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More and more employers still offering defined benefit pension schemes are in the process f shutting them down. The main reason for this is that a lot of these schemes are in a significant fund short fall and are therefore simply unable to provide the guaranteed benefits to retiring members. On closure of the defined benefit pension schemes no new members are allowed to join and the existing members are given the choice to either leave their existing fund in the scheme or transfer the fund to the new scheme. I would strongly recommend seeking professional help from a Financial Adviser to decide what to do.

I have read not long ago that the government benefits by £4 billion every year because employed people ignore doing the annual self-assessment and claim back some of the tax they pay during the year. The tax return can be done in one of the three following ways:

1- Doing it yourself by regularly completing the on line Her Majesty Revenue and Customs (HMRC) self-assessment form.  This is the easiest and cheapest way However, you should ask for advice before doing it to make sure that you can do it accurately.

2- Consult an accountant. This is the most efficient way as the accountant is a professional and will be able to claim any tax that you have paid during the year. This is also the most expensive way as accountants normally charge fees for these services.

3- Talk to your Independent Financial Adviser. This is a very cost-effective way to do your tax return as IFAs do not usually charge for this service and they can help with most basic tax returns.  For more complicated cases they normally recommend an accountant.

Having worked for the last 25 years with several companies and organizations, I have developed a pension portfolio with seven different employers and eight different insurance providers. After a review meeting with my Independent Financial Advisor he has advice me to consolidate all of my pensions. This would significantly increase my level of control and reduce the overall need for monitoring and administration. This new pension would also be very well diversified as it would invest into several different investment funds covering a broad range of asset classes and geographical sectors. This was a very good idea and recommendation and I was more than happy to take up the advice from my Independent Financial Advisor.

If you are looking to invest some money you should look to invest the money in a number of funds and not just one for your investment.

A typical portfolio has between five and ten investment funds; these range from fixed interest and corporate bond funds to various equity funds. Geographically the portfolio should be well diversified to ensure that there is sufficient exposure to UK, European and international equity markets. UK Equity should include large-cap, mid cap and small-cap equities. International Equity should include European, North American and Asian equity markets. More and more portfolios now include property funds, including UK, European and global property funds.

<supportLists]—>1- They speak English and have the appropriate qualifications.

<supportLists]—>2- They were recommended to you by a friend or a relative.

<supportLists]—>3- They give you their business card at the start of your meeting.

<supportLists]—>4- They don’t ask for money or charge you for the first meeting.

<supportLists]—>5- They take a full Fact Find and Review of your situation, needs and objectives.

<supportLists]—>6- Their research, recommendations, reports and Suitability Letters are clear and understandable.

<supportLists]—>7- They are always available in case you have any queries.

<supportLists]—>8- They answer all your questions fully and clearly.

<supportLists]—>9- They organise regular review meetings or conversations.

<supportLists]—>10- They are very organized and efficient.

Why are not more people taking advantage of Individual Savings Accounts (ISA’s)? You are allowed to contribute up to £7,000 per annum per person into an ISA and all the profits on these are tax-free.

If you put the money into a unit trust you could end up paying Capital Gains Tax (CGT) on the profits when you sell and Income Tax on the dividends that are paid out at regular intervals. If you but the money into a bank or building society account you will pay tax on all the profits. Also as these are interest bearing accounts the level of interest you get will be very low, although as they are not stock market linked you are not going to see your money go down in value. If that is of concern to you then put your money into a cash ISA which is effectively a building society account ISA, so there is no tax to pay.

Investment bonds are another alternative as they are free of personal liability to Capital Gains Tax and are also free of basic rate income tax. They are however subject to higher rate income tax if you are either a higher rate taxpayer or the profits take you into higher rate tax.

As you can see for the majority of investors ISA’s have major advantages over most other investments.

I have just claimed back £350 in bank charges. I bank with the Abbey and a cheque paid into my account that I thought had cleared did not as it bounced. As a result I got bank charges of £360 which was made up of £30 for each cheque that I had written and cleared my account whilst overdrawn due to the bounced cheque. As the bank told me this was an unauthorised overdraft they said they were within their rights to charge me for each cheque I’d written that had been cashed when I was overdrawn.

I had read on the BBC website that this was potentially unlawful so I wrote a letter to the Abbey demanding my money back or I would take them to the small claims court. I got a stroppy letter first time round but when I wrote back saying I was going to take them to court they agreed to pay me back the charges.

New developments in FSA rules on pensions and pension funding have triggered a new generation of pension investors. These are investment savvy successful investors, not looking at a pension as a solitary source of retirement but as an effective investment vehicle. The increase limits on contribution and the removal of up front charges and the downturn of regular charges has encouraged this.

In addition the ability for higher rate tax payers to reclaim 40% relief which equates to instantaneous 67% growth. The investments future growth being free from income, corporation, and capital gains tax. Lastly the range of funds ongoing is now the province of successful external fund managers in whom investors confidence is far higher that in those of insurance company fund managers.

The private investor in the investment world today peers up worriedly at the peaks of stockmarket growth and wonders whether his Isa’s, Unit Trusts and OEIC’s can continue sustaining the growth of recent years. While this in part will be affected by investor sentiment over the long term economic strength will decide the growth of these investments.

It should be accepted that the growth that immediately preceded the last stockmarket crash was built on expectation not solid foundations. This time the growth to those towering stock market heights seems built more on perspiration. If one considers the dividend yield of the footsie now against that preceding the crash it can be seen that current growth is built on profit income streams not speculation and hope.

I have recently bought my first property. While I was looking for a mortgage to buy this property I was initially offered a very bad deal:  the interest rate was nearly 1% above the bank base rate, the high lending charge was nearly £4000 and the broker fee was £2500. I then consulted another mortgage broker who suggested that it was a fairly good deal even though he did not fully consider my situation. I then went to an IFA who was recommended to me by a friend, who not only reduced the broker fee five fold, but also found a deal which was below the bank rate and did not incorporate the high lending charge. Overall, this resulted in a monthly saving of £200 after the mortgage was completed. I was very happy with my IFA and he was the best in the world, which is why I recommended him to my family and friends.