The Collapse of Private Pensions

Posted on July 16, 2013 by Frostie

According to data published by the Office for National Statistics today, membership of private pensions (as opposed to the National Insurance funded state pension) has hit a new low; just 35% of men and 32% of women aged between 16 and 64 were active members of a private pension in 2011/12.

Membership of Defined Benefit pensions has declined from 46% of employees in 1997 to just 28% in 2012, almost exclusively now in the public sector.

Participation rates of employees varies dramatically between public and private sectors, with 85% of men and 81% of women in the public sector, compared to 36% and 26% respectively in the private sector.

Hargreaves Lansdown comment, Tom McPhail, Head of Pensions Research ‘These figures illustrate dramatically how important it is that auto-enrolment succeeds over the next 5 years. It is vital that nothing is done to jeopardise this project and that everything possible is done to encourage people to stay enrolled in their workplace pensions. Recent calls for reform of pension taxation or for small businesses to be exempt from auto-enrolment should be postponed or ignored until the foundations of a savings culture have been properly laid.’

Separately, the ONS has reported average contribution rates as 19.2% of payroll for Defined Benefits schemes and just 9.4% for Defined Contribution arrangements.

Tom McPhail: ‘The inevitable consequence of this level of pension funding is that millions of people will have to work on into their 70s because they won’t be able to afford to retire earlier. All defined contribution members should be shown what their contributions are likely to buy for them in the way of a retirement income, this pension projection should be updated regularly and members should be encouraged to engage with their retirement planning. 9.4% as an average is simply not enough. Investors should aim to be contributing at least 12% of their income towards their retirement. For a more personal estimate, they should use an online pension calculator.’

Many pension calculators are available on the internet, this is one example http://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

What do you think? Do you have a pension?

Are Vouchers Now Cool?

Posted on July 7, 2013 by Frostie

Saving money is important in today’s climate. While the recession grumbles on with only slight growth people are having to look around to find ways to have the same standard of living. It seems we are working harder for less and less. Understandably, our attitude to money is changing. When we work so hard for so little, or have no job at all, we all become more frugal with our cash, and who can blame us for being fussy about spending our hard earned money?

Back in the day vouchers used to be incredibly uncool. Cutting clippings out of newspapers to save 30 pence was not worth the embarrassment at that time. But times change and now vouchers are cool. The embarrassments is no longer there because thrift is in.

This is in part due to the recession. Interest rates are low, jobs are hard to come by or keep, wages are not rising but the cost of living is. Our finances are stretched like never before. This is why not only have vouchers become popular, but voucher websites have also become part of our culture. We can save money on clothes and make up, food and drink, but we can also save money on going out. You don’t have to be rich to live rich; you just have to be savvy.

There are a lot of options for finding vouchers. There are still many in traditional media like magazines and newspapers. However, Coupon websites such as voucherbox.co.uk are where it is at. They help people save money and still live despite the squeeze. It seems folly now to buy anything without one or even go out. I don’t know anyone who goes to Pizza Express without checking the internet for buy one get one free vouchers. We never need to buy full price ever again.

What is your opinion? Do you use vouchers or coupons? Comment below.

Chinese Shanghai Composite index falls 5.3% on Monday

Posted on June 25, 2013 by Frostie

Recent actions by the Chinese regulators to curb lending has further unnerved investors already unsettled by recent comments from Ben Bernanke. The interest rates Chinese banks charge each other surged last week to record highs before falling back. And following a recent statement by the People’s Bank of China, the Shanghai Composite Index fell 5.3% Monday night.

Adrian Lowcock, Senior Investment Manager, at Hargreaves Lansdown;-

“China’s new leadership is addressing some of the risks that have been building up in the banking system, inevitably this could result in some short term pain, possibly impacting on growth but it should benefit China in the longer run. Chinese stock markets do look cheap at present, based on 20 years of information. In addition it is important to remember that China is a state-controlled economy and therefore it is very difficult to make a clear judgement on the accuracy of the information being provided. There are some concerns China’s shadow banking system will spiral out of control, however it seems unlikely the People’s Bank of China will let the system fail.“

“In line with their 5 year plan China is undergoing a change from an export driven manufacturer to a consumer focused economy. This transition is not going to be smooth and there will be some bumps along the way. China continues to grow, at around 6 to 7% per annum, but like all emerging markets this does not lead to a smooth rise in the equity market.

