Money
Our experts
Your money clinic with John Husband
John Husband runs 'Your money clinic' for Saga Magazine and has been writing about business and personal finance for more than 40 years. John is on hand to answer your money queries. Here is a selection of your latest online questions and others from the June 2008 edition of Saga Magazine:
Q. I am taking early retirement at 55 because of ill health and will have £20,000 cash plus a small pension and ill-health benefits. We still have £14,000 owing on our mortgage. Should I pay it off or invest the money?
A. Having £20,000 in savings would disqualify you from being able to claim any other benefits so I'd pay off the mortgage, then at least you'd have a secure roof over your head. I suggest you invest the remaining £6,000 in cash ISAs in yours and your wife's names.
Q. My daughter is going through a divorce and her solicitor has told her not to bother claiming for her husband's pension to be split. Would you agree?
A. The settlement should take everything into account including any pension. Pension splitting is just one way to do that. But it may be more practical to claim something else in lieu. So I suggest she just makes sure that her solicitor has allowed for that in the overall settlement.
Q. In 1999 I invested in a portfolio of shares on the advice of my bank, which is currently showing a £13,000 loss. Can I reclaim this?
A. No, you can't claim money back for advice on stock market investments that later perform poorly. You may have grounds for a claim if it could be shown that at the time shares were an unsuitable investment to be recommended to you.
Q. After my father died I found two life insurance policies in his deedbox, one for the Salvation Army Assurance Society and the other for the Liverpool Victoria Friendly Society. They both had London addresses, long since gone. Is there any way I could contact these organisations to find out whether these policies have any value?
A. Certainly. The Salvation Army Assurance Society merged with the Wesleyan in 1972 and can be contacted at Colmore Circus, Birmingham, B4 6AR, telephone 0800 0 921 990. The Liverpool Victoria has moved its headquarters to County Gates, Bournemouth, Dorset BH1 2NF. Telephone 01202 292 333, or visit the website at [b]www.lv.com
Q. My assets including my house exceed this year's £312,000 inheritance tax threshold. When my wife died five years ago she left her entire £150,000 estate to me. Under present rules, how much can I leave to our children free of inheritance tax?
A. As your wife made no use of her exemption limit you will be entitled to leave £624,00 free of tax.
Q. I worked for a company for 20 years before leaving in 1980. Should I be entitled to a pension from them?
A. Yes you would if you were contributing to their pension scheme at the time. Try contacting the firm at its last known address. If you can no longer find them, use the Government's Pension Tracing Service: 0845 6002 537 or www.thepensionservice.gov.uk
Q. We are being advised to sign over our house to our children to ensure that we don't lose it if we both had to go into care. Is this a good idea?
A. Probably not. For if this situation arose the authorities would almost certainly deem that it was still yours unless you were a tenant paying a commercial rent. However, if you could not meet the care-home fees in some other way, you might consider using an equity release plan to fund a care-home fees policy. This would allow you to leave at least part of your home to your children. If you are worried about long-term care, may I suggest you talk to an independent financial adviser or a care-home funding specialist, of which Saga (0800 056 6101) happens to be one.
Q. When going through my late parents' papers I came across two Post Office savings books from the Sixties. One had 25 shillings in it and the other about 17 shillings. Are they worth anything and would there be any interest owing on them?
A. There is no time limit on claims for National Savings. But no interest would be added on any account with less than £1 in it. There may be interest due on one if you have a valid claim. Call National Savings on 0845 964 5000 for information.
Q. We have seen a horrific increase in our gas and electricity bills. Is there any way we can get them reduced?
A. You can typically reduce your bills by a fifth by switching to an online dual fuel arrangement, paying by monthly direct debit. You can save even more by shopping around providers. To find the best deals, use comparison firms' websites or phone lines.
Q. I have half a torn £20 note and have lost the other half. Is there any way I can get my money back?
A. You need to send it to the Bank of England together with a claim form which can be downloaded from www.bankofengland.co.uk (look under 'Banknotes'). It will assess whether to compensate you. That will depend how much of the note remains and how many of its main features are left, including the serial number, the Chief Cashier's signature and the promissory clause: "I promise to pay the bearer the sum of..." The bank will also take into account how it came to be damaged.
Q. I have a pension fund with the Prudential worth only £2324.00. I contacted them with a view to taking it all in cash. But they said this can only be done after I reach sixty. Is that correct?
A. Yes it is. You are referring to the rule that if your pension is 'trivial' you can draw it all out in cash. To qualify you must be aged between 60 and 75 and all the money in your private pensions - occupational and personal - must not be more than the current maximum lifetime contribution limit which for this year is £16,500.
* John Husband answers your personal finance questions every month in Saga Magazine's 'Your money clinic' column. Read John's latest money Q&A on page 148 of Saga Magazine's June 2008 edition.
* Email John your personal finance questions at web.editor@saga.co.uk. John's opinions are his own and for general information only. Always seek independent financial advice.
- More from our personal finance experts
- Your money: news, advice and information
- Paul Lewis on the web: Paul's personal finance articles online
