THIS TRANSCRIPT IS ISSUED ON THE UNDERSTANDING THAT IT IS TAKEN FROM A LIVE PROGRAMME AS IT WAS BROADCAST. THE NATURE OF LIVE BROADCASTING MEANS THAT NEITHER THE BBC NOR THE PARTICIPANTS IN THE PROGRAMME CAN GUARANTEE THE ACCURACY OF THE INFORMATION PRINTED HERE. Tape Transcript by JANE TEMPLE MONEY BOX LIVE Presenter: Vincent Duggleby Guests: Alan Warner Rebecca Price Gill Cardy TRANSMISSION 1st MAR 2004 1500 - 1530 RADIO 4 _________________________________________________________ ANNOUNCER: Now it’s two minutes past three and time for MONEY BOX LIVE with Vincent Duggleby: DUGGLEBY: Good afternoon. There’s a month left to make up your mind whether or not to take up your annual allowance for tax free savings in an individual savings account – an ISA. There’s an old saying that the tax tail should never wag the investment dog but in fact the tax attractions of some ISAs will be severely curtailed from this April, hence the dilemma for basic rate tax payers. Is it worth putting money into a unit trust or a share based ISA when you no longer receive a tax credit on the income? Naturally the managers are keen to drum up business especially as sales slumped by 50% last year after the prolonged bear market which left most investors nursing heavy losses. Ironically those losses might have been of some uses outside an ISA or a PEP for that matter because gains are tax free, losses don’t count either. As you’d expect the recovery in the stock market has meant the performance in the last 12 months has picked up but on a five year view very few funds have shown consistent profits and most of these have been in bonds. So, is the tide about the turn for so called equity ISAs? Should you risk another £7000 or stick to mini cash ISAs offered by banks and building societies? – at £3000 the limit is lower – in a couple of years it’ll be reduced to just a £1000 and even if you manage to accumulate say £10,000, the tax saving will be less than £100 a year and as listeners have learned it can be quite difficult to switch to a better account. So, although the main focus of this Money Box Live is on ISAs, they need to be set in the context of other investments as well as your tax position and your general attitude to risk. 08700 100 444 is the number to call and with me in the studio to answer your questions three independent advisors – Rebecca Price from Best Invest, Alan Warner from Douglas Deakin Young and Gill Cardy from Professional Partnerships. And first up Ralph Holmes in Guildford – Ralph? HOLMES: Oh hi. I’d like advice on choosing a financial provider for a mini cash ISA. I’ve got about £3000 to invest in next year’s allowance and I see all the tables in the weekend papers saying you know who gives the best rate of interest but I found to my cost that a year or two later that provider might be the worst in the tables. How can you find someone who’s got a consistently high performance? DUGGLEBY: Just to clarify – you say you’ve got £3000 now have you? HOLMES: I’ve already got £9000 invested DUGGLEBY: Yeah but have you – have you actually used your allowance for this year? HOLMES: Yes I have – but I’m looking to use my allowance again in four or five week’s time. DUGGLEBY: Okay so you want – you want advice essentially which is good for I think I should imagine Gill April 6th I imagine when the new year starts? CARDY: That’s right. You can be in there first on the 6th April with your £3000. Ralph is quite right – it’s quite common for providers to have market beating rates to attract money in and then rely on everyone being really lazy so that when the rates go down people just leave their money where it is – they don’t get such a good deal. DUGGLEBY: Well that’s the general picture but Rebecca what are the current best rates? We don’t know whether they’re going to be the best in a month’s time but we hope they are? PRICE: Quite. There’s a couple of – of good paying cash ISAs available on the market at the moment both of which are CAT standard which guarantees that they will comply with the government’s guidelines on charges , access and terms. At the top of the table at the moment is the Intelligent Finance ISA which is currently paying 4.6% each year and also quite near the top Marks & Spencers at 4.5%. DUGGLEBY: So that’s well above base rate but Alan your view as I suspect amongst many others is to warn perhaps against the possible rise in interest rates and the speed with which the institutions respond? WARNER: Well I think that’s fair comment and I think that Intelligent Finance as an Internet based account would be likely to respond fairly quickly. On the other hand the Portman has always remained very competitive. They’re offering the same rate