However it is important to consider a few things before you do this:- you should check whether your policy has any guaranteed bonuses attached to it or whether it is currently paying terminal bonuses (bonuses which are paid at maturity). Do also try and get your surrender quotation in writing as companies have been changing these values with increasing regularity recently.

If you do decide to surrender your endowment policy, next you will have to decide what to do with it. You may wish to invest it or decrease your mortgage (if you still have one). The answer as to which option you take largely comes down to your attitude to risk during these turbulent times. Paying off part of your mortgage is usually the least risky option.

Remember too that endowments do often carry a significant amount of life cover, so if you still require this cover you will need to look at replacing it prior to surrender.

Well that’s my word of wisdom for today. I’m off up to Perth to hear the (near) legendary Steve Bee wax lyrical about pensions… I’ll keep you posted!

Broadside for UK Retirees to come?

Troublesome data from the Pension Protection Fund just hit our monitors - these guys insure the pension schemes of British companies. Backed by Government sponsorship they worryingly just released figures showing their deficit just fell off a cliff… £80 Billion to be precise over the last year, with it cratering a mind boggling £17 Billion in July 2008 alone.

Thus it would appear that many UK Company Pension Schemes still haven’t weaned themselves off dependence on equities. By taking some some of the ‘fat years’ equity gains from the bull markets and diversifying into safer ports to batten down and protect pensions from the coming economic downturn that so many insightful forecasters had been predicting for the last three years, much of this loss could have been avoided.

The problem that future UK retirees face going forward is that now the whole financial markets are so firmly locked into a ‘bear’ mentality the present-day cost of buying your future pensions just keeps getting more and more expensive.End result - yep, that means funding your pension just got hit by inflation too!

BoE Highlights Economy B_ _ _s Up?

Hear the cheery chappie himself Mervyn King report about what the heck is going on economically from the perspective of The Bank of England.

If you’re feeling just a tad overwhelmed by which bit of bad economic news is going to hit you next - food prices, mortgage rates, petrol prices, crashing investments then maybe you should sit this one out, or watch the video below with the sound down - the wallpaper’s nice anyway! As far as ‘The King’ suggests there is more gloom and depression to follow.

The BoE even beats the governments latest forecast misery with the predictions that growth will stagger along at just 2.25%, the mortgage market will probably never return to pre-credit crunch levels and 100% mortgages are a thing of the past.

He noted inflation would continue it’s upward trend to 5% but would probably hit a ceiling then, and that consumer spending, plus house prices would keep going down, down, down. If you want to see him outline all this cheery stuff in detail then here is a 6 minute video which gives you the most important aspects you need to know. To be forwarned is to be forearmed as they say.Just click on the video to see it…

Eurozone hit - will it now cascade down upon the UK?

Fear is one of the worst emotions ever, and the problem we face as investors is the panic effect which sweeps not just across nations, but now across entire continents throughout the globe in virtual nanoseconds because of the speed of modern media and communications. Markets can falter and then be shattered within hours.Panic in one country begets panic in another basically - and it looks like that’s what about to happen after our European cousins reported their economies are set for a major slump too.

The 15 Eurozone economies dropped by 0.2% in the last quarter leading analysts to predict it’s heading into the realms of real recession. Germany led the charge with the biggest economy of the lot in Europe dropping by 0.5% between April and July 2008, compared to the same time last year.It’s doesn’t look good - but what will we do here? Just believe things will be terrible, or engage in a little good old fashioned contrarian thinking to outflank the chill wind being blasted our way by every TV, monitor and newspaper report that comes our way?

I know that none of us can afford to bury our heads in the sand, but now more than ever I believe it’s time to hold one’s nerve, steady the boat and not act rashly. It’s my personal view that despite the current storms, they will actually work out for good for long term investors and are simply scouring the current financial ‘riverbed’ of weeds that have been clogging the system and needed clearing anyway.It’s wise to remember - its always darkest before the dawn.

Before we know it, we’ll all be listening to Mervyn King talking about the “green shoots of recovery”. Remember you heard it here first.

Until the next time…

Hi everyone,

With Global Markets in a state of flux at the moment and many clients concerned about the falling value of their investments, what, if any, are the solutions?

Whilst putting it in cash ensures that you don’t lose anything, it also ensures that the don’t make anything in real terms either. Traditional alternatives such as bonds and property haven’t exactly set the heather on fire in recent terms either.

One possible solution lies in Absolute Return Investing

Since arriving on the scene 4 years ago and due to a change in regulation these funds have appeared in large numbers and in different forms. Absolute Return Investing Funds aim to achieve a steadier return which is not measured against a particular index, by adopting various strategies.

One invests in a wide range of assets, including bonds, cash and shares, but also things like property and hedge funds. It can sometimes mean using derivatives, which are specialised products that allow investors to bet on the future price movement of an asset.

Absolute Return Investing Allows you to:

• Make money when an asset is falling in price
• Make money when an asset is rising in price
• Achieve a steadier return which is not measured against a particular index
• Enjoy the possibilities of being able to make money whether markets are going up or down

A good investment strategy

Good investment strategy is based on how well the responsible investment team are able to perform. In recent years, managers offering ‘purely’ or ‘predominantly’ global products have significantly outperformed those those offering only regional products.

Do they get a job done?

As with everything there are good and bad funds falling under the banner of Absolute Returns. Returns on these funds have varied greatly so it is important to choose carefully.

