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Investment Bond versus ISA/Unit Trusts/Bonds
Thomasina_2
Posts: 2 Newbie
My husband recently passed away at 60 and left me with £95k pension pot lump sum to invest.
I can leave the money for mid/long term without using it and want a low risk product. I'm not a taxpayer.
I have spoken to two different IFA's, one suggested an investment bind and the other ISA/unit trust/bonds, transferring each year to top up the ISA.
Which advice is best??? I'm very confused.
I can leave the money for mid/long term without using it and want a low risk product. I'm not a taxpayer.
I have spoken to two different IFA's, one suggested an investment bind and the other ISA/unit trust/bonds, transferring each year to top up the ISA.
Which advice is best??? I'm very confused.
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Comments
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I have spoken to two different IFA's, one suggested an investment bind and the other ISA/unit trust/bonds, transferring each year to top up the ISA.
Which advice is best??? I'm very confused.
Both could be correct, although I would tend to veer towards the 2nd one using ISA/unit trust/bonds with Bed&ISA each year.
The Investment Bond is a tax wrapper more suited to higher rate taxpayers. However it does have further uses and you're not really giving enough information to totally rule it out.0 -
Which advice is best?
Both potentially.
A lot of it will be preference on the type of servicing you want going forward and your circumstances. An IFA being employed on transactional basis may look at it as a one off transaction. In which case, an ISA and investment bond could well be best. A servicing IFA is more likely to use ISA and unit trusts and then bed & ISA each year.
investment bond isnt included in the means test for benefits (including long term care). ISA and UTs are. If you are a basic rate taxpayer (and room to spare before going into higher rate) who does not use their CGT allowance then ISA & UT is likely to be the better option. Investment bonds can be placed in trust. ISAs cant and most UTs cant or are restricted on type or not as suitable as bond.
If the advice was investment bond only then walk away. ISA should nearly always be used with either UT or bond as the next option.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 -
Thanks for the advice.0
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