as Intelligent Finance but not quite the same flexibility so horses for courses – I would expect the Portman to remain pretty competitive. DUGGLEBY: But Marks & Spencers of course being a new – new and keen I suppose you might assume they would want to be up with the leaders for at least the first year or so? WARNER: At least for the first year or so. But going further out, it’s not their specialist business. I would wonder whether they’re going to compete with Intelligent Finance and Portman indefinitely. DUGGLEBY: What about rates for example Gill that track the base rate – are they – are they sort of worth considering? CARDY: They’re becoming very popular now because it means that whatever happens to base rates you will always get the same margin around that base rate so you don’t run the risk of the rate you get moving away from the base rate. DUGGLEBY: Have we got any names for base rate trackers in ISA – has anyone got any? - some are shaking their head – we’ll make sure that goes on to our website at some stage I think because that would be useful. I mean Cheltenham and Gloucester used to do an index rate – index to base rate tracker – but I’m not sure it’s open at the moment. Sometimes they – they tend to close them off when the rates are rising and open them when they’re falling. But there we are – three possibilities. There’s some top earning accounts over 4% which are no problem at the moment and just bear in mind that if rates go up as you’ve made – as the point you’ve made is that the institutions needs to respond quickly. I think most of them actually raise their rates as from March 1st so today is good news day for savers – at least for most savers. Ralph, thanks for that call. Michael in Pembrokeshire your call now? MICHAEL: Oh good afternoon. I’ve got some shares in a self select ISA – I’m just wondering if it’s worth having at all because I read on sharecrazy.com that dividends from my shares will no longer be tax free. Now when’s that going to happen? Is it correct in the first place? And does the panel think it’s worth having an ISA at all? DUGGLEBY: Mmm. We’d better clear up this question about tax free Alan – and the exact status of a share within an ISA now and as it is going to be? WARNER: Well as we stand today – the income from shares, unit trusts within an ISA or indeed a PEP is free of tax and the plan managers can recover the tax credit – the 10% tax credit attached to dividends and unit trusts are dividends. DUGGLEBY: That is actually – that’s half what it used to be? WARNER: It used to be 20% - it’s now 10%. DUGGLEBY: And then it’s going to zero? WARNER: And from April 6th this year it’s going to zero. So plan managers will cease to be able to recover tax credits. Now what this means is that if you are a basic rate tax payer without any long term worries about capital gains tax then it’s pretty unlikely that it’s going to be worth continuing to hold shares and indeed unit trusts within the PEP or ISA wrapper. You might choose to liquidate them and switch into corporate bonds but that’s another story. We’re just talking about shares in isolation - for basic rate tax payers the message must be April 6th is a big day. You’ve got to rethink your PEP and ISA strategy. DUGGLEBY: Mmm Gill? CARDY: The only thing that I would say on that is that it’s still an incredibly advantageous thing that ISAs while they may not be any more tax efficient now than an investment outside an ISA, what you are doing is building up a pot of money which could in your retirement perhaps be used to generate tax free income whether that is by a dividends or interest from corporate bonds and that has some very very significant advantages for thinking about boosting your maybe taxable pension income with tax free income from – from the ISA funds which I think people are – are ignoring at the moment. DUGGLEBY: Surely the question here is whether you think that at some stage in the future your investment strategy might change because while shares no longer qualify the bonds and gilts and things do so somebody for example wanting to move from a growth strategy and into an income producing strategy would be disadvantages because once the money’s come out of the ISA or PEP it can’t go back in Rebecca? PRICE: That’s quite right. I mean the PEPs and ISAs will continue to be extremely useful in that respect. I completely agree with Gill. Also particularly for those switching to an income strategy that are over the age of 65 any income that you produce from those wrappers won’t count towards your statutory total income for calculating your personal age allowance or the married couples’ age allowance so it can still be extremely useful even for basic