With Profits ISA

pauljoecoe
pauljoecoe Posts: 223 Forumite
in Savings & investments
'The Wesleyan With Profits ISA is a Stocks & Shares ISA which accepts new investments and transfers into Wesleyan’s flagship With Profits Fund with the tax advantages of an ISA'. (*cut and paste from their website)


Does anyone have views on this as a method of regular, long term (5-8 or more years) way of investing as I lead up to retirement. (This is in addition to pension provisions and cash savings.

It has been recommended by a Wesleyan financial advisor as a moderate risk investment. charges are 5% of initial investment and 1.7% annual management charge which includes ongoing advice service.

Are Wesleyan a good company for this type of investment or are there preferable companies? I'm looking about £500 per month.
«1

Comments

  • Your_Hero
    Your_Hero Posts: 883 Forumite
    Speak to an independent financial adviser instead who can source the whole market. Wesleyan "advisers" are there to sell you Wesleyan products only even if they are bad. They are not to there give you advice unfortunately.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    pauljoecoe wrote: »

    It has been recommended by a Wesleyan financial advisor as a moderate risk investment. charges are 5% of initial investment and 1.7% annual management charge which includes ongoing advice service.

    The person who recommended it to you is a salesman who has nothing else to sell. "Ongoing advice service" means they will make sure that they can sell you more of their stuff.

    The product sounds horrific, without even looking at the T&Cs, which will probably just make it more horrific since it sounds like an outdated packaged investment. There are hundreds of investment options with no initial charges, and 1.7% annual charge is more than twice that you would need to pay for hundreds of funds on a DIY platform.

    Have you had a read of monevator?
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    5% initial to a sales rep selling an obsolete investment fund. No thank you.
    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.
  • jimjames
    jimjames Posts: 17,611 Forumite
    Photogenic Name Dropper First Anniversary First Post
    5% initial means you have to earn 5% just to stand still. And then add in charges that are 1% above normal and you can see how the advisor is being paid well for selling to you.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • pauljoecoe
    pauljoecoe Posts: 223 Forumite
    colsten wrote: »
    The person who recommended it to you is a salesman who has nothing else to sell. "Ongoing advice service" means they will make sure that they can sell you more of their stuff.

    The product sounds horrific, without even looking at the T&Cs, which will probably just make it more horrific since it sounds like an outdated packaged investment. There are hundreds of investment options with no initial charges, and 1.7% annual charge is more than twice that you would need to pay for hundreds of funds on a DIY platform.

    Have you had a read of monevator?


    Confirms my thoughts really, however I have looled at the passive investing link and am lost already.

    So if I want someone to do that for me are there any good 'low cost' providers.

    Basically if I want to invest £500 to £1000 per month for 5 years in a low to medium risk manner using my tax free allowances but without any hassle on my side what are my choices?
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Basically if I want to invest £500 to £1000 per month for 5 years in a low to medium risk manner using my tax free allowances but without any hassle on my side what are my choices?

    That will be cash savings then.

    5 years is too short for regular contributions. The risk is increased significantly and wouldn't fit with low/medium in its commonly used position.
    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.
  • xylophone
    xylophone Posts: 44,393 Forumite
    Name Dropper First Anniversary First Post
    That will be cash savings then.

    The OP's "problem" is that he is seeking a low to medium risk investment as he already has
    pension provisions and cash savings.

    He says that he wants to put away up to £1000 a month for 5-8 years in the run up to retirement and to utilise his ISA allowance.

    He might consider hedging his bets by making regular contributions to a stocks and shares ISA with half the spare cash, saving the rest into a regular savings product/using interest paying current accounts, sweeping the interest gained into a cash isa towards the end of the tax year?

    Perhaps a multi asset fund might suit?
    http://www.trustnet.com/Investments/SectorProfile.aspx?code=U:CMG&univ=U
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    He says that he wants to put away up to £1000 a month for 5-8 years in the run up to retirement and to utilise his ISA allowance.

    In post #6 he says 5 years with no indication of what the plans for the money are after that. So, perhaps we need clarification on what the objective for the money is and what will happen with it after 5 years (or 8 years or whatever it ends up being)
    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.
  • pauljoecoe
    pauljoecoe Posts: 223 Forumite
    edited 24 July 2014 at 10:56PM
    I say 5 years as in 5 years I would hope to retire and therefore not add any more to the investment. However the money accured could stay there as I wouldn't need it straight off.

    At that point we will have 2 final salary pensions with 2 lump sums plus an endowment pay out which will be in the region of 30-40K.

    I already have 12K in 6 TSB current accounts @5% and contribute to 2 First direct regular savings to the max of £600 pm. So I really can't save any more cash. Its just a case of trying to build up another pot for the future per the next 5-8 years and it could be between £500-£1000. It would be good for it to be flexible so I could miss payments if I needed.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    Good heavens! With Profits!


    I was hoping it would be like Star Trek, re-booted by J.J.Abrams., and update for the 21st Century. If it was run by Vulcans, who are scrupulously honest, I would take a punt.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards