Do you need help threading through the maze of financial jargon?
Use our Jargon Buster to gain a better understanding of just what those financial terms really mean and what financial products can offer you.
Owning Shares
Share dealing is the process of buying and selling shares on a recognised stock exchange. In theory, the actual process of buying and selling shares is quite simple. Looking on the Internet or in the financial pages of the press, you will find lists of shares and the prices between which they are being bought and sold. You decide how much you are willing to pay for the shares and put in an offer. If the offer is accepted, you receive the shares and pay for them. Selling shares works the same way: you offer your shares for sale at a price and if someone accepts your offer, you receive payment and hand over any share certificates you have.
Retirement
It is generally accepted that retirement planning is about ensuring that you have sufficient financial resources to enjoy your retirement. Although most attention is placed on the provision of a pension, it is also wise to consider the timing of debt repayment to ensure the majority is repaid before you retire. This is especially important on any mortgage on your home. Over recent years there has been considerable political comment and press coverage regarding the level of the State Retirement Pension. Large numbers of people believe that they will require more money after their retirement than the state pension can offer. These feelings often lead to people beginning their long term planning with regular contributions into a pension scheme. Pension planning is normally a long-term commitment. The Government is trying to encourage more people to build up a pension fund of their own with the introduction of Stakeholder Pensions and changes to Contracting Out from the State Second Pension (S2P), which has replaced the old State Earnings Related Pensions (SERPS).
Stakeholder
Stakeholder Pensions are a form of Personal Pension where certain conditions, laid down by the Government, must apply. These conditions relate to the maximum amount that the Pension Company may charge for the product, the minimum level of contribution they must accept and the abolition of a fixed frequency for your contributions. When the idea first was first introduced it was thought that Stakeholder Pensions would be targeted at individuals that earn between £9,000 and £18,000 per year. However as they have been developed is has become clear that they are equally suitable for people who earn more than £18,000 a Stakeholder Pension. Under new rules introduced at the same time as Stakeholder Pensions you will be allowed to make a contribution to a Stakeholder Pension even though you are not working and receiving income. The amount you can contribute to a stakeholder pension depends on your age and income, but regardless of these factors you will be allowed to save at least £3,600 a year (£300 per month) towards your retirement.
Travel Insurance
Travel insurance provides cover for a range of holiday mishaps. These can include: lost and stolen luggage medical cover personal liability legal expenses cancellation or curtailment of holiday death or injury. Medical cover is especially important. The UK has reciprocal agreements with a number of countries, which would allow you to receive that country's equivalent of NHS care (though you must remember to take a copy of form E111 along with you which is available from your local Post Office). You should be aware that these agreements do not normally cover rescue costs should you fall ill whilst away from the main centres of population, nor will they provide cover for your repatriation to the UK.
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