rate tax payers. DUGGLEBY: Is the message then we’re really saying is if you’ve got a long standing PEP or ISA built up with many thousands of pounds – we’ve had some emails sort of indicating funds of anywhere between £30,000 and £100,000 in PEPs and ISAs – you’d best not sort of liquidate that lot but on the other hand if you’re starting from now and you’ve got no reasonable prospect of becoming a higher rate tax payer that perhaps it’s not worth bunging £3000 into a shares based ISA because it’s just not going to build up anything worthwhile – is that what we’re saying? PRICE: The other thing that I think people do need to take into consideration is that it is still the case that charges on ISAs are quite a lot lower on the funds that you invest in than comparable unit trust funds that most investment providers that I’m aware of have that you know a lower set of charges that apply so you can still actually save money by going into the ISA regardless. WARNER: Well I mean charge is obviously an important factor but I think what we’re saying is that for basic rate tax payers and I stress I’m talking about basic rate tax payers – going forward really if you’re going to make subscriptions direct them to fixed interest funds, corporate bond funds and the like. Where your existing equities are concerned fine, leave them there for the time being but longer term look upon that fund as something which you switch to corporate bonds, government securities or whatever to generate tax free income for retirement. DUGGLEBY: So it’s basically it’s really a tax free income generating plan that one’s looking at? WARNER: For basic rate tax payers that’s my belief and certainly my experience with clients is that they’re already re- positioning themselves and they’re using PEPs and ISAs increasingly as a low risk haven. DUGGLEBY: Mmm okay – well that’s interesting comment there. We’ll see what we can do for Hazel in Scunthorpe – Hazel? HAZEL: Hello. I’ve an ISA with Nationwide – instant access. I’ve had it since 99 – cos it’s built up. What I want to know is can I put next year’s £3000 with somebody else without any bother or do I have to stay with Nationwide? DUGGLEBY: No I think you can do what you like I think can’t you – Gill? CARDY: Yes the rule is that you can’t contribute to more than one in a tax year but that does mean that once we’ve hit that 6th April new tax year you can put your money with whoever you please. HAZEL: Oh we don’t have to bother with Nationwide? CARDY: No, you don’t have to stick with Nationwide at all. You can leave the money that is with Nationwide there and just put your new £3000 with somebody else. HAZEL: Oh lovely – thank you very much. DUGGLEBY: So you can look around for the best rates in the market – we’ve mentioned one or two of them – Marks & Spencers and Intelligent Finance were among paying over 4% but sometimes there are little, small building societies around – which you’re coming from Scunthorpe, maybe some small building society up in that area which will offer a very attractive rate so feel free to go and shop around as they say. Quite a lot of emails have come in about transferring ISAs and I think that the guts of them are is we know we can transfer but we find that it’s not as easy as we thought. What comments have the panel got on that one – Rebecca? PRICE: If we’re talking about equity ISAs DUGGLEBY: No we’re talking about mini cash ISAs? PRICE: Still talking about that – mini cash ISAs? – it will greatly depend on the provider. In many cases a full transfer is permitted without any penalty fee particularly for those that carry a variable rate of interest. Some providers won’t allow partial transfer and some will. DUGGLEBY: We’ve had a particular point raised: are there any tax consequences, are there- is there a particular procedure to be followed – well of course there is Alan on these things. You can’t just take the money out and run? WARNER: No, you can’t take the money and then send it off to somebody else. What you’ve really got to do is ask your current ISA provider to let you have a statement which you then hand over to your prospective ISA provider. DUGGLEBY: And what’s that called? – that’s –has it got a name has it? WARNER: There’s no particular name no – just a current statement and then the – the new provider will use the information on that statement to arrange the transfer direct to their own ISA facility. DUGGLEBY: What about – there used to be a rule didn’t there Gill which said you could take the money out and reinvest within six months but that rather meant where the money had moved from a mature TESSA and then it kind of stays in limbo doesn’t it for a period of time giving you the option to