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Twelve simple steps to better finances

09/05/2017

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Dependable Dad and financial commentator Jason Butler gives us 12 no-nonsense tips to make your money go further.

  1. Understand what you are spending and why
    If you find it hard to accumulate wealth or are accumulating or not repaying debt, the chances are you don’t have a handle on your expenditure. We all tend to under estimate how much we spend, whether that be regular or one off purchases. Humans are also not ‘wired’ to make good financial decisions, partly because we make most buying, saving and investing decisions based on emotion NOT logic. This usually stops us from having the best financial outcomes.
    The first thing to do is to analyse your current spending, either by downloading your bank account transactions to a spreadsheet or using one of the many financial management apps that link to your bank accounts. Money Dashboard, Money Mojo, Money Info and Money Hub are just some of the free apps that can help you analyse what you are spending based on a wide range of categories. I was surprised to find that I spend about £500 a year on books and £650 a year on coffees!
    All spending is based on fulfilling a need. The key is to think more intentionally about whether spending is the right strategy to meet that need. For example, when you pop out for a mid-morning coffee each day, is the real need to take a break from the office or be around people? Could you meet your need without spending money each day on a coffee? In my case I work out in the gym most days and my coffee is my reward for keeping fit and lean, so I’m not prepared to give it up.

  2. Make small but effective changes to your spending
    Once you know what you are spending and the need that it meets, you can start to make small but effective changes. For example, could you take a packed lunch to work and direct the money saved into your pension? Next time you are tempted to buy something from Amazon, why not add it to your wish list and at the end of the month buy, say, half the items on the wish list and put an amount equal to the value of the items not purchased into a savings account.
    Next time you get a pay rise or a bonus, why not direct a proportion of this into savings, because what you haven’t had you don’t miss. Could you refinance your debts to a lower rate but keep the repayments the same or even higher, so you repay the capital faster and thus pay less interest overall? Remember, saved interest is the same as a guaranteed net of tax investment return.

  3. Speak to your children about their human capital  
    Human capital represents a person’s ability to generate income and wealth from working, developing an idea or building a business. As a general rule human capital is highest when we leave education and gradually declines as we reach old age. The higher your human capital and the more of it you save throughout life, the quicker you’ll be financially independent.
    Some young people who are hardworking, intelligent, and can achieve good grades in academic subjects and those who need a degree to pursue a specific career, might find university good value.  If so they need to view tuition fees as a deferred future tax charge (paid on earnings over £21,000 in England and Wales), not as a debt burden.
    However, recent research by Aviva found that about a third of recent graduates regret attending university and about half reckoned they could have got their job without a degree.
    Therefore, some young people would get much better value from doing a modern apprenticeship or the new graduate level apprenticeship. As well as learning a trade it is possible to do apprenticeships in professions such as accountancy, computer science and law.  This will not only avoid them having to repay student loans in the future, but reduce the financial strain on you!

  4. Protect your human capital
    If you become seriously ill and unable to work, then your human capital is at risk, and unless your earnings are insured, your financial security is in jeopardy. If you have dependants and you die without life insurance, then their financial security is at risk.
    If your employer doesn’t provide any or sufficient insurance against illness or death, then the two most important policies you must arrange are i) income protection insurance against illness/disability and ii) a family income benefit policy (this is low cost life insurance paid in instalments). Unless you are single, you’ll also need life insurance against any mortgage. Annual premiums are about 5% cheaper than monthly premiums, so pay annually if you can.

  5. Speak to your parents about their money
    People are living longer and this can mean a longer wait for their beneficiaries to receive any inheritance. While in some cases elderly parents may need to retain their wealth for their own needs in many situations they can afford to pass at least some of their wealth to their adult children or grandchildren.
    Have a sensitive conversation with your parents about their financial situation and explore their desire and ability to pass on some of their wealth now, when it would have the most impact on your and/or your children’s lives, rather than in 10 or 15 years when it will be less useful. I have seen many examples of elderly people with far more money than they will ever need under any scenario, while their wider family struggle financially, only to leave significant amounts to on their subsequent death many years later.

  6. Make sure you use all your allowances, exemptions and reliefs
    UK tax rules are now quite complex, with different types of income subject to different allowances, tax rates and reliefs. It is therefore important to arrange your affairs so that you have the ‘right’ type and amount of income i.e. interest, dividends and earnings. If in doubt check with a professional adviser.

  7. Be charitable 
    Cash gifts to registered charities (or a charity account like that offered by Charities Aid Foundation) expand the basic rate income tax band, which can enable you to avoid the child benefit tax charge, reclaim your personal allowance and have gains taxed at the lower rate 10% rate. It is also possible to pay a charitable donation anytime between 6th April and 31st January and carry it back to the previous tax year.
    Gifts of assets, including investments, have the effect of reducing total taxable income, and may be preferable, particularly if such assets have unrealised capital gains that would otherwise cause you to pay tax at up to 28%.

  8. Minimise costs on financial products and services 
    Many investment funds, pensions and investment services incur total costs of between 1.5 to 2.5% per annum. In a low return environment, this means that, after inflation, your money may well be falling in value. Every penny saved on financial costs is more return available for you. In other words, you get everything you don’t pay for.
    Investigate whether you can save money by switching your existing capital into lower cost and more efficient alternatives.  Organisations like Alliance Trust Savings, AJ Bell and Hargraves Landsdown all offer low cost investment platforms that enable you to access pension and Individual Savings Account tax wrappers and to invest in a wide choice of low cost investment funds. Look to keep total costs below 0.50% pa.

  9. Consider backing young businesses  
    Investing in start-up businesses can be very risky but as well as potential capital gains they offer a range of tax benefits. Enterprise Investment Schemes, Social Impact Investments and Venture Capital Trusts all offer up to 30% income tax relief in addition to other tax advantages. The Money Advice Service has a simple explanation of how these work. You can source a range of investment opportunities from various crowd funding websites of which Seedrs is one of the largest.

