Is 2017 the year to clean up your finances and invest with the best?

Your financial goals for 2017 don’t need to be such hard work. In fact, just 10 minutes now can save you a lot of anguish – and money – later on

Give yourself the best financial start to the year

Are you feeling the post-Christmas pinch? It can be tough going in January after the annual splurge. But it doesn’t have to be that way.
Putting aside a little each month can help you build a tidy nest egg over time. Getting started is the hardest bit, but once you’ve made the commitment, you’re up and running.
The only question then is: where do I put that money?
Sadly, typical interest rates on savings accounts have been incredibly low ever since the financial crash in 2008.
It can be difficult to find a bank savings account that just keeps pace with inflation, especially with so many living costs on the rise since the Brexit vote.
So, no wonder many people consider investing as they seek out the best returns on their money.
You should always remember that investing puts your money, or capital, at risk, whilst holding money in cash does not ( up to the FSCS ceiling of £85,000 ).
If you’re willing to accept risk, the difference between saving and investing can be quite amazing. Take a look at these figures from Nutmeg, the popular online investment manager.

This chart is taken from Nutmeg’s ISA Calculator tool , which helps you see how your money might grow in a savings account compared to an investment portfolio.
With an ISA, which stands for Individual Savings Account and is a government initiative that gives you great tax benefits, you can choose to save your money (a Cash ISA) or invest it (a Stocks & Shares ISA).
If you’re new to investing it can seem quite daunting at first. There are so many options – stocks, bonds, funds, funds of funds.
It’s enough to make your head hurt. And then knowing how much risk you’re taking – because with any investment there is risk – can be mind-boggling, even for an experienced investor.
This is where Nutmeg can help. We make it easy to invest in really sophisticated portfolios by doing all the hard work for you.
All you need to do is go to their award-winning portfolio tool , where you say how much you want to invest and how much you want to put in each month, then pick a time frame and a risk level, between low and high. There are 10 risk levels to choose from, and we’ll help you decide which one best fits with how much risk you want to take.

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You can decide to have a fixed allocation portfolio, which keeps your investments fixed over time as the stock markets ebb and flow. Or you can have a fully-managed portfolio, where Nutmeg constantly monitor the markets and make adjustments to your investments as they see new opportunities for better potential returns.
It’s all online so you can see where your money is invested and how your portfolio is doing whenever you want. You’re not tied in. The fees are low, and simple to understand . You can take your money out when you want. And you can top-up, withdraw or change your risk settings as you wish, at no extra charge.
So what are you waiting for? Remember, it takes just 10 minutes to set up and it could be the best financial decision you make all year. And for years to come!.
Risk warning: Your capital is at risk. The value of your investment, and the income you get from it, can go down as well as up. As with any investment, there is a chance you will get back less than you originally invested.

Culled from Mirror

Retirement age: Half of workers WOULD consider working past state pension age

MORE than half of people planning to retire this year would consider, or already are, working past their state pension age, research

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More than half of people would consider working beyond state pension age

Some 51 per cent of people surveyed are working past their state pension age or would consider doing so, Prudential found.

This marks the fifth year in a row of the surveys by Prudential where over half of people set to retire in the coming months are or would consider working past state pension age.

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A fifth of those considering working past state pension age hope to start a new business

A fifth (20 per cent) of those considering working past state pension age hope to start a new business or earn money from a hobby, while 9 per cent would think about continuing full-time in their existing job.

A further 28 per cent would consider working fewer hours with their existing employer, while 29 per cent would look for a new employer.

Pension expert warns start saving 40 years before retirement

Stan Russell, a retirement income expert at Prudential, said: “Our research has shown that a period of 'pretirement', where people choose to delay their retirement plans, change jobs, earn a living from a hobby, or go part-time, instead of giving up work altogether, has become the new norm for retirees in recent times.”

Some 1,000 people planning to retire in 2017 took part in the survey.

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A further 28 per cent would consider working fewer hours with their existing employer.

