May 1, 2023

My Investments Update – May 2023

Here is my latest monthly update about my investments. You can read my April 2023 Investments Update here if you like

I’ll start as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £20,740. Last month it stood at £20,632 so that is a modest (but welcome) rise of £108.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,201 (rounded up to the nearest pound) compared with £3,170 a month ago, a small increase of £31. Here is a screen capture showing performance since the start of this year.

As you can see, this has been another up-and-down month for both my Nutmeg pots. Overall, though, the value of my investments rose by £139 or 0.58% month on month.

Of course, all investing is (or should be) a long-term endeavour. Over a period of years stock market investments such as those used by Nutmeg typically produce better returns than cash accounts, often by substantial margins. But there are never any guarantees, and in in the short to medium term at least, losses are always possible.

Also, as you may know, both my Nutmeg pots have quite high risk levels (9/10 main, 5/5 Smart Alpha). If you haven’t yet seen it, you might like to check out my blog post in which I looked at the performance over time of Nutmeg fully managed portfolios at every risk level from 1 to 10 . I was pretty amazed by the difference risk level makes, with higher-risk ports over almost any period of three or more years in the last ten generating significantly better overall returns. If you are investing for the long term (and you almost certainly should be) choosing a hyper-cautious low-risk level might not therefore be the smartest strategy. The one exception is if you plan to withdraw your money soon and don’t want to risk losing too much if there is a sudden downturn.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are looking for a home for your annual ISA allowance, based on my overall experience over the last seven years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs) and Junior ISAs as well.

Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my AE portfolio has generated a respectable £110.99 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 8 of ‘my’ properties are showing gains, 3 are breaking even, and the remaining 15 are showing (small) losses. My portfolio is currently showing a net decrease in value of £23.65, meaning that overall (rental income minus capital value decrease) I am up by £87.34. That’s still a reasonable rate of return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.

Obviously the fall in capital value of my AE investments is a bit disappointing. But it’s important to bear in mind that unless and until I choose to sell the investments in question, it is largely theoretical. The rental income, on the other hand, is real money (which in my case I have chosen to reinvest in other AE projects to further diversify my portfolio).

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching almost every day. I currently have around £2,500 invested with them in 18 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than £200 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now! Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can build your own IFISA, with most loans on the platform being IFISA-eligible.

Until 31 May 2023 Kuflink are offering enhanced promotional rates of up to 9.73% (gross annual interest equivalent rate) for their Auto-Invest products (IFISA-eligible). There is limited availability for this offer and it may be withdrawn any time before 31 May 2023 if the limit is reached. For more information, click here [affiliate link].

Last year I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January 2023 I added to this with another $500 investment in one of their thematic portfolios. I also invested a small amount I had left over in Tesla shares. My original investment of $1,022.26 is today worth $1,121.90, an increase of $99.64 or 9.75%. in these turbulent times I am quite happy with that.

Since last month the price of my Tesla shares has fallen somewhat (though still well in profit). My copy trading portfolio with Aukie2008 continues to perform steadily. And my most recent investment in Oil Worldwide is back into profit again, though – as you can see – not spectacularly so.

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this recent post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment.

eToro also recently introduced the eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself recently and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here.

I had another article published in April on the excellent Mouthy Money website. This was Could You Save Money by Switching to an Electric Vehicle? I found this a very interesting article to research and write, even though there turned out to be no clear answer to the question posed in the title!

As I’ve said before, Mouthy Money is an excellent resource for anyone interested in money-making and money-saving. I always look forward to reading the articles by my fellow contributors. Shoestring Jane is a particular favourite of mine and I enjoyed reading her latest article How to Save Money in the Garden.

I was pleased to be able to publish a couple of interesting guest posts on Pounds and Sense in April. One of these was Investing in Classic Cars from my friends at the popular Car & Classic marketplace.

This is a subject I previously knew very little about and I found it quite an eye-opener. It was interesting (and slightly depressing!) to learn that some of the cars I drove as a young person are now regarded as ‘modern classics’ and fetching premium prices.

There can also be tax advantages to investing in classic cars, as they are generally not liable for capital gains tax (as discussed in this recent blog post).

The other guest post I published in April was Inflation – What Does It Mean for Your Savings or Loans? This one came from my colleagues at Money Marvel. Again it’s thought-provoking stuff, especially the fact that in some cases higher rates of inflation can actually be beneficial for consumers. Have a read and see what you think.

Also in April I published Here’s Why Older Pensioners Especially Should Apply for Pension Credit. I recently helped an elderly friend do this and it has made a big difference to his finances.

Pension credit is a seriously under-claimed benefit. Apart from the (admittedly modest) financial boost, it can act as a passport to a range of other benefits and discounts, including the government’s latest tranche of cost-of-living payments. So if you’re of pensionable age yourself, or have friends/relatives who are, I highly recommend looking into this. You can now apply for it online, which does make the whole process a bit quicker and simpler.

Finally in April I enjoyed a short break in Aberdovey, a charming coastal town in mid-Wales (see photo in cover image). I will be publishing a post on Pounds and Sense about my visit soon. What I will say here is that it’s a great place for a chilled-out seaside break, but you definitely wouldn’t go there for the nightlife 😀

That’s all for today. I hope you enjoy the holiday weekends in May, and in particular the festivities around the coronation. I am by no means an avid royalist, but we all need a bit of fun in these challenging times. So I’m looking forward to watching it on TV and going to a street party with my neighbours afterwards. The bunting will be going up soon!

As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

Coronation Vectors by Vecteezy

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April 26, 2023

Guest Post: Investing in Classic Cars

Nick Investing guest post 0 Comments

Today I am pleased to bring you a guest post on investing in classic cars, a subject which I freely admit I previously knew little about. The article comes from my friends at the popular Car & Classic website.

As they say at Car & Classic, not all collectable metal is gold…

More than ever, nowadays, investors may be on the lookout for sensible use of their cash; there are relatively higher interest rate savings accounts, granted, alongside the usual route to gold and fine art. Even wines appreciate in time, if the right bottles are purchased, and kept untouched.

However, unlike paintings, gold and building society accounts, there is an area of investment which can be actively enjoyed whilst the asset keeps increasing in value: classic cars. The drawback? You need to know which ones!

Table of Contents

Introduction

Car & Classic’s CEO Tom Wood and Head of Editorial Chris Pollitt explain the company’s perspective on the classic car market at the end of another unusual year. Launched in 2005, Car & Classic is Europe’s largest classic cars marketplace and welcomes around four million visitors every month. With over 30,000 cars listed at any one time and a thriving online auction platform, it’s an excellent barometer of classic car trends.

The Drive Behind the Desire

Purchasing a classic car is never a straightforward, totally rational process. Most people have memories connected to specific cars of the past; and in the recollection process, those memories resurface, drenched in emotive, romanticised aspects.

It could be the old ‘Sweeney’ Granada, as seen on TV and driven by your dad on the school run, or your favourite uncle’s shiny red Capri: moments associated with events and fantasies of our earlier years. It is a fact that prices associated with ‘Young Timers’ (i.e. cars of the ‘80s, ‘90s and ‘00s, also known as ‘modern classics’) are increasing fast. This is fuelled by a generation coming into the market with money to invest and looking to buy the cars of their childhood, if not the one in the poster on their bedroom wall.

