Personal Finance News Round Up

This wek has brought us the news that dental patients are selling their gold braces due to the soaring price of Gold.

Banking
Tha banks have announced the end of cheques and a campaign against the decision appears to be mounting even if it does appear to be inspired by the ill feeling towards bankers in general.

Investment and Pensions
A story about one pension investor who took Standard Life to court and one. Standard Life suffering the embarrassment of being accused of using bullying tactics by the judge and a finding that their literature was misleading. Where is the FSA when you need them? Do you buy an annity or invest the cash here is a link to a useful annuities versus income comparison tool. Annuitiy choices and pension planning is an extremely complex issue and we strongly advise that no action is taken without getting truly independent advice.

Mortgage News
Home owners are shunning fixed rate mortgages and the number of first time buyers is at low.

Personal Finance News Round Up

Good article on the latest and best rates for your savings and another on the best cash ISA's.

pensions are in th news with advice on how to make the most of working on after retirement and for those who were high earners who took redundancy there is comment on to avoid being caught by Pension Contribution limits tax trap when making further contributions.

It appears that almost 100,000 house moves a year are caused by disputes with neighbours.

Tax Talk

Tax Talk has started to publish news and appointments within the UK Tax profession.

A listing of Tax and accountancy appointments and news headlines.

The article publishing system will be in place shortly.

Personal Finance News

The new personal news service is proving a great success with users finding the UK Personal Finance Headlines a great service. We have included here a round-up from the last few days of those that have caught our attention.

It will come as no surprise to know that property is still seen as playing a major part in Pension Planning by many.


Home buyers are on average paying £15000.00 more than they would have paid last February.

Isa sales are surging especially among the over 50s to take advantage of the tax breaks.

Personal Finance News

Articles of interest this week include coverage of the prediction that final salary pensions are ending, a SIPP that pays a miserable interest rate, the Bank of Scotland has been offering high rsik foreign currency mortgage at the same time as it is a state owned bank

Finally as a sign of todays property market a report shows a dramatic reduction in sales of houses valued over one million pounds.

Updated YourMoney.co.uk site.

New site has been launched easier to usewith clean fresh design Personal Finance news section and more.

News is dominated by the Supreme Court decison on UK bank Charges.

Personal Finance News Round Up

The FSA shows it true colours once again.
The FSA has effectively dismissed concerns by FOS ( Financial Ombudsman Service) that the banks are consistently mis-selling inappropriate products to the elderly. This follows a massive jump in complaints about Banks.


Late payment Interest penalty increased
Bereaved Families will have to pay more on late payments on IHT. It is frequently impossible to meet the deadline for payment of tax as it may require the disposal of property or pother assets and the sharp rise is being spun by the Revenue as simply a fairer way.

Northern Rock
The former Building Society now nationalised bank Northern Rock has suspended payments on its PIBs ( Permanent Interest Payment Shares). This is only the second time such an action has taken place and follows Bradford and Bingley last year.

Capitalism - A Love Story - M. Moore
M. Moore's latest film release is due for release on the 2nd of October 2009. The new film is "Capitalism - A love story" appears to be an investigation into the President Bush's handling of the Banking crisis.

No matter what you think of Mr Moores or his politics there is a section on the Trailer where he asks the Head of Congressional Oversight "Where is the money" that is just great cinema.

The trailer for Capitalism - A love story is here.

YourMoney.co.uk - Update

Final Salary Schemes.
Final Salary Schemes are very rapidly becoming something that an older generation enjoyed. Watson Wyat has revealed some alarming facts on the number of companies that are either closing or amending their Final Salary Schemes.

Financing Post Graduate Studies
With many students already burdened with considerable debt the difficulty in financing Postgraduate degree. We have added a page and links to sources for advice and help.

The FSA dithers again...

For those that were still under the illusion that the FSA exists to protect the consumer the feature and article by the MP Ed Vazy will make uncomfortable reading.

From LAUTRO 13 to Bank Charges to Zero Bonds to Banking supervision the FSA has failed the consumer on every occasion while managing to protect is own interests and that of the Banks, Providers and political masters.

This is a organisation that is a complete failure and failure due not the staff but the senior management who bear the complete responsibility for such unmitigated shambles. It appear that almost all of the senior management at the FSA were recruited from the Banks the same banks whose senior management made such a mess.