take out a fresh plan but of course the fresh plans don’t exist anymore so it has – that was the old TESSA rule but that doesn’t exist – that means you have to leave the money in a non tax free account for this period of time and then you’ve got six months to make up your mind? CARDY: You’ve still got the facility with six months to change your mind. You do need the maturity certificate from the – from your original provider which will state how much of that capital is – is eligible to be transferred into – into the new plan. DUGGLEBY: Yes that’s – that’s the snag isn’t it? – that it’s not the whole sum – if you’ve got – if you’ve got £9000 even in say a matured –the old matured TESSA you can’t actually put that plus the interest cost they restrict you don’t they? WARNER: You can’t roll over the interest. It’s just the principle that you’ve subscribed. DUGGLEBY: Okay. We’ll probably come on to that later in the programme but in the meantime we have John in London – John? JOHN: Good afternoon. I’m like the first person you interviewed looking forward to the 5th April. I’ve got £7000 to put in a maxi ISA for income – I’m a 64 year old pensioner and I’m looking for income and from what I’ve heard it’s got to be bonds. Can you recommend a bond fund paying around about 6% for my next lump – year’s lump sum please? DUGGLEBY: Well it was Alan who was making this point that many of his clients are now increasingly looking to ISAs as an income generating – yeah so obviously you’ve taken that on board – that it’s primarily for that purpose so Alan some bond funds that will – will fulfil what you’ve recommended essentially? WARNER: Thank you Vincent. Well 6% - that’s a very challenging target. JOHN: I’m prepared to take a risk. WARNER: You’re prepared to take a risk. Can we start with what’s really easily achievable and that’s something approaching 4.5 to 5% - perhaps you could start by looking at Legal & General. You could also look at Fidelity and Invesco Perpetual DUGGLEBY: These – are these bond funds ? WARNER: These are corporate bond funds. ISIS also have what they call their strategic bond fund which yields around about 5% and is invested quite widely around the world in bonds. If you’re going – if you’re in search of 6% then you’ve got to look for funds which include some – I won’t say junk bonds but certainly might include some junk bonds – that’s to say bonds which have less than a treble B rating – perhaps from convertibles and perhaps from irredeemable preference shares. So you are talking about a higher risk profile and you’ll have to look to a range of providers that have funds that don’t just invest in gilts. DUGGLEBY: Yeah I mean if you start from the standpoint of say a gilt a gilt yield which is currently around about 4% - 4.5% - you know that gives you a measure of how much risk you’re going to take if you’re going to try and go for 6. But you’ve got something Rebecca? PRICE: Alan’s quite right – you’ve got to take quite a risky approach when you’re looking for an income of that sort of level. It is achievable and you’re looking at quite rightly as Alan says a fund that invests pretty well almost exclusively in high yielding corporate bonds. DUGGLEBY: Such as? PRICE: Invesco Perpetual have a fund called the European High Yield Fund. Now that’s yielding in the region of 6.5% at the moment. It’s run by a very experienced panel of investors. They are investing all the Invesco Perpetual’s bonds – very well known in the industry. Also I’d like to just come back to Alan’s suggestion of the ISIS Strategic Bond which is rather a nice half way house I think between something like the European High Yield Bond and say your gilt fund which invests typically half in the high quality stocks then half in these sub investment high yielding bonds. So it’s really trying to trade off the risk and the reward and you’re getting quite a nice yield well above the high quality bonds. DUGGLEBY: We’re talking JOHN: Would you give me your opinion? DUGGLEBY: Well we’ve given you some choices and we’ve pointed out the risks. I think in a sense once you’ve done that it’s a matter for you to decide whether the risk is acceptable. JOHN: I’ve got a couple of insurance company – I just wonder if you would comment on those two companies concerned? DUGGLEBY: Well we don’t want to specifically comment on investments that you’re holding already. What we’re trying to do is to address this issue. JOHN: No, I’m just considering them. DUGGLEBY: Oh alright – well mention the names? JOHN: Standard Life and Norwich Union. DUGGLEBY: Well these are- these are what – these are bonds which are run within an ISA wrapper presumably – is that what we’re talking about here? – Gill do