What Are the ‘Modern Classics’?

“The market, both in the UK and abroad, is moving quickly,” says Wood. “Certain vehicles and periods, such as modern classics, are doing well. Recent sales include a Ford Escort RS1600i achieving over £40,000. “We operate in a non-essential sector driven by passion and heritage. Our business is at the intersection of luxury and hobby sectors. We believe that the higher end of our core customer base, vehicles over £100,000, will be lightly affected, if at all, by the downturn. Just last month, we sold an Aston Martin DB2/4 in The Netherlands for 185,000 Euros. ‘Starter classics’ – cars around £5-£10,000 such as MG Midgets, certain Minis or base cars from the ‘70s and ‘80s – may not fetch ridiculous amounts of money, but the interest in them is no less strong.”

Benefits and Advantages

In the current financial climate, the advantages of owning a pre-1983 vehicle are unquestionable: zero cost road fund licence, MOT exemption (though it is advisable to continue testing your vehicle, to avoid safety concerns). In places like London, where Mayor Khan’s proposal to widen the ULEZ out to the M25 is not the most popular of decisions, pre-82 cars are exempt from the charge. Many large cities have a similar scheme and others are following suit. Over-40-year-old classic cars are indeed popular and their values may be increasing, but are they easy to live with?

Cars approaching the 40-year cut-off point, the ‘modern classics’, are in many ways much easier to live with than their older counterparts and accommodating enough to be used as everyday transport if necessary.

1980s and 1990s

The Eighties gave us some great cars that are now as much fun to drive as they were back then; they have a raw energy and connection to the road that modern cars may lack. Some, like this Peugeot 205 CTI [photo in cover image], can be sporty, even with an open top. The Peugeot 205 GTI, Porsche 924/944, VW Golf GTI and Rover SD1 are a few other examples.

Accordingly, auction prices recently fetched reflect their desirability.  “A 1990 Porsche 944 sold at auction for over £10,000 on Car & Classic is a classic (excuse the pun) example,” says Car & Classic Head of Editorial Chris Pollitt. “Want to try your hand at a light restoration, and don’t need the 3-litre engine? Then £5,000 will buy you a shiny red 2.5 2+2 GT 1988 944 Coupé.

“The 944 was considered by many to be a ‘poor man’s Porsche’; however, with fine handling, galvanised body and a reputation for reliability (chrome cylinder bores apart) it is, justifiably, a great entry model for the prestigious marque and a forgiving way into the world of classic cars.”

Brand names that many would assume to be out of their reach, like Rolls-Royce or Bentley, may often be overlooked, as super luxury models fall into disrepair if not properly maintained, and fuel cost may discourage ownership, but good and useable examples can be found for sale. 

“This 1997 Bentley Turbo R [photo below] let its new owner become part of the rarefied community of powerful saloon fans for less than a 2015 BMW 330d M Sport,” says Pollitt. 

Maintenance may be a greater issue for newer cars, counterbalancing some of the potential advantages: 90s’ electronics helped cars become more fuel-efficient and comfortable but upkeep is more onerous if they start to fail and could present owners with hefty garage repair bills, or the home mechanic with the prospect of long, cold days scouring breakers’ yards and internet sites for replacement electronic modules.

The Advice

For Wood, the nature of the hobby is a factor in how it will evolve during what many still expect to be a recession in 2023.

“The good with clear provenance will always attract the best money, but in the year ahead there could be some great bargains to be had too. 

“The best advice is always to buy the best you can afford, no matter what decade the car belongs to. Originality is highly desirable and sells for the highest price, and the same can be said for rarity and a well-documented sales and dealer service history.”

Where Values May Be Going Down

“When talking to owners of older cars; pre-war and up to the early sixties, we are seeing values soften,” says Wood. “From our data, we predict that this will continue through the year ahead as the cost-of-living increases hit home and the impact of increased fuel prices is felt.”

Going Under the Radar

A few cars flying under the buyer’s radar at present come to mind.

As time marches on, specialist cars are becoming affordable and again offer potential investment opportunities. They include later Reliant Scimitars, Lotus Elans and TVR Tasmins [photo below] going for £4,000-8,000.

Humble ‘first’ cars are becoming sought-after too, from the Ford Fiesta, Renault Clio and smaller Peugeots. All are starting to become Cult Classics.

“If you have a big barn, fill it with today’s cars, because as electric vehicles become the norm and Government legislation ostracises combustion engines, today’s bangers could be tomorrow’s classics,” concludes Pollitt. 

A Final Thought

Not unlike fine wines, classic cars (the right ones at any rate) are appreciating over time. Unlike vintage wines, though, they don’t need to be kept locked up in dark cellars and enjoyed just the once!

Thanks again to my friends at Car & Classic for an eye-opening and informative article. Do check out their site and the links to the cars in the article for further ideas and information.

One thing not mentioned above is that, as well as their potential as money-makers, investing in classic cars can offer tax advantages as well. As discussed in this guest article on PAS a few weeks ago, private cars can be sold for any price without attracting a charge to Capital Gains Tax (CGT) and that includes vintage and classic cars. This is particularly significant with CGT tax-free allowances due to be slashed in the coming years. Obviously tax laws may change in future – but according to the author of the article mentioned (an associate in the private client team at law firm RWK Goodman ) that is how the law stands currently.

As always, if you have any questions or comments about this article, please do post them below.

Disclaimer: I am not a qualified financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and take professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

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April 14, 2023

Guest Post: Inflation – What Does It Mean for Your Savings or Loans?

Nick Saving Money, Investing guest post, borrowing 0 Comments

Today I have a guest post for you from my friends at Money Marvel about the effects of inflation on savings and loans.

With inflation currently over 10 percent and prices seemingly rising by the day, this is clearly a big concern for many people right now. It’s not always such a bad thing if you’re paying off debts, though. And if you’re saving for the longer term, higher rates of inflation can actually provide an extra incentive to invest. Learn more in the article below…

If you’ve been following the news at all in the UK over the past year you’ll have no doubt heard about inflation – it has been almost impossible to avoid it in the press. But what actually is inflation? And, more importantly, what does it mean for your savings and loans? Read on for my thoughts.

Table of Contents

What is Inflation?

Simply put, inflation is the economic force that drives prices to change over time. Everyone has an item from their childhood that always surprises them with how much more it costs now (for me it’s the Freddo! I remember them being 10p each, now they’re almost 40p). That’s a great example of inflation in action: the gradual increase of prices over time.

Month to month the impact of inflation is generally very small – usually only a couple of percent each year. However, that can add up over time. For example, in the UK, £1,000 in the year 1980 would have the same value as over £4,000 today.

Over the last year, the impact has been even more dramatic. Inflation rates in the UK are now at the highest they’ve been for over 40 years, with the CPI measure of inflation now running above 10%.

It has never been more important to consider inflation when planning your savings or loans.

What Impact Does Inflation Have on Savings?

