poshjosh

The historical risk (standard deviation) and real (above inflation) return figures for each of the asset classes (since 1955 and derived from the data sources shown in brackets, unless otherwise stated) are as follows:

Cash (UK 91 Day T-Bills) risk 3.13% return 1.80%
UK Fixed Income (UK 5 Year Bonds) 3.25% 3.64%
Global Fixed Income (JP Morgan Global Gov't Bond) 13.09% 3.52%
Global Property (Citi Global Property since 1990) 27.96% 2.97%
UK Equity (MSCI UK) 28.66% 6.37%
UK Small Cap Equity (MSCI UK Small Cap) 30.08% 9.44%
Global Equity (MSCI World) 20.98% 4.60%
Emerging Markets (MSCI Emerging since 1993) 35.97% 10.97%
Alternatives (C.S. Tremont Hedge Fund Index since 1994) 11.30% 6.79%

Sorry I couldn’t insert this as a table.

From this you can see that long term equities have outperformed fixed income and property by quite a margin. You need to be aware that the shorter term data for Property, Emerging markets and Alternatives mean that these figures are arguably less reliable than the longer term figures.

You do not say if you wish to be involved in rebalancing your portfolio to a selected asset allocation over time or if you just want to let it run. If you are investing on a regular monthly basis then Pound Cost averaging will work in your favour and you will probably be fine to just let it run. If you are investing a lump sum then you will need to look to rebalance to your chosen asset allocation when the portfolio gets sufficiently out of kilter (+ or - say 15% to 20% from norm) or on a yearly basis, which ever come first.

I would suggest that an asset allocation of between 75% and 100% equities and 25% to 0% fixed income might suit you. Indeed in their recent book 'The elements of Investing' by Burton Malkiel and Charles Ellis, Burton recommends 75%-90% in equities and 25% to 10% in fixed income and Charles recommends 100% equities for those in their 20s and 30s.

Don't try and pick active managers, just go for low cost trackers, such as those offered by L&G, HSBC, Vanguard, Dimensional, and others. I would suggest that you invest via a fund supermarket such as FundsNetwork or Co-Funds. Speak to an Independent Financial Adviser for more information.

Dont forget to use the relevant tax wrapper, as mentione previously. I would suggest using an ISA at this stage as you then have access to the money if you need it for wedding, children etc. You can always take the money out of the ISA to pay into a pension and get the tax relief later if that seems to be the better option.

You are right to be skeptical. You will only be owed £1,000s if you have paid £1,000s in premiums and IF the policy was also mis-sold to you.
Having said that, if you feel that the policy was mis-sold then you should complain, but do it direct to the company that sold you the PPI. There is no need to use a claims handling company and to pay their fee. If you are not satisifed with the answer you get form the company that sold you the policy you can always complain to the Financial Ombudsman Service.

Simply contact the company that sold you the PPI policy and make a complaint direct to them. There is no need to use a complaints handling company and you will then get to keep all of any compensation that they might pay.
If you are not happy with the response from the company that sold you the policy then you can always refer the matter to the Financial Ombudsman Service, which is free to the consumer, but which the company about which you are complaining has to pay for.

Firstly:

there's no need to pay for access to your file. go to www.creditexpert.co.uk this is run by experian and they will give all first time users 30 days free access to their credit file. You have to register a card with them as part of the sign-up process to pay the £6.99 monthly fee which only applies after 30 days.

you can check your file, save a copy to your pc, then ring them up before 30 days and ask them to cancel - but you must ring them an email is no good.

equally, dont bother paying to see your "score" as all lenders use different score cards and you could say to a prospective lender that "i scored 1000 which is good etc" they will answer (to paraphrase) "so what".

you need to look at the results of your file check, its all traffic lighted. all greens is good, any yellows are cause for concern more than 2-3 in the last 12 months and you will be stumped. and red will indicate a default and thats the worst possible.

this exercise might uncover errors on your file and credit expert will help to correct them if you can evidence what's wrong.

once you have done all this. if its "bad" as you say. consider taking out one of the expensive credit cards like capital one or vanquis and use this a couple of times per month for small items ie £10-£20 here and there and ensure you pay off in full. this will help you to build a positive history and you will probably find they will only offer a small credit limit anyway.

used carefully this method can help to set aside some negative aspects but prompt action with credit related matters is always essential.

hope this helps

Well now, a lot of people would like to know the answer to that question! There is still a view that what are known as the 'leading indicators' of inflation still point to a lessening in inflation but, as I am sure you know, the Bank of England has predicted this lessening for some time, and it hasn't happened yet.

I think that most people share the view that bank rates will remain low for some time to come. With unemployment increasing, house prices insecure and the 'recovery' at best uncertain, there are many factors other than inflation that will give those who want to raise base rate food for thought. If there are rises on the horizon, I believe that those rises are likely to be modest, and slow - but of course I could be very wrong.

It is wise not to defer savings for too long, because you never get back lost time. And it is also wise not to take too much heed of the short-term, nor to try to spot the 'right time' to make an investment decision. Rather, develop your plans with sufficient flexibility to meet changing conditions; if you think that conditions will change, avoid tying yourself into a product that will penalise you (by, for example, loss of interest) if you choose to go elsewhere.

generally the rates on personal loans dont follow the normal interest rate trends.

loan companies will reduce their rates as a sign that they want to lend more and will therefore be competitive but the rates quoted are always "typical" which means you might see a deal at 6.9% but once your application is processed you might be offered 14.9% because they regard you as a higher risk than the "average" applicant

The things you can do to drive down costs are:
Drive in a car, such as a Fiat Panda, Ka or similar as opposed to an Aston Martin. A useful site is http://www.ukwebstart.com/listcarinsurance.html

The area you live in does have an effect, so living in a quaint village would be a lot cheaper than living in the Isle of Dogs, London.

Like Paul has mentioned, your sex, the type of use for your car (social domestic, pleasure or do you use it for business use)

Some insurers discount your insurance via the Pass Plus course

what you might need to consider even more is the loss of that year of no claims bonus (unless if you already have the maximum) as you might be better off sticking where you are as 1 extra year of no claims can often make a bigger difference than switching mid term - this is one good thing you can confirm yourself from the comparison sites as you can tweak your details.

its also worth noting that all insurance has a cooling off period so if you are within the first 14 days of cover - some allow 30, that you can freely cancel with a full refund - no costs deducted as long as you havent made a claim during this time.

but do be careful to check your new policy, lots of "cheaper" policies are cheaper because the benefits are stripped out.

sometimes you can actually get a better price by purchasing fully comprehensive cover as opposed to third party/fire/theft - why? wel;, comprehensive drivers tend to be more careful drivers and usually in a more responsible life stage (perhaps with children, or driving a nicer car).

sometimes it can improve the cost for a young male driver to add his female partner to a policy as people in relationships are considered a better risk than singles!

but as insurers can pick their own rules (within reason) you need to be so careful when deciding where to place your cover.