you know those particular products? CARDY: Well Standard Life does have a higher income fund – again that’s got – that’s at the moment quoting on the figures I’ve got in front of me a yield of 7% - has a reasonable past performance. Norwich Union – you need to be careful which fund it is because there – there are a couple which have been worse than dire over the last few years and have resisted all attempts to do anything than scrape the bottom of the barrel but a couple of others that have been – that have been better so you need to watch that quite carefully. DUGGLEBY: Essentially when you go to an advisor I mean as you all have – you all have your recommended lists and I mean in a sense if a client comes along and says I don’t like any of your recommendations I suppose your answer’s to show them to door and say well feel free but it’s not on our list. Is that the sort of line Alan – I mean you go to a great deal of care to try to make sure that what you have on your list is – is solid? WARNER: Absolutely and I would endorse Gill’s point be careful – the fund that she’s referring to came from the CGU stable – that’s to say the merger between Commercial Union and General Accident. It was a monthly income paying fund with a high high yield and it’s brought a lot of tears. DUGGLEBY: Did it? – okay. Well there we are. That’s our view and we’ll see what we can do now for Shirley in Milton Keynes? SHIRLEY: Oh hello there. Yes, my question follows on from a previous one. I have a TOISA - a TESSA only ISA with Northern Rock. I’ve had that for about 12 months. My question is is it possible to transfer that TOISA to another provider paying a better rate of interest? DUGGLEBY: Okay the distinction being this is the matured TESSA which is the £9000 which you’re capable of transferring as against the annual subscription – the £3000. Now first of all Alan, do the building societies and people regard these as two separate products or do they merge them? WARNER: TESSAs and ISAs – they regard them as separate products and they have separate terms and separate interest rates. On the whole the interest rates are more competitive because the sums invested are larger. DUGGLEBY: So therefore there’s no reason why you can’t transfer it again subject to the rules of the individual WARNER: Subject to the rules of the individual TESSA and ISA into which you’ve transferred. You should be able to transfer but do check carefully for the penalties. DUGGLEBY: Indeed. I mean Money Facts which is a magazine which you’ll often find advisors will have, or banks and building societies will have – do give a check list of those organisations which will allow transfers and those which don’t. Approximately half of them do and half of them don’t so it’s just a matter of seeing whether you can do it or not. Okay Shirley that answers your question I think. SHIRLEY: Yes thank you very much DUGGLEBY: So good luck – get out on the market and see what you can find but don’t be too surprised because again emails indicate that people have you know heard of an organisation paying a nice big fat interest rate – they go along – do you want my existing money? No thank you – only open to people who are putting fresh money in. And we’ll now take Elizabeth in Kensington? ELIZABETH: Hi. I don’t have any spare cash a the moment but I’ve got a number of shares and I’m wondering about putting an ISA wrapper around those existing shares – whether that’s sensible and also how I would actually go about it? DUGGLEBY: Okay now did you hear our earlier comments about – are you a higher rate tax payer for example? ELIZABETH: No I’m not. DUGGLEBY: You’re a basic rate tax payer with a share portfolio and you’ve probably heard the panel’s views saying there isn’t much tax advantage in doing so. Can anyone think of a tax advantage from transferring existing shares in at this stage? I can think of some disadvantages like capital gains tax Alan but any advantages? WARNER: Only long term on the capital gains tax front – if one or some of your shareholdings were to go through the roof – perhaps you’d be glad you had them within an ISA but DUGGLEBY: £7000 a year – it’s going to take a long time isn’t it? WARNER: It’s going to take a long time – unless the object of the exercise is to sell them, buy them back within the ISA –hold for two or three years – then switch into corporate bonds so they generate a good income – I can’t see DUGGLEBY: Any case for doing it do you think – in that particular instance transferring in? CARDY: Well again I would just reiterate my point that as part of a wider financial planning strategy pensions generate taxable income in retirement – a fund of money invested into ISAs – you don’t