Unfortunately, inflation is not good news for savers. It means that the cash you’ve built up and set aside will be worth less when you eventually spend it than it was when you first saved it.

In part, that’s why you’ll receive interest as a return on your savings. Savings are a mechanism for you to lend your money to banks and financial institutions, and the interest you get is your compensation for doing so.

You can straightforwardly compare the interest rate on your savings and the current UK inflation rate to see if your money is overall worth less or more over time. For example, if the headline inflation rate is 10% and you’re being offered 5% interest then you know you’re effectively losing 5% in value each year.

Sadly in the current economic reality, it’s almost impossible to find a savings interest rate higher than inflation, so most savers will have to accept the reality that they’ll be losing value year-on-year.

What Can Savers Do About It?

For those that need the security or guaranteed access that comes with a savings account, the unfortunate answer is that there isn’t much you can do about inflation. It’s important to be aware of it so that you can plan your future considering its impact, but sadly there’s nothing you can do to avoid it.

If your time horizons are a bit longer and you’re comfortable with a level of risk, then there are a variety of other investments that promise returns higher than the rate of inflation (for example, by investing in stocks and shares, or physical assets like gold). By their nature, they do come with a significantly higher level of risk and volatility than a savings account does. They may be suitable if you’re planning to save for a long time period (5 years+) and are willing to ride some ups and downs in the meantime.

Inflation alone shouldn’t lead you to take on risks with your savings that you otherwise wouldn’t, but it should help you understand the real returns that different savings products might offer. And if you’re determined to outpace inflation in the long run then savings accounts are likely not to be the best place for your money.

What About Debt?

High levels of inflation are much better news if you’re already holding significant debt. The force of inflation will gradually erode the value of the debt you have outstanding so that you end up effectively owing less money to the bank (or other lending institution). The £ value amount will stay the same, but the value of the money you use to pay off the debt will decline.

You’ll be paying interest to the bank to compensate them for their loss of value, but if you manage to get an interest rate lower than the inflation rate then you’ll be doing well overall. This is the case for many UK residents who took out long-term loans before the recent surge of inflation.

Inflation alone is not a reason to get yourself in debt (the banks will almost certainly have a better projection of future inflation rates than you do!), but it’s one to keep an eye on when thinking about the debt you already have.

Planning for the Future

Inflation is critically important when you’re planning for your financial future. This is most obviously the case when thinking about retirement. If you have more than a few years of working life remaining then money will almost certainly be worth less when you do come to retire.

When looking at retirement planners or pension benefits make sure you keep track of whether the numbers have been adjusted for inflation or not. If they haven’t, then keep that in mind and adjust your plans accordingly.

Many thanks to my friends at Money Marvel for an interesting and eye-opening article. Do check out the Money Marvel website for a wide range of personal finance information, advice and resources.

As always, if you have any comments or questions about this article, or the effects of inflation more generally, please leave them below.

This is a sponsored guest post.

Disclaimer: I am not a qualified financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and seek advice from a qualified professional if in any doubt how best to proceed. All investing carries a risk of loss.

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April 8, 2023

Here’s Why Older Pensioners Especially Should Apply for Pension Credit

Nick Pensions & Benefits events, pensions, benefits 0 Comments

Updated 30 July 2024

Today I’m focusing on pension credit.

According to the government’s own figures, around a third of retirees who would be entitled to this state benefit aren’t currently claiming it. That means they are potentially missing out on an important boost to their pension.

Even more significantly, it means they may be missing out on a raft of other benefits and discounts too, for which pension credit acts as a gateway. More about this shortly.

Applying for pension credit is especially crucial for people who reached retirement age before April 2016 and therefore receive the old basic state pension rather than the new (higher) one. While it may seem (and indeed be) unfair that older pensioners receive a lower rate, they do have the opportunity to claim the savings credit element of pension credit, which newer retirees don’t.

Savings credit payments can provide an extra boost to your income and entitle you to other payments and benefits as well. And, very importantly, the eligibility rules are different from guarantee credit and (in my view anyway) a bit less stringent. But if you don’t apply for pension credit, you won’t get either.

But before we get into that, let’s recap on what pension credit is.

What is Pension Credit?

Pension credit is a state benefit that comes in two parts: guarantee credit and savings credit.

Guarantee credit boosts your weekly income to £182.60 if you’re single or £278.70 if you’re a couple (figures correct from 6 April 2023). You should be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home).

If you have under £10,000 in savings and investments this will not be taken into consideration. If you have over £10,000, it will be assumed that you earn £1 a week per £500 of savings and investments. This will be added to your total income when working out your eligibility for guarantee credit.

Savings credit is only available to people who reached the state pension age before 6 April 2016. It is meant as a reward for those who have made some additional provision for their retirement. It’s worth up to £15.94 a week for a single person or £17.84 for couples (2023/24 figures). Somewhat counter-intuitively, to qualify you must have a minimum income of £174.49 a week if you’re single and £277.12 a week for a couple (again 2023/24 figures). You must also have some savings or other extra income provision (e.g. a private pension).

It’s worth adding that if you pay mortgage interest or have other housing costs, have caring responsibilities, are responsible for a child, or are severely disabled, you may be entitled to more pension credit. If you receive attendance allowance or carers credit, for example, this may boost the amount that you’re entitled to.

The rules surrounding all this are complicated, but the government has provided a free online calculator you can use to work out whether you qualify and how much you might get. This is for guidance only, however. You can’t apply via the calculator and there is no guarantee you will receive the amount it shows you.

Until recently to actually apply for pension credit you had to phone the DWP’s pension credit helpline on 0800 991234 with your Nl number, details of your income, savings and investments, and your bank account details. The person you spoke to would then then take you through the application process. This option is still available, but recently an option to apply online has been added. This is quite separate from the free online calculator mentioned above.

As I recently helped an elderly friend do this, I can confirm that the online method works well, though the questions asked don’t entirely correspond with the questions on the free online calculator. But using the latter first should give you an idea whether you are likely to qualify for pension credit and how much you might get. You can also try the effect of changing the amount of capital/income in the calculator to see if you might qualify in future even if you don’t at present (perhaps due to having too much in savings).

Additional Benefits

As well as the money – which can amount to thousands of pounds a year – if you receive pension credit you will be entitled to a range of additional discounts and benefits. These may include:

reduced (or free) council tax
housing benefit
free TV licence if you are over 75
free NHS dental treatment
help towards the cost of glasses
help with the cost of travel to hospital
cold weather payments
automatic entitlement to the Warm Home Discount
free home insulation and boiler grants
extra money if you’re a carer
government cost of living payments
Winter Fuel Payments (as from winter 2024)

Even if you only receive a small amount of pension credit, you may be eligible for any of the above. So it really is important to apply if there is any chance you may qualify.

More About Savings Credit

As I said above, only older pensioners who retired before April 2016 can get savings credit. But potentially a lot more people in this category may be eligible for it than is the case with guarantee credit.

Whereas guarantee credit is only paid to pensioners on a low income and with limited savings, that isn’t necessarily the case with savings credit. As I noted above, to qualify for savings credit there is actually a minimum earnings limit. And you do actually need to have some savings (or other income source/s apart from the state pension) to be eligible.

