Answers provided by Kevin Simpson (pictured) of IFA Bluetrust Ltd 01744 752209.
KEVIN Simpson, of St Helens-based financial adviser Blue Trust, answers some commonly asked financial questions.
Q I am 58 years of age and I have been told that I could take my personal pension now, but I have also been told that if I leave it I may get more as I get older. What do you think?
A You could be right. Your fund could grow more and the rate of pension paid could increase as you get older, but on the other hand, none of that might happen as if you are invested in the stock markets the fund may reduce in value over that time, therefore there is a risk. However the older you get the chances are that you could get more income per month from the annuity but again this is not guaranteed. The bottom line is it all depends on your needs and circumstances and your attitude to investment risk
Q My husband and I are both 25 and have just had our first child. What should we think about financially – savings, pensions or life cover etc?
A I would suggest that given your happy event your need for securing your new families finances is of paramount importance in the event of the worst happening such as either death , a critical illness or securing your incomes in the event of long term illness or redundancy.
Once this is taken care of you should look at other areas for your short, medium and long term finances such as emergency fund savings, longer term savings and investments and retirement planning
Q What is my best option - use my savings to pay off my mortgage or keep access to my money?
A Debts of any kind usually cost more than savings earn. This is especially true now with the very low interest rates being paid on savings. So the usual rule of thumb is to pay off any debts, rather than have savings. However, in these uncertain times, you may want to hold on to some cash so you have a fund for emergencies.
The answers above have been given without the benefit of a full financial review being carried out. Circumstances are different for each person and before individual advice can be given a full factfind needs to be completed. Consult with your Independent Financial Adviser to discuss the suitability of all products