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Explain the distinctive features of two selected savings, investment and other nancial services that render them suitable for two contrasting customers.

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Introduction

Transfer-Encoding: chunked Explain the distinctive features of two selected savings, investment and other ï¬nancial services that render them suitable for two contrasting customers. My manager has requested that I produce a detailed report explaining the distinctive features of two selected savings, investment and other financial services that render them suitable for two contrasting customers. Post education pre-families will make use of Premium Bonds as a means of saving. Premium Bonds are a government security that offers no interest or capital gain but is entered in regular draws for cash prizes. With premium bonds you can win anything from £25 to £1million of tax free cash; the odds being 26,000 to 1. Premium bonds can give the saver prizes from £25 to £1 million of tax free cash. However, this money doesn’t earn any interest but can be withdrawn at any given time with no penalties. You can enter online or on the phone if you are 16 or over and can invest anything from £100 to £50,000. People ages 17 to 22 will invest in premium bonds to try win extra money without having to pay any taxes. Premium bonds are suitable to savers who want the chance every month to win £1million and other tax-free prizes, have £100 more to invest, want 100% security for their money and want to make the most of tax-free investment opportunities. They however are not for savers who want regular income, are looking for guaranteed returns, are concerned about inflation eroding their savings and want to buy them for a gift, unless for their child or grandchild. ...read more.

Middle

Lastly, investing in shares can be unpredictable. Not all companies will guaranteed a good return, some may become bankrupt or make losses which means your investment won?t be worth it. They can also invest in unit trusts. A unit trust is an unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The investment fund is set up under a trust deed. The investor is effectively the beneficiary under the trust. You can buy or sell unit trust units through the fund manager. Their value moves in line with the overall value of the fund, which in turn moves in line with changes to the underlying share prices in the fund. Hopefully the value of your units will rise in line with the underlying share values. But if these perform badly the value of the units could fall. You may also get dividend income or interest distributions from your units, based on the dividends or interest paid by the underlying shares or other investments. Unit trusts can be very beneficial and have many advantages to investing in them. Unit trusts are a very convenient and a low cost way of investing in markets which you otherwise would have found difficult to access. Also the average returns from unit trust companies compare very favorably with returns from more traditional investment products and highly qualified portfolio manager specialists make investment decisions, and manage the unit trusts so you do not have to do it. ...read more.

Conclusion

Life assurance policies pay out a large sum of money to a benefiter when the individual who is assured has died. The need for life assurance protection is found in many different circumstances including family protection, debt protection, tax mitigation and bbusiness protection. Life assurance protection policies fall mainly into 2 categories, whole of life assurance and term assurance. Whole of life assurance is when the payment is payable whenever the death occurs; therefore has no fixed limit. On the other hand, term assurance is only payable if the death occurs before the end of a specified term usually up to 30 years. Post education pre-families will use life assurance to protect their families from their death and are likely to use term assurance as it is cheaper. Established families can also make use of savings, investment and other financial products similar to pre-families. They too will use savings products such as premium bonds and direct savers and Invest in shares and unit trusts. Because in established families, their children may be older, they may their savings and investments to go towards their children?s university funds. They may use the money to pay off their mortgage or buy a new house if they won or saved a lot of money; or maybe family holiday. They will also make use of pensions to ensure they have enough money when they are at a pensionable age. And lastly, they will get life assurance to protect them and their family of death. However, as younger people have less money they are likely to use term assurance. Established families are likely to use whole life assurance to protect them until they die. ...read more.

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