The rules are complicated, so – as I said above – the best thing is to use the free online calculator. If it appears you are eligible for savings credit (or guarantee credit) it will tell you, and how much.

It should be said that if you are only awarded savings credit and not guarantee credit, you may not qualify for all of the extra benefits mentioned above (free NHS dental treatment, for example). But even if, with savings credit only, you don’t qualify for the whole of the discounts mentioned, you may at least be eligible for a partial reduction.

For the latest news and information about pension credit, please click here.

Closing Thoughts

To sum up, if you’re of state pension age and have a limited income or savings, you should certainly look into pension credit. Similarly, if you have elderly friends or relatives, you should check eligibility on their behalf (with their permission, of course).

As I’ve said above, this applies especially to anyone who started receiving the state pension before April 2016 and is therefore getting the old basic state pension. This is lower than the new state pension, but you may potentially be eligible for the savings credit element of pension credit (as well as guarantee credit, which anyone of state pension age can qualify for).

While savings credit is generally only a small amount, receiving it will make you eligible for a range of other discounts and benefits, including (as from winter 2024) Winter Fuel Payments. So it really is well worth checking on the free online calculator and then applying (by phone or online) if it appears you might be eligible.

Finally, you might like to know that (thankfully) my friend’s online application was successful. He got a letter a week later saying that he would be receiving pension credit (savings credit only) at a rate of about £5 a week, rising to just over £6 a week the following April. Naturally he was pleased to hear this. And he was even more pleased when he realised he would be getting the other benefits and discounts mentioned earlier as well. As an 84-year-old man who has recently lost his wife, this will certainly help make life a little more bearable for him.

As always, if you have any comments or questions about this article, please do post them below. Just bear in mind that I am not a qualified financial adviser or benefits adviser and cannot provide personal financial advice. If you require specific advice or assistance, your local Citizens Advice office would be one good place to start.

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April 3, 2023

My Investments Update – April 2023

Nick Making Money, Investing events, reviews, crowdfunding 1 Comment

Here is my latest monthly update about my investments. You can read my March 2023 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension), from which I recently started withdrawing again.

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £20,632. Last month it stood at £20,680 so that is a modest fall of £48.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,170 compared with £3,162 a month ago, a (very) small increase of £8. Here is a screen capture showing performance since the start of this year.

As you can see, this has been a roller-coaster month for both my Nutmeg pots, though overall the dial hasn’t moved very much. My Smart Alpha portfolio has done a bit better than my main portfolio and I might be tempted to switch more of my money into it, though there clearly isn’t a massive difference in performance between them.

The net value of all my Nutmeg investments has fallen this month by £40 or 0.17% month on month. That is obviously a little disappointing, but both pots are still comfortably up on where they were at the start of the year. And their total value has risen by £1,890 (7.77%) since mid-October last year.

Of course, all investing is (or should be) a long-term endeavour. Over a period of years stock market investments such as those used by Nutmeg typically produce better returns than cash accounts, often by substantial margins. But there are never any guarantees, and in in the short to medium term at least, losses are always possible.

Also, as you may know, both my Nutmeg pots have quite high risk levels (9/10 main, 5/5 Smart Alpha). If you haven’t yet seen it, you might like to check out my blog post in which I looked at the performance over time of Nutmeg fully managed portfolios at every risk level from 1 to 10 . I was pretty amazed by the difference risk level makes, with higher-risk ports over almost any period of three or more years in the last ten generating significantly better overall returns. If you are investing for the long term (and you almost certainly should be) choosing a hyper-cautious low-risk level might not be the smartest strategy. The one exception is if you plan to withdraw your money shortly and don’t want to risk losing too much if there is a sudden downturn.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are looking for a home for your annual ISA allowance, based on my overall experience over the last seven years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs) and Junior ISAs as well.

Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my AE portfolio has generated a respectable £108.37 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 6 of ‘my’ properties are showing gains, 4 are breaking even, and the remaining 16 are showing (small) losses. My portfolio is currently showing a net decrease in value of £26.97, meaning that overall (rental income minus capital value decrease) I am up by £81.40. That’s still a reasonable rate of return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.

Obviously the fall in capital value of my AE investments is a little disappointing. But it’s important to bear in mind that unless and until I choose to sell the investments in question, it is largely theoretical. The rental income, on the other hand, is real money (which in my case I have chosen to reinvest in other AE projects to further diversify my portfolio).

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching almost every day. I currently have around £2,500 invested with them in 18 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than £200 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now! Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can build your own IFISA, with most loans on the platform being IFISA-eligible.

Until 31 May 2023 Kuflink are offering enhanced promotional rates of up to 9.73% (gross annual interest equivalent rate) for their Auto-Invest products (IFISA-eligible). There is limited availability for this offer and it may be withdrawn any time before 31 May 2023 if the limit is reached. For more information, click here [affiliate link].

Last year I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January 2023 I added to this with another $500 investment in one of their thematic portfolios. I also invested a small amount I had left over in Tesla shares. My original investment of $1,022.26 is today worth $1,113.72, an increase of $91.46 or 8.95%. in these turbulent times I am very happy with that.

As I said last time, my big success was investing in Tesla at the right time, as their share price has risen by over 86%. If only I had put more than $19 into this!

My copy trading portfolio with Aukie2008 is well in profit. My most recent investment in Oil Worldwide, having started well, is still down fractionally (some might say this serves me right for investing in fossil fuels!). But I am certainly not going to worry about that at the moment.

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this recent post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment.

eToro also recently introduced the eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself recently and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here.

I had two more articles published in March on the always-excellent Mouthy Money website. One is Some Ways to Save Money on Council Tax. Along with fuel bills and mortgages, council tax is many families’ single largest item of expenditure. There are various ways you may be able to reduce this bill (or even avoid it altogether), though. In this article I go through a range of methods, including household-based, income-based and property-based.

My other piece was Always Wanted to be in the Movies? Let TV Studios Use Your Home for Money. Clearly this opportunity won’t work for everyone. But if you live in a place with features that might be in demand by a TV or film production company, you can potentially make hundreds or even thousands of pounds. And as I say in the article, you definitely don’t need to live in a stately home. Studios need all types of properties – from two-bed terraces to penthouse flats, country cottages to 1970s-style bachelor pads!

Speaking of Mouthy Money, you might also like to read my in-depth blog post about this personal finance website which I wrote in March. It’s called (without any great originality, I know) Have You Seen Mouthy Money?

As you may know, I am nowadays contributing two articles a month to Mouthy Money, so you’ll understand that I have good reason for wanting to promote it 🙂 But that aside, it is an excellent resource for anyone interested in money-making and money-saving. I always look forward to reading the articles by my fellow contributors. Shoestring Jane is a particular favourite of mine. With Easter on the horizon, I highly recommend her latest article, How to Have a Frugal Family Easter.

Several of my other Pounds and Sense blog posts from March are no longer relevant due to deadlines passing so I won’t bother listing them here. You might perhaps like to read Two Places You Really Shouldn’t Turn for Tax Advice (and One You Definitely Should), though. This is an update of an article I wrote a while back, but it’s on a subject I feel quite strongly about and is still 100 percent relevant.

