info on a legal and general bond

guspoppy

Hello , i am looking for some help and advice.
In 2009 my hubby decided to put £17,000 of our money in a legal and general capital protection bond for 5 years. I'm bit annoyed with him as he did it without telling me!
He meant well , but I dont know anything about the l&g bond , and to be honest I dont think he does either.
Can anyone give me any info on it.......

Thanks. Poppy.

PC_Gabriel_Kent

Have you asked L&G by any chance??

dunstonh

What L&G bond version is it? (they have multiple types and have had variations depending on the distribution channel (i.e. via a bank, direct or through an IFA).

If you dont know anything about it, how can you be annoyed about it? Wait until you find out about it then have a go at him.

guspoppy

He went to the alliance and leicester and spoke to an advisor , who recommended the capital protection growth bond , with 5 year guarentee. it says the money is invested in L&G life with profits fund.

I was annoyed at hubby because like me , he knows not much about bonds etc and he agreed to do it as it sounded a good deal.
I have read the booklet but i still dont really understand it...i know i'm dim!

poppy..x

dunstonh

He went to the alliance and leicester and spoke to an advisor , who recommended the capital protection growth bond , with 5 year guarentee. it says the money is invested in L&G life with profits fund.

Thats a pretty poor choice of investment in a tax wrapper that is typically best for over 65s or higher rate taxpayers (and should only really be used after S&S ISAs are utilised) and also the most expensive distribution channel you can get.

You can now slap him as he has made a poor decision.

guspoppy

Thank you dunstonh , I thought it wasnt good decision.

I realise if its withdrawn early we wont get our full money back.But if left in there for the full 5 years , do you think there is a chance we will get all our money back?
There was a letter saying Alliance and Leicester no longer deal with L&G , so I assume we deal with L&G directly now , will this make any difference?

Im sorry to ask silly questions , but I really appreciate your knowledge.

dunstonh

You may actually want to consider it a potential mis-sale. The investment bond tax wrapper should nearly always be used after the S&S ISA allowance has been used up. Also, a unit trust would have been more tax efficient. So, what justification was there for paying more tax? Typically you dont find investment bonds being tax efficient until you get to around £100k. £17k is just not enough. A&L (and the other banks) are prone to over selling these.

Some of the L&G bond versions allow access to other funds. that could be investigated.