Crunch time Withdrawing money

Susan1942

I wrote some time ago regarding taking money out of Investments bonds that I hold This was to give my son some money for a house deposit
I have now transferred the money from my current account to his
I now wish to top up my current account and still debating where to take the money from The financial advisor I had I no longer have any contact with and of course the people involved will not give you any advice
One bond has got £37,505 and the second £49,205 A third bond I don't want to touch
The origional investment was £30,000 in each
There are no tax implications as I have held both for 12 years and may withdraw 5% each year but I have not taken anything from either
My searching should I take it from the one performing better in the hope that the money will grow again
OR should I take it from the one which has performed less well It did lose £9000 in the first year or so falling to £21,000
OR should I take £5,000 from each
I could take it or some of it from S&S Isa
Any thoughts on this Would be appreciated Sue

Eco_Miser

If you take £10k from the £49k bond, you are only taking profit, none of the original capital.

Re-balancing theory (for share & funds, not insurance bonds) says you should sell some of your best performers and buy more of your worst performers, to bring your allocation percentages back to what they were originally, selling high and buying low.
You're only selling, but the theory suggests you should sell your best performer.

eskbanker

Personally I'd leave ISA money well alone, all other things being equal, in order to preserve the tax-free status.

As to which bond to withdraw from, although it's tempting to look backwards, past performance is generally no indicator of future performance so you should decide based on where they're likely to go rather than where they've been. If you need advice on that, i.e. beyond what you can research about them yourself, then best to re-engage with an IFA, although if you post details of the bonds on here then you might get some constructive comments from those who are reasonably well-informed, even though no actual advice (in the strict financial meaning of the word) can be given on here.

Susan1942

I realise that My finacial advisor has not contacted me for a long time I was a bit unhappy although said nothing when he got me to invest in Standard life with profit bond About 3 years ago I called him to ask maybe where I should take some money for a new kitchen from He was not interested Just said take it from where you like or words to that effect Since then I have had no contact with him I think may well be that because I won't have anything much in the way of money for further investing
Will leave my S&S alone it is doing quite well which is why I thought I might take something from it Thanks so much for your replies to my post Sue

AndyT678

I'm not sure what the ultimate purpose of "top up my current account" is. If it means just having £10,000 sitting around doing nothing much and maybe not even earning interest then are you sure that's the best use of your resources?

Susan1942

I keep £20,000 in my Santander Current 123 I get 3% interest up to this amount I also get cashback on utility bills etc so each month I earn over £40 + I do not have a mortgage I own a Retirement property so have a fairly hefty management fee 3 monthly
I like to have this amount in my current account so the most part if I want to buy a large item or book say a flight or holiday I can just use my current account to do so
May not make a lot of sense to a lot of people but I just like the convenience As for interest in Bank Savings there are none to my knowledge who pay 3% Some will pay higher but you can only receive this on say £2500 or so Santander 123 seems to meet my needs Thanks for your response
Sue

Susan1942

I have decided that I should sort out another financial advisor but wonder if I should just use by bank or seek a independant financial advisor ? Sue

Susan1942

I just had a thought I am a subscribe to Which and they have a money advisor so I decided to call them
There are no tax implications so that is not a problem
The advice I have been given is as someone here said there is no of predicting how things will perform in the future
His advice is that to take half the money from each bond to therefore diversity the risk
Sorry to have put all this on people on here but I do appreciate the advice

Sue