This time the use of the "wider implications" rule imvoked by teh FSA could not be clearer they are reluctant to explain why these structured products were allowed to be sold as guaranteed and secure, why the ultimate destination - Lehaman Brothers" was hidden for investors. Why did the FSA allow them to be sold and who is going to pay the compensation.?

Structured products and the "Wider Implications rule"

FSA delays again over structured products.

Pensioners at risk from Salesman

If anyone had ever any doubts about why an IFA is better than a bank or "Wealth Manager" then the article today in the Times will convince you.

The most disturbing aspect of this story is the salesman and his "Wealth Manager"employer are defending their action following a complaint to the FOS.

Read the article and information on why pensioners are at risk.

Your Money

New legislation is promised t give some protection to innocent tenants who suddenly find them selves facing eviction after a landlord has not kept up payments on the mortgage.

The Royal Mint is having to increase production of Gold coins to meet demand.

The UK Final salary pension receives another blow to with a report that the deficit in the FTSE companies as doubled. We now only have three companies in the FTSE that offer new recruits a final salary scheme option.

The FSA consumer panel has issued warnings about the complexity of pension options amid the fear that with interest rates low and annuity rates very poor many retiring will choose another route when not appreciating the real risks involved to the alternative.

News- Redundancy - Motoring Costs

Unemployment Redundancy and Lifestyle

Following on form our article on benefits and claiming everything to which you are entitled we see that there is now a feature o how some people are using the fact of redundancy to alter their lifestyle and make changes. Adult Gap years as well as taking to the road in a VW camper are just two examples of families opting out of the rat race on the back of a redundancy payment.

The loss of job for a few particularly those with pay off is being seen as an opportunity rather than a problem.

Motorists hit by rising Costs.

Motorists are facing big rises in car prices effectively wiping out the scrappage benefits from the scheme launched by the government as well as rising insurance premiums partly caused by the increasing fraud over cash for crash and staged accidents.

Update on your Money.co.uk

Unemployment benefits and allowances.

Losing your job is a a big enough trauma in itself without the stress of trying to understand what you are entitled to and how to get it. We have published a page with information on the various allowances and links to resources and organisations that might be of help and advice in obtaining all of the allowances and unemployment benefits you are entitled to.


Spread betting explained

Spread betting has been high growth sector in financial services over the last few years. There is no doubt that the tax treatment of Spread betting profits when compared to CFDs (Contracts for Difference) has been a factor.

We have published an article explaining spread betting and put in some links to spread betting articles from some national newspapers.

Spread betting is a speculative venture where you can lose more than you stake. However it is possible to use Spread betting to hedge a portfolio if it is not possible for other reasons to actually deal in the shares.

Read our article on Spread Betting and carefully consider before going further

Your Money Blog

We now have a news system in place for using the blog to comment on current News items.

Recent News items include:

• A report from Which Magazine that Airports are amongst the worst places to exchange your foreign Currency.
• The Chancellor is blasting the banks for high interest rates and Bank charges.
• Birtain's pensioners have been so badly hit by the reduction in interest from savings that they are now among the poorest in Europe.
• The traditional Seaside resort is no longer the retirement location of choice among the comfortably off.

Credit Crunch Humour

Yes I know it;s not funny. The state the country has been placed due t the incompetence of bankers and Politicians. However if there was ever a truth in the statement that out of tragedy is born humour the the Credit Crunch is a good example.

We have placed some links on the site to Bird and Fortune and to the Daily Show in the United States with Jon Stewart.

Credit Crunch Humour at yourmoney.co.uk

We have now updated the page in sale and leaseback described a s a toxic area which is now regulated by the FSA

Contracts for Difference - CFD Trading

What does CFD stand for ?

Now added a new page on CFD trading on the YourMoney.co.uk site and why CFD training and watching or reading a CFD tutorial is important.

Contracts for difference can be a useful investment tool but due to their gearing CFD trading can be highly speculative. Most brokers who offer Contracts for difference will also offer some CFD training and a CFD tutorial.

You can read the full article on Contracts for difference on the Your Money.co.uk web site

Compensation firm goes bust!

Day Cooper Adams have gone into liquidation owing thousands to clients for whom they were supposedly handling claims.

