National Savings & Investments

One of my clients this week asked what to do with his maturing National Savings & Investments (NS&I) index linked certificate. The return on his original investment is the equivalent of 4.38% net. Taking his tax position into account he would have … Continue reading →

Source: http://www.pension-calculator.info/national-savings-investments-2/

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Revised staging-date link

• Facebook • Twitter • Delicious • Digg • StumbleUpon • Add to favorites • Email • RSS I refer to the delay on Auto-Enrolment staging dates announced by The Minister for Pensions last week. I covered this in several … Continue reading →

Source: http://www.pensionforecast.info/revised-staging-date-link/

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How S.S.A.S. can help extract cash from your property with tax relief

A Pension Practitioner.Com S.S.A.S. can help you cut tax and extract cash from your property without a remortgage whilst getting tax relief.
After regulated advice you transfer your old pension into your SSAS, account. Your scheme then purchases equity in the property (Subject to independent valuation.). This releases cash to you. A further [...]

Source: http://www.pensionpractitioner.com/blog/how-ssas-can-help-extract-cash-from-property-with-tax-relief/71/

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Ed Miliband attacks plan for public-funded Royal Yacht

Ed Miliband has done an interview with Paul Waugh in the House magazine: there are a few interesting nuggets. The Labour leader has dismissed the idea of a new Royal yacht, at least with any public money. He says that …

Continue reading: "Ed Miliband attacks plan for public-funded Royal Yacht"

Source: http://feedproxy.google.com/~r/ft/westminster/~3/MMzXfyAN-yQ/

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7 Reasons to Switch Your SSAS Provider Today

SSAS or Small Self-Administered Scheme (SSAS) is a type of pension scheme for businesses and entrepreneurs. Although SSAS is credible and has been present in the market for some time, it is still largely unknown among many small to medium sized business. As a result, the true potential of SSAS pension schemes has been overshadowed [...]

Source: http://www.pensionpractitioner.com/blog/7-reasons-to-switch-ssas-provider-today/97/

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U.S. Postal Service Pension Suspends $800 MM Contribution

Let me start out by saying that the persons at my local post office are courteous, helpful and generally terrific people. That said, like most, I was surprised at the news about a suspension of nearly a billion dollars owed to this federal pension plan.

I guest blogged about this issue for CNBC on June 23, 2011. My commentary is reproduced below.

No Pension Checks for the Postman to Deliver?

The mail gets delivered in rain or snow but it might not include pension checks for postal workers. According to a June 22, 2011 press release from the United States Postal Service, it intends to suspend what it owes to its pension plan as a way to “conserve cash and preserve liquidity.” By doing so, it frees up $800 million in cash for the current fiscal year.

This federal plan sponsor is not alone.

In what seems like an unending stream of bad news on the government pension front, countless cities and states are making adjustments to their existing pension and health care plans for retirees.

Two legislative bills in Minnesota would freeze public pensions as of July 1. Following an arbitration, City of Detroit policemen will see smaller payouts. Florida teachers are suing over a new retirement income tax. Congress is seeking more transparency about public pension plan IOUs and has talked about how large scale municipal bankruptcies related to retirement plan liabilities could adversely impact the financial landscape.

While some sources say that the underfunding crisis is improving for states and cities, others angst that the problem is getting worse and that major reforms are needed now. As we head into an election year, politicos are atwitter about the funding gaps associated with entitlements like Social Security and Medicare. Add underfunded public and corporate plans to the mix and things get scary fast.

Some retirement plans are trying to make up for losses by investing in riskier assets. Absent a robust risk management infrastructure, taking on more risk could worsen funding problems later on.

There are solutions but someone has to lead the way. Raising taxes and/or rescinding benefits is unhappy news to voters. More likely to occur is a legislative mandate to pass the retirement plan hot potato onto Corporate America.

Unfortunately, individuals are unlikely to escape unscathed. The tax man cometh almost surely. Joe Q Citizen may end up footing the bill for someone else’s pension plan even if his doesn’t offer one. The gap in funding for entitlements, public plans and personal savings makes for a trifecta with few winners unless material changes are made soon.

Note to Readers:

• Read "Postal Service suspends FERS pension fund contributions" by Steven Watkins, Federal Times, June 23, 2011. (FERS stands for Federal Employees Retirement System)
• See "Bills call for a freeze on public pensions," Minneapolis Professional Employees Association, March 2, 2011.
• Click to view "State of Michigan Compulsory Arbitration In the Matter of City of Detroit and Detroit Police Lieutenants and Sergeants Association" April 5, 2011.
• Read "Broward teachers joining Florida public employees in suing State over 3 percent retirement income tax" by John Ristow, The Westside Gazette, June 23, 2011.
• Click to read "The Public Pension Transparency Act Reintroduced in Congress," by Terren Magid, February 11, 2011.
• See "Public pension problem could be shrinking: survey" by Lisa Lambert with editing by Dan Grebier, Reuters, June 8, 2011.

Source: http://feeds.lexblog.com/~r/PensionRiskMatters/~3/bOQdFa0WvEQ/

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