'If people can take a long view, then it might be worth moving into equities as long as they are actively managed. But I still think it is worth having some investment in PIBS (Permanent Interest Bearing Securities) issued by building societies, which can still yield 10 per cent gross. We are holding back on National Savings. My hunch is that the Government is not going to pull in enough money, and might have to come in with fresh offers at more attractive rates.
'We have begun to detect the glimmeringsof movement in the housing market. We have tended not to use endowments, but of course existing endowments are left in place. We prefer a more flexible approach with a combination of savings including personal equity plans. Using whole-of-life assurance rather than term assurance, which just covers the span of the loan, can be cheaper and more flexible.'
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