WHAT TO DO WITH A FLEXIBLE BOND WITH PHOENIX LIFE

Susan1942

I have held this bond since October 2003  The amount invested was £30,000. I have taken £5000 from it about 10 years ago to help my son with a deposit to buy a house. I was quite shocked when I received the annual statement about a week ago.  Currently the value is £41,083.  The value in 2024 was £40,996 which means it has only £87 in the past 12 months. 
I did post this already on another Thread as I could not remember how to start a New Thread which the advice of a member on MSE Forum I have been able to do now.   I am really at a loss as to what I should do with this bond  When I am looking at banks and the interest paid many of the higher interest banks are ones I am not familiar with which leave me with some anxiety. 
I realise I can just leave it where it is and hope that it may improve over the next 12 months.  
I would appreciate advice on this  Many thanks Sue 

Susan1942

I now see that they took £420.31 in admin charges 

dunstonh

Susan1942 said:

I now see that they took £420.31 in admin charges 

So, it's running a bit cheaper than a high street savings account.

Currently the value is £41,083.  The value in 2024 was £40,996 which means it has only £87 in the past 12 months. 

That won't be down to the bond.  It will be down to the investments held in the bond.   The change in value suggests it has little or no stockmarket content.   

The investment bond tax wrapper is probably not the best for you.   It is also possible that investing is not the best option for you.  Although seeing as you have left it alone for so long, if you plan to do so again in the future, then investing could be the best option.  If you plan to spend the lot in the short term, then not.

Your options are to keep the bond as it is.  Change the investments within the bond or Surrender the bond and select something else.

Susan1942

Thank you for your response.  I do not need to take any money from the bond.  It does say in the detailed Phoenix SM GILT AND FIXED INTEREST LIFE. NO OF UNITS 7,879.45 UNITS 

dunstonh

Susan1942 said:

Thank you for your response.  I do not need to take any money from the bond.  It does say in the detailed Phoenix SM GILT AND FIXED INTEREST LIFE. NO OF UNITS 7,879.45 UNITS 

I thought you would come back saying something like that.   Gilts and fixed interest went through their worst period in over 100 years from November 2021 to October 2023 (2024 was largely flat - couple of false downs and retreat and going nowhere, but 2025 is much improved).

The old Socttish Mutual bonds do have a wide enough fund range to choose a better fund option of combination though.

Susan1942

It says accumulation  IFC as % of fund +1.02% change in bid price =0.21%  When I first had this bond it  fell to around £21-22,000  from the £30,000 This was in the first 9 months or so.  My bank manager told me to leave it which I did.  I have not lost any money just not grown as much as I hope.  I am a bit adverse to investing in shares etc.  For now I don't see that I will have any need for this money in the short or even long