Finally, as I write this update there are just two days left to the end of the financial year on 5 April 2023. That means you have just two days remaining to make use of your 2022/23 tax-free ISA allowance before it is gone forever. With other tax-free allowances already set to be slashed in the years ahead, it’s more important than ever to make the most of this one while you can. Here’s a link to my recent blog post on this subject.

That’s all for today. I hope you and your family are coping in these challenging times. Don’t forget to check out the government’s Help for Households website, which sets out various types of financial assistance you may be entitled to and is regularly updated.

As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

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March 30, 2023

Two Places You Really Shouldn’t Turn for Tax Advice (and One You Definitely Should)

Nick Saving Money, Everything Else Tax 0 Comments

Today I thought I’d set out my views on where best to seek advice on tax-related matters. From feedback received I know that this is a topic that concerns a lot of people, especially the growing number who are turning to ‘side hustles’ to help make ends meet.

I’ve been self-employed for around 30 years now and have quite strong opinions on this subject, especially as I see a lot of dodgy advice about tax being bandied about. So let me start by setting out the two places that in my view you shouldn’t generally turn for tax advice (and you definitely shouldn’t rely on).

1. Social Media

I am thinking especially here about Facebook groups and online forums (or messageboards). These are popular places for people with a shared interest to ask (and answer) questions about subjects that concern them.

I belong to various groups and forums aimed at UK writers and bloggers, and get a lot of useful information and support from them. However, I regularly see people asking questions on them about tax matters, and I’m not at all convinced that this is useful or sensible.

What typically happens in these cases is that other members weigh in with their advice and opinions. Although these are offered with the best of intentions, they are often contradictory and sometimes downright wrong. I imagine that in many cases the original questioner ends up more confused than when they started. Or – perhaps worse – they proceed on the basis of dubious advice which could result in them facing fines and penalties or, conversely, paying more tax than they need to.

Most people in these groups are not trained accountants, but that doesn’t stop some of them airily dishing out tax advice anyway. Replies beginning with phrases such as ‘I’ve always understood’ or ‘I’m pretty sure that’ or ‘As far as I know’ or ‘I could be wrong, but’ should always be regarded with considerable scepticism.

Groups also often have ‘gurus’ who claim (and may or may not have) a deeper knowledge of these matters. Their pronouncements may be treated as akin to holy writ by other members. Again, be cautious about blindly following advice from these individuals, even if they apparently have qualifications and/or professional experience. I have seen advice from such people that is definitely wrong or at least highly questionable, but nobody in the group dares challenge them about it. This happens in other fields as well as tax, incidentally.

I would also extend my caution about getting advice from social media to blogs (yes, including mine). I have seen some good advice on blogs, but also plenty I would regard as debatable to say the least. Definitely don’t take anything you read about tax on a blog as gospel, even if the person in question does have thousands of followers!

2. HMRC

Yes, you read that correctly. In my view, HMRC should seldom be your first port of call for tax advice.

There are various reasons for this. One is that, when you phone HMRC, the person you will generally speak to is a call handler. They will (or should) obviously have a reasonable working knowledge of how the tax system works, but they are definitely not expert in every aspect. If you ask them complex questions about (say) what expenses you can and can’t claim against income or what counts as a capital gain as opposed to taxable income, you are likely to get different and contradictory advice according to whom you speak to. Or they may simply tell you that advising you about this is outside their remit.

In addition, it’s important to bear in mind that HMRC are not in business for your benefit. Their job is to maximize tax revenues for the government. They can’t and won’t advise you on how to legally organise your affairs in such a way as to minimize your tax liabilities (which every taxpayer is perfectly entitled to do).

That being said, there are certain occasions when you can and should contact HMRC. This is when you have specific questions about your taxes, e.g. whether a certain tax payment has been received, what is your tax code, when is your next tax payment due, and so on. The call handlers should have this information easily accessible on their computers and will be happy to pass it on to you.

So Where Should You Turn for Tax Advice?

You may have guessed already, but if not I won’t keep you in suspense. The answer is a professional accountant.

Accountants are trained and experienced in all aspects of the tax system. They have both theoretical and practical knowledge of how the system works and how the (complex) rules are typically interpreted by HMRC. And they have to keep themselves up to date with the endless legal and procedural changes.

Also, unlike HMRC, an accountant is four-square on your side. They will advise you on the best way to organize your affairs to minimize your tax liability. They will answer any questions you may have, e.g. what records you need to keep. When the time comes, they will (if you want them to) compile your accounts and submit the relevant figures to HMRC in your tax return. And if any queries or problems arise, they will act on your behalf to try to resolve them.

A further benefit of having your accounts prepared by an accountant is that HMRC will know that a finance professional – someone who speaks their language – has compiled them. Other things being equal, this is likely to mean they will be more inclined to accept the figures and not dispute them.

Even if you prefer to prepare your own accounts (perhaps using accounting software online), having an accountant check your work (and maybe submit it on your behalf) can be a shrewd policy and reduce the risk of HMRC querying your tax return.

Even if you aren’t running any sort of business, there may still be a case for getting an accountant to help with your taxes. Many older people, for example, have multiple streams of income, from stocks and shares to ISA accounts, property rentals to pensions. Some of this income may be taxable and some not, and varying tax rates and tax-free allowances may apply. Most accountants are more than happy to provide a service to people in this situation as well.

There is, of course, one drawback to engaging an accountant, and that is the cost. This will probably amount to a few hundred pounds a year (maybe more in some cases). Not to pay this, however, is in my view a false economy. A good accountant is likely to save you at least as much in unnecessary tax as they cost you. And the reassurance (and relief) of having a finance professional available at the end of a phone when any queries with taxation arise is impossible to put a price on (but extremely valuable).

After thirty years of self-employment (and being semi-retired now), I still wouldn’t dream of not having an accountant. And since I’m mentioning this, a shout-out here for my own accountant, Rob Ollerenshaw, who has looked after my tax affairs for over twenty years. I recommend him without reservation to anyone in the North Birmingham/South Staffordshire area, or indeed further afield (he tells me he has clients as far away as Cornwall!).

So those are my thoughts about where best to get tax advice, but what do YOU think? Please post any comments or questions below as usual.

This is a revised and updated version of my original post.

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March 28, 2023

Have You Seen Mouthy Money?

Nick Making Money, Saving Money reviews 0 Comments

I have mentioned Mouthy Money a few times on Pounds and Sense. Some of you will be aware I’m a regular contributor to this UK personal finance website.

But while I’ve talked about it in passing a few times, I have never really discussed Mouthy Money properly on PAS. So I thought I should rectify that today!

What Is Mouthy Money?

Mouthy Money is a website dedicated to helping people understand financial matters and make the most of their money. It is run by a small, dedicated team from an office in London. Their efforts are supplemented by a team of freelance writers, researchers and bloggers, including myself.

Every week new articles are added to the website. They are in four main categories, as follows:

Earning covers boosting your income, e.g. by starting a side hustle. Saving is all about reducing your outgoings, while Spending is about getting the best value for your money, e.g. on your weekly groceries shop. Your Questions answers specific questions sent in by readers, e.g. What happens if I can’t pay my tax bill?

