circumstances, valuable tax benefits can be claimed by using some of these funds to establish a personal pension (in Jersey these are known as Retirement Trusts). Up to a maximum £50,000 or the equivalent of 100% of earnings whichever is the lower can be contributed, in this way, so if you earn £35,000 that’s how much can be put in. But tax relief of 20% can then be claimed on this sum so that it only costs you £28,000.


Tax consideration should also be given to the assets held as growth assets are treated very differently to income assets, with the latter being fully taxable.


A plan of action


Once these points have been considered how you invest the rest of your funds will depend on factors such as your specific goals, how long will it be before access is required to the investments to meet these goals (for example to pay off your mortgage or help fund your retirement). Your appetite for taking risk with your money also has to be considered.


The golden rule Diversification, or spreading the investment across and within different asset classes to help manage risks, is the golden rule of investing. To help with diversification, many people choose to access investments through collective or pooled vehicles run by professional fund managers, such as Unit Trusts, Open-Ended Investment Companies (OEICs) and Investment Trusts.


The investment approaches used by the managers of these funds can vary widely, along with the range of asset classes,


companies, industries, countries, regions and themes they can invest in. The advantage of using collective funds is that it can be left to the experts to decide where best to invest your money. A professional Financial Planner or Adviser will be aware of your objectives and can recommend which funds are most suitable to meet requirements.


For example, should the lump sum be invested in a way that generates a regular income (whether that’s for now, in retirement or both)? Or is growth the main priority, with a desire to making the lump sum go much further?


It doesn’t have to be one or the other – a diversified portfolio or fund will often contain both income and growth-oriented investments. And depending on your particular needs and priorities, reinvesting any income you do receive rather than taking it out, is an option you can consider.


Keeping things on track Decisions about where to put your money can be complex and that is where using a professional Financial Planner or Adviser could be one of the best investments you ever make. They can help you decide what you want to get out of the lump sum invested and they will navigate you through the various decisions that will need to be made. That will include finding suitable investment options, based on your circumstances, objectives, tax status and appetite for risk.


Importantly, they will also help you keep your plan of action under regular review, so that adjustments can be made as needed over the years to keep things on track.


A new book has just been published which covers the history of the Island immediately following the German Occupation. Author Peter Body says that there are many books about Jersey's Occupation, but few have looked at what happened after the Germans left and how the Island struggled to find its feet again.


The high quality book entitled ‘A Jerseyman’s Journey’, is based around the career of former Senator Pierre Horsfall who was deeply involved in many of the main issues facing Jersey after the war, many of which are still of vital importance today. He was the president of the Policy and Resources Committee which established the Clothier Panel to try and improve government in the Island. He was also the senior politician defending the Island against moves by the EU to introduce tax rules which could have decimated the Island’s economy.


It was also a time when population issues and


immigration rose to prominence. As Chairman of the Waterfront Enterprise Board he oversaw a crucial time in its history, and he helped begin Jersey’s promotional efforts overseas as chairman of Jersey Finance Limited.


There is even an amusing section in the book where the former senator sang an impromptu Breton nursery rhyme to try and win over French fishermen meeting at the Quai d’Orsay in Paris trying to conclude the Granville Bay fishing treaty.


• The 280 page book is published by Jersey Heritage and is available from the bookshop at the Jersey Museum. Price £20.00 Beyond 20/20 - Finance Page 29


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