Liquid savings of £125,000

CPhoenix

Hi guys,

I've been lurking for some time but now I think I could do with some help.

My girlfriend (who doesn't live permanently in the UK) in the past has a few bad run-ins with Financial Advisers (specifically, she was recommended to invest in an AXA's With Profits Bond which turned out to be a worse saving plan that just pumping the money into a HISA - I think she's locked into 5 years bond and was getting around 4% & under), but now she is looking to sell her house (£125,000 with no mortgage) and put this money into some form of savings.

She would like to keep these liquid incase she needs to call on them at any time but we are unsure of where to turn and very weary of asking help from Financial Advisers.

Please could some offer some ideas of what she can do?

Cheers

CP

Cook_County

It really depends on the tax position where she lives because any best UK advice could be a disaster in another country. So where does she live?

CPhoenix

Thanks for getting back to me.

She's from Japan.

Jonbvn

If she is non-resident for tax purposes, then an offshore a/c may be a good plan. Need more info to say anything more.

I.e.
1. What is her tax status?
2. What rules does Japan have regarding tax on worldwide income?
3. What term is she looking for?
4. What is her risk profile?

CPhoenix

Yes, she's non-resident.

I've been discussing this with her this evening and I've advised she contacts a Japanese Tax Law specialist as here (http://www.hi-ho.ne.jp/yokoyama-a/taxationinjapan.htm#Individual%20income%20taxes) suggests that since she's Japanese resident she will have to declare all income here to the tax office in Japan.

As far as a term... she was looking to have instant access to this if possible.

Risk profile... as little as possible.

Sorry for the short reply... I'm getting sleepy now


Thanks so much for all your help

dunstonh

Is the AXA bond an onshore bond or offshore bond?

Some of AXAs bonds have access to unit linked as well as the unitised with profits fund so you may be able to switch without incurring a penalty.

That said, if she is still in the initial 5 year period you would expect a better return than 4% p.a. on the AXA with profits fund. Are you including the terminal bonus in your figures as that is where the bulk of the return is now. Not the annual bonus.

we are unsure of where to turn and very weary of asking help from Financial Advisers.

So asking unknown individuals on a website who know nothing of your situation giving you no consumer protection is any better?