The main menu runs across the top of the page. You can scroll down to see the latest articles in the order in which they were added. Alternatively, you can click on any of the four category titles to see the latest articles in the category concerned.

If you scroll further down the Mouthy Money homepage, you will see brief biographies of all the regular contributors, including myself. They include my fellow bloggers and writers Shoestring Jane, Finance Dee, Tolu Frimpong, Jordon Cox, Dana Raer, and so on. There are also bios of the site’s co-editors Paul Thomas and Edmund Greaves. Clicking on any of these will take you to a page listing all articles on Mouthy Money by the person in question.

Example Articles

Here are just a few of my favourite articles from Mouthy Money. I hope this will give you a flavour of the breadth and quality of the content:

12 Tips for How to Go Green While Saving Money – Shoestring Jane

The Pros and Cons of Debt Consolidation – A Guide – Tolu Frimpong

Four Simple Ways to Earn Extra Cash During the Cost of Living Crisis – Finance Dee

Save Energy and Money While You Cook – Shoestring Jane

How to Bag Five Odeon Cinema Tickets for £4 Each – Jordon Cox

Six Money Lessons We Learned by Planning Our Own Wedding – Edmund Greaves

Mortgage Rates Are Falling but is Now the Right Time to Fix Your Home Loan? – Paul Thomas

Switch to Profit – How to Make Money Moving Your Bank Account – by yours truly!

I hope you enjoy reading these and many other articles on Mouthy Money and will add the site to your list of finance websites to visit regularly (along with Pounds and Sense, of course!). You can also follow Mouthy Money on Facebook and on Twitter.

As with Pounds and Sense, you can also subscribe to receive emails from Mouthy Money notifying you about the latest posts. The blue sign-up box can be found near the top of most articles on the site (not in the sidebar as on PAS).

One final thing is that if you run a personal finance blog yourself, Mouthy Money are always on the lookout for additional (paid) contributors. You can find out more and apply via this page of the MM website.

As always, if you have any comments or questions about this post, please do leave them below.

If you enjoyed this post, please link to it on your own blog or social media:

Win £250 when you open a Plum Stocks & Shares ISA

March 17, 2023

Win £250 When You Open a Plum Stocks and Shares ISA!

Nick Investing events, reviews, competitions 0 Comments

Updated 19 April 2023

If you’re looking for a home for your 2023/24 Stocks and Shares ISA allowance, this special promotion from money-management app Plum could provide a solution, with a chance of winning a £250 prize as well!

Plum is designed to help you set money aside painlessly for any purpose – from holidays to major purchases or simply for a ‘rainy day’ fund. It is one of a range of apps that make use of so-called Open Banking. This allows third-party apps to access your financial information (read only) – so long as you provide the necessary authorization, of course – and perform certain transactions on your behalf, if you choose to set up a direct debit.

Plum offers four levels of account. These are the free Plum Basic and the paid-for Pro, Ultra and Premium. The Basic account is (as stated) free of charges. Plum Pro costs £2.99 a month, Ultra costs £4.99 a month, and Premium costs £9.99 a month. The Pro, Ultra and Premium accounts offer a wider range of features and higher interest rates in interest-bearing ‘Pockets’. This is further discussed on the main Plum website.

The current promotion is specifically for people who open a Stocks and Shares ISA with Plum, so in this post I will be focusing on that. But first I should answer the most basic question…

Capital at risk if you invest

Table of Contents

What is a Stocks and Shares ISA?

The term ISA is short for Individual Savings Account. ISAs are savings and investment products where you aren’t taxed on the interest you earn or any dividends you receive or capital gains you make, in accordance with ISA rules. An ISA is basically a tax-free ‘wrapper’ that can be applied to a huge range of financial products.

With ISAs you don’t get any extra contribution from the government in the form of tax relief as you do with pensions. But – except in the case of the Lifetime ISA – you can withdraw your money at any time (subject to any provider rules about the term and notice period required) and you won’t be taxed on any earnings.

All adults aged +18 who are registered for tax in the UK have an annual ISA allowance, which is the maximum amount you can invest in ISAs in the year concerned. In the current financial year (2023/24) this is a generous £20,000. But you cannot carry over this allowance into a new tax year, so it really is a case of use it or lose it!

There are four main ISA categories: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA (IFISA) and Lifetime ISA (LISA). You can divide your £20,000 ISA allowance among these in any way you choose, though the most you can invest in a Lifetime ISA in a year is £4,000. Note also that you are only allowed to invest in one ISA in each category per year.

The Plum Stocks and Shares ISA

Investing in a single company can be risky, so if you have a Plum Pro account (or higher), the app enables you to invest your money across a range of well-diversified funds. These contain a mixture of shares from thousands of different companies, plus other assets like bonds. So if one investment doesn’t perform well, it should only affect a small portion of your overall portfolio.

Some examples of the themed funds on offer to Plum investors include:

Tech Giants – Allows you to invest in technology shares like Facebook and Apple.

Balanced Bundle – With 60% shares and 40% bonds, this fund offers a balanced combination of shares and bonds.

Future Planet – Invests in shares of companies within an index which is weighted towards companies that meet positive carbon and environmental levels.

Retirement 2050 – Investments that will pay out money for investors planning to retire in or within approximately five years after 2050.

The Medic – Shares of healthcare, pharmaceutical and biotechnology companies.

Once you have deposited your money with Plum, you can choose which funds to invest in from the range available. There are up to 21 funds on offer, though some are only available to customers with a Plum Premium account.

You can start investing with as little as £1, up to the annual ISA maximum of £20,000 (in the current tax year). Subject to these limits, you can deposit or withdraw as often as you like, with no hidden fees or charges. If you have already invested your £20,000 maximum ISA allowance, or have invested in another S&S ISA in the current tax year, you can still invest with Plum in a GIA (general investment account) but obviously this will be liable for tax charges.

Plum also offer personal pensions. A Plum Self Invested Personal Pension (SIPP) lets you consolidate existing pension policies and invest in risk managed or other well diversified global funds. Capital at risk. Pension and tax rules apply.

£250 Prize Promotion

As an additional incentive to start investing with Plum, anyone opening a Plum Stocks & Shares ISA before 12 noon on 30th April 2023 will be entered into a prize draw to win £250.

Any existing customers who already have an active Stocks & Shares ISA with Plum will also be automatically entered into the draw. An active Plum Stocks & Shares ISA is defined as a customer account with a current subscription to Plum Pro (or above) at the time of competition close, and where no fees or ID verification remain outstanding at that time. Note also that to open a Plum Stocks and Shares ISA you must be over 18 years old and tax-registered in the UK.

No purchase is necessary to enter this prize draw, but to finish opening your Plum Stocks & Shares ISA, the company may need to perform a KYC (Know Your Customer) check. Note that all outstanding checks must be completed before the competition’s end date (see above) for your entry to be included. So if you are going to do this, it is probably best to apply sooner rather than later.

One lucky winner will be selected at random and notified within five working days of the competition close date (see above). The prize of £250 will be paid into the winner’s Primary Plum Pocket within 10 working days of the competition close.