Not only did they take fees up front but they accepted compensation payments ordered by FOS which have now apparently also been lost never having been paid over.

You can read the more in the blog on yourmoney.co.uk and and find links to articles on the news story.

The question to be asked is why did FOS / FSA / Justice Ministry allow a situation to arise where a firm regulated by the justice ministry can handle client money with no apparent protection.

OFT Videos - Scams and Fraudsters

The OFT (Office of Fair Trading) has issued warnings and notices about mail order scams and frauds for some time.

Many of these frauds and scams are aimed at the vulnerable elderly population. The OFT has produced some excellent videos that explain and illustrate the type of activity and how easy it is for an elderly person to fall victim.

The perpetrators are often plausible pleasantly individuals who first approach by the phone. Many of the victims are people who would never have thought of themselves as vulnerable to these crooks.

Anyone who has elderly parents, relatives or neighbours who they care for should be aware and warn them the OFT videos explain the tricks and plausible nature of these fraudsters who operate using mail and telephone.

• Angela Ripon on How to spot avoid Scams
• The OFT on the methods the scam merchants and fraudsters use.
• The OFT on How to spot if someone is a Victim

Lost Bank Accounts

There are thousands of dormant bank accounts in UK financial institutions. Accounts are considered Dormant by Banks and Building Societies after no use has been made of them for a long period.

The accounts are marked as "Dormant" and when and if if a claimant turns up they will need some evidence to show that they have a legitimate claim to the funds.

There are several firms who will offer to find and trace lost accounts for a fee but it is really quite a simple operation and the Banks Building Societies have now set up an organisation specifically to assist you in tracing a lost account.

Remember the Post Office account you had as a kid or the National Provincial Pass Book your parents kept for you. What happened to it?

You are an executor of estate left by elderly relative and you are sure they had accounts elsewhere but you can not find the paperwork.

The British Bankers’ Association, the Building Societies Association and National Savings and Investments ( including premium Bonds) . They represent most of the firms that offer savings and current accounts in the UK. So if you need to trace a lost bank account, this is the place to start.

We have published an article on the Yourmoney.co.uk web site that will help you to get in touch with the organisations who can help you trace that lost account.

Equity Release

How can Equity release or a Home income plan help you?

Are any of these schemes right for you and your circumstances?

Not all personal circumstances or or individual situations suit equity release plans.

Before considering any borrowing on your home you should understand the facts and the principles behind the schemes on offer and ensure that you take advice from an Independent expert. In other words an Independent Financial Adviser. (IFA) and only an IFA.

Make no mistake about it use only an IFA, not a "Wealth Manager", a Bank adviser, a Financial consultant or any of the other euphemisms that non- IFAs use to hide the fact they are salesmen for a one or a limited number of companies. Make sure they tell you they are an IFA.

We have an article on Equity release by an expert on the yourmoney.co.uk site which we would recommend you read before doing anything else.

Tracing Lost Pensions.

Pensions get lost when people move jobs, particularly when they are young and change occupations, go overseas for periods become non resident for tax purposes etc etc.

It is very easy to forget that the three years you worked in the engineering works after college or university meant they may have three years pension contributions.

Others assume because the firm that they did a year or two with eventually disappeared and went bust means that their pension entitlement went with it. This is often not the case. You may not be able to get all you would have got had the firm stayed in business but you will have some entitlement. In takeovers your entitlement will often have been transferred and depending on the scheme may even be better than your original entitlement.

The fact is you do not know unless you trace your old pension schemes and establish what entitlement you have.

It is important to trace old pensions because a few years extra service can amount to significant amount.

You need to sit down and write a down list of any employer you worked for and the dates as far as you can remember. Get hold of any old paperwork if you still have it and get your National Insurance number. That would normally have stayed the same throughout your working life.

We have several pages with information on tracing lost pensions on the site.

The Lautro Scandal

The FSA is continuing to fight the information commissioner over the issue of naming the guilty companies who overcharged their customers. What is worse they admit that although the companies are guilty they have no idea if any compensation has been paid.

What has the FSA got to hide? Why will they not tell us who is guilty? Why will they continue to defy the information commissioner?

Read more about the LAUTRO Scandal here on yourmoney.co.uk