  10. Direct monthly savings into regular savings accounts
    Many monthly savings accounts typically pay interest of 5% pa and with basic rate and higher rate taxpayers now able to earn tax-free interest of up to £1,000 and £500 respectively, this is a better bet than most cash ISAs or standard savings accounts.

  11. Consider renting a room in your house
    You can receive up to £7,500 per annum tax-free from renting out a room in your home, so if you have a spare room this could generate a very useful amount of additional income.

  12. Ensure that you have a living and dying will
    It is absolutely essential that you put in place a Property and Financial Lasting Power of Attorney and have this registered with the Office of the Public Guardian. This will enable whoever you grant power to handle your finances in the event that you are unable to do so.  Apply online here to make a lasting power of attorney. It’s also essential to make a will which sets out your wishes. This can be as simple as a handwritten note or a comprehensive legal document. Whatever you do, make sure it is witnessed by two independent people and tell your next of kin where it is stored.

There is no magic to being good with money. You just need to be intentional, organised and disciplined. That way you can spend more time living and less time worrying.

Related Questions

Got a Question?

  • I have opened my first Stocks and Shares ISA, and have a company pension on the new standard 5%/3% contributions. I have enough easy access savings to cover emergencies so I was wondering what would be a next good step, add to S&S ISA or open a SIPP for retirement?

    Kevin | Strathclyde | 14/06/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    Pete Matthew's Response

  • My husband and I are new to investing and would like to make a minimum 10 years investment in Stocks and Shares ISAs, plus an ongoing £500 each a month. We're really keen on investing in ESG funds/companies only. To 'diversify', would it be better if one of us uses a robo-adviser and the other a traditional platform? For one to go active and the other passive approach? One higher risk than the other?

    Emma | Herefordshire | 13/06/2019 | 0

    • Stocks and Shares ISA
    • Ethical Investing
    • Mortgage
    Simon Bullock's Response

  • I work for my company which funds my SIPP directly. I will be receiving compensation in the coming months - is it possible to pay SIPP contributions from the compensation payment? If pension significant contributions are not possible, what might we consider when looking for a tax efficient home for the compensation?

    Andy | Lancashire | 12/06/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    David Stone's Response

  • As a U.S. passport holder as well as a British citizen living in the UK, are there certain things I can't invest in?

    Megan | Scotland | 11/06/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Shares
    Zoë Dagless's Response

  • I have an ISA with Investec Click and Invest which is closing down, and I have to find somewhere else to invest the money. Which are some providers of a similar nature? I am considering either medium risk or high risk accounts.

    Michael | Surrey | 10/06/2019 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

  • We were very sad to learn recently that Investec's Click and Invest was to be closed. We'd prefer to keep our ISA with a managed service, such as the one offered by Click and Invest, but will consider the DIY option if that proves to be the best on offer. Which platforms are well regarded ISA providers? I'd rather not go with a digital start-up offering, but a more established player.

    Mr & Mrs S. | Sussex | 30/05/2019 | 2

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I’m in my 30s and live in London. I have savings in cash but I’ve never tried any ISAs, stocks etc. before. I am looking for some suggestions as to the types of products I should use to begin investing. Instinct is telling me to keep 50% of my savings in a safe investment, 30% in a medium risk investment, 10% in higher risk, and keep 10% for emergencies. I’m making nothing keeping the cash in the bank!

    Lisle | London | 30/05/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Tommy Watson's Response

  • How can I find out how my Aviva SIPP pension is performing against the competition? I'm 51. The fund value is £161K and it was opened a year ago. Appreciate any tips.

    Danny | London | 30/05/2019 | 1

    • Private Pension
    • Pension
    Holly Mackay's Response

  • I’m thinking about investing £1000 in Sivius Minerals. I would like some advice on whether this is too small an amount to get any gains from. At the moment I would be leaving it in for the long term of 5-10 years. I do realise that no dividend is being paid.

    Adam | Cleveland | 30/05/2019 | 0

    • Shares
    • Funds
    Holly Mackay's Response

  • I'm in my late 30s, have a mortgage, a baby, no outstanding loans or credit cards, three pensions, and two Cash ISAs. I’d like to invest to renovate our house, help fund our children’s education and help them onto the property ladder, and retire as soon as possible! I considered a LISA but thought I might be better paying off more of the mortgage. I'm also confused about using a platform for a Stocks and Shares ISA. Any advice would be appreciated! Keep up the good work, I’m impressed with how refreshingly approachable your website is.

    Nick | Berkshire | 29/05/2019 | 1

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Catherine Morgan's Response

  • I have two pension pots, one of which is a stakeholder - this one is currently worth £120,000 - the other is approximately £50,000. I will be 60 in 4 years time and am anxious that my pots may not be growing fast enough. I currently input £300 per month into the Stakeholder. I do not intend to access either of these accounts until I am 65. Can I combine both these pensions, or should I leave them as is? I would appreciate an opinion on this. Many thanks, Maggie

    Maggie | Gloucestershire | 29/05/2019 | 0

    • Private Pension
    • Workplace Pension
    Helena Wardle's Response

  • Hello, I already have a workplace pension. Can I also have a private pension? If so, I have a LISA as well. Can I have all three in place?

    Precious | Surrey | 23/05/2019 | 0

    • Private Pension
    • Lifetime ISA
    • Pension
    • Workplace Pension
    Phoebe Smith's Response

  • Baillie Gifford is closing down its Investment Trust ISA and I am being forced to move elsewhere. Do I need to use an Investment Trust for my ISA? What is the most tax-efficient way to access Baillie Gifford's Scottish Mortgage where the majority of Investment Trust ISA was held?

