Your Money

The Journal (Newcastle, England), November 6, 2014 | Go to article overview

Your Money


Your money queries are answered by Trevor Clark, Director of Rutherford Wilkinson Ltd, Chartered Financial Planners Q. My partner and I, who are both in our 20s, have two young children, aged six and four. My partner has a salary of PS28,000 per year, and I currently look after the children. He has life cover through work which pays out four times his salary. Is this enough? A. This is one of those questions where there are a number of issues which need to be considered.

Firstly, you need to think about what liabilities would need to be paid, such as mortgage and loans, which would need a capital sum.

Then you need to consider what income you would need.

The most cost-effective cover to generate income until children have grown up is called Family Income benefit, which pays an income for the remainder of the policy term. You should also consider what cover is needed on your own life.

Would your partner be able to work if you were not there to look after the children? The costs of replacing a stay-athome mother with a nanny, cleaner, after-school clubs etc are substantial.

A 20-year policy paying out PS20,000 per year for a 28-year-old non-smoker could cost less than PS10 per month.

Finally, you should ensure the policies are written in trust, to make sure they pay out to the right people (unmarried partners are not recognised under the rules of intestacy). The trustees of the work-based plan have discretion over who they will pay the benefit to, and will often consider an "expression of wishes" left by the member, so it is important to ensure this is up to date.

You should also consider writing wills. As well as the financial issues around who inherits your estate, and the rules of intestacy, importantly a will allows you to appoint who you want to look after your children if you were both to die.

Q. I have a PS60,000 personal pension fund. I am 58 and still working. I have heard that from next April I will be able to draw my fund in full if I wish, and I am tempted by having access to this money. Is this a good idea? A. Firstly, I must point out that I do not have enough information to give you individual advice. However the new pension freedom which has been announced has caused many people to take another look at pensions. The idea behind the changes is that people should have greater flexibility to control their own money, rather than being forced to tie their fund up in an annuity.

The danger is that the fund will be gone before you finish needing to rely on it, and you will be left with too little income later in your retirement. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Your Money
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.