stick or switch

daniel80

My wife invested £100000 through Lloyds into Scotish Widows flexible option bond. [see previous post] 5 years will be up in April which means no exit fees.The bond was 80% sw mixed life 20% sw property. I have since swapped the 20% propert to sw invesco perpetual high income. This bond is now worth about £113000. The money was from company shares to go towards her pension. She is a higher rate tax payeer and probably wont need to touch the money for at leasr another 5 years, she is 55. We dont know weather to leave the money where it is or to put it elsewhere. I am also 55 have taken early retirement with a pension of £18000.pa and have a portfollio of about £65000. We have used cash isa allowance. My wife will probably work until at least 60. Any ideas would be of great interest. Also what are the tax implacations on this bond. Thanks once again for any advice/wisdom.

daniel80

I would also like to know do people think this is about average returns for this type of fund during the last 5 years. After thought I think to reduce risk we will look at fixed rate savings,bonds etc as like I said this is mainly for her pension.

AppleMatt

13% growth over 5 years is 2.6% per year which, in my personal view, is a lousy return and I would be moving my money. Inflation has been above 2.6% for a good chunk of the last 5 years, so I fear the money has actually lost value.

I am far off any kind of expert, so cannot feel comfortable with recommending or advising you want to move to. Sorry!

daniel80

Thanks for your reply Applematt. I also thought the return was not good but then I suppose the way the markets have been during that time some funds will be worse or perhaps even lost money.