    Andrew | Renfrewshire | 23/05/2019 | 1

    • Stocks and Shares ISA
    David Stone's Response

  • I want to invest in one specific company’s shares. What’s the cheapest way to do this via an ISA?

    Peter | Lincolnshire | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Anna Sofat's Response

  • I am a self-employed 55 year old, with only a state pension. What can I do to increase my money for retirement?

    Sandra | Dumfries and Galloway | 21/05/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • State Pension
    • Pension
    • Workplace Pension
    Helena Wardle's Response

  • I currently have a Stocks & Shares ISA and a Junior ISA with Wealthsimple. I am considering changing these to Vanguard, but I am unsure if transferring across providers is a simple process. Also can you only pay into one of each type of ISA per year?

    Philip | County Antrim | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Junior ISA
    Tommy Watson's Response

  • I'm 52 and want to retire at 55. I have a mortgage, but the interest rate is very low, and a Stock & Shares ISA into which I invest each month. The performance of the Stocks & Shares ISA has been mixed, and I'm nervous about Brexit/Trump/China. Should I pay off my mortgage or keep paying into the Stocks & Shares ISA?

    Paul | Glamorgan | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Cash
    • Mortgage
    Lesley James's Response

  • We have just retired to France. Our pensions cover our expenses but we also have £230k which we would like to invest for a monthly income. Could you please explain the low-risk options we might want to consider?

    Keith | France | 10/05/2019 | 2

    • Private Pension
    • Stocks and Shares ISA
    • Online Investment Platforms
    • Pension
    David Stone's Response

  • I have just received a letter from JP Morgan saying that they will no longer offer ISA accounts from the end of September 2019. I have an ISA with them and seem to have a choice of transferring the ISA to another company "as is" or liquidating and reinvesting. Any thoughts?

    David | Staffordshire | 09/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • I've been reading about Beaufort Securities, and how they potentially didn't ring-fence investor money properly. What is the best way to avoid this happening to my money?

    Jenny | Greater Manchester | 29/04/2019 | 2

    • Stocks and Shares ISA
    • GIA
    • Other
    Anna Sofat's Response

  • I'm a 30 year old woman earning a reasonable salary with a low cost lifestyle. I have saved almost £8,000 and want to start investing. I like the idea of using a robo-investor like Wealthify, but I'm not sure if it's better to start with a Stocks and Shares ISA instead? Should I go with a Stocks and Shares ISA or a Robo Advisor, or both?

    Kate | London | 29/04/2019 | 4

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Pete Matthew's Response

  • I am a British/Irish citizen living in Malta and have between £5k-£10k to invest for 5 years. Clearly, ISAs are out as there is a requirement to be a UK resident. I am happy to accept a medium level of risk, and would appreciate some info on where to put this to maximise returns.

    Phil | Malta | 25/04/2019 | 4

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Zoë Dagless's Response

  • I've a Cash ISA with about £80k in it, so I'm considering moving £50k into a Stocks & Shares ISA. I'm 73, retired, married, a house-owner and would like to utilise my savings better. What would you recommend?

    Barry | Berkshire | 18/04/2019 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Helena Wardle's Response

  • I am a beginner investor and would like to invest in a "socially responsible" Stocks & Shares ISA. I have looked into the Nutmeg and Wealthify funds. Is there information about any other such providers on your website? And do you have any advice about how to compare the "socially responsible" criteria on the different funds?

    Joy | Glamorgan | 16/04/2019 | 1

    • Stocks and Shares ISA
    • Robo Adviser
    • Ethical Investing
    Phoebe Smith's Response

  • I am 52 with money languishing in a low savings account. Now I'm neurotic about entering into Stocks and Shares, due to seeing how many investors have exited the stock market thanks to Brexit, and with companies going bust etc. But I need to make my money work for me as my pension pot is low. Can I put the money into an Instant Access ISA and drip feed this into a Stocks and Shares ISA?

    Helen | London | 09/04/2019 | 1

    • Stocks and Shares ISA
    • Cash
    Lesley James's Response

  • I'm in my very early 20s, and earning well. I have no debts or dependants. I have a Stocks and Shares ISA, and am weighing up the pros and cons of a General Investment Account vs a Private Pension. What should I keep in mind?

    Cecily | Berkshire | 08/04/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • GIA
    • Workplace Pension
    Tommy Watson's Response

  • I've got a Stock and Shares ISA with Moneybox. I recently invested a lump sum with them, and I'm making regular weekly investments. When I invested, the share price was quite high. Should I have drip fed money into the account rather than depositing a lump sum?

    Tim | West Midlands | 05/04/2019 | 1

    • Stocks and Shares ISA
    Mark Dampier's Response

  • Our 16 year old son has inherited a significant sum. He wants to go to Drama School and pursue a career in acting, which we know means he is likely to be low paid/short of cash. I wondered how best to help him organise his savings/investments to help fund him through drama school/the early years, whilst trying to discourage him from simply dipping into his capital?

    Mo | West Sussex | 04/04/2019 | 4

    • Stocks and Shares ISA
    • Junior ISA
    • Inheritance
    Pete Matthew's Response

  • I intend to retire in autumn, aged 60 and would like to leave my son and grandson as comfortable as possible when I'm gone. I have talked with several IFAs, but given my risk adverse nature, their fees seem to eat up most of the benefit they offer. Do IFAs normally bring sufficient benefit to low risk strategies, to make it worthwhile? Or am I better off cautiously investing myself, and saving the fees?

    Stephen | North Yorkshire | 01/04/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Catherine Morgan's Response

  • I am self employed (40) with no private pension, earning £50,000 a year. I have savings and can make a lump sum investment. I know nothing about Stocks or Shares. What is the best way forward for pension and tax reduction? Desperate Anna

    Anna | London | 25/03/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Holly Mackay's Response

  • We have £100,000 in Premium Bonds to invest. We need it as serious illness has changed our lives completely. We have been advised to invest in a Capital Investment Bond, but fees seem high to me - 0.3% and 1.7% management and on-going advice. I'm considering Wealthify or other online funds. Can you help?

