Irish Life International Spanish Portfolio Bond - Is it a good idea?

Cautious_Investor_3

missile wrote: »

Living in spain it makes sense to invest with a spanish IFA / investment house. There are many to coose from. Just like in the UK there are a few good, most are average and many are spivs in suits.

Wouldn't it make sense to use an IFA, Spanish, British or otherwise who is used to dealing with British ex pats?

missile

Cautious_Investor wrote: »

Wouldn't it make sense to use an IFA, Spanish, British or otherwise who is used to dealing with British ex pats?

Most will find it easier to deal with a Brit and there are many of those in spain. I prefer to meet and deal with an IFA face to face.

littleflower

Cautious_Investor wrote: »

Hi

As I thought, a range of funds within a single tax wrapper.

I do not know what other investments you have or how much you propose to invest in this bond, nor do I know your attitude to risk, however I would make the following observations:

1. 37.5% in the Brandeaux fund is a large percentage in one very specific type of property fund. The key to property is diversification, both geographically and between industries. I would be wary of such a large proportion in one single, very spcific area

2. Diversification comes from having exposure to a variety of asset classes, you have no exposure to Corporate Bonds

3. Despite what I say in point 2, four funds would seem to be too few

overall I'd say it was a curious portfolio, I'd be interested to know how much you are investing and what process the financial adviser went through to select these funds.

The Cautious Investor

The investment amount is £20,000 and with regard to the selection process, I cannot comment as the IFA gave me this breakdown with no reasoning behind his selection, should I ask for more information. I sound so green - but I definately feel somewhat out of my depth.

Cautious_Investor_3

littleflower wrote: »

The investment amount is £20,000 and with regard to the selection process, I cannot comment as the IFA gave me this breakdown with no reasoning behind his selection, should I ask for more information. I sound so green - but I definately feel somewhat out of my depth.

Hi

Don't worry about feeling "green" if you have not done somehting before why should you know how to do it?

£20,000 doesn't sound much for an offshore investment bond, in my experience the charges on these tend to be high and they therefore tend to be used for larger funds.

Have you had an illustration to show what charges are being taken?

What percentage of your overall wealth is this £20,000 (not including the property you live in)?

How much risk to you want to take with the £20,000?

The Cautious Investor

dunstonh

The investment amount is £20,000 and with regard to the selection process, I cannot comment as the IFA gave me this breakdown with no reasoning behind his selection, should I ask for more information. I sound so green - but I definately feel somewhat out of my depth.

Are you sure its an IFA? You say you are based in Spain. So, are you getting advice from a UK based firm or is a UK based adviser coming out to see you in Spain?

Or is it someone in Spain that is regulated under Spanish rules that is calling themselves an IFA to make you think you are getting the same standards you would expect in the UK? This is serious as expats have suffered big time over the years, in particular Spain, where they have seen sales reps who were not qualified or authorised or regulated to UK standards selling products that were obsolete and often quite useless and expensive. A lot of the people seeing those sales people were given the impression they were seeing IFAs but they were not.

Investment bonds typically tend to become suitable with much larger amounts than £20k. Especially offshore ones.

littleflower

I appreciate all the advice I so quickly and easily, and have decided to make an investment elsewhere, with less return but less concerns. Thank you all for the responses.

expat_mike

Hi all,

Having read the posts here I'm a little concerned as I'm about to place 50k with Irish Life International Spanish Portfolio Bond based on the advice of a Spanish based company, Abbey Financial Solutions in Malaga.

Their advice on the make up of the investments was as follows:

40% - globally managed, defensive - low to medium risk
28% - student accommodation/property - low risk
20% - UK equities - medium risk
10% - Asian equities - medium risk
2% - cash

I do have a seperate QROPS in Guernsey for just over 200k where I believe the charges are a reasonable percentage of the investment.

However, the 50k (not a pension pot) I have is sitting in a current account in the UK with Santander and earning no interest and I was looking for some return over 2-4 years whilst drawing down cash from the 50k over 2-4 years.

My question to anyone that can help is are the charges likely to be too high for a 50k investment and more importantly how safe is it with Irish Life considering the current volatility in Ireland.

Additionally, should I consider a fixed term savings account as a more secure alternative like a sterling savings account with my Spanish bank. I've been offered for a 12 month investment a interest rate of 2.25% plus interest on the 50k based on stock market performance. The capital is guaranteed with no charges.

Thanks in advance.

Mike

Cook_County

expat_mike wrote: »

Hi all,

Having read the posts here I'm a little concerned as I'm about to place 50k with Irish Life International Spanish Portfolio Bond based on the advice of a Spanish based company, Abbey Financial Solutions in Malaga.

Their advice on the make up of the investments was as follows:

40% - globally managed, defensive - low to medium risk
28% - student accommodation/property - low risk
20% - UK equities - medium risk
10% - Asian equities - medium risk
2% - cash

I do have a seperate QROPS in Guernsey for just over 200k where I believe the charges are a reasonable percentage of the investment.

However, the 50k (not a pension pot) I have is sitting in a current account in the UK with Santander and earning no interest and I was looking for some return over 2-4 years whilst drawing down cash from the 50k over 2-4 years.

My question to anyone that can help is are the charges likely to be too high for a 50k investment and more importantly how safe is it with Irish Life considering the current volatility in Ireland.

Additionally, should I consider a fixed term savings account as a more secure alternative like a sterling savings account with my Spanish bank. I've been offered for a 12 month investment a interest rate of 2.25% plus interest on the 50k based on stock market performance. The capital is guaranteed with no charges.

Thanks in advance.

Mike

So...how are the QROPS and the bond taxed in Spain under Spanish tax law?

toribio

I am also about to invest £29k in Irish Life Spanish Portfolio bond. I'm an expat living in Spain. Have been advised to invest in Ashburton Sterling Asset Management - 18k; VAM Multi Strategy Fund - £9,550 and Irish Life Sterling Balanced Fund - £1,450..... Like Lyn in the original post I am a bit green with investments and this is pretty much all I have. Any advice would be so gratefully received.

Tony_F_3

Does anyone have any information on ILI Portfolio Bonds being marketed for France?