 

Culled from Express

AIICO returns N1.5b pension legacy fund to PTAD

 Omobola Tolu-Kusimo 

 

AIICO Insurance Plc has  transferred the ownership of fixed assets, private equity holdings and cash of pensioners under the old pension scheme, Defined Benefit Scheme (DBS) to Pension Transitional Arrangement Directorate (PTAD).
PTAD Executive Secretary, Sharon Ikeazor who spoke with reporters at the formal handing over of landed properties, fixed private  holdings and cash at AIICO headquarters in Lagos, added that the Directorate had issued demand notices to 15 insurers to return pension legacy funds as required by the  Pension Reform Act (PRA) 2014.
She said only five firms  have complied with the notices.
The listed the firms to include Leadway Assurance Limited, Custodian Life Assurance Limited, LASACO Assurance Plc, African Alliance Insurance and NICON Insurance.
She said the delay by the remaining nine firms has unnecessarily delayed the settlement of the huge pension liabilities inherited by PTAD and urged others to comply.
According her, the PRA 2014 vested all DBS pension assets, funds and liabilities in PTAD.


Culled from Nation

Pension: Niger not Owing Retirees

By Laleye Dipo in Minna
The Niger State government on Tuesday declared that it is not owing any retiree under the old pension scheme their entitlements.
However the government explained that pensioners that fell under the new Contributory Pension Scheme were yet to start collecting their entitlements.
Director General of the state Pension Board, Alhaji Usman Tinau Ahmed, flanked by a host of top government officials told newsmen in Government House in Minna that between March 2016 and June this year, government had paid over N2.1 billion as pension and gratuities to both state and local government retirees under the old scheme.
According to Ahmed, 940 retirees in the local governments had enjoyed their benefits, while a total of 388 pensioners from the state civil service had been paid.
He said government was still working out the augmentation for pensioners as a result of the increase in the salary of workers between 2002 and 2014.
Details later…

Thisday

5 Things the Retirement Fairy Wants You to Know (If She Existed)-5 Things the Retirement Fairy Wants You to Know (If She Existed)

You don’t need to worry about retirement. Stop stressing and enjoy your life, already. Work and die; that’s all you have to do. In fact, we have a secret to tell you: There’s a tiny retirement fairy who will deposit money into a savings account set aside just for you. When you’re ready to retire, just send an email to your employer, and your human resources department will let her know it’s time to transfer the funds. Ha ha … we’re just messing with you. There’s no retirement fairy. But if there was a fairy overseeing your retirement, she would have a few very important things to tell you. Here are five things the retirement fairy wants you to know.

1. The retirement fairy is not going to help you

Woman saving money by dropping coins into a jar | iStock.com

You have to take responsibility for your retirement. You won’t retire and then just have a savings account with all the money you need to stop working and live a comfortable lifestyle. One person who can help you, however, is a certified financial planner. He or she can assist you with developing a realistic plan so that you can reach your retirement goals.

2. You’re running out of time

Clock | iStock.com

You don’t have as much time as you think you have. Start contributing to a retirement account as soon as you get your first job. You might be young, single, and carefree now, but before you know it, you’ll be married with a couple of kids and a mortgage. Start planning now.   

3. Your retirement number is most likely wrong

Retirment plan | iStock.com

The amount you think you need to retire comfortably may not be correct. A TIAA study revealed that many retirement savers don’t have a realistic view of how much money they will need to retire well. It will be important for you to get as close to your real number as possible so that you can avoid having to work longer than you anticipated or returning to work. If you need help figuring out your number, you can meet with a certified financial planner. You can also take advantage of one of the many retirement tools available.

Money & Career

4. Your 401(k) isn’t a piggy bank

Broken piggy bank | iStock.com/wpd911

Start beefing up your emergency savings fund instead of relying on your 401(k) to bail you out. Taking a hardship withdrawal should be your last resort if you’ve fallen on hard times. Know that you won’t be able to receive a hardship distribution unless your employer offers it. So don’t bank on your 401(k) funds coming to the rescue.

5. Stop putting your kids first

College student | iStock.com

You love your children and you would do anything for them, including emptying out your savings account so they can attend a good college. However, this won’t be a good long-term plan if you ever hope to leave the workforce. Tell the kids they’ll either have to work a part-time job, go to a less expensive school, apply for scholarships, or take out loans. You, on the other hand, don’t have as many options as your children do, so if you have to make a choice put your retirement ahead of college financing.

Culled from Money & Career Cheat Sheet: