With bank deposit rates are at their lowest since 1950 and the stock market having recently halved, things look pretty bleak. Many insurance companies have cut income payments on guaranteed income bonds, pension funds are feeling the squeeze (thanks in part to their being raided by Gordon Brown) and a lot of people are feeling the pinch.
What can one do?
There are a number of options:
1. Gilts are not unattractive, with a ten year gilt yielding just over 4%, which is
(generally) more than shares.
2. Corporate Bonds yield around 5%.
Both of these have outperformed shares and bank deposits in recent years.
3. Staying put. One view is that shares are bound to bounce back and interest rates may well
increase. So right now may not be the right time to change course.
4. (If you are elderly) why not have your whole estate looked at with the joint purpose of
saving Inheritance Tax and increasing your spendable.
Our Financial Services arm (Mitchell Owen Financial Services Ltd) may well be able to help. Please call 01752 334960 or fax 334961 and ask for Nikki Mitchell or Mike Denman.
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