get the tax reliefs now or the tax efficiency now but you are building up a fund which can be used to – to generate a nice flexible pot of money which can generate a good tax free income which can help towards retirement planning. So I wouldn’t dismiss them altogether. DUGGLEBY: There will also be costs remember particularly the – the costs of being –possible costs of being out of the market because you can’t unfortunately – you said transfer the shares in – cos you can’t transfer shares in literally and hold say a hundred shares in this in your own name in one day and the ISA the next because you have to sell them – you physically have to sell them don’t you? WARNER: Well Vincent you can …an ISA – that’s to say sell and buy back simultaneously within the ISA – but you’re quite right there are costs – there’s a market makers..spread- that’ll be very small – there’s stamp duty 0.5% and then there will be broker charges – so it’s not an inexpensive exercise. DUGGLEBY: Rebecca you wanted to come in? PRICE: I was just going to ask Elizabeth whether she had any latent gains on those shares or whether she was perhaps sitting on a loss? ELIZABETH: No, I’ve have had them for quite a while so yeah in the last year or so they haven’t you know – they’re only just starting to creep back up again. DUGGLEBY: The point is being that any gains of course that you did have in them would be potentially subject to tax as long as you don’t – unless you exceed the limit of what is it? – seven nine – yeah so PRICE: But it can be quite useful particularly when one builds up quite a good collection of shares over a long period to have a strategy of bed and .ISA-ering –£7000’s worth to take advantage of your CGT exempt allowance and your ISA allowance in one year. DUGGLEBY: If you’re in that league Elizabeth but are you sort of talking about portfolio of potentially £100,000 plus? ELIZABETH: No no DUGGLEBY: Yeah well I think our advice stands the same – very unlikely to be to your advantage. ELIZABETH: Great thanks very much. DUGGLEBY: Okay. Alan in Tunbridge you’re next? ALAN: Good afternoon. What I’d like to know is what protection does a PEP or a maxi ISA holder have in the unfortunate event of an administration or receivership of a provider? DUGGLEBY: Right Gill? CARDY: Well as far – as far as the actual investments are concerned you need to separate out the – the investments from – from the administrator and the regulator does have rules to make sure that PEP and ISA administrators have sufficient cash that if anything goes wrong they can wind down their business satisfactorily so that they have enough money to insure a sort of orderly exit of funds and the administrator of a – of a company going into administration or bankruptcy does not necessarily mean that your underlying investments disappear as well. DUGGLEBY: Is it right that these by law these investments have to be held in a nominee sort of trust account? – I mean separate from the business itself? CARDY: Absolutely. The funds if they’re unit trust funds or shares they will be held in – in nominee accounts which is to say you’ve got the administrator and then you’ve got those investments held somewhere else. And most companies will have indemnity insurance. They’ll also typically have you know guarantees to protect investors against- against the companies going into administration. DUGGLEBY: So essentially we’re talking about two risks – one of which doesn’t seem to be terribly likely Alan – that is that the investments are simply not there. They were never made in the first place – the cash has disappeared. That’s one risk covered by Financial Services Authority I suppose? WARNER: Absolutely yes, and regular inspections, requirements DUGGLEBY: (talking over) and if they aren’t there literally – this would possibly only apply to very smaller providers but if the money wasn’t there the FSA has a compensation fund doesn’t it? WARNER: It has a compensation fund – 100% of the first £30,000 of the loss and 90% of the next £20,000. So in the event of a loss of £50,000 you’d receive compensation of £48,000 but if your loss was larger than that then obviously you would stand to lose the balance unless the company concerned had good indemnity insurance but indemnity insurance comes with all sorts of exclusions nowadays and it might not help you. DUGGLEBY: So you know in theory yes you could if you had say a small advisor – some man of straw who got your money and didn’t invest it – yes you’ve got Financial Services Authority behind you but only to the extent of £48,000. And I suppose the other problem is really just an administrative mess up where the whole thing gets bogged down in – in trying to clear up you