In 2007 investing in China was very popular and as a result valuations rose to very high levels. The market has underperformed both developed and emerging markets since. There are clearly issues in China’s financial system and authorities are now taking action to deal with these. For long term investors that want to have exposure to China this setback could be providing an opportunity to invest. Company earnings are rising and valuations are looking much more attractive. Most investors can get sufficient exposure through a well-diversified emerging markets fund such as First State Asia Pacific Leaders which has 23.9% in the region or Aberdeen Asia Pacific which has 18.47% in the area. For investors wishing to take a more adventurous approach and are able to tolerate a higher level of risk then Jupiter China, managed by Philip Ehrmann, provides exposure.”

Oliver Heath Eco Product Round Up

Posted on May 15, 2013 by Frostie

When we hear the word ‘eco friendly’ we don’t often picture design or beauty, however as demand grows for energy efficient products the design world has responded by not only bringing some attractive but also clever products to the market.

Sustainable architectural and interior designer Oliver Heath has created a list of his favourite eco products. He is supporting The Green Deal, an energy saving initiative from the Government that lets you pay for some of the cost of making energy-saving property improvements, over time, through savings on your energy bills. Improvements available include insulation, heating, draught-proofing and double-glazing.

If these products have got you thinking more about energy efficiency then free and impartial advice about the Green Deal is available by calling the Energy Saving Advice Service on 0300 123 1234 or visit www.gov.uk/greendeal

Waterpebble £9.99 from

www.nigelsecostore.com

‘People don’t often realise you pay for water three times: to run it, heat it and get rid of it. By using the water pebble you can reduce the amount of water you use. Place the pebble near the plughole and it will monitor how much you use during your shower, flashing red to indicate when you should finish showering.’

Bosch Styline Sensor Kettle www.bhs.co.uk £70.00‘

This stylish Bosch kettle not only looks good but features a stainless steel filter which means lime scale doesn’t collect so you won’t find yourself wasting water by emptying the kettle to get rid of it. The kettle also features different temperature gauges so you don’t need to take your water to boiling point if it isn’t needed.’

Siemens IQ-700 SN26T595GB Dishwasher www.appliancesonline.co.uk £810

‘Dishwashers are often seen as one of the homes biggest energy wasters, as older models don’t hold an A+++ energy rating. This dishwasher is the perfect solution for those people looking to be more energy efficient but don’t want to lose the convenience of a dishwasher as you can save 230kWh and 2,800 litres of water per year when you use its eco setting.’

John Lewis linen and suede draught excluder £29

‘It doesn’t matter what kind of house you live in, there will always be a draught coming from somewhere. People often forget that draft excluders can make a huge difference to the warmth of a house, whilst also adding character to a room. Draught excluders offer a huge range of designs and keep the cold air out and warm air in so you stay warm and cosy and don’t have to turn up the thermostat. If you’re feeling creative then you could even make your own.’

Melin Tregwnt Shetland wool throw www.melintregwynt.co.uk £115

‘When you sit still in the house you feel colder. Rather than turning up the thermostat why not wrap up in a throw that keeps you warm and also looks great during the day draped across the sofa. Melin Tregwynt are made from soft 100% Shetland wool and hand stitched in a variation of colours to suit any home.’

Bisque blok radiator

www.bisque.co.uk

Prices start at £534 (model: BL 60-70)

‘Radiators are a staple in most homes but they’re not often known for looking stylish. Bisque’s sleek aluminium radiators use less energy to heat, come in a range of colours, and are clever enough to respond to changes in room temperature.’

The Stretton wood burning stove from Aga www.agaliving.com £967 or £1,147 for the smoke-exempt model

‘Wood burning stoves are one of the most cost-effective forms of renewable power you can incorporate into your home. They have a zero carbon footprint as any carbon dioxide produced by burning woodfuel is the same carbon dioxide absorbed by the tree when it was growing. AGA’s range of wood burning stoves would fit into any home modern or old, making your home feel warm and cosy.’

LED desk lamp www.clifford-james.co.uk £29.99

‘Containing a row of 42 tiny LED lights, this energy efficient desk lamp operates on just 3 watts of electricity. LEDs produce a much clearer, brighter light than traditional lamps and each LED will last 100,000 hours. Its slim design will fit perfectly onto an office desk or bedside table.’

