Moneygate

Riding the recession and bagging the best investment returns for your cash

In the current climate it’s natural to worry about your job or how you might cope with paying rent, mortgage and other bills. And if you’re relying on your savings to make ends meet, low interest rates are a worry too.

The good news is that there are steps you can take to help steer you clear off potential problems – from taking out an income protection policy and securing the best mortgage rate available to getting advice to secure the best investment returns and top investment funds for your cash.

Here are some useful tips from national IFA www.moneygate.co.uk to help you manage your money:

Day-to-day money: You may feel your money has become stretched in these difficult times. Budgeting helps you see how much money you have coming in, how much is going out and where you can make savings. It’s also worth checking out what government help and financial support are available.

Coping with job insecurity: Find out how you can take as much control as possible of your situation, and find out your rights if your employer is starting to lay people off. You might want to look at taking out an income protection policy if you feel your job is not secure.

Mortgages and other borrowing: If your mortgage deal is coming to an end, shop around to get the best mortgage rates – if you need help you can talk to a mortgage adviser. While interest rates are low you might be tempted to increase your mortgage and a financial adviser can also help you to secure the best remortgage deal – but make sure you can still afford your mortgage should interest rates rise again.

There are things you can do if you’re having problems meeting repayments. The first thing is to talk to your lender as soon as possible. You may be able to come to an agreement with them, such as a payment plan, and avoid more serious problems.
There are also mortgage assistance schemes and other help and mortgage advice available.

Annabel Green of www.moneygate.co.uk said: “If you can afford to borrow money but are finding it difficult to get a loan, don’t be tempted to go to an unlicensed lender or loan shark. Some licensed lenders will consider lending to you even if your income is low, your credit rating is poor, or you only need a small amount for a short while.”

Pensions and retirement: If you’re relying on pensions or other investments to fund your retirement, find out how much they’re worth to see whether you’ll have enough money. If you’re not on track, a financial adviser may be able to help work out the best pension plans available for you.

Remember, pensions are long-term investments, so if you have some time to go until retirement, your fund may have time to recover. If you are aged at least 50, you may be able to release cash from your pension before you retire – but don’t be tempted to do this until you’ve thought about it carefully, as it will obviously reduce what you have left to cover your retirement.

Savings and investments: As interest rates have dropped considerably, it’s tempting to think it’s not worth saving. However, it’s a good idea to keep money aside for emergencies, in case you lose your job. Some advisers suggest this should be between three and six months’ pay. Low interest rates are not good for savers but you can still shop around to secure the best investment returns for your money. But take care – if an offer looks too good to be true, it usually is!

If you’re going to dip into your savings, check whether you have to pay any penalties for taking your money out at short notice.

Annabel of national IFA www.moneygate.co.uk added: “If you're thinking of buying an investment to get a higher income, make sure you understand the risks of the product before investing. For example you may still lose your original investment in a ‘guaranteed’ or ‘capital protected’ bond, if the guarantee or the protection is offered by another firm, which then becomes insolvent. Also, check when you can take out the money you originally invest.”

For more information please go to www.moneygate.co.uk