know bad backroom work Alan, and it could take a couple of years WARNER: It could take years absolutely years. It might take you years to get your money back. DUGGLEBY: So you have to make up your mind really whether you want to trust the big organisations who are clearly going to stand behind their – their promises and those who for the best reason in the world just get it all messed up and then of course as I say you may not lose any money but you may lose a lot of sleep. Okay Tony thanks for that – I beg your pardon not Tony – it was Alan. And we’ll now try Elizabeth in Putney. Elizabeth your call? ELIZABETH: Hello. One of the blissful things for me about PEPs and ISAs is that I didn’t need to be terribly meticulous in keeping the paperwork…filling up my tax return. I understand that the tax advantages are being whittled away but can you just clarify that that still holds true? DUGGLEBY: No – no tax returns you mean? ELIZABETH: Well – you know for the purpose of my tax return. Obviously I have to fill in a tax return but up to now any dividends from the PEPs and ISAs – I haven’t had to put in and I’m just wanting to be sure that that still applies? DUGGLEBY: Yes indeed. CARDY: Yes absolutely, it still applies and that’s what I keep banging on about – it’s still an advantageous thing – it saves you all of that time. It might save you an accountant’s bill. Might save you all the stress of keeping all those little slips but you definitely don’t have to put in on your tax return. DUGGLEBY: Incidentally, does anyone know if there’s a limit. Gordon - is there a limit to Gordon Brown’s promise as to how long ISAs are going to exist for. I think there is one isn’t there? WARNER: 10 years – we were given a 10 year guarantee from their introduction. ELIZABETH: Can I just – you’ve mentioned Gordon Brown. I mean we’re all being commanded to save cos everybody’s living too long unless they take people out and shoot them you know…..why don’t you get G Brown on the show and tell us why he’s knocking out all these tax advantages? DUGGLEBY: Yes yes – I could – well I could have a few things to say about that. I’m sure I would –I’m sure we’d dearly welcome Gordon Brown to answer amongst other things why on earth he’s cutting the cash ISA allowance to £1000 – is what on earth incentive is that to save? What do you think Rebecca? PRICE: I think that’s quite right and particularly with the dividends as well bringing ISAs in line with personal pensions – also suffering from that dividend tax credit problem. DUGGLEBY: It does seem a little odd – I mean I must say there does seem – it does seem to be a very half hearted response to a – to a country which is deplorably short of savings incentives? WARNER: Extremely perverse when all we’re told about is to save for our old age. DUGGLEBY: Exactly. Anyway there we are. That’s his decision. Maybe one day he will come on the programme or maybe he’ll have something to say about it in the budget – who knows. He’s certainly not going to change his mind on the tax incentives, not as far as the dividends are concerned. Right, we’ve got time for one more question I think Tony in Cheshire – if you’ll make it quick please? TONY: Good afternoon. I’ve got a wide portfolio of TESSAs, ISAs, PEPs and all the rest of it. I’ve got between three and six thousand pounds right at this minute to – up to £6000 to invest. Would it be worth investing in an Asian? DUGGLEY: Okay right, we’ll just go quickly around this panel – Asia for this year – Alan a good one? WARNER: I like the idea but be prepared for volatility. Be prepared for ups and downs. DUGGLEBY: Alright what about you Gill – Asia? CARDY: Mmm – I have a personal antipathy towards it but I think as part of a broad portfolio if you’re prepared to take the risk and live with quite a lot of downside that shouldn’t be a problem. DUGGLEBY: And Rebecca on your shopping list? PRICE: I agree with Alan – certainly worth a little bit of a punt as long as you’re prepared to invest I think for a minimum five year period and accept the ups and the downs. DUGGLEBY: Okay. Well many thanks to you then for that. That’s Rebecca Price from Best Invest, Alan Warner from Douglas Deakin Young and Gill Cardy from Professional Partnerships and you get more information on the points we’ve raised during the programme either by ringing our information line on 08700 100 400 or logging on the website – bbc.co.uk:/moneybox where there are contacts and links to other financial websites. Paul Lewis will be here with MONEY BOX on Saturday at noon and I’ll be back to take more of your calls on MONEY BOX LIVE same time next Monday afternoon. BACK ANNO: That was Vincent Duggleby. The producer was Jennifer Clarke.