Wattson Solar Plus energy monitor www.nigelsecostore.com £139.99

‘Place the Wattson Solar Plus in your kitchen or living room and it will measure how much energy your home consumes and produces. The statistics are displayed by colour coded numbers showing your homes energy usage in cost, watts and carbon. Having your energy use on display means that you can review how much energy your home produces and will make you aware of the devices using the most so you can think about what you can change to reduce it.’

The EcoButton www.ecobutton.com £12.99

‘We’ve all said we’re popping out for ten minutes and then returned two hours later, your computer still running. The EcoButton is a great solution to this. Plug into your computer or laptop using the USB connector then press the button before you leave and it will put your computer into sleep mode reducing its usage from 80 watts to 1.8 watts.’

Earthborn Coloured Clay Paints http://www.ecocentric.co.uk/ £29.40

(2.5 litres)‘These eco friendly paints don’t contain any harmful VOCs (Volatile Organic Compounds) emitted from other paints meaning you can decorate your home in a healthy and eco friendly environment. This low odour clay paint comes in a range of earthborn colours, from pale pinks to subtle blues and greens.’

Dulux Light and Space Reflective Paint www.homebase.co.uk£24.99

‘This paint is perfect for when you have a small room you want to make brighter. It claims to reflect twice as much light as conventional paint so you can make the most of the natural light.’

Bloom pendant light shade http://www.nigelsecostore.com/ £36.95

‘This pendant light shade made of recycled material polypropylene would look great in a hallway or dining room. It’s designed and manufactured in Britain so it has a low carbon footprint and has also created no landfill waste during production.

Howdens Bespoke Energy Efficient Glass Door www.howdens.com Price available upon request

‘I’m a big fan of using glass panel doors in hallways as well as for the front and back door. They let light filter from one space to another brightening dark hallways and reducing the amount of electricity you use. External doors can be double or triple glazed to reduce heat loss whilst all glass doors will need to be toughened for safety. I’d recommend it with a frosted glass panel which creates a glow of light into rooms.’

Trento Spot solar powered garden light www.ecofreak.co.uk£49.95

‘Energy efficiency isn’t just for inside the home, it’s for the garden too. There are some fantastic solar charged lights available including the Trento Spot. Its brightness is similar to that of any other low voltage garden light and doesn’t require any assembly. Placing a few of them in the garden can add atmosphere to any BBQ.’

Neff induction hob www.neff.co.uk Prices available upon request

‘Induction hobs heat only the base of ferrous pans so no heat is wasted, meaning they are extremely energy efficient. It’s something I always suggest to clients when they are making improvements to their kitchen.’

Energy saving lightbulbs http://www.philips.co.uk Prices start at £3.00

‘A simple one but often overlooked, energy saving light bulbs are the first step in becoming more energy efficient. It’s estimated you can save up to £55 a year by swapping all of the bulbs in your house to energy efficient ones.’

Mira eco shower head http://www.mirashowers-store.co.uk/ Prices start at £40.80

‘This shower-head can reduce water flow dramatically with no loss in quality of showering experience due to its water aerating spray technology.’

What is your favourite eco product?

Get Rich Blogging | Book Review

Posted on May 13, 2013 by Catherine Balavage

I met Zoe Griffin at a fundraising event for cervical cancer which was hosted by Jo’s Trust. Zoe is very vivacious and it is hard not to notice her as she is a social butterfly. I chatted to her on the night and said I would review her book, “Get Rich Blogging”. Zoe was the Sunday Mirror’s showbiz gossip columnist. She bravely left her job to start her blog, Livelikeavip. She did this three years ago and now earns a six-figure income and gets 80,000 hits a month. An impressive achievement. But what about the book? Here is my opinion….

Part one lets you know all about blogs and what Zoe wished she knew when she started hers. The book also has great exercises to get your business brain into gear. You may think you know all about blogging and what a blog is but Zoe leaves no stone unturned.

The section on making money will be popular – obviously, otherwise why would you have bought the book- and it does have a lot of great information on Skimlinks, google adsense, link-based advertising and other ad networks. This information is valuable and took me a lot of research to find when I started Frost. I do have to say that earning money from some of these is not as easy as you think, in the three years I had Skimlinks on my blog I made £32, and only $50 per year from infolinks. It is hardly setting the world on fire, and barely covered the cost of running the site. Zoe’s book has given me lots of ideas for other revenue streams though, and I was lucky enough to become a member of Handpicked Media.

