Savings/Investment for money from the sale of my house

gazzaaaa_2

I’m just about to sell my house in the UK as I live in the Middle East tax free, I’ve asked my Independent Financial Advisor what to do with my money. I was going to place money in off shore saving accounts but these aren’t covered by the UK protection so if the bank collapses that’s it! He’s therefore advising me to place it in a UK 5 year plan in various funds with a range of risks; there are tiered penalties if money is taken out before the end of the 5 year term of ranging from 10% in the first year dropping to 2% in the last year. I don’t think this is bad advise my concern is that is he could just after the commission and what happens if there’s another financial collapse I could potentially be worse off. Is there a different fixed rate investment that I could place this money in over 5 years or so or any other alternative?


Cheers


Gazzaaaa.

dunstonh

I don’t think this is bad advise my concern is that is he could just after the commission

Go fee basis if you are paranoid about a potential commission bias. That is your choice to make.

what happens if there’s another financial collapse I could potentially be worse off.

Yes, the value of the units could drop and at times will drop (unless you have a guaranteed option). The recommendation should be consistent with your risk profile. So, if the adviser has understood your risk profile correctly then the recommendation should reflect that.

Is there a different fixed rate investment that I could place this money in over 5 years or so or any other alternative?

There are tens of thousands of options available and as investing is often about opinion, there will be plenty of potential alternatives.

Taxation is an issue that needs to be considered and an offshore invesment bond could be quite suitable in that goal but it really depends on what your risk profile is and what assets/investments you intend to hold inside of the bond. The tax wrapper itself caters for the very low risk through to the very high risk and most have whole of market access or near enough.