Closing Thoughts

If you are looking for a home for your 2023/24 Stocks and Shares ISA allowance, a Plum S&S ISA is certainly worth considering. It offers a simple, straightforward method for investing in a range of themed and well-diversified funds. As such, it may be particularly suited to people who are new to investing and/or those who don’t want to spend many hours researching specific investments themselves.

Furthermore, as stated above, you can start with as little as a pound and withdraw your money at any time without giving notice or paying extra fees (as with all stock market investments, some fees and charges are payable).

In addition, as a Plum account holder you will enjoy all the other features and benefits of the app too, including interest-paying ‘pockets’ you can use to set money aside for specific purposes such as holidays. See the main Plum website for full details.

And, of course, there is that potential £250 prize to be won as well!

Capital at risk. The value of your investments can go down as well as up.

As always, if you have any comments or questions about this post, please do leave them below.

Important note: I am not a qualified financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and seek advice from a qualified professional if in any doubt how best to proceed. All investing carries a risk of loss.

Disclosure: This post and others on Pounds and Sense includes affiliate links. If you click through and make a purchase or perform some other qualifying transaction, I may receive a commission for introducing you. This will not affect in any way any fees you are charged or the product or service you receive.

If you enjoyed this post, please link to it on your own blog or social media:

March 7, 2023

Mother’s Day 2023 Gift Guide and Giveaway!

Nick Everything Else families, events, reviews, competitions 0 Comments

Spring is in the air, so it’s time for another great giveaway on Pounds and Sense! This one is themed around Mother’s Day, which this year is on Sunday March 19th.

I have clubbed together with some of my fellow UK bloggers to provide a bumper bundle of prizes that will amaze and delight any mum! As you will see, they range from an adult micro scooter and helmet to a bamboo underwear set, a luxury silk pillowcase and eye-mask to a ‘home spa’ face-and-body gift set.

The total value of all the prizes is over £550. And the best news is, it’s entirely free to enter!

This giveaway has (again) been organized by Rowena Becker, who blogs at My Balancing Act. No small amount of effort has been involved in arranging and co-ordinating this event, so many thanks again to Rowena for her hard work and dedication.

Without further ado, then, I’ll hand you over to Rowena to introduce the giveaway…

And we’re back! This time to spoil your mum. Or perhaps you can win yourself some treats! We have over £550 worth of incredible prizes! This is not only a giveaway but also a great Mother’s Gift Guide to help you get ideas and inspiration for your mum or the special lady in your life this Mother’s Day.

KEEP SCROLLING DOWN TO ENTER AND FOR THE FULL LIST OF AMAZING PRIZES!

Table of Contents

The Prizes

Adult Micro Scooter and Safety Helmet

Micro Scooters are renowned for producing the most robust scooters for all the family. From toddler ride-ons, three-wheeled wonders, 2 wheel scooters for older kids plus their multi award winning adult range, there is something for every member of the family.

Founded and run by two mums, Micro are B Corp certified. Their range of eco-scooters and accessories made from recycled bottles means more families can tread lightly on the planet.

Hopping on a two-wheeled adult scooter – whether it’s to do the school run, journey to work or for weekend family time – makes it easy and fun to get from A to B. Exploring the world on two wheels is a greener, cleaner and cheaper way to get around.

THE PRIZE

- Any adult Micro scooter

- Any adult Micro scooter helmet

- Total prize value of £215

Cocoonzzz Silk Pillowcase and Eye Mask

At Belledorm, they understand the importance of a good night’s sleep. For over 45 years, this family-owned company has been dedicated to providing UK customers with exceptional bedlinen that helps them rest easy.

They don’t just sell bedding – they offer a solution. Sleep is the foundation of our daily lives, and the right bedding can make all the difference. That’s why they are passionate about providing soft, cozy, and luxurious sheets, pillowcases, and duvets that make you feel like you’re sleeping in a dream. From the moment you slip into bed, you’ll experience a sense of comfort and calm that carries you through the night and prepares you for the day ahead.

Here we are offering the chance to win a Cocoonzzz Silk Pillowcase and Eye Mask Bundle made from 100% pure mulberry grade A silk. Unlike cotton or linen, silk glides over your face and reduces the stretching and pulling that causes lines on the skin. Sleeping on silk has proven beauty benefits: it reduces lines and wrinkles, helps you wake with a hydrated glowing skin, and is hypo-allergenic and temperature regulating.

Treat yourself or your mum to the best!

Buyagift: Treat Her Gift Voucher

Not sure what to get your mum? Look no further than Buyagift! The Treat Her Gift Voucher or Experience Box is the ideal gift, with a selection of over 2,955 afternoon teas, relaxing spa days and adrenaline adventures for her to choose from. We have one Treat Her Gift Voucher for our lucky winner.

For more gift ideas for your mum, check out Buyagift’s gift guide here: Mother’s Day Gift Guide 2023

Framed Best Selling Print of your choice from ink & drop

Win a framed Best Selling Print from Ink & Drop! Our lucky winner can choose a bestselling print of their choice in 50 x 70cm size.

There’s an incredible selection of unique prints to choose from in a range of different styles, from vintage antique prints, cheeky altered art paintings, pop art, dark decor, and street art graffiti prints.

Ink & Drop’s incredible posters will look amazing on any wall and best of all, the prize will arrive already framed, ready to hang straight on the wall!

Home Spa Face & Body Set With Cosmetic Bag – Mimosa & Petitgrain

Treat your mum with this gorgeous home spa face and body gift set which comes with a beautiful cosmetic bag. This gift set includes a luxurious combination of Pure Lakes Facial and Body Skincare products for an indulgent home spa experience. It includes a Face Mask, Salt Scrub and Body Butter. The Mimosa & Petitgrain blend has both a sweetness and woodiness that balance beautifully to really infuse the senses. The set includes:

- Bentonite Clay x 25g

- Rosehip Seed Soap Free Facial Cleanser x 30ml

- Neroli & Geranium Flower Water Toner x 30ml

- Mimosa & Petitgrain Salt Scrub x 80g

- Mimosa & Petitgrain Shea Body Butter x 80m

Collagen Shots from Rejuvenated

Indulge mum this Mother’s Day with Rejuvenated’s multi-award-winning Collagen Shots. The brand’s multi-award-winning collagen drink contains the perfect blend of hydrolysed marine collagen (10,000 mg,) antioxidants, vitamins and hyaluronic acid to plump, smooth and hydrates the skin. The amazing formula also helps to promote healthy blood sugar levels, strengthen connective tissue, alleviate menopausal symptoms and support joint health. We have 30 servings of collagen shots for our lucky winner.

Bamboo Underwear Set from Positive Outlook

Help all mums feel extra special this Mother’s Day with Positive Outlook. We have a gorgeous bamboo underwear set for our lucky winner. Our winner can mix and match bamboo briefs and bralettes in their desired size and colour for the perfect fit and style of their choice.

Positive Outlook’s underwear is not only extra comfortable and super stylish but also kind to the planet, making it the perfect gift for any mum who wants to secure a bright future for the planet and their children.