    Melanie | London | 25/03/2019 | 0

    • Online Investment Platforms
    • Other
    Holly Mackay's Response

  • When I retired in December 2018, I considered consolidating my pensions for income drawdown, but it meant handing over management of the investments. After viewing the performance of the funds the Standard Life Active Retirement pension invests in, I hesitated. Recently I spoke to an advisers aligned to the investment philosophy of Albion Strategic Consulting headed by Tim Hale, but was scared off again by the messages regarding DIY investor dealing with re-balancing, sequencing, and lack of ability to stress test without the correct professional financial software, in addition to the high costs. I understand the basics, but am now totally unsettled as to the direction I should take and if, at such a critical stage, I should invest in an IFA on a regular basis. I appreciate you cannot give me direct financial advise but I am finding the whole event very disconcerting, when I thought I had the basic acumen to manage the transition.

    Rob | Hertfordshire | 20/03/2019 | 3

    • Private Pension
    • Pension
    Holly Mackay's Response

  • I have had a Hargreaves Lansdown Stocks & Shares ISA for the past 2+ years, divided into their Portfolio Plus Balanced Growth and in a mixture of shares I selected myself. While I am happy to keep the shares element, I don’t feel the managed portfolio is working for me and I could do better elsewhere. Where would you suggest I could invest for a better return? I am happy with balanced and some element of high risk. I’m 47, have two primary school age children, & live in central London. I also have a mortgage and a workplace pension.

    Jennifer | London | 20/03/2019 | 0

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • For the last 9 months I've drip fed just over £10,000 into a Moneyfarm Investment ISA... it has been a very volatile year as you know. Moneyfarm seem to have done a good job of protecting my capital... however I haven't really made much in the way of gains... If I wanted, would I be able to transfer the whole lot to another platform where the fees are lower? I know you're not allowed to give regulated advice - but I'm uncertain if I should transfer the whole lot in one go, or drip feed.

    Robert | UK | 14/03/2019 | 3

    • Stocks and Shares ISA
    • Robo Adviser
    Holly Mackay's Response

  • I recently received an inheritance and it is currently sat in Premium Bonds. I'm looking to hopefully use the money to put down on a house in the next couple of years, but I'm currently going through a divorce which does affect my ability at the moment to get on the housing market. Is there any way I can make my money work harder for me, yet still ensure I have access to it in a couple of years?

    Ben | Avon | 12/03/2019 | 0

    • Cash
    • Mortgage
    Helen Howcroft's Response

  • I am in my mid 20s & earning a regular salary. I have decent savings and am toying with the idea of Wahed Invest (I am looking for shariah compliant funds). I am also dabbling with the idea of property. If I have no financial commitments (living at home for next 2 yrs), is it worth using 90% of my savings for a house deposit for buy-to-let purposes? I am thinking this would reduce my loan to value?

    Zara | West Midlands | 12/03/2019 | 0

    • Lifetime ISA
    • Cash
    • Robo Adviser
    • Mortgage
    David Stone's Response

  • I have about £100 monthly extra I want to invest, but I am not sure if my ISAs represent good value. I thought I could put the money in a higher risk investment, as it is money I can invest over 5-10 years, and had thought Nutmeg might be a good option as I have little investment experience. Am I right in thinking I can only contribute to one Stocks & Shares ISA at a time in my name? I could just put more money into my existing ISAs. What do you think?

    Colin | Lothian | 11/03/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • My 60 year old mum is not very financially literate and has has no private pension. She has approximately £900k to invest, from which she will need to draw down c.£40k a year for life. She is not very financially literate and would not be able to proactively manage the money herself. Would you favour an Independent Financial Adviser or a Robo Adviser for someone in her position? Thank you!

    Harry | Kent | 11/03/2019 | 1

    • Private Pension
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I am 47 and I would now like to open an investment ISA for growth for at least 10 years. I am tempted by the Vanguard LifeStrategy 80 due to the low fees and strong reputation. I would also consider investing in a couple of other Vanguard funds as well. Would this be advisable or relatively unnecessary, if I'm already investing in the LifeStrategy fund? I have also been looking with interest at Nutmeg, Wealthify, IG and AJ Bell Youinvest. Is there any provider that would stand above the others as most suitable in my circumstances?

    Matt | South Yorkshire | 11/03/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • If my son increases his pension contribution, I have read it may affect the amount he can borrow on a mortgage. Is this correct? Should he take a SIPP out as well? Is there any advantage in maxing out his managed Nutmeg Lifetime ISA in the next financial year?

    Richard | Hertfordshire | 06/03/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Holly Mackay's Response

  • I am 65 and still working. I have a workplace pension, which was closed and replaced with a retirement saver pension. I contribute to this via salary sacrifice. I also have a personal pension serviced by an IFA. Should I move my personal pension fund to a SIPP provider at this late stage of my life? I would like to consolidate the workplace retirement saver and personal pension fund together and manage it myself.

    Den | South Yorkshire | 27/02/2019 | 0

    • Private Pension
    • Pension
    • Workplace Pension
    Helena Wardle's Response

  • I’m 36 years old, earn £85k, and have about £40k savings in the bank, mainly in an old ISA that I’ve done nothing with. I have a five year old daughter and would like to put my savings somewhere clever so they start to do something useful by the time she starts at an independent secondary school and fees go through the roof. Any bright ideas please?

    Milly | Berkshire | 22/02/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Online Investment Platforms
    Catherine Morgan's Response

  • Trying to get a bit more pro-active with my pension. If my money had been in an online managed fund like Nutmeg for example, is it reasonable to assume that as the markets fell last year the funds would have been managed in real(ish) time to limit the damage? If so, is it therefore a no-brainer to transfer my pension to an online managed pension or is it not quite as simple as that?

