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What can I do with my mutual investment bonds please help!!??
anchster
Posts: 9 Forumite
Hi there hoping someone can help give me some advice please
I have a 5 year mutual investment bond which was opened in 1999 and has sat there since doing nothing..I'm now trying to sort out my finances and dont know what to do wuith this.
I have an ISA from a few years ago and know that I can transfer this to a different ISA usoing a form, but can I transfer these bonds to an ISA as well or what can I do with them so I dont lose any benefits??
Do I hav to cash it in and set up a new ISA or is there another way of doing it please?
Any advice appreciated
Thanks
I have a 5 year mutual investment bond which was opened in 1999 and has sat there since doing nothing..I'm now trying to sort out my finances and dont know what to do wuith this.
I have an ISA from a few years ago and know that I can transfer this to a different ISA usoing a form, but can I transfer these bonds to an ISA as well or what can I do with them so I dont lose any benefits??
Do I hav to cash it in and set up a new ISA or is there another way of doing it please?
Any advice appreciated
Thanks
0
Comments
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I have a 5 year mutual investment bond which was opened in 1999
So what happened in 2004?I'm now trying to sort out my finances and dont know what to do wuith this.
What is a mutual investment bond? I am assuming its an investment bond issued by a life assurer but we will need more to go on. How is it invested? What alternative investment options does it offer? If 5 years, why is it still inforce after 10? What are the charges? how do they compare to modern alternatives? If you surrender the plan will it create a chargeable gain that will result in you paying tax? Some of those questions will lead on to others depending on the answers.but can I transfer these bonds to an ISA as well
Not directly but indirectly you can.what can I do with them so I dont lose any benefits??
Are you on benefits? Investment bonds are not included in means tested benefits. In fact it is one of their positive points. ISAs are. So, you need to be wary if you are on benefits as you could see a reduction if you started moving money around. (Again, this assumes it is an investment bond, pending your clarification).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi,
I'd need to go home and check exactly what kind of bond it is but I know it was with Legal and General and it was called a mutual investment bond and offered an interest rate of 7% for the 1st year, 6.5 for the second, 6 for the 3rd and 5 for the 4th year etc...Up til now, I've known it existed but not really acted on it but now the time has come.
How will I know what kind it is? I just really dont want to risk losing any benefits..
I'm not on benefits no and I would quite happily keep the bonds but obviously at a gpod interest rate...should I just phone them up and find out what they would offer me now??
Thanks for you help..0 -
Hi,
I'd need to go home and check exactly what kind of bond it is but I know it was with Legal and General and it was called a mutual investment bond and offered an interest rate of 7% for the 1st year, 6.5 for the second, 6 for the 3rd and 5 for the 4th year etc...Up til now, I've known it existed but not really acted on it but now the time has come.
How will I know what kind it is? I just really dont want to risk losing any benefits..
I'm not on benefits no and I would quite happily keep the bonds but obviously at a gpod interest rate...should I just phone them up and find out what they would offer me now??
Thanks for you help..
I think Dunston wanted to know how well it did. so what happened in 2004, what did you get back? I think thats what he meant anyway...0 -
I know it was with Legal and General and it was called a mutual investment bond and offered an interest rate of 7% for the 1st year, 6.5 for the second, 6 for the 3rd and 5 for the 4th year etc...
That doesnt sound like an investment bond. It sounds more like fixed term deposit or structured investment (sometimes known as guaranteed equity bonds). Although its working in advance with those rates of return as most start low and step upwards.
You either need to read the details and understand what it is or get an IFA to do it for you. What you describe at the moment could be a range of different things.How will I know what kind it is? I just really dont want to risk losing any benefits..I'm not on benefits no
Right. disregard those points then.I think Dunston wanted to know how well it did. so what happened in 2004, what did you get back? I think thats what he meant anyway...
No. anchester said it was a five year plan opened in 1999. So, in that case it would have matured in 2004. Its now 2009. So, whats it being doing since then? Did it mature into another product, is it not 5 years but open ended....?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Right I have now looked at the info and done a bit of phoning. The bond was with Liverpool victoria not l&g as I originally thought.
It is an open ended bond and for is now sitting at an interest rate of 2.25% but this is variable and not guaranteed. Last year I lost almost £500 onthis bond as the termination bonus was that much less
I spoke to a finantial advisor at lv who basically told me I had 3options as to what I could do with the money
1. Leave it as it is but I could lose moremoney
2. Transfer it into further bonds fixed for the next 5 years
3. Terminate the account withdraw the money and put it into an ISA one this yr and another nxt
now there is around 8000 in this bond as 6000 was put into it 10 yrs ago therefore interest gain of 2000
the ifa for lv said I had to watch out if cashing the bond in as this counts as income and I receive child tax credits at thebasic rate and cashing in the bond could affect this. So this morn I phoned the tax credit people and asked them telling them that the interest is 2000 to which tgey responded that this would cut my tax credits from 127 a month to 84 a month!!!!! I was shocked and totally don't understand this as thought tax credit was based on joint incomeso this 2000 combined with my husbands income comes well below the 55k cutoff for child tax credit!!
Now I really don't know what to do!!
Anymore advice please???
Thank you again0
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