Crystal Candle from Wakuda

This crystal candle was lovingly made to awaken your feminine energy and celebrate all that is beautiful within us. With the beautiful home scent of aqua blossom and coral this inner goddess crystal candle smells divine and instantly teases your senses, lifts and makes you smile.

~Snow Quartz~ This stone is known for its soft feminine energy that will align your chakras and balance your yin and yang. It is a stone that represents purity and will help you connect with and appreciate your inner goddess.

~Rose Quartz~ This is the stone of universal love and self-love. Connecting to the heart chakra, the rose quartz will promote inner healing and feelings of peace while dispelling negative energy and replacing it with loving vybz.

Signed Copy of Coming Home

One lucky mum can win a signed copy of Coming Home: A Guide to Being Your True Self. This gorgeous book aims to help readers break free of self-limiting beliefs and the expectations of others. It will help you rediscover your passions and become the person you really want to be. Along with Gillian’s own story, she sets out practical exercises for readers to try, Coming Home reveals how one ordinary woman turned her life around and how others can do the same.

* As an Amazon Associate I earn from any qualifying purchases

The Bloggers

This Gift Guide and Giveaway have been organised by My Balancing Act, a busy mum’s guide to getting the most out of your days, in collaboration with the family finance blog, Savvy Dad.

The amazing UK blogs behind this giveaway all offer fantastic content from parenting, finance and recipes to travel, days out and much more! Check their blogs out below for top tips and inspiration.

How to Enter

You can enter the Giveaway by completing as many Rafflecopter widget entry options below as you like. All entries will be collected and one winner will be randomly chosen. Good luck!

a Rafflecopter giveaway

Terms and Conditions

UK entries only.
The giveaway will run from 11:59 am on 7th March 2023 to 11.59 pm on 19th March 2023.
The winners will be notified by email from rowena@mybalancingact.co.uk
The winner will have 7 days to respond after which time we reserve the right to select an alternative winner.
This prize draw is in no way sponsored, endorsed or administered by, or associated with, Facebook, Instagram, Twitter, YouTube, BlogLovin or Pinterest.
Prize draw open to over 18s only. Age verification may be required to receive some prizes.
If any prizes are out of stock then we will do our best to find a suitable replacement but cannot guarantee it.
Anyone who unfollows before the giveaway ends or doesn’t complete the required entry action will be disqualified.
The prize is non-transferable, non-refundable and cannot be exchanged for monetary value.
We may be using a parcel service or Royal Mail for some of the prizes and their standard compensation will apply in the event of loss or damage.
Some items may be sent directly by the supplier and we do not have responsibility if these go missing and we cannot replace them.
In the unlikely event one of the companies withdraws a prize we cannot offer an alternative.
The winner’s name will be stated on some or all of our bloggers’ websites and announced on Twitter and other social media channels. It will also be displayed on the Rafflecopter entry. By entering this prize draw you give your permission for this.
Please note the winner may have the same name as you, so if you see your name displayed, be aware that you are not the winner unless you have been notified by us.
The prizes won’t arrive in time for Mother’s Day and there may be some delays in receiving prizes.

Good luck, and I hope a Pounds and Sense reader wins this fabulous prize bundle!

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March 2, 2023

My Investments Update – March 2023

Nick Investing events, reviews 4 Comments

Here is my latest monthly update about my investments. You can read my February 2023 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension), from which I recently started withdrawing again.

As the screenshot below of performance for the year to date shows, my main Nutmeg portfolio is currently valued at £20,680. Last month it stood at £20,817 so that is a fall of £137.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,162 compared with £3,174 a month ago, a small drop of £12.

Here is a screen capture showing performance since the start of this year.

The general profile for both portfolios is similar, with rises in the first half of February followed by falls in the last fortnight or so. The total value of both portfolios has fallen by £149 or 0.62% month on month. That is obviously a little disappointing, but both are still comfortably up on where they were at the start of the year. And their total value has risen by almost £2,000 (8.61%) since mid-October last year.

Of course, all investing is (or should be) a long-term endeavour. Over a period of years stock market investments such as those used by Nutmeg typically produce better returns than cash accounts, often by substantial margins. But there are never any guarantees, and in in the short to medium term at least, losses are always possible.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are looking for a home for your annual ISA allowance, based on my overall experience over the last seven years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs) as well.

Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my AE portfolio has generated a respectable £103.38 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.

Even so, it’s not all bad news. At the time of writing 15 of ‘my’ properties are showing gains, 2 are breaking even, and 8 are showing losses (two fairly substantial). My portfolio is currently showing a very small net increase in value of £0.31, meaning that overall (rental income plus capital gains) I am up by £103.69. That is still a decent rate of return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching almost every day. I currently have around £2,500 invested with them in 18 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than £200 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now! Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.

You may like to know that until 31 May 2023 Kuflink are offering enhanced promotional rates of up to 9.73% (gross annual interest equivalent rate) for their Auto-Invest products (IFISA-eligible). There is limited availability for this offer and it may be withdrawn any time before 31 May 2023 if the limit is reached. For more information, click here [affiliate link].

Last year I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January I added to this with another $500 investment in one of their thematic portfolios. I also invested a small amount I had left over in Tesla shares. My original investment of $1,022.26 is today worth $1,102.18, an increase of $79.92 or 9.43%. in these turbulent times I am very happy with that.

As you can see, my big success has been investing in Tesla at the right time, as their share price has risen by over 85%. If only I had put more than $19 into this!

My copy trading portfolio with Aukie2008 is still well in profit, though it has fallen a bit in the last week or two. My most recent investment in Oil Worldwide, having started well, is now down fractionally. But I’m certainly not going to worry about that at the moment.

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this recent post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment.

eToro also recently introduced the eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself recently and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here.

I had two more articles published in February on the always-excellent Mouthy Money website. One is Make Extra Money Renting a Room. This is an ‘old school’ method for making some extra cash, but none the worse for that. If you have a spare room (or rooms) in your home that you don’t mind letting out, you can generate a steady income by doing this. And under the government’s Rent a Room Scheme, you can make up to £7,500 a year tax-free.

My other piece was How to Become a TV or Movie Extra. This opportunity won’t make you rich but can certainly generate a useful sideline income and provide a lot of fun into the bargain (as I can testify from personal experience!).

My other Pounds and Sense blog posts from February include How to Make More Money From National Grid Powersaving Events. This opportunity is only open to you if you have a smart meter – but if so, you definitely need to see this 🙂

I also recommend reading (if you haven’t already) Are You Making the Most of Your Annual ISA Allowance? With the 2022/23 tax year ending in just a few weeks, it really is a case of ‘Use it or lose it’ now for your £20,000 tax-free ISA allowance. With other tax-free allowances already set to be slashed in the years ahead, it’s more important than ever to make the most of this one while you can.

Also in February I revealed how you can Get Your Will Written Free of Charge in March. And finally, do see as well Keep in Touch With Pounds and Sense, as this explains how to ensure you never miss another PAS blog post in future!

That’s all for today. I hope you and your family are coping in these challenging times. Don’t forget to check out the government’s Help for Households website, which sets out various types of financial assistance you may be entitled to and is regularly updated.

As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

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