Family Investments

Cliddy

Has anyone saved in Family Investments (previously called Family Assurance). I have paid in for years now into Sovereign 3 Series 1 + 4 it's rolled over into different accounts on maturity and goes on and on (it's tax free though). Does anyone know how to get the performance of these over the years and generally if they're any good ? My feeling is that they're not, but have left them to drift as it's "only a small amount" each month. At the last check I have about £9k which could be better placed elsewhere probably.

Cliddy

Nobody replied to this since the beginning of the year. Makes me think I'm the only one in the world with these ! Are they worth keeping ?

Cliddy

I know it looks desperate, but I still wonder if there is anyone out there with Family Assurance Bonds.
I'm only hanging on to them because they are tax free, but would still value a second opinion.

dunstonh

They are not very good and the small benefit of them being tax free is usually wiped out by the significant charges and often poor investment choice.

The tax free part, whilst correct, is a bit of red herring. You wont pay any CGT on the gain. However, at £25pm for 10 years you arent exactly going to get in to CGT territory. As for income within the investments, equities and property are treated the same as if they were not tax free except you dont have any higher rate tax to pay. If you are not a higher rate taxpayer then that is no gain. The fixed interest element within the fund can claim the tax back and that is really the only area that benefits everyone. However, thats the same as the more flexible ISA.

cjj_2

Nearly certain this is who I used. Payed in for many, many years and ended up getting out more or less what I put in. This was last summer when I withdrew
Hope this helps x

Primrose

I've not heard of them but can't understand why they have anything special to offer. Transferring the money to a Cash ISA or combination of Cash & Equity ISAs would probably be better. You can then withdraw at any time or still subscribe on a monthly basis if you want to continue making a regular investment. At least with a Cash ISA you also have the option to transfer to an Equity ISA if you want to and the proceeds will still be tax and capital gains free.

Cliddy

Where did you all come from after all this time !!
I think you have stirred me up to do something about it. I.e cash them in.
Many thanks.

Reaper

Just to give the other point of view...

There are lots of different plans with different rules. While they are a poor investment for the first 10 years the fund they switch you to after that usually has much lower charges.

Before you withdraw on the basis of high charges you should double check what it is costing you. It may not be as bad as the comments above suggest.