Norwich Union With Profit Bond Advice

dunstonh

col553 wrote:

So i guess your advice to my relative is to leave where it is. How will we know when to start thinking of looking elsewhere. Or where else is as good or better place to put 10k. Thanks for advice and opinions. :beer:

You need to look at this as two things.

1 - The product
2 - The investment funds.

The product is fine. Its good value, it gets cheaper after year 5 as well. There is no reason to change the product. So, the NU Portfolio bond is fine.

The investment funds within that product (which, as I said before, stand at 113 available) can be altered once a year without incurring charges. You can have upto 10 of those funds at any one time. So on 10k, he could have £1000 in 10 funds. The funds available include some of the most highly regarded in the industry. As to what funds are most suitable though, that depends on the individual concerned. Those 113 funds are spread across the risk scale . Currently he is in a medium risk fund. There are funds of lower and higher risk available or it may be that a range of funds can be used out to average out to suit his risk (ie. use some below and some above but in percentages to equal out. for example, 25% in cautious, 50% in medium and 25% in adventurous makes a medium risk portfolio as the lower risk founds counter the higher risk funds).

We cannot say what funds he should be in (well, actually whiteflag and I can but not on the public forum like this and not without the various compliance requirements being met). We know nothing about the investor and what his risk profile is or what the goals are, whether income or growth is required now or in the future or what their tax status is etc.

Only thing we can say is that whilst the NU WP fund is one of the best WP funds available, a 2001 invested version with no charges on it to switch into alternative the funds available, may now be at the stage where it is sensible to consider looking at those other funds and making an appropriate switch. To get that sort of advice, you need to see an IFA if you are not in the position or willing to do it yourself.

EdInvestor

How about cashing it in and maxing out this year's ISA - 3k in cash and 4k half and half in something like a commercial property fund and an equity income fund such as Invesco Perpetual's High Income fund via a discount broker like Cavendish or Hargreaves Lansdown who rebate the charges?

Same level of risk, much lower charges. Should do a lot better.

I can't see any point at all in anyone taking out an investment bond if they don't need the so-called " 5% tax-free income" ( actually a return of capital). Even for those that do, you can get tax free income in other ways.

For people who don't need income, there are far better ways to invest.It's the advisor that's usually making the money out of the investment bond.

dunstonh

Its plain to see why you are not a financial advisor Ed. Your information is not just inaccurate but also disgraceful that you make these sort of recommendations without any factual information to base them on.

I have reported the post to the moderators in the hope they edit it out because it isnt fair that you should influence people with your complete lack of knowledge on these things.

whiteflag_3

EdInvestor wrote:

How about cashing it in and maxing out this year's ISA - 3k in cash and 4k half and half in something like a commercial property fund and an equity income fund such as Invesco Perpetual's High Income fund via a discount broker like Cavendish or Hargreaves Lansdown who rebate the charges?

Same level of risk, much lower charges. Should do a lot better.

I can't see any point at all in anyone taking out an investment bond if they don't need the so-called " 5% tax-free income" ( actually a return of capital). Even for those that do, you can get tax free income in other ways.

For people who don't need income, there are far better ways to invest.It's the advisor that's usually making the money out of the investment bond.

Same rubbish, different thread!