Are you confused by an aspect of your money or are you seeking help with a more specific financial matter? Then please send your query to our Ask Gaynor section.
Each week we choose up to five questions for our panel of experts to answer – and publish the results on the FMWF site. Unfortunately we are unable to answer all the questions we receive or send personal replies.
To increase your chances of being chosen, please write your question carefully in simple, concise English and include any facts and figures that you feel will help us fully understand your situation.
Email: women@financialmail.co.uk
Will taking a breast cancer gene test affect any insurance I take out in the future?
Breast cancer is in my family and I am tempted to take a test to see if I carry the cancer gene, However, I am worried this will affect any insurance I take out in the future. I am 22 – please can you advise? Francess, Harrogate.
Kim Faulkner, Independent Financial Adviser at Keighley based Thompson Faulkner said: ‘When you complete an application form for life or critical illness cover one of the questions that you have to answer will be whether or not any members of your family have died or suffered from a list of illnesses under a certain age, usually 60 or 65, one of which is cancer. You will need to give them information on their relationship to you, and the age at which they were diagnosed. The insurer will then use this information to decide whether or not they will ‘load’ your premium to take account of this potential risk. Depending on your answer, you may therefore pay a higher premium even if you don’t have the test. If you decide to have the test, the insurer may use the results may influence their decision one way or the other – but of course if the result comes back negative this could actually be beneficial to you as it will be weighed up against the other information you have provided. Although your life assurance premium may be affected, it is more likely to have a significant effect on a critical illness policy. Always be open and honest when filling in your application, because if they find out you have hidden anything from them they may not pay out on a claim.
How much should I be looking to save to make me feel more financially secure?
I am 35 and sometimes I feel I will never achieve financial stability. I work full time but by the time I have paid my rent and bills I barely have a penny left to save. I have no pension and no savings but could probably scrape together around £25 a month, which investments do you recommend? Susan, London
Kim Faulkner, Independent Financial Adviser at Keighley based Thompson Faulkner said: ‘Your first priority should be to build up some sort of ‘emergency’ fund so that you have cash available should you need it at short notice. Generally speaking this would take the form of a simple bank or building society deposit account in the early stages, until such time as the amount has built up to a comfortable level. Everyone is different, but as a guideline you should be thinking about holding the equivalent to between 3 to 6 months salary in cash for those rainy days.
You can invest up to £5,100 each tax year into a cash ISA and benefit from tax free growth on your savings, and several banks and building societies offer regular savings accounts. Interest rates change on an almost daily basis, and it is worthwhile shopping around for the best rates regularly. Internet accounts tend to offer better rates than branch based accounts, and there are several comparison sites on the internet that can give you information on the current deals.
How much money do I need to be saving to pay for my baby to be privately educated one day?
My daughter is 6 months and I would really like to privately educate her when she starts school in five years time. How much money would I need to save per month and can you recommend a good investment? Amanda, Wiltshire
Kim Faulkner, Independent Financial Adviser at Keighley based Thompson Faulkner said: ‘Private school fees vary from area to area, and increase as your child progresses through the school. You will need to allow for extra expenses such as school uniform, trips and other extra-curricular activities, which can add a further 10% on the basic fees. You also need to decide whether she is going to board when she gets older, as this of course adds to the cost again. On average, private school fees increase at around 6% per annum, which means that by the time your daughter starts school you might be looking at a total outlay of between £6,000 and £10,000 in the early years, rising to perhaps £30,000 per year by the time your daughter is 18. This on the backdrop that some boarding schools are already charging in excess of £30,000 per year. Realistically you are looking at a total expenditure of perhaps £250,000 to £500,000 during your daughters schooling as a day pupil, which would require a minimum saving of £1,500 to £2,000 per month in the early years. There are several websites offering school fees calculators to help you decide how much you need to save, but because of the complexities surrounding school fee planning and the risk associated with the different types of investment it is worth obtaining specialist advice in this area.
Tel: 01535 210179
www.thompsonfaulkner.co.uk
Kim Faulkner is a member of the Personal Finance Society at Diploma level, and is actively working towards Chartered status. Her experience within the various working environments, and having attended seminars, meetings and other networking opportunities with fellow IFAs lead her to realise that her approach to financial planning differed to the traditional method of product based sales. In May 2008 Kim decided to become directly authorised to enable her to fulfil her own vision of financial planning, and provide a specialised service to fulfil an identified market need
Tags: breast cancer, private schools
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