1. Are you 50? Rules are changing
_
Did you realise that your Retirement Options are changing from 5th April 2010? After 6th April 2010 you will need to be age 55 to draw any pension benefits.

Some firms are actively encouraging clients to draw their tax free cash prematurely before the rules change. Whilst you need to be aware of this option, please understand that this could reduce your final pension benefits at retirement. For advice on these changes please contact us.

ISAs
Another rule change affects those at 50+.
ISA allowances have now been raised for this tax year:
£20,400 per couple, making ISAs an excellent tax efficient investment vehicle.

2. Cash: making it work harder
_
Are interest rates set to remain miserably low? You may be sitting on a large pile of cash right now, as many of us have taken refuge from the financial ups and downs of the last 18 months. These are unprecedented times and we all need to think differently about making our money work for us going forward. Beyond the fixed rate cash bonds we can all check out on the comparison websites, there are some other ideas worth considering:

The Freehold Income Trust (FIT)
_
An investment which currently yields over 4% return plus growth and has never fallen in value in 15 years.

Life Settlement Funds
_
With yields of up to 8% per annum being achieved by buying into the American life assurance market.

Lower Risk Absolute Return Funds
_
Aims to beat inflation, creating steady growth and trying to protect the downside. Can be useful as part of a wider portfolio.

3. Should you reduce your risk?
_
We have just been through the deepest economic downturn since the Great Depression. But things will get better, won't they? Potentially yes. But where will this journey take us next? History tells us this won't be the last crash.

Market crashes
_
1987 BLACK MONDAY
1992 BLACK WEDNESDAY
1997 ASIAN FINANCIAL CRISIS
1998 RUSSIAN FINANCIAL CRISIS
2000 DOT-COM BUBBLE BURST
2001 SEPTEMBER 11TH ATTACKS
2008/2009/?
GLOBAL FINANCIAL CRISIS

For some, riding the roller coaster over the long-term is fine, but for others, timing can be earth shattering:
_
if you're in drawdown and your 5 yearly review takes place during a trough... you would be seriously affected;
_
if you reach 75 at the bottom of the markets... your annuity rate could
be ghastly;
_
you're made redundant in a slump... you may have to take your pension.
_
The scenarios are numerous.

Risk reducing
_
ABSOLUTE RETURN FUNDS
DISCRETIONARY MANAGEMENT
FUNDS
SINGLE ASSET FUNDS

Risk is a personal choice. But reducing risk may be sensible. Put another way - we all drive different cars and have different styles of driving, but we all wear a seat belt. There are a number of ways of reducing risk in your portfolio. They are best discussed on a case-by-case basis.