I am too bored with the banks and the Government this week to rant on about them. That is not to say they don't deserve it, and they have continued to be remarkable in their disingenuousness and hypocrisy, but I would rather a few cheerier topics for once, so a few snippets from this weeks work. A far quicker read for you all as well.
More importantly, we have the answer to last weeks question, and something of a record. We have had the most entries ever, and not one of them was correct. Outstanding, and I thank you for your efforts, and the joy of being custodian for another week of some rather dubious pens & pencils.
You were asked who was the young army officer who took out a policy with the ‘Accident Insurance Company' in 1896, then went on to be involved in various military conflicts, usually involving cavalry charges, was taken prisoner of war, escaped, left the army, became a journalist, went to a war zone, was imprisoned, escaped, and then settled down a bit? Had I mentioned he subsequently became a Prime Minister you would have got it I'm sure. The answer is Winston Churchill. This weeks question is below.
Life Assurance
A topic that arose this week. Many have some form of life assurance, and if you have what is known as a term assurance or decreasing term (usually in connection with a repayment mortgage) these insurances do not have any savings element, and are pure insurance. Circumstances and prices change, so it is worth double-checking now and again to see if yours is at the lowest cost. Be aware though, if you have had any health issues since you took out your current policy, a new insurer might not give cover, so normally, if a premium seems cheaper, make the application but hold onto the old policy until you definitely know the new one is sorted. As an example, I did a check for someone this week, and we can replace their current policy costing £48 per month, with one costing £33, a saving of around £180 per annum, or 30%.
Clarity & Comparison
Will the Banks ever be regulated properly? I doubt it, because there is no will to do so, but I am about to start my own mini campaign for the regulation of savings and borrowing products, so that the terms are clear, easy to compare, and accessible. I'm sure this will be unsuccessful as well but fortune apparently does favour somebody or other.
R85
Another topic that arose this week. A little reminder for those on low incomes with savings; retired perhaps. The personal allowances were increased greatly last year, (to make up for Darling Alistair's 10% tax cock-up) so that for somebody who is 65 or more between April 2008 and April 2009, has a tax allowance of £9,030. (Higher if over 75.) This means you can have this much in pension, or savings interest without paying tax. I
f you have any savings accounts, or cheque account that pays interest, you can arrange to receive the interest gross by use of the very simple ‘R85', a form from the revenue you sign and hand to your bank or building society. (Contact me if you want one.) There is also a form to reclaim the tax over paid. It may not add up to much, but every little helps. (Where have I heard that before?)
Your Question
Mandy & The Mervyns are busy next week, cooking up something nice. They have lots and lots of money to print. Yummy. Sorry, I meant to say undertake a rational round of quantitative easing that will not lead to hyperinflation, and a loaf of bread costing £500. No, in fact I meant printing money. This leads us to your question. What is the largest denomination bank note printed by the Bank of England? Answers by e-mail please, and I promise to find something better than the much-maligned pens & pencils as a prize, and I am even prepared to probe the depths of the desk drawer again.
John.
John C. Cartlidge
Independent Financial Planner
Tel: 0151 336 6610
