What to consider when making an investment
QIHAVE inherited some cash and I want to invest it. What do I need to consider before doing this?
ATHEmain things you need to consider are: What do you want to invest for – growth or income? The timescale you want to invest over, your tax position to ensure whatever you choose is tax efficient. Also you will need to ensure that any investments suit your attitude to risk and your capacity for loss.
There are different types of risk such as investment risk (they can go down as well as up) and inflationary risk and you would need to discuss these in detail with an independent financial adviser.
QMY
children are saying I should take out a Power of Attorney in case I get ill and can’t handle my own finances. I’m totally independent and worry this would mean they can take control of my money.
ABYarranging and registering a Lasting Power of Attorney (LPA) you are in essence giving someone you trust the authority to make decisions and act on your behalf. However, that doesn’t mean you have no control, you do, while you are still able to make your own decisions. LPAs need to be arranged ahead of the time they may be needed, while the donor (you) still has the mental capacity to make their own decisions.
QI’VE
used the second lockdown to go through my finances. I’ve got a mass of paperwork and would like to try and reduce it. How long should I keep copies of financial statements and so forth before shredding? ATHERE
is no hard and fast rule on how long you should keep your financial statements – it’s all down to the type of statement (bank, mortgage, investments etc) and personal preference. For insurance documents, keep them as long as they are valid and for bills and bank statements the general rule of thumb is at least two years. HMRC suggests you keep tax-related paperwork like payslips and P45s for at least 22 months from the end of the tax year they relate to.
You could consider going paperless in future as most providers offer this with access to statements online. QI’VE
paid the full National Insurance stamp for more than 40 years but when I checked my state pension, I’m still not entitled to the full amount.
How can this be?
AA
LOT of readers ask us this question.
It is likely that you were “contracted out” of the state pension and/or a member of an occupational pension scheme at some point and this will affect the amount of state pension you receive.
In theory, the shortfall is made up from the income you receive from your occupational pension.