    David | London | 08/02/2019 | 2

    • Private Pension
    • Robo Adviser
    • Pension
    Lesley James's Response

  • I recently came across your blog and it has been a great introduction to learning about my personal finances. I was wondering if you could recommend any additional resources (websites, books, online help) for beginners and that are tailored to the UK market. I am in my early 20's and I'm looking to further my knowledge of money, and foster a greater relationship with it. In addition to that, I'd like to know your opinions on how the possible outcomes of Brexit will affect the market and potential personal finance investments.

    Rita | London | 23/01/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Phoebe Smith's Response

  • With a SIPP in drawdown would a company like Netwealth whose investment management fees are of the order of .66% of the value of the portfolio, be a better option compared to companies like Hargreaves Lansdown or Investec? What are the relative benefits of Netwealth over the more traditional wealth managers?

    Steve | Lancashire | 22/01/2019 | 6

    • Private Pension
    • Robo Adviser
    • Online Investment Platforms
    Helena Wardle's Response

  • Hello, I really enjoy your website and find it useful and concise. My question is, what is meant by long term savings? I am 54, so what should I consider to be an appropriate time frame for any investment I make, that could supply the best results?

    Jennifer | Essex | 16/01/2019 | 9

    • Online Investment Platforms
    • Funds
    • Pension
    Anna Sofat's Response

  • I’m new to investing and in my late 30's. I'm actually stuck in a dilemma whether to invest using DIY platforms like Interactive Investor, A J Bell or Hargreaves Lansdown OR invest using robo advisors like Nutmeg, Moneyfarm or Pensionbee. I have compared the fees and they are not significantly different. Do robo advisers have a better return rate? I can dedicate some time to DIY investing but not a significant amount of time. Please advise. Thank you.

    Victor | Kent | 14/01/2019 | 1

    • Robo Adviser
    • Online Investment Platforms
    Phoebe Smith's Response

  • I have an old pension and they have written to me saying that they are going to enhance my pension if I transfer it out. The company is also offering free independent advice. I have £117,000 in the pension at the moment, which would give me £6400 a year at 65. I am 61 in April and would like to finish work at that point. I am not sure how much extra they will give me. Have you any ideas or suggestions to help me decide? Thanks.

    Nicholas | Carmarthenshire | 04/01/2019 | 0

    • Pension
    • Workplace Pension
    Lesley James's Response

  • I’m a 20 something year old woman who’d like to learn more about investing. Do you have any books or reading material that gives a complete beginner a better understanding of how investing works?

    Precious | Surrey | 03/01/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • From my retirement I received a lump sum of money and a monthly pension. I have £100,000 that I do not need for the foreseeable future... One of my main concerns with Financial Advisers are their costs... All I want is simply to see this money grow to its potential, sensibly and above inflation... Therefore my next thoughts are Stocks and Shares ISAs... My only concerns here are the current Brexit problems - I saw the FTSE drop this past week. I cannot find any information out there to assist with my decision making if this is certainly a good time to invest... I am aware that I can place £20,000 for this year. Come April 2019 I place another £20,000 and so on until the £100,000 has been utilised. Do I have to place it into the same fund or can I choose another different fund with a different company?... Please can you help to ease some of this burden, which has proved an awful part of my retirement and made me frightened to spend any money.

    Katherine | Derbyshire | 02/01/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    • Robo Adviser
    • Online Investment Platforms
    • Workplace Pension
    Helena Wardle's Response

  • I often find that my monthly salary is spent on things I don't need or just saved up; without accumulating much. So what can I do with my money to make money? I am not expecting you to tell me where and when to invest but simply what to read, and I guess I really would like to know how you became an expert, where did you start? I feel like investment is something so big I can barely even touch it, and I would greatly appreciate any words of advice you could share with me.

    Beth | London | 07/12/2018 | 4

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I'm the sole carer for my chronically ill and elderly mum, as well as a full-time police officer. I have no other family apart from her. Due to mum's condition, and the fact that I'm exhausted performing both roles, the only option is to go part-time, as mum won't accept help from anyone else. To allow me to go part-time, I will need about £25,000 until March 2020 when I will be retiring. I’m confident of getting another job shortly thereafter. In January 2021, I will receive a commutation lump sum of about £50,000. I have a sizeable fund portfolio under an ISA wrapper with Hargreaves Lansdown. That is doing very well, so I don't really want to sell any of these funds and 'lend myself money' from that. My ideal funding solution would be a bond-type IOU agreement, where 'someone' lends me the money. Are you aware of a peer-to-peer site that could assist? Thanks

    Dave | Hertfordshire | 27/11/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    • Other
    Holly Mackay's Response

  • I’ve been investing in Nutmeg’s Risk 10 profile for three years which helped my deposit for my house. I am now wondering whether to use Nutmeg again, or should I use LifeStrategy for my £1000 per month? Is there a difference between Vanguard's LifeStrategy option and let’s say a well known robo adviser like Nutmeg? I am still a beginner and would like to keep things simple, but happy to take risk and prepared to leave my investments for a long time.

    Jordan | Surrey | 26/11/2018 | 8

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Phoebe Smith's Response

  • Do you have any recommendations for books that I can buy my 18 year old daughter for Xmas on the subject of pensions and investments so she can start to understand the subjects? She's young I know but I would like to get her started. Many thanks!

    Nicki | Devon | 15/11/2018 | 2

    • Robo Adviser
    • Online Investment Platforms
    • Other
    Catherine Morgan's Response

  • I was lucky enough to inherit a significant sum from my father... currently in Alliance trust platform in 10 investment trusts. They have delivered well in the last 20 years. But they are UK equity based. And highly risky. Do you offer a sanity check service for confused individuals like myself? I don’t know what to do...

