Have we recieved good advice

teenybash_2

I hope someone can help, My husband and I have a couple of Isa's and we want to cash one in as we need to do some building work. The advisor at Lloydstsb has said that we should cash one of the Isa's that is doing well and has made around £1500 this year as she thinks that there is going to be a "dip" and we could lose money. Does anyone think that this is correct as we are wary of cashing in an Isa that is doing well. Thanks

saintalan

Hi and welcome to the forum.

Are your ISAs Cash or Stocks&Shares? Sounds like it might be the latter as you cant actually "lose" money from a Cash ISA.

Also are they this years or previous years.

Am sure somebody will help with more info.

Alan

dunstonh

The advisor at Lloydstsb has said that we should cash one of the Isa's that is doing well and has made around £1500 this year as she thinks that there is going to be a "dip" and we could lose money.

I didnt think Lloyds had any advisers any more. Are you sure this was an adviser and not a bank clerk with an unqualified opinion?

For example, were compliance warnings given about not being able to replace the ISA allowance used up when you make withdrawals?

teenybash_2

Thank you for your replys, the adviser in my local branch has been made redundant so we were asked to go to another branch where we were told there was a lady "who deals with Scottish Widows". The Isa is a capital protected fund and I think she meant that we could lose some of the profits as she thought that there is going to be a dip in the economy.

saintalan

teenybash wrote: »

Thank you for your replys, the adviser in my local branch has been made redundant so we were asked to go to another branch where we were told there was a lady "who deals with Scottish Widows". The Isa is a capital protected fund and I think she meant that we could lose some of the profits as she thought that there is going to be a dip in the economy.

Hi again, still difficult to comment without a fuller picture.

You say a couple of ISAs, are they both the same or one that's been added to? Is one in Cash?

In general your type of investment is viewed in the longer term, so nobody is that qualified to project the short term. It may be better if you have a Cash ISA to use that, if you don't and there are no other non ISA options available to you then I guess you would have to bite the bullet!

Cheers

Alan

dunstonh

The Isa is a capital protected fund and I think she meant that we could lose some of the profits as she thought that there is going to be a dip in the economy.

Is this a unit linked investment fund or a SCARP (structured capital at risk product). The latter was typically sold heavily by LloydsTSB branches by Scot Widows reps. Normally 6 year fixed term products with an element of capital security IF HELD TO MATURITY (not if surrendered mid term).

Did she mention the costs of early surrender on these?

teenybash_2

Hi,the account states capital protected fund 14 shareclass m, we do have another Isa the same as this one,a cash Isa and global growth one . I think what I am really asking is do you knowledgeable people think there will be a dip in the economy. Also is it correct that a bank employee should not advise you!!
She did say that there would be no penalty's, Is that the same thing?

jimjames

A bank employee can only advise on their own products not what is best for you.

A dip in the UK economy may not have any impact on the stock market especially as 70% of income comes from outside the UK.

Unless we know exactly what the terms are we wouldn't be able to comment on the details or penalties but I would be VERY cautious of accepting any advice from your bank based on their thoughts of where the economy may be going.

BLB53

The bank employee cannot know the future direction of markets - I would ask the bank to put that advice in writing - of course, they will not agree to do that!

Vortigern

BLB53 wrote: »

The bank employee cannot know the future direction of markets

...and neither can anybody on here!

robtgossard

Savings are for rainy days. I believe it’s better to draw from your savings than to take a debt. Living a debt-free life has its pluses, and on the other hand a life of debt makes living difficult