Over a third of grandparents currently put money to one side for their grandchildren, with over 40 per cent claiming they save on a regular basis, new research has revealed.
According to the study by OnePoll.com commissioned by F&C Investments, a greater proportion of grandparents in London save or invest for their grandchildren compared to the rest of the country.
This could be because of higher private school fees and more expensive property, meaning loved ones may need a helping hand when it comes to putting a deposit down on their first home.
Grandparents who want to financially help out their grandchildren for a number of expenditures, including education, the cost of a new car or a deposit on a first home, may have considered taking out a loan or dipping into their savings in order to be of some assistance.
However, putting their own finances at risk may be a route many grandparents will want to avoid, but at the same time, they could be concerned how loved ones will cover the cost of such ventures.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers with grandchildren had decided to sell their underperforming endowment policies in order to help raise the cash to cover the cost of education for their loved ones, as well as other expensive outgoings.
The study discovered that providing funding for education is the most common reason why grandparents save money for their family. This percentage increased for those living closer to London.
For 30 per cent of grandparents, saving allows their grandchildren to spend the money on whatever they like, which could include a new car for when they pass their driving test.
Commenting on the findings, Jason Hollands, director at F&C Investments, said: "The UK economy differs widely across the country so it is perhaps less surprising to see a greater proportion of grandparents based in and around the capital investing for their grandchildren.
"With London and Edinburgh the UK's biggest financial centres, it is also unsurprising to see grandparents in these locations most willing to use stockmarket-based investments."
Mr Radford, from aap, said some of its customers had decided to sell their unwanted endowment policies in order to raise the cash to help financially support their grandchildren.
He added that should aap make an offer to purchase an unwanted endowment policy, it will always pay more than the surrender value offered by the insurance company.
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
Could selling endowments help business owners stay afloat?
Owners of small businesses in the UK are working longer hours to ensure that their companies do not go under, a new survey has found.
On average, small-business owners work 47-hour weeks, while one in six admit they put in 65 hours a week to stay afloat, the research by Abbey and Alliance & Leicester Business Banking revealed.
More than a third of such professionals are now working longer hours than they were a year ago. In the second quarter of 2009, the number of insolvencies rose by almost 40 per cent when compared to the same period of 2008.
Many business owners of small enterprises could be tempted to dip into their own savings or to take out a personal loan in order to prop up their company.
However, this could store up monetary problems for the future and many business owners may prefer to raise the cash needed to keep their firm afloat without resorting to loans and their own savings.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers who own businesses had decided to sell their underperforming endowment policies in order to raise the cash to clear their company debts, without falling into the red at home.
Under the European Working Time Directive, the maximum number of working hours permitted is 50 hours. Rather than putting in significant hours at work or relying on personal loans and savings to see a company through the economic downturn, Britons may want to find a large sum of cash to place themselves on a more stable footing.
Paula Ickinger, head of business banking marketing at Abbey and Alliance & Leicester, said: "The recession is having a huge impact on small businesses in this country and many owners are sacrificing their work-life balance by working longer hours as they struggle for the survival of their business."
Mr Radford, from aap, said some of its customers who own their own businesses had decided to sell their unwanted endowment policies to help keep their company afloat.
He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.
Source
On average, small-business owners work 47-hour weeks, while one in six admit they put in 65 hours a week to stay afloat, the research by Abbey and Alliance & Leicester Business Banking revealed.
More than a third of such professionals are now working longer hours than they were a year ago. In the second quarter of 2009, the number of insolvencies rose by almost 40 per cent when compared to the same period of 2008.
Many business owners of small enterprises could be tempted to dip into their own savings or to take out a personal loan in order to prop up their company.
However, this could store up monetary problems for the future and many business owners may prefer to raise the cash needed to keep their firm afloat without resorting to loans and their own savings.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers who own businesses had decided to sell their underperforming endowment policies in order to raise the cash to clear their company debts, without falling into the red at home.
Under the European Working Time Directive, the maximum number of working hours permitted is 50 hours. Rather than putting in significant hours at work or relying on personal loans and savings to see a company through the economic downturn, Britons may want to find a large sum of cash to place themselves on a more stable footing.
Paula Ickinger, head of business banking marketing at Abbey and Alliance & Leicester, said: "The recession is having a huge impact on small businesses in this country and many owners are sacrificing their work-life balance by working longer hours as they struggle for the survival of their business."
Mr Radford, from aap, said some of its customers who own their own businesses had decided to sell their unwanted endowment policies to help keep their company afloat.
He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.
Source
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