AXA investments - income / future

megadishu

I have over 50K invested in I think in investment bonds - spread over lots of different companies done by my financial advisor with AXA.

My question is that I was told I could take a monthly income of several hundred pounds if needed or an annual lump sum if needed. I have not taken either option to date.

I have not been able to work properly due to serious illness for 2-3 years but have with family support managed to exist cheaply living with my other half ...

If I did take a monthly income I assume this would depreciate the capital that has been invested? Again if I took the annual lump sum again I assme this would depreciate the capital.

The surrender value is down over 10K on what I originally put in. By taking no lump sum or monthly income (I know I cannot take both) it has not increased the investment value - I sort of assume by not taking it - this would add up and increase the overall value.

Would it be a good idea to take a monthly income and invest it in currently "cheap" shares ....

I am not particularly financially savvy and currently can get no answers from my financial adviser - probably keeping his head down or rapidly trying to salvage his own investments.

dunstonh

If I did take a monthly income I assume this would depreciate the capital that has been invested?

Correct. It is done that way as its tax efficient.

By taking no lump sum or monthly income (I know I cannot take both) it has not increased the investment value - I sort of assume by not taking it - this would add up and increase the overall value.

The unit prices take account of natural income that is made and over the long run you would expect the unit price to rise. In the short term you can (and have) suffered flucuations where the unit price can go down (some exceptions apply).

Would it be a good idea to take a monthly income and invest it in currently "cheap" shares ....

You can do that. Or you can move x amount into higher risk funds within the AXA bond. It has about 300-400 funds so choice is certainly not a problem.

Taking the 5% and feeding it into an ISA can be a tax efficient option as well. Whether you buy funds or shares would be your choice with that.