Asset Allocation and Bonds

dunstonh

thanks, The IFA advise it as a tax free way to invets for a child, its £25 per month for 15 years?

Are these no good?

Tax free is a red herring as only fixed interest sector investments (bonds) benefit from the tax free status. Equity and property is taxed within the fund.

It is a very expensive way to do it and using a With Profits fund is weak.

Obviously, investing is about opinion but I wouldnt want my children's money there. Others may have a different view.

Lokolo

I am just waiting for whiteflag to appear

sva19

I think I may have been mis sold then ? The Bond will invest £4500 in 5 yrs and if grow at lower rate of 7% it expected to give £5610. not good eh?

Going back to my original question, does the below sound like a good diversified portfolio?

BONDS - 8%
UK - 27%
EURO (EX UK) - 20%
ASIA - 20%
GLOBAL/ EMERGING - 15%
AMERICA - 10%

At present the portfilio is heavy on Blackrock Gold 21% is this risky?

whiteflag_3

dunstonh wrote: »

Tax free is a red herring as only fixed interest sector investments (bonds) benefit from the tax free status. Equity and property is taxed within the fund.

Without wanting to sound argumentative but for the benefit of the OP, can you elaborate on your statement that equity and property is taxed within the fund? Is that normal for Friendly Societies?

dunstonh

I think I may have been mis sold then ?

No. The product fits the need it was designed for.

At present the portfilio is heavy on Blackrock Gold 21% is this risky?

Yes. very.

whiteflag_3

Lokolo wrote: »

I am just waiting for whiteflag to appear

lol

Missed this first time. I take it you knew Dunstonh was wrong as well then. Doesnt give me any pleasure buts someone's got to do it.

I was also wondering if the bond in James Bond was really a bond or just a marketing gimmick. Or the bond in Unibond or "my word is my bond" is really a bond or a bond or just simply a bond?

Lokolo

whiteflag wrote: »

lol

Missed this first time. I take it you knew Dunstonh was wrong as well then. Doesnt give me any pleasure buts someone's got to do it.

I was also wondering if the bond in James Bond was really a bond or just a marketing gimmick. Or the bond in Unibond or "my word is my bond" is really a bond or a bond or just simply a bond?

Ha I didn't actually, I actually don't have a clue on with-profit stuff. I just noticed how dunstonh said its not a very good product then the OP said this his IFA recommended it

dunstonh

Missed this first time. I take it you knew Dunstonh was wrong as well then. Doesnt give me any pleasure buts someone's got to do it.

How am I wrong?

Are the dividends/income tax free like you seem to be suggesting or are they not?

whiteflag_3

dunstonh wrote: »

How am I wrong?

Are the dividends/income tax free like you seem to be suggesting or are they not?

Are you ?

thats why I posted this which you ignored-

Without wanting to sound argumentative but for the benefit of the OP, can you elaborate on your statement that equity and property is taxed within the fund? Is that normal for Friendly Societies?

btw lokolo when I did my FPC, putting the max into a friendly society "Bond" was seen as good advice - using every tax break that was available.( even though they are not really tax free etc etc etc)

dunstonh

btw lokolo when I did my FPC, putting the max into a friendly society "Bond" was seen as good advice

Isnt a sad that an adviser still clings to exams sat over 15 years ago despite tax rules that were changed after that which altered the tax efficiency of the products. You would think a quality adviser would want to keep up to date with rules and tax changes and not live in the past to justify their advice.