One absolute return fund gaining in popularity due to its excellent performance is Black Rock’s UK Absolute Alpha Fund. Investing primarily in a portfolio of equities and equity related securities (including derivatives) of companies in the UK it uses a number of strategies and instruments to provide very impressive returns , especially in what is now a bear market. Over 1 year it has returned 12.8% and since launch (just over 3 years) it has returned 44.1% (source www.blackrock.co.uk 11/07/08).

Another fund which I’m particularly fond of is The Arch Cru Specialist Portfolio Fund which has a target return of cash + 6% and has achieved an annualised return of 15.55% since launch (source www.cruim.co.uk 11.0708).

This one uses a global strategy across various markets such as Private Finance, Structured Finance and Private Equity. I like it’s individualised approach which provides genuine negative correlation to most funds out there.

Diversification are key to successful Absolute Return Investing. I am confident that the funds will appeal to a broad range of UK investors, particularly in the current market environment.

If you require any further info on anything discussed in this article do get in touch. Please remember that as ever, past performance is not necessarily a guide to future performance.

See you next time!

today I thought I’d discuss an avenue open to those with wealth tied up in their properties, but who feel themselves to be stuck between “a rock and a hard place”. This is because the monthly income levels you’d predicted would allow you to feel comfortably well off in retirement really don’t match todays high cost of living after all.

It’s pretty galling to have worked and planned all one’s life to enjoy freedom from work, and finally be able to pursue one’s passions (like golf, or salmon fishing in some exotic location!) only to end up held back by mounting money concerns in your old age.

The problem is that when we’re at that age - dreams can’t be put on hold anymore, because there’s no time left to do all the things we really want to do is there?

The issues surrounding pensions in the UK affect us all, but with inflation beginning to bite, millions of retired Britons are really beginning to struggle with spiraling food and fuel costs making life even tougher.

In fact as we speak some analysts are predicting a ’standard’ oil price of $200 a barrel! It’s already over $145 - and it’s not just petrol it affects either, because oil is the basis for pretty much all of our plastics manufacturing these days too. (By the way how much plastic do the super markets need to wrap around everything we buy now - sheesh, don’t get me started on that!).

So if it looks like things could get more challenging still for you - don’t worry a simple solution may present itself to you in the form of what’s known as ‘The Lifetime Mortgage’.

It works like this…

Many retired people who manage on a small pension and limited savings are also living in properties which have soared in value in recent years (even allowing for the present downturn). The average house price in the UK is now standing at £218,112 (May 2008), and many people may be not be aware of how much equity they have in their homes.

Many of my clients who are in their forties and fifties and have a lot of excess value in their homes sometimes mention that they will simply downsize when they come to retirement. However, the reality is that it is a very difficult thing to do later, when left too late in life because your home holds sentimental as well as financial value.

Many love their homes for this reason and are reluctant to downsize but they’d still like to unlock some of the value of their prime assets so they can enjoy their retirement more. Equity release schemes (aka Lifetime Mortgage) can provide the platform to do this.

Equity release plans – also called lifetime mortgages, home reversion or home income plans – are a way of releasing cash, whether to pay for a holiday, buy a car or simply to make daily life more comfortable. Essentially what they do is allow you to borrow money against the value of your home, with the debt being repaid from the sale proceeds after your death.

So How Do They Work?

While there are a range of different schemes offering lump sums and/or regular income, they all work on the same principle: they lend you a part of your home’s value in return for a share of the proceeds when you die - hence the term ‘Lifetime Mortgage’.

You generally need to be 60 years old plus, have no outstanding mortgage (or you will need to use the equity release money to pay down the existing loan), and own a property which is in reasonable condition.

Equity release plans can be complicated products and are a major step for many people to take. Your house will probably be the most expensive and valuable asset you own; remember it is also your home. So good advice is hugely important for obvious reasons.

Age Concern and the Financial Services Authority both recommend getting independent financial advice before proceeding.

Remember - Safety First

There are no shortage of schemes on the market promising to help you get the lump sum or monthly income you’re looking for via equity release - but do they deliver?

The answer is yes, they can - but you will need to do some thorough homework before investing. And let me also say at the outset - a number of people will find home equity release schemes are just not suited for them and their circumstances.

Questions you must ask…

• Does the scheme allow you to move house if you need to? In the future it is possible you might want to move into sheltered housing or need residential care, or even move to be nearer to your family.
• How long do you expect to live? People in their 60s and 70s usually benefit most from monthly cash payments. If you are older you may receive less from this kind of plan before you die relative to the value of your home.
  
• What do your family expect to inherit on your death? If you use your property for home equity release you will not be able to leave it to your family, and this will reduce the total value of your estate on your death.
• Are you living with a younger partner, relative or friend? Depending on the terms of the scheme, they will need to find alternative housing in the event of your death.
• What is your eligibility for means-tested benefits? The Minimum Income Guarantee is increasing and the Pension Credit came in last year. If you receive cash from a home equity release scheme this may cancel out your eligibility for means-tested benefits or help with paying for care.Careful planning is essential as you work through these issues - but that’s the way to navigate and benefit from equity release plans safely. Finally do consider…

Family Issues

Wherever possible you should also discuss this type of arrangement with your family and anyone you live with. Property inheritance is well known for starting family feuds. If money is really tight you may be better off finding out whether you qualify for means-tested benefits or other benefits such as Attendance Allowance or Council Tax Benefit. If however, family issues are not prevalent in your own circumstances then by all means it could pay you to investigate further.

If you think home equity release could be an option and you want to find out more drop me an email or give me a call on 0800 321 3508. Age Concern also offers an easy to read fact sheet ‘Raising income or capital from your home’ free of charge from their Info Line 0800 00 99 66 open 7am-7pm, seven days a week.

Until next time…