If Ms Musa does move to a cheaper house this will free up funds but in
If Ms Musa does move to a cheaper house this will free up funds, but in the meantime, Ms Starkey says it is important to save as much as possible.MORTGAGE AND PROPERTYMs Anstee suggests that Ms Musa might want to review her mortgage arrangements to see if a better deal is on offer. As long as her current salary is higher than her teaching salary, this is worth considering,COLLEGE FEESIf Ms Musa’s son does go on to higher education, he will have to pay university fees (£3,000 a year under the Government’s proposed top-up fees). An alternative might be to change to a stakeholder plan.Consolidating her public-sector pensions should be easier, and she can add her years of service from teaching to her current arrangements. Transferring the private pension will depend on whether the local government scheme will accept it; there might be exit penalties. Ms Starkey says that the pension is likely to be an old-style scheme with quite high charges. Ms Musa might even want to use some of the money from her savings plan to top up her local government pension, as this will build up her entitlement and provide a cushion, should she go freelance.
Mr Connolly suggests that if Ms Musa does want to keep some exposure to the markets, a collective investment such as a unit or investment trust would suit her better. If that is too much risk, then she should sell the shares and put the money into a deposit account.Ms Starkey points out that selling through a flat fee dealing service is the cheapest way to realise the capital.PENSIONMs Anstee points out that Ms Musa is in a fortunate position as a member of the local government pension scheme. She sounds a note of caution about accounts that offer introductory bonuses: they pay more up front but might not be competitive after the bonus rate ends.SHARESGiven that Ms Musa has no other equity investments, her Barclays shares (worth about £500 at the moment) represent a relatively high-risk investment. He recommends Marks & Spencer (4.5 per cent) or Abbey’s postal Isa (4.6 per cent) for the tax-free funds and ING Direct (4.41 per cent) for the balance.Ms Starkey suggests Intelligent Finance for the Isa (4.6 per cent), as a savings bank with consistently competitive rates.
Outgoings: Standing orders, about £800 a month; others, about £600 a monthWe put her case to Patrick Connolly at John Scott & Partners, Vivienne Starkey at Equal Partners and Caroline Anstee of Fiona Price.SAVINGSMs Musa will need access to the money from her savings plan quite soon, so a cash account is the only sensible option. Savings policy of about £7,500 that matures in June; 111 Barclays shares.Pension: Local government pension scheme since 1999 Pension from teaching and private pension. Furthermore, the Government has imposed a cap on charges of 1.5 per cent a year, which the industry says is too small given the sums involved.The snub will leave the high street banks, whose investment performance has lagged far behind the specialists in recent years, to pick up most of the business. The UK’s largest fund managers and life insurers have snubbed the Government’s Child Trust Fund scheme, leaving high street banks poised to pick up most of the business. The judges said: “James is truly able to become the expert of the moment on any topic he chooses to tackle.” Earlier this year, James was named best personal finance journalist at the World Leadership Forum’s business journalist of the year awards..