    Paul | Berkshire | 12/11/2018 | 2

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I am 35 and working part time on a reasonable salary. I've recently taken out a Stocks & Shares ISA with Wealthify (from reading the recommendations on Boring Money) where I pay in £40 per month. However, I'm wondering if I should be doing more? Should I be diversifying and using more than just Wealthify? Or is it better to increase the amount into Wealthify?

    Holly | Sussex | 17/10/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    Lesley James's Response

  • I am 25 and starting to seriously financially plan out my future. I would really welcome a 'sense check' on my thinking as well as some help on which investment choices to make. My goals are: To invest for 15 years - my risk appetite is very high (i.e. I could afford to lose all my money). Goal 1 - More Important: To have an investment pot of £1,500,000. Goal 2 - Less Important: To be mortgage free. My plan is: 1) Open an annual Stocks and Shares ISA each of the next 15 years. 2) Open Share trading/dealing account. 3) Reduce my mortgage term to 6 years by 2025. I appreciate the above is a lot to go though, but I'd welcome any help and guidance.

    Mo | London | 15/10/2018 | 3

    • Stocks and Shares ISA
    • Shares
    • Online Investment Platforms
    • Funds
    • Other
    Holly Mackay's Response

  • I am a 30 year old British expat living and working in the Netherlands. I worked in the UK for 5 years but to my knowledge I did not have a work pension of any sort. I've been working in the Netherlands for the last 4 years, and again have no pension (my company does not provide anything). I'm getting increasingly worried about my future retirement and my lack of any kind of pension. Firstly, I am not sure what - if any - state pension I could receive (either from UK or Netherlands) but I assume not much. Secondly, I'm ready to start investing on a monthly basis into a private pension fund, but I have no idea what the best option for me would be. Really lost and confused, and would really appreciate any advice you might have.

    Lucinda | Kent | 09/10/2018 | 0

    • Private Pension
    • State Pension
    • Workplace Pension
    David Stone's Response

  • I shall have £10k to invest shortly, and I want to use an actively managed portfolio in a quality company. How would you rate - Investec Click & Invest/True Potential Investor/Nutmeg on the basis of ROI/customer relationship/quality/risk factors etc? I would class myself as a mid-grade risk-taker/reasonably adventurous if appropriate, with a high quality company. I presently use Hargreaves Lansdown and Wealthify but feel the need to diversify. What do you recommend?

    Richard | Shropshire | 03/10/2018 | 1

    • Online Investment Platforms
    Holly Mackay's Response

  • The recent Metro article which Holly participated in has really inspired me and made me think that investing in shares is something which I would like to do. Unfortunately I am completely thrown about where to start. I would be grateful for any advice you could pass my way. Realistically, I would only have about 2k to invest, so any tips would be gratefully received.

    Sarah-Jane | London | 12/09/2018 | 3

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • Is there a reason you don’t list Saga in your Best Buys? Additionally, I have purchased a few investment trust shares but can’t work out how the dividends are paid. Scottish Mortgage is an example. I wasn't given an option to choose how to receive the dividends. It would be useful if you could provide some clarity on how investment trusts pay their dividends.

    Carl | Buckinghamshire | 07/09/2018 | 1

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • My wife, 56, is still working but has a final salary scheme which she is drawing as well - currently £26k per annum. Her current employer's pension scheme is defined contribution, and her fund stands at £1.050m. Therefore, her total pension is around £1.57m. We protected her Lifetime Allowance at £1.25m, but all growth will now be taxed at the excess rate. My idea is to take the 25% tax free amount out of the defined contribution pot, and reinvest it in the same funds as the pension. This will then remove growth on the 25% from the excess tax rate to a capital gain when sold, thereby saving a considerable amount of tax. Am I right?

    Rod | Hampshire | 05/09/2018 | 1

    • Private Pension
    • Workplace Pension
    Danny Cox's Response

  • My wife and I have recently separated. The equity in the house is going to be split 50/50. We don't have any other meaningful assets. We have agreed to co-parent the children equally. My wife is requesting that I pay child maintenance, child care and school expenses. A CMS document states that shared child care results in no child maintenance payments. However, I do agree with the child care and school expenses payments. Our daughter has Autism Spectrum Disorder, so my wife gets a Disability Living Allowance for her and also works full time. If I don't pay the child maintenance, child care and school expenses, my wife is threatening to claim spousal maintenance, and take half my pension. Should I pay the £350/month or take my chances in court?

    D | Lincolnshire | 03/09/2018 | 0

    • Pension
    • Other
    Catherine Morgan's Response

  • Any advice for two young people trying to get themselves a home? My girlfriend and I are saving for a house together. Currently house prices in our area are a ridiculous £300k. The max we can get from banks is about £220k, meaning somehow saving up a whopping £80k deposit. This would take us about 8 years (and house prices are increasing faster than we're saving!) That's not to mention solicitors fees, stamp duty, the cost of moving, furnishing the house, white goods, and any repairs or renovations. It all just seems impossible!!

    Joe | Buckinghamshire | 23/08/2018 | 0

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Kate Fitzpatrick's Response

  • Can you advise me on the best approach when looking to invest in a product that offers compound interest? I’m thinking about funds rather than bank accounts. I also have 4 different pensions on the go. Should I keep them separate to diversify the risk? Or consolidate them? How will these pensions be treated when I retire? Will they be considered in aggregate by the tax man?

    Craig | Clackmannanshire | 16/08/2018 | 1

    • Private Pension
    • Online Investment Platforms
    • Funds
    Helena Wardle's Response

  • I have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. I was planning to transfer the remaining one third to Charles Stanley Direct. However the recent platform price increases seem to put me in the worst position possible. I also have a private St James's Place pension. Would I be correct in thinking the fees are also high on this, and I could do better elsewhere? Can I transfer into an SIPP for example?

