AXA Flexible Bond

bertsilver

My partner put in £10k in a AXA Flexible Bond in 1994, it is currently worth £20k, so that’s £10k in 17 years.

Is it best to leave it in or take it out and invest in an ISA, or something else?

dunstonh

You have told us about the tax wrapper it is in and the tax wrapper you are considering but you havent told us about the investments, charges and any potential tax situation caused by partial or full surrender. So, we cant say if its best.

S&S ISAs are more tax efficient than the investment bond wrapper. So, generically, the tax position is better as long as the surrender doesnt give rise to increased tax. Many investment bonds offer low cost funds. Although that is a more recent development than 1994 bonds. However, its possible that yours is lower cost than the ISA and any tax saving could be wiped out by an increase in charges if not reviewed correctly.

bertsilver

dunstonh wrote: »

You have told us about the tax wrapper it is in and the tax wrapper you are considering but you havent told us about the investments, charges and any potential tax situation caused by partial or full surrender. So, we cant say if its best.

S&S ISAs are more tax efficient than the investment bond wrapper. So, generically, the tax position is better as long as the surrender doesnt give rise to increased tax. Many investment bonds offer low cost funds. Although that is a more recent development than 1994 bonds. However, its possible that yours is lower cost than the ISA and any tax saving could be wiped out by an increase in charges if not reviewed correctly.

Sorry didn't really understand any of the above.
Just wanted to know if it was a good return, and should she leave it in or put it somewhere else.

dunstonh

Just wanted to know if it was a good return

You havent told us anything about it though. You have told us the provider (AXA) and the tax wrapper (investment bond) but not the investments within it. You are then comparing to an unknown provider using a different tax wrapper (ISA) but again no investments.

To put that another way, you have asked us to compare two things without actually saying what those two things are.

jimjames

bertsilver wrote: »

Sorry didn't really understand any of the above.
Just wanted to know if it was a good return, and should she leave it in or put it somewhere else.

No its not a great return to get in 17 years. However some other investments have done better but others have done worse. As Dunstonh says without knowing what is in it the comparison is hard to do.

bertsilver

Where will I find the information you require?