CJR Associates faq's

Contact us with your general questions on all financial matters and we will place the answers on this page ............................ Contact us with your general questions on all financial matters and we will place the answers on this page ................. Contact us with your general questions on all financial matters and we will place the answers on this page

Q	Individual Savings Accounts. What are they ?
A	Plans which allow you to invest up to £7,000 this tax year (reducing to £5,000 in subsequent tax years) with one fund manager (Maxi ISA) or up to three fund managers (Mini ISA).
Q	Who can take out an I S A ?
A	You must be over 18 and a resident of the UK for tax purposes, or working overseas as a civil servant.
Q	Do I have to be earning or paying tax to qualify ?
A	No, but you must be over 18 and a resident of the UK for tax purposes.
Q	I have money in the Building Society could this be used for an ISA?
A	Yes - you can transfer money in your Building Society account to a cash ISA account. Maximum amount invested £3,000 for tax year 2000/2001 (reducing to £1,000 in future tax years).
Q	I have an existing PEP plan can I invest this in an I S A?
A	No you should keep the money in the PEP?
Q	But the fund performance is poor. What can I do?
A	You could seek independent financial advice on moving your existing fund to another fund manager with better investment performance.
Q	How much can I put into an ISA ?
A	Depends o the type of ISA. Cash, Insurance and Stocks and Shares
Q	I have heard about CAT standard plans. What are they?
A	CAT stands for Costs, Access and Terms. An idea introduced by the government to cut costs of saving/investing. In a CAT plan, the fund manager must have a maximum annual charge of 1% with no other charges. Not all companies offer a CAT standard plan, as low costs are likely to mean low profits for fund managers who provide them.	Low charges does not guarantee to provide the best return.
Q	I took out an I SA with my building society in May. I am told it was a cash I SA. Can I also take out a stocks and shares ISA this year?
A	Yes - You will be allowed to invest up to £3,000 this year in a mini I SA , providing that you do not have an existing maxi ISA.
Q	Can I benefit from paying my insurance premiums to an I SA?
A	You can place up to £1,000 each year, into an Insurance type ISA.

Q	I have heard about Stakeholder Pensions. What are they ?
A	Stakeholder pensions have been developed following changes in legislation by the government, to allow more people to benefit from saving into a approved pension scheme. They are planned to be introduced in April 2001
Q	Who can take out a stakeholder pension ?
A	Stakeholder pensions will be low cost personal pensions aimed at the many people who currently have no pension provision and who earn between £9,000 and £18,500 and are not eligible to join an occupational scheme.
Q	Do I have to be earning or paying tax to qualify ?
A	No - even if you are unemployed, a student, a non earning housewife, or a full time carer, you will be allowed to contribute up to £3,600 a year. Money used for contributions does not have to come from earnings.
Q	I have a lump sum from a disability settlement could I use this ?
A	Yes - you can fund your stakeholder pension from your settlement or an inheritance, a redundancy payment, divorce settlement.
Q	I am earning £15,000 a year. Is stakeholder for me ?
A	Yes - Stakeholder pensions will be low cost personal pensions aimed at the many people who currently have no pension provision and who earn between £9,000 and £18,500 and are not eligible to join an occupational scheme.
Q	How do I contribute to a stakeholder plan ?
A	Stakeholder pensions will be made available via employers, or for individuals from Independent Financial Advisers and many pension providers.
Q	I already have a personal pension. What should I do ?
A	Stakeholder pensions will also appeal to those investing in a personal pension already, as stakeholder will have a 1% upper limit on charges - making them considerably cheaper than personal pensions.
Q	Will my existing pension company be providing stakeholder?
A	Not all companies will offer a stakeholder pension plan, as low costs are likely to mean low profits for pension providers.
Q	I am in my Company's group personal pension scheme. Can I contribute to a stakeholder plan?
A	Yes - You will be allowed to invest up to £3,600 a year in a stakeholder pension, providing you are not a member of a final salary (defined benefit) occupational pension scheme.
Q	Can I move from my existing pension plan to a stakeholder plan now?
A	Stakeholder plans will not be introduced until April 2001. However, some companies have introduced stakeholder compliant plans which meet the criteria for stakeholder. You should seek Independent Financial Advice if you are considering moving from your current pension provider to a new stakeholder compliant plan.