The income section is separated between direct and indirect revenue. The above is direct while the indirect is things such as speaking arrangements, public appearances, collaboration and freelance contracts.

The other great thing about the book is that it helps you find the marketplace, and therefore the readers, of your blog. It is full of exercises, tips and quotes. The end of each chapter also has a checklist. The book then talks you through design, preparing for business, getting images and building your brand.

It also has a great chapter on social media: very important in these times. Building a loyal readership and boosting your income are also covered.

Part II is a great chapter of interviews with other bloggers, sectioned into their niche area. Along with tips of each niche area.

This book is an essential resource for those who are not only starting a blog, but also those who already have one. A great book. Five stars.

You can buy Get Rich Blogging here

I will be interviewing Zoe soon so check back for that,

Economics of crowd-sourcing under spotlight

Posted on April 13, 2013 by Frostie

A team headed by an economist at the University of Portsmouth has won £750,000 to establish why people give up their time to help scientists better understand some of the biggest mysteries, from searching for the cure for cancer to trying to understand the galaxies that fill our Universe.

Dr Joe Cox, of the Portsmouth Business School, will lead a team from Oxford, Manchester and Leeds Universities and colleagues from Portsmouth’s world-leading Institute of Cosmology and Gravitation, to find out more about the people who volunteer to help online science projects.

The grant for the three-year project was awarded by the Engineering and Physical Sciences Research Council (EPSRC) as part of the Research Councils UK digital economy theme.

Dr Cox said: “Hundreds of thousands of people all over the world are giving their time to help find a cure for cancer, or to better understand the nature of the Universe, or patterns of global warming, but we don’t yet have a detailed understanding of the processes that drive these initiatives, which are more complex than they may first appear.

“The growth of the digital economy has dramatically affected the ways people interact with each other and engage in different activities, but little is known about the changing nature of volunteering and crowd-sourcing in this context.

“This grant will allow us to formulate new economic models to explain the choices, motivations and behaviours of digital volunteers.”

The project will also investigate ways in which volunteering can be optimised and sustained through strategic interactions and interventions on the part of the managers of these resources.

Dr Cox will be working with Dr Karen Masters of the Institute of Cosmology and Gravitation at Portsmouth to study the Zooniverse (www.zooniverse.org), a highly successful and diverse cluster of online citizen science and crowd-sourcing projects inspired by the success of Galaxy Zoo and now includes more than 20 projects including Cell Slider and Seafloor Explorer. Volunteers on these initiatives give up their time to interpret and classify data of scientific interest, ranging from images of distant galaxies to weather patterns and cancer cells.

Dr Masters is project scientist for Galaxy Zoo.

She said: “We hope this grant win will help us to understand how to improve the volunteer experience on Zooniverse projects so that people can feel confident they are contributing to real science when they spend time on our sites, and also gain the maximum enjoyment from the experience.”

Dr Cox said: “Technology has made it possible for the average person on the street to make a real contribution towards our understanding of the universe, the modelling of climate change and the development of a cure for cancer.

“Our research will show how these initiatives can encourage more people to volunteer, as well as enhancing the depth of their engagement, which will help to push the boundaries of scientific knowledge and create significant social value.”

The findings will be of “considerable interest” to web communities and the broader voluntary sector, he said, and is likely to also have significant implications for commercial projects that make use of crowd-sourcing, such as Amazon’s Mechanical Turk.

The research partners include Dr Chris Lintott, Oxford University, Dr Anita Greenhill, University of Manchester, and Dr Gary Graham, University of Leeds.

The Sunday Times Rich List 2013

Posted on April 8, 2013 by Frostie

It seems that whether you become rich really is in the stars. Apparently Gemini’s are more likely to become rich according to The Sunday Times.

HOROSCOPE WEALTH LEAGUE TABLE

The star signs of the 1,000 richest people in Britain

Gemini 9.9%

Capricorn 9.6%

Aries 9.4%

Taurus 8.9%

Leo 8.6%

Sagittarius 8.2%

Cancer 8.0%

Pisces 7.9%

Libra 7.8%

Aquarius 7.7%

Virgo 7.5%

Scorpio 6.5%

People born under the star sign Gemini – between May 22 and June 21 – have the best chance of making a fortune, according to the 25th anniversary edition of The Sunday Times Rich List. Just under 10% of the 1,000 richest people in Britain are Geminis, the Rich List will reveal when it is published on Sunday April 21.