    Gerry | Bedfordshire | 15/08/2018 | 6

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I wanted an investment trust with an income, so I put £10,000 into The Investment Company. It delivers a reliable quarterly dividend but the capital value has dropped by 10% since I invested 2 years ago. What are your favourite investment trusts?

    Fran | Greater London | 08/08/2018 | 4

    • Shares
    • Funds
    Mark Dampier's Response

  • I'm 24 and would like to begin investing. Am I better off using a robo advisor such as Wealthify/Wealthsimple or a fund such as Vanguard LifeStrategy?

    Amanda | Greater London | 06/08/2018 | 6

    • Shares
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I have cash saved in ISAs and savings accounts - probably a 30% deposit on a property - first time buyer. I am at least 12 months away from getting a permanent job, so at least 12 months away from buying a property. What can I do with the cash in the meantime? Best just to leave it in cash for now, or invest a portion in stocks and shares ISAs?

    Malti | London | 25/07/2018 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Holly Mackay's Response

  • I am 73 and cautious. There are two areas that your advice would be helpful..what if you just spend thousands on buying the gold standard footsie companies like shell and the rest and keep them for five years and then cash them in ?

    DB | UK | 24/07/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    • Pension
    Holly's Response

  • I'm nearly 30 and looking to open a private ready made pension, and also an investment ISA for retirement funds or towards a property, but very unsure what risk level to choose (low to medium, or medium to high)? Any comments or advice welcome.

    Susan | WMD | 24/07/2018 | 1

    • Private Pension
    • Stocks and Shares ISA
    Cherry Reynard's Response

  • My wife needs to set up a SIPP with a good value, low cost, low maintenance underlying investment portfolio. We want a good mobile app from a well respected provider. Where can we see the options and directly compare historic returns so we can make a decision?

    Guy | HRT | 17/07/2018 | 1

    • Private Pension
    • Pension
    Richard Allum, MD, The Paraplanners's Response

  • I was considering applying for Individual protection 2016, which I understand would give me an LTA of £1,021,390. However, following the Inflation rise of LTA, it seems the LTA is now at £1,030,000. It now seems pointless applying for Individual protection 2016. Have I got this right?

    David | LDN | 12/06/2018 | 0

    • Pension
    Richard Allum, MD The Paraplanners's Response

  • Hi, If I take a lump sum from my pension at age 55, what is the rate of tax after the first 25%?

    Judy | 17/05/2018 | 1

    • Pension
    Helena Wardle, Certified Financial Planner's Response

  • We have a portfolio of ISAs/ PEPs worth around £250k, currently invested via Cofunds, managed by Chelsea and Bestinvest. I'm told this is quite an expensive option regarding platform charges. Are there better options?

    John | BRK | 08/05/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    Helena Wardle, Certified Financial Planner's Response

  • How long does it take to release money from your pension at 55 years old?

    Diane | WYK | 01/05/2018 | 1

    • Pension
    Helena Wardle, Certified Financial Planner's Response

  • I would like to open a Junior shares ISA for my Grandson for about £50/month. How do I go about it and can you recommend some reliable companies?

    Roger | Surrey | 26/04/2018 | 2

    • Junior ISA
    • Shares
    Founder and CEO's Response

  • Do you have information on taking your pension pot before retirement? My husband is 62, on a final salary scheme & is trying to get clear information on it.

    Jo | 17/04/2018 | 3

    • Pension
    • Workplace Pension
    Helena Wardle, Certified Financial Planner 's Response

  • Can you recommend some very basic books for a 69-year-old widow who is now having to manage her money? Thanks

    Martha | 12/04/2018 | 0

    • Shares
    • Funds
    Helena Wardle, Chartered Financial Planner, Sterling and Law's Response

  • I just found your web site (recommended in Andy Bell's book on Do It Yourself investing). Could you say why you do not review Halifax Share Dealing in your list of ISA providers? Is there anything wrong with this ISA provider for you not to include it?

    Gerald | 11/04/2018 | 0

    • Shares
    Dr Richard Bradley's Response

  • Hi, I've got an old D.B. pension, approximate value £12k. I would like to invest & top up each month. Who would you recommend? Also I would like to make an investment, & don't know where to start? Thanks

    Eve | 04/04/2018 | 5

    • Funds
    • Pension
    Helena Wardle's Response

  • I am post-divorce with a good settlement which I have only partially invested. Are there any courses you can recommend? I have sat in a number of meetings with accountants and financial advisers feeling somewhat patronised! I am sure that there are plenty of women in a similar position to me (aged 55!).

    Ellie | 14/03/2018 | 3

    • Shares
    • Funds
    • GIA
    Holly Mackay's Response

  • How can I find a good financial adviser?

    Byron | Greater London | 01/03/2018 | 0

    • Shares
    • Funds
    Holly Mackay's Response

  • My question is about my wife's pension valuation in a divorce situation. She is on a final salary scheme working for a national charity organisation. I feel the CETV value is too low and certainly does not take into account the inbuilt benefits such as guranteed final salary, life insurance.

    Jay | 12/02/2018 | 0

    • Pension
    Richard Allum's Response

  • I am a 59 yr old retired lady with no income but I have reasonable equity..is it worth starting a pension or is it too late?

    | 06/02/2018 | 2

    • Private Pension
    • Pension
    Boring Money's Response

  • Hi, If I take a lump sum from my pension at age 55, what is the rate of tax after the first 25% ??

    Gareth | HAM | 26/01/2018 | 0

    • Pension
    Helena Wardle, Certified Financial Planner's Response

  • I am in the very lucky position of just having received a gift of £800k which I want to invest for our retirement. My husband and I are in our late 40s and aim to retire in around five years. We have 11 more years of school fees to fund, then hopefully university fees for two after that. I've put together a plan for us - can you have a look and see if it makes sense?

