It's our round-up of the stories your clients may have read in the national newspapers over the weekend...
With so much coverage of the poor annuity rates available at the moment, clients about to retire will understandably be searching for alternatives and the Mail on Sunday gave readers a peek of one interesting option. It explained how AllianceBernstein will this week introduce a ‘retirement bridge', a low-cost version of income drawdown which would provide income and keep costs capped at less than 1% a year.
The company's ‘off-the-peg' approach will be based on a series of pooled, low-cost tracker funds with exposure to different assets such as shares and bonds that would come to fruition at various dates in the future.
Another week and another attempt at predicting the future of gold prices, this time courtesy of the Independent on Sunday. The paper explained how anyone thinking the commodity is a safe-haven may be in for a shock, with experts warning that a fall in prices is just around the corner. It also flagged up the expensive dealing, storage and insurance costs associated with holding gold. Anyone still considering buying into gold, especially if they are not concerned about short-term volatility, was pointed towards ETFs an efficient way to access the precious metal.
Stories your clients may have read in the nationals last weekend
For anyone already investing in China, particularly through Fidelity's Special Situations Fund, the Sunday Telegraph will have been essential reading, with its interview with Anthony Bolton. The star fund manager's reputation has taken a hit with his foray into China and the extensive piece explained how poor due diligence and gearing had led to the underperformance of his fund. On the bullish side, the paper said demographic trends point towards high consumption, while on the bearish side political uncertainty remains a concern.
Returns expected to average between 5% and 9%, the ability to invest from as little as £5 and the knowledge that you are investing in green projects. Does it all sound too good to be true? The Guardian looked at Abundance, which describes itself as a ‘community finance platform', allowing small investors to put money into UK renewable energy schemes and receive a regular cash return based on the energy produced.
Is it possible to map out exactly when someone should reach key personal and financial milestones? Using an Aviva report, the Independent on Sunday set out the seven financial ages of man: a job at 18, buy a car or start investing at 20, move into your own home and start a pension at 21, buy a home at 25, get married at 27, have a first child at 29 and a career peak at 39.
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