The survey found that the richest Geminis include diamond billionaires Nicky Oppenheimer, 67, and Laurence Graff, 74, performers Sir Tom Jones, 72, and Sir Paul McCartney, 70, Slavica Ecclestone, 54, the ex-wife of Forumula One chief Bernie, and 37-year-old TV chef Jamie Oliver.

Eighty-two-year old motor racing billionaire Bernie Ecclestone and Nancy Shevell, McCartney’s third wife, were both born between October 24 and November 22 under Scorpio, the star sign that is least likely to bring huge wealth. However, Shevell has her own personal fortune from a stake in her family’s transport business in the US. Another Scorpio billionaire is the Chelsea Football Club owner, 46-year-old Roman Abramovich. Jamie Oliver’s, wife Jools, 38, was born in November under the sign of Sagittarius, which accounts for 8.2% of the people in Britain’s richest 1,000 this year.

Geminis have topped the Rich List horoscope league for three years in a row, with Capricorn and Aries just behind in second and third places. The Duke of Westminster, 61, Britain’s wealthiest landowner, heads the list of the people born under Capricorn, between December 22 and January 20. Ireland’s richest woman, Hilary Weston, 71, was also born under Capricorn. The Rich List millionaires born under the sign of Aries, between March 21 and April 20 include Lord Sugar, 66, Lord Lloyd-Webber, 65, Sir Elton John, 66, Irish telecoms billionaire Denis O’Brien, 55, and 62-year-old bookmaker Victor Chandler.

The Sunday Times Rich List, first published in 1989, is the definitive guide to wealth in Britain and Ireland.

Last minute ISA Ideas for 2012/13 Tax year

Posted on March 27, 2013 by Frostie

· ISA ideas for different types of investors

· 14% of all HL ISAs opened in the last week of the tax year

· HL Opening Times

Adrian Lowcock, senior investment manager at Hargreaves Lansdown offers his ISA ideas as this year’s deadline approaches:

“In the last two tax years 14% of all new ISAs opened on the Hargreaves Lansdown Vantage platform were opened in the last week. Make sure you take out your ISA as once the tax year ends you have lost that allowance. To take out an ISA all you need is your national insurance number, debit card and cleared funds in the bank.”

Income investor

Invesco Perpetual Distribution – This fund aims to provide a regular stable income this fund invests in a mix of bonds and income-producing equities. Approximately two-thirds is invested in corporate bonds with the remainder invested in equities. Income is its primary aim and it makes payments to investors monthly.

Defensive investor

Newton Real Return – This fund is for investors who may need access to some of their capital in the medium term (but still in at least 5 years’ time). It therefore tries to offer some sheltering of capital and aims for more modest growth. The manager invests in a variety of assets and uses sophisticated techniques to try to profit from assets which fall in value.

Medium Risk investor

Troy Trojan – This fund is defensively managed and provides the potential to achieve a reasonable level of return over the medium term with a little less volatility than the very long-term, more aggressive portfolios.

Long-Term investor

CF JM Finn Global Opportunities – This suggestion is for investors with a long time horizon. Therefore the focus is on more risky areas with greater potential to build wealth over the long term.

Junior ISA / Investing for Children

Lindsell Train Global Equity – The managers invest in global equities and have a long term buy and hold approach. This compliments those investing for children who often have very long-term goals in mind.

Hargreaves Lansdown end of tax year opening hours

Monday 25 – Thursday 28 March 8am – 7pm

Easter Bank Holiday weekend every day 9am – 6pm

Tuesday 2 April 8am – 8pm

Wednesday 3 April 8am – 8pm

Thursday 4 April 8am – 8pm

Friday 5 April 8am – Midnight

ISA deadlines

Stocks & Shares ISA

Online Friday 5^th April – 23:45 www.hl.co.uk/ISA

Telephone Friday 5^th April – 23:55 0117 900 9000

Postal Friday 5^th April

Bed & ISA

Funds on Vantage Wednesday 3^rd April – 17:00

Shares on Vantage Friday 5^th April – 12:00

Funds/ shares certificated Wednesday 3^rd April

ISA Contribution limits

2012/13 2013/14

Stocks and Shares ISA £11,280 £11,520

Junior ISA £3,600 £3,720

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