You would think it wouldn't you?  It seems like a good idea.  Everyone else does it so it can't be that bad.  Give now to get back later.  It is effortless and easy.

 

But that is the problem!  You give with the hope to get it back.

 

Have you heard of Equitable Life?  For those who are a bit younger or who did not have much interest in the subject of pensions back then this is what happened in a nutshell:

 

1. People gave to a pension company called Equitable Life
2. Governing body failed to keep an eye on them
3. Equitable Life becomes insolvent
4. People lost some or all of their money
5. No compensation offered by Government

 

To read more go to the BBC website it is a fascinating read:

 

http://news.bbc.co.uk/1/hi/business/3219069.stm

 

So could it happen again?  Of course.  There will be something else that will trigger it but as soon as you hand your money to someone else to invest then you are in troubled waters.  This is because you have a long term contract with an organisation and a lot can happen in the long term.

 

Equitable life touched thousands of people.  You are now reading about millions who are facing problems:

 

http://www.telegraph.co.uk/finance/personalfinance/investing/6005089/Up-to-5m-investors-in-doomed-with-profits-fund.html

 

If you look at the whole credit crunch issue there is a similar pattern.  People deposited their money to a bank, they invested it in toxic assets, banks nearly went in to administration however hats off to the government they saved the banks.  All it means now is that tax payers pick up the bill for the incompetence.

 

So I ask you are you going to rely on pension companies to provide for you when you are old?  Or do you want to take control of your future finances.  You know my view on this.  I can provide for myself thank you very much!  I do not need a large corporate to play with my money.

 

So is property a good bet?  Well yes if you consider that UK property is one of the most desirable assets in the world.  Your money is safe because the prospects of this country are safe in the long term. 

 

So if you want to start building a property portfolio then speak to us.

Posted on: 19th Aug 2009