Need help with investing/saving £100,000

jem16

dunstonh wrote:

The NU portfolio bond is a very good bond wrapper and offers hundreds of fund links. The guaranteed option is with profits. The current version of the fund though is not the same as the one offered 5 years ago.

Its one of the very few with profits funds that offers good potential but has real guarantees and no MVR. Last one I did is running at just over 10.5%p.a. growth on capital and has 5%pa. withdrawn (paid monthly) on top of that. I'm pre-empting Ed saying with profits are rubbish there because this is one of the few execeptions.

Where can I find out more about this and how do you go about investing in it should I decide on it?

In all my years, I have never known them offer something on the investment side that was better. On the deposit backed side, then yes, they can offer good savings accounts and fixed term savings accounts but if the investment was that good, the IFA could have placed it himself.



Ed keeps repeating this and he is completely wrong. If you read my response in the thread you will see I totally destroy Eds comments.

Yes I read them thanks. It's a pity you're so far away from me or I'd pop in and see you.

dunstonh

Where can I find out more about this and how do you go about investing in it should I decide on it?

Its an IFA only product. However, please dont take it as a recommendation. Although its a very good product with low charges, especially when you get an IFA rebate, the fund mentioned here is a minority use fund. i.e. you would really only use it if your goals happen to fit the purpose of the fund. Ignoring the fund, it is possible to get an even better priced wrapper at present due to a couple of time limited special offers running.

Yes I read them thanks. It's a pity you're so far away from me or I'd pop in and see you.

Couldnt get much further really.

montycat_2

I went to the Portman Building society .

My IFA is a friend of the family and as such advised only .I don't feel that I have to defend the choice I made ,I was just telling Jem what I did in my circumstances .

It is bad enough losing a loved one as it is .to then have to fight financial wrangles and ,set up Investments etc is very exhausting .
I am happy with the decision I made .

montycat_2

Dunstonh,
I couldn't acess the link to that post..Any other way of getting to it ?

Being thick here as well,but are you saying that Norwich Union is a good plan .Btw the deal I have has a Savings account attached to it with 7% interest for 6 months .

jem16

dunstonh wrote:

Its an IFA only product. However, please dont take it as a recommendation. Although its a very good product with low charges, especially when you get an IFA rebate, the fund mentioned here is a minority use fund. i.e. you would really only use it if your goals happen to fit the purpose of the fund. Ignoring the fund, it is possible to get an even better priced wrapper at present due to a couple of time limited special offers running.

Thanks. I was only interested as a means to further my knowledge. I realise everyone has different needs.

jem16

montycat wrote:

I went to the Portman Building society .

My IFA is a friend of the family and as such advised only .I don't feel that I have to defend the choice I made ,I was just telling Jem what I did in my circumstances .

It is bad enough losing a loved one as it is .to then have to fight financial wrangles and ,set up Investments etc is very exhausting .
I am happy with the decision I made .

I appreciate the input. As you say it is difficult to deal with.

EdInvestor

All I can say is the very best of British to anyone who has invested (in this day and age!) in a With-profits bond.

Does this bond really have no Market Value Adjuster (MVA) exit penalty facility as DH says? This is most unusual if it has "real guarantees".Just in case, may I suggest that you find out ( if you haven't already been told) whether or not this bond offers a penalty free exit date (often on the 5th or 10th anniversary of the purchase) and note it in your diary.

Please also be aware that the 5% income you are probably taking from your investment is not like interest that you get from the bank.This money will be coming out of your capital. Hopefully your capital will be making a return of at least 5% from whatever it is invested in, so it will not go down when your income is taken out.But it's wise to keep a check on the state of your capital, so as to be sure it isn't dwindling due to high charges and poor returns.This can easily happen even if the stockmarket is going up, for complicated reasons related to WP products.

I do hope that after 5 years you will be able to withdraw your capital intact having taken 5% in income from it over the period and are not due any more tax later.This will not of course be much better than a savings account in an ISA, and perhaps you should consider that next time if you have not made any profit on your bond's value.

After all there seems little point in taking risks for no extra return.

PS I do hope your friend the IFA will be enjoying his fee of at least 7% of the total amount of money you invested.

Do you think he earned it? I do hope he did.

montycat_2

I am not taking any income from it and yes ,I have checked everything you said .There is no exit penalty after 5 years .I am leaving it there for 5 years and ,doing nothing with it .
As I said I took advise from 4 different sources and I am happy with my final choice .
I mentioned it to Jem as she too has lost her husband and I wanted to let her know what I had done .
It is up to her now as to whether she follows it up or not .
As to my IFA ,he is a widower who due to our situations (both widowed with young children)was quite happy to advise FOC .
He sat with me and asked all the questions you asked above .

jem16

Montycat,

My thanks in offering your input on what you did in a similar situation to mine. I am sorry that your decision seems to have been questioned so much and hope that it does not put you off contributing in future.

Your children seem to be younger than mine - my sons were 18 & 15 when my husband died in an accident. I hope you are managing? It does get easier but the first year is always the worst.

dunstonh

Does this bond really have no Market Value Adjuster (MVA) exit penalty facility as DH says? This is most unusual if it has "real guarantees".Just in case, may I suggest that you find out ( if you haven't already been told) whether or not this bond offers a penalty free exit date (often on the 5th or 10th anniversary of the purchase) and note it in your diary.

Ed, you are not an IFA and I do not expect you to be aware of various products out there. The product mentioned on this thread has a 5 year step down withdrawal penalty (but not initial charges). After the 5th anniversary you can draw out the lot at any time following without any penalty of any sort. The amount paid will be the original investment plus daily bonus (based on a unit price which cannot decrease) and any additional bonus accrued, minus what you may have withdrawn already. Simple to understand and no hidden charges. It is never going to set the world on fire with returns but not everyone is after that.

Please also be aware that the 5% income you are probably taking from your investment is not like interest that you get from the bank.This money will be coming out of your capital.

Bit of a daft comment. Withdrawing money from the bond is the same as the bank as far as it being treated as capital. If the bank only pays 3% net and you draw 5%, then that will go down too.

PS I do hope your friend the IFA will be enjoying his fee of at least 7% of the total amount of money you invested.

The product doesnt pay 7%. Montycat seems very happy with it. It's doing what is required so what is the problem? Perhaps you should stop being critical off things you have no knowledge of.