Re- Invest my cash isa into Prudential Investment Plan

DD67

My financial adviser has suggested that my wife and I cash in our cash isa's and invest in a Prudential Investment Plan .Would this be a wise move as we are both now retired and do not want to put our money at any risk(although the returns for income would be higher than the isa's)

Cisco001

Have you max out those high interest current a/ c before stick them to cash isa?

bigadaj

Why has your advisor suggested this change?

It's a move up the risk scale and you are losing the tax shelter though you can remove money tax free, your money is going into investments so far more risky than cash isas.

It may be better to transfer some of the cash money to stocks and shares isas if income and capital growth are required, though you have to understand the risk or more accurately volatility that such a change would involve.

I'd also want to know how and what this will cost in terms of advisor fees whether paid by you or by commission/ referral.

mike88

Sounds daft to me but the switch will gain the financial advisor a healthy commission check. Higher risks and loss of tax shelters for retirees are not good reasons to change.

Linton

Whether it's a sensible idea or not could depend on:
- how much money is involved?
- what other savings/investments do you have?
- do you need the money to supplement your income or is it for the long term eg inheritances?
- what is the plan invested in?

Presumably these are the sort of factors that your advisor has discussed with you. Does the documentation you have from him/her give reasons for the choice?

Steve_Chin

Research shows many expatriates hold expensive financial products they don’t need.

These offshore investments often swallow the returns that should be in your pocket.

Our objective is to give you all the information you need to get better results.

You therefore only ever get what you need and value.

dunstonh

Commission was banned at the end of 2012. So, it wont be for commission purposes.

The Pru plan is commonly used with inexperienced investors in retirement. So, the mention of it does not surprise me.

It is a risk based investment (although everything has some risks - including cash. Especially if you are drawing a regular income from it as cash can be subject to more likely risk outcomes than investments - such as shortfall risk and inflation risk).

ColdIron

Steve_Chin wrote: »

Our objective is to give you ...

Our? I can feel it coming