P543 Teletext 543 Dec30 20:44:44 —— CASHING IN PREMIUM BONDS ——————————— Dear Teletext, I plan to cash in mz £20,000 worth of Premium Bonds after a 12 month flutter To date I have won 12 lots of £50 prizes in a space of 9 months. Should I use the money to pay off my £20,000 outstanding mortgage or invest in another product? G. Buckle, Oswaldtwistle, Lancashire. ——————————————————————————————————1/6—— Wj cannot reply to letters personally. LATEST SHARE PRICES p510 Property Plus Your Money Tax CinemaP543 Teletext 543 Dec30 20:41:02 —— CASHING IN PREMIUM BONDS ——————————— Graham Hooper of Chase de Vere says your £20,000 Premium Bond investment has paid out £600 in 9 months which is above average: If you are a basic rate taxpayer this payout is the equivalent of 5% net which is quite a good return. A guaranteed income bond would only have paid 5.50% net of 25% tax and that would have been over a 4 year investment term. ——————————————————————————————————2/6—— Your property for 1996 544 LATEST SHARE PRICES p510 Property Plus Your Money Tax CinemaP543 Teletext 543 Dec30 20:48:11 —— CASHING IN PREMIUM BONDS ——————————— The joy of your Premium Bond investment and the returns you have been getting in prize money is that you can get to your cash at any time. Graham Hooper says this money is always accessible, whereas paying off your mortgage means "losing" the money for investment purposes. Investing in a PEP should also be seen as a minimum 5 year investment term. ——————————————————————————————————3/6—— Check out the Teletext offers 488 Letters to: ADVICE CLINIC PO BOX 297 LONDON, SW6 1XT. Fax: 0171 386 7808. Property Plus Your Money Tax CinemaP543 Teletext 543 Dec30 20:42:28 —— CASHING IN PREMIUM BONDS ——————————— Mortgage experts say many homeowners gain more by paying off some of their oustanding mortgages than by investing the money in building society accounts: But they add: people should always hold on to some emergency or rainy day money those with mortgages under £30,000 are unlikely to benefit as these sums benefit from MIRAS - mortgage interest relief at source - at 15%. ——————————————————————————————————4/6—— Always get independent financial advice LATEST SHARE PRICES p510 Property Plus Your Money Tax CinemaP543 Teletext 543 Dec30 20:43:21 —— CASHING IN PREMIUM BONDS ——————————— Graham Hooper of Chase dj Vere says if you have not already got a TESSA and are prepared to leave your money for five years, returns are running at about 7% paid tax-free. He adds that the stock market is quite high at the moment, making a move into the PEP market quite expensive. You can invest £6,000 in a PEP and a further £3,000 in a single company PEP. ——————————————————————————————————5/6—— Always get indjpjndjnt financial advice Letters to: ADVICE CLINIC PO BOX 297 LONDON, SW6 1XT. Fax: 0171 386 7808. Property Plus Your Money Tax CinemaP543 Teletext 543 Dec30 20:40:16 —— CASHING IN PREMIUM BONDS ——————————— Graham Hooper of Chase dj Vere suggests that if you decide to put your money into PEPs you use Fidelity or Mercury: These two companies will place your money in the market ovjt 6-12 months. This gives you the benefit of picking up stock at chjapjr prices over time. Othjt firms will invest the money at once and the market is currently at a high, making shares expensive. ——————————————————————————————————6/6—— Latest savings rates 546 Letters to: ADVICE CLINIC PO BOX 297 LONDON, SW6 1XT. Fax: 0171 386 7808. Property Plus Your Money Tax Cinema