P543 Teletext 543 Oct16 21:01:01       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET Dear Teletext, I have recently inherited a lump sum of money and am considering investing this in the stock market. I am concerned about the market's current volatility and the possibility of a recession. Is there a safe way to invest in the stock market? Brian, Burton-upon-Trent ——————————————————————————————————1/8—— Got a question for our advice clinic? YOU COULD GET MORE FOR YOUR POLICY WITH S.E.C. SEE p626 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:01:12       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET David Wright of independent financial adviser Johnstone Douglas points out that for top returns historically, shares have been the place to invest over the medium to long term. However, he also makes the point that for many people stock markets are too risky. Safety-conscious savers are putting their money in deposit accounts where the returns are mediocre. ——————————————————————————————————2/8—— Got a question for our advice clinic? Write to: Advice Clinic, PO Box 297, London SW6 1XT or fax: 0171 386 7808 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:01:15       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET The answer for investors with safety in mind could be a with-profits bond, says David Wright of IFA Johnstone Douglas. "These are lump sum investment vehicles offered by many leading insurers which invest in a combination of equities, fixed-interest property and cash. "Each year the insurer will declare a bonus, known as a reversionary bonus, which, once declared, cannot be withdrawn" ——————————————————————————————————3/8—— Got a question for our advice clinic? Write to: ADVICE CLINIC, PO Box 297 London,SW6 1XT or fax: 0171 386 7808 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:01:03       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET David Wright of IFA Johnstone Douglas adds that in addition to a reversionary bonus on with-profits bonds, there is an additional or terminal bonus payable on termination or death. "Payouts are smoothed from year to |—ar so that some profits from good xears are put aside to boost paxouts in the not so good years. "It is recommended that these bonds are held for at least five years." ——————————————————————————————————4/8—— Got a question for our advice clinic? NINTENDO 64,HI-FI AND PLAYSTATION UP FOR GRABS see p200 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:01:00       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET David Wright of IFA Johnstone Douglas stresses that the flexibility of with-profits bonds makes them very attractive to people coming up to or in retirement. Income can be taken on a regular basis with the first 5% each year being tax as it is regarded as payment of capital invested. The returns have basic-rate tax taken at source. ——————————————————————————————————5/8—— Got a question for our advice clinic? Write to: ADVICE CLINIC, PO Box 297 London,SW6 1XT or fax: 0171 386 7808 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:02:10       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET With-profit bonds are taxed at source so are not good for non-taxpayers, says IFA David Wright of Johnstone Douglas. Higher rate taxpayers will be subject to higher rate tax on any income taken in excess of 5% "However, they could find them useful if they are likely to become basic rate taxpayers on retirement. There is no liability to Capital Gains Tax." ——————————————————————————————————6/8—— Got a question for our advice clinic? NOW IT'S EVEN EASIER TO FIND LOVE: TELETEXT DATING ITV p390 Property Mortgages Savings City
P543 Teletext 543 Oct16 21:00:13       —————————————————————————————————  INVESTING SAFELY IN THE STOCK MARKET IFA David Wright believes with-profits bonds are a first-class medium-term investment for those who are elderly or someone who wants peace of mind. "They can be used as a growth investment or to provide income, depending on the investor's needs." Johnstone Douglas has produced a free factsheet on with-profits bonds. ——————————————————————————————————7/8—— Johnstone Douglas 0181 6860660 NINTENDO 64,HI-FI AND PLAYSTATION UP FOR GRABS see p200 Property Mortgages Savings City
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