    Fiona | UK | 18/01/2018 | 6

    • Private Pension
    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • Can losses in a pension SIPP be offset against anything?

    Henryk | HAM | 17/01/2018 | 0

    • Private Pension
    • Pension
    Cherry Reynard's Response

  • We have four grandchildren (2 English living in UK, and 2 Irish living in Eire). We have decided to start savings plans for their futures. Their ages are 18yrs, 11yrs, 8yrs and 4yrs respectively. My age is 75yrs, and my wife is a little older. What should we do, please?

    John | Buckinghamshire | 01/01/2018 | 1

    • Junior ISA
    • Lifetime ISA
    • Shares
    • Funds
    • Inheritance
    Martin's Response

  • I am already receiving a pension from a final salary scheme and I am retired. I have a sum of money I want to invest. Can I start another pension as a saver and, if so, how much can I put in every year?

    Collette | Greater London | 25/11/2017 | 0

    • Private Pension
    • Online Investment Platforms
    Danny Cox's Response

  • How do I start investing, buy stocks, bitcoins, etc with £100.00?

    Claudette | BDF | 18/11/2017 | 1

    • Shares
    • Other
    Holly Mackay's Response

  • I am a 59 yr old retired lady with no income but I have reasonable equity..is it worth starting a pension or is it too late?

    LL | NFK | 10/11/2017 | 2

    • Private Pension
    • Shares
    • Pension
    Cherry Reynard's Response

  • If I were retired and drawing my pension, can I earn an income from doing some sports coaching too? If so, how much can I earn without it affecting my pension? Thanks

    Charlotte | DEV | 07/11/2017 | 0

    • Pension
    Boring Money's Response

  • Have you a review on Halifax stocks and shares isa

    Moira | LDN | 21/10/2017 | 5

    • Stocks and Shares ISA
    Dr Richard Bradley's Response

  • My mother is 84 and has around £35,000 in cash, realised when she moved to a smaller house. She would like to invest it and draw income that would be slightly higher than the natural yield - say around £2,000. What is the best vehicle for that please?

    Ed | SXE | 18/09/2017 | 4

    • Stocks and Shares ISA
    • Cash
    Danny Cox's Response

  • I have a delightful 12 year old daughter and she has just opened her first bank account. I am dreadful with money but I would like to know what I should teach her so that she does not pick up my bad financial habits. Do you have some top tips of things to teach our children so they are wise and responsible with money please?

    Louise | Greater London | 11/09/2017 | 1

    • Junior ISA
    • Shares
    • Cash
    Lesley James's Response

  • Please help me. Choosing a pension from Aviva. It asks if I want growth or income? Which one do I choose ? I'm 46 .

    Ria | Greater London | 11/09/2017 | 8

    • Private Pension
    • Pension
    Holly Mackay's Response

  • I am confused about index funds, e.g. Vanguard Equity fund. Do they track an index or include the yield? In the case of Vanguard, their low cost is attractive but their portfolio is made up of other Vanguard funds. I assume these probably each carry a fee structure - is this correct?

    Robin | Gloucestershire | 03/09/2018 | 0

    • Online Investment Platforms
    • Funds
    Mark Dampier's Response

  • Is it worth using a financial adviser when it comes to switching pensions funds, or should I do the research and pick the funds myself? I am no expert in stocks and shares.

    Helen | Dorset | 10/08/2018 | 4

    • Private Pension
    • Shares
    • Funds
    Helena Wardle's Response

  • I've got £20,000 from an endowment policy (astonishing, I know), and I'm looking into how best to invest to get a reasonable return without excessive risk. Any thoughts much appreciated!!

    Penny | Peterborough | 09/08/2018 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    • Life Insurance
    Danny Cox's Response

  • I use H&L and although they are a bit 'plumy' on the phone I quite like their website and the costs are OK. So I was thinking of H&L for [my son]. I would be telling him to open these two funds and regularly invest and forget about them for 10 years!

    R | Greater London | 29/05/2018 | 1

    • Lifetime ISA
    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I have a bit of excess money to play around with and I have been looking at Investment funds. What is the typical % growth rate of an investment fund?

    David | Greater London | 07/09/2017 | 7

    • Online Investment Platforms
    • Funds
    Cherry Reynard's Response

  • Why should I bother with paying into a pension at my age of 55 years now when I have never had one?

    Tee | Greater London | 07/09/2017 | 4

    • Private Pension
    • Pension
    Cherry Raynard's Response

  • Can I sort a pension out myself online?

    Sharon | Greater London | 07/09/2017 | 0

    • Pension
    • Workplace Pension
    Danny Cox's Response

  • What's this Auto Enrolment thingy?

    Derek | Greater London | 06/09/2017 | 0

    • Workplace Pension
    Holly Mackay's Response

  • How risky is a Stocks and Shares ISA?

    Alexandra | Greater London | 06/09/2017 | 2

    • Stocks and Shares ISA
    Holly Mackay's Response

  • How can I find out how much my State Pension is likely to be?

    Abigail | Greater London | 06/09/2017 | 0

    • State Pension
    • Workplace Pension
    Holly Mackay's Response

  • Should I be even thinking about the stock market?

    Lysa | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Shares
    Holly Mackay's Response

  • What might a savings pot of £100,000 get me as a retirement income?

    Aboodi | Greater London | 06/09/2017 | 1

    • Pension
    Holly Mackay's Response

  • Pensions vs ISA - which one is best?

    Roderick | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    Holly Mackay's Response

  • What are the changes with pension annuities? My mother in law has asked as her retirement is looming. I've read in the press it's changing but it all feels confusing. I just need some simple clear advice. Thanks

    Keith | Greater London | 06/09/2017 | 2

    • Private Pension
    • Pension
    Cherry Raynard's Response