03/05/2014 Your Money


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monkey is still ongoing. Now it's time for this week's Your


Money with Declan Curry. Welcome to your weekly guide to


making the most of your cash here on BBC News. Stocking up on profits,


people who use tax accounts to buy shares are quits in, but is there


anything left for the rest of us? We have an investment expert here.


We look at the cost of repairing kitchen gadgets.


And how to avoid fraudsters who want to take your cash. Tips from


Citizens Advice. Is your money working hard enough


do? People who put their cash into the stock market got far more back


than those who just left it as cash in the bank. The financial


researchers looked at different accounts. Those who put money into


shares got a return of 9.42% in the 2014 tax year. If you put your money


into an ice account which came out as cash, you got a return of less


than 2%. The financial planning guru at SG Hambros is here. You would


expect to get a higher return in the stock market, would you not?


Clearly, over a number of years, the average return should be higher from


stock market investment than from money in cash. We have had


historically low interest rates for years.


Yes. But then we had many years really stock market just did not


perform. Why have things changed? The economy is recovering. That


means that in theory companies are doing better. A have more profits.


Their share price should go up. They can pay dividends to shareholders.


Stock market returns are based on the increase of the price of the


shares within the investments that the ISA manager runs. And also, some


companies pay dividends and share some of their profit with


shareholders each year. Therefore, to get a more balanced return from a


stock market investment, and slightly less risky than the growth


stocks, it is a good idea to go for a portfolio which pays some


dividend. Even if you reinvest that to grow your ISA balance. As well as


the share price growth you're looking for.


So do not just look at the share price.


Absolutely. It is possible with a shares income portfolio that


investment companies that do provide dividends, you can have a yield. And


income element of about three or 4%. That balance is a bit of a bird in


the hand. Anyone looking at a stocks and shares Isa or a stocks and


shares investment should always think they can put that money away


for at least five years. People who have put money into the


stock market and got that 10% per turn, is it now too late for those


who did not invest in it, to joining?


Now, it is not. That is another danger. Overall, timing is not that


relevant in investment. Five years down the line may well look cheap.


We do not know that. The important thing is not to panic if the market


takes a downturn. There will be peaks and troughs. One way to lessen


the risk is to save on a regular basis. Maybe not put all your money


in at one time. Drip it in over 12 months. You're going to buy things


at different rates each month. If it comes down, you will get cheaper


investments. And a quick word on timing, the ISA


allowance, the limit on how much we can put into an Isa is reset in


April every year. So it has just been set for this tax year. We know


it will increase later this year again. Does that mean you should not


invest now, because you will lose the higher amount later? Or is it OK


to invest now and still get the increase later?


It is OK to invest now. From July, ?15,000 is the allowance. It can be


held all in stocks and shares or all in cash.


Thank you. If you have been keeping ?50 notes under the mattress, you


might need to check they are not out of date. This particular one cannot


be used in the shops any more. It was withdrawn from circulation this


week. If you have one, you must swap it for this one. This is the new ?50


note. You can swap them at most banks or post offices until the end


of October. After that, you must go to the Bank of England itself.


We spend over ?100 million using contactless cards. It is the first


time our monthly spending has topped 100 million and that is a lot of


money, especially as you do not always have to type in your security


code before the cash is withdrawn from your account. We asked what the


risk is. There is a ?20 limit on each


purchase. If they get suspicious, the card user will be asked to enter


the security code. If the card is lost stolen, tell your bank


immediately. You are fully protected, they say. You will not


have to pay for somebody else's spending on your card.


How long does a washing machine or vacuum cleaner last? Not as long as


they used to. The grandchildren are coming. Time


to get out the food mixer to make a cake. This British meat machine is


still going strong after 40 years. What around the time of the miners


strike. It would have cost up to one month's wages then. It was this


woman's Best Buy ever. It is noisy, but I can live with that if it works


well. Hopefully it will last quite a while. I did not expect to last


quite this long. People change things nowadays.


For every veteran vacuum cleaner or appliance still in daily use,


countless ones go for recycling. Enough to fill Wembley Stadium six


times over every year. It is the relentless demand from consumers and


retailers which is fitting durability. That is unless you pay


far more than double for a top of the range model. White goods makers


admit the life span of a washing machine has dropped from over ten


years to seven years. It is also partly down to how we buy


electricals. It seems that the move towards buying things online has


introduced a bias against repairers, even when those are cost`effective.


Another reason is that many sellers are not equipped to offer any


repairers outside the guarantee period. This family business from


1925 takes pride in its repairers in an industry which no longer trains


many engineers. Nine out of ten washing machine can be put into


perfect order and three quarters of flatscreen TVs. But whether to go


for that ?100 repair will depend on what you paid initially. It is in


the interest of manufacturers to get three cells every ten years. But


people need to be given the opportunity, the choice, do you want


a repair or do you want a new sale? That choice is seldom offered to


people. Whatever you decide to buy, consumer


law does not require you to get a fixed six years of use as is


commonly believed. If you have a washing machine and


you paid ?199 for it and have used the four times a day, every day of


the week for four or five years, then the law would see you have had


enough use of that product. But if you spent ?1000 and used that a


minimal amount of time, then the law would probably say, yes, you may be


entitled to any refund or a repair. Investing in a premium brand could


give you 20 years service or more, with fewer breakdowns of parts


always available. As long as you use is lighter, then cheaper appliances


that will have to be replaced after a few years will turn out to be a


good buy. Even the server falling victim to this. Scams are becoming


more productive. 16% of scams were by letter or fax. Only 10% were


through e`mails. Here is the head of policy at Citizens Advice. What


should we be looking out for? For a million people per year are affected


by scams and we want people to be able to take action against them by


reporting them when they see them. Sometimes people pose as the police


or the bank and we had a man who gave ?14,000 to who they thought was


the landlord that when he came to move on their web people living


there and you are just as likely to be scammed on the phone or text


messages as on line. We talked a couple of weeks ago around the Green


Deal energy scheme where people think they are paying for the survey


that they are giving money to someone who is running for that. We


have looked at people who think they are handing the bank card over to a


truly are from the bank but are actually giving it to a complete


stranger. The reason I mention these is that people feel that these are


genuine and they do not feel like scams. Tell`tale scams are being


contacted out of the blue being asked to make our financial position


on the spot. Police are the bank will never ask for your PIN number


or ASCII to make a decision on the spot. Before you give details of way


make sure you can be absolutely sure you trust the person. If you pay


online always check that the website is secure and look for the padlock


by the web address. You wonder who is most at risk. People often say


the elderly should watch out but most older people I know I'm not as


gullible as that. It is disgraceful that scammers target older people


and we had a man in his 80s who was so worried he had been scammed after


giving his an actual details away to somebody who had caught offering to


save money on his water bills. People are struggling to save money


and this opens the to people. If you are worried what should you do? Come


and see Citizens Advice and we will be able to help as well as report


this camp. You can also reported to Action Fraud and they will pass it


onto the police Trading Standards. It often feels like you're blaming


the victim for the crime rather than the scammer. Should more not be done


to track down those people and bring justice to them? May is scam


awareness month and we should raise awareness that more people are being


scammed and that scammers are using deceptive and sophisticated methods.


We want people to be able to report scams so that others do not get


caught out. He was how you should report a scammer. When your credit


card company and rigidly and ask if he can get your money back. If you


have used the bank card are debit card at the bank if you can get a


chargeback. You can check out this online advice. That is all for this


week. You can keep up`to`date all week on the BBC website. You can get


updates by following our feed on Twitter. I hope you will join this


next week. A quick look at the headlines this afternoon. In


Ukraine, seven international observers captured by pro`Russian


separatists have been freed but violence has intensified in the east


of the country. Rescuers in north`eastern Afghanistan


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