Any information on Zuric Investments ?

glesgaguy_2

I have taken the advice of the Experts here and contacted an IFA regarding Investment for Income Bonds. She is coming to see me on Monday to discuss, however over the phone she recommended a Zuric Protected Bond (5years ?) she mentioned 7.5% with a monthly payment, 80% capital guarantee, from what I could gather the payments are more of a drawoff of capital up to 7.5% with the hope of the capital growing over a period.

My question is does anyone know of these investment bonds, I asked if there was any info on the Web but she said there wasn't, I would like to have more info before she arrives, forearmed and forewarned ?

Anyone have any thoughts or info.
Thanks

dunstonh

If you want some capital security then it is a perfectly valid option. Like all options that offer some security or guarantees, you would expect the upside to be handicapped and/or cost more than investments without those protections.

glesgaguy_2

Given that the plan is acceptable can someone explain how they work?
she did also mention that there would be no tax liability,
why can't find any information on the web?
I am looking for a monthly return, could I expect a drawoff of 7.5% divided by 12 as a return or would it be variable ?

The amount is 40K BTW

Seemore_2

http://www.zurich.co.uk/life/aboutus/Buying+our+plans.htm

Zurich's own website doesnt seem to be particularly forthcoming either. It appears they only conduct their business via IFA's.

This would make me a litttle nervous to be honest.

dunstonh

Given that the plan is acceptable can someone explain how they work?

Surely that is what you are paying the adviser to do?

she did also mention that there would be no tax liability,

Correct. there is no further liability for a basic rate (or lower) tax payer.

I am looking for a monthly return, could I expect a drawoff of 7.5% divided by 12 as a return or would it be variable ?

You can draw a fixed 7.5% but you would be relying on the investment achieving that to ensure no capital deduction. I suspect that you will find the capital value fluctuates and you will see periods of loss as well as gain. It will most likely struggle to achieve 7.5% average over the long term and you will see the capital erode.

Zurich's own website doesnt seem to be particularly forthcoming either. It appears they only conduct their business via IFA's.

This would make me a litttle nervous to be honest.

Cant see why that would make you nervous. Providers have a liability when they provide information. If they are not retailing directly to consumers then why run the costs and liability of going over the top in providing information that the IFA has the liability to provide.

If the IFA isnt explaining it to you then dont use them and find one that can. If you havent told the IFA that you dont understand it then they wont know until you do.

glesgaguy_2

Seemore wrote: »

Zurich's own website doesnt seem to be particularly forthcoming either. It appears they only conduct their business via IFA's.

This would make me a litttle nervous to be honest.

You're confusing me:eek:
I thought that IFA's were recommended here, if the product is only available through them then surely it should be fairly solid.

Thanks for the link

Seemore_2

glesgaguy wrote: »

You're confusing me:eek:
I thought that IFA's were recommended here, if the product is only available through them then surely it should be fairly solid.

Thanks for the link

Apologies , I would certainly recommend using an IFA, but like yourself I do feel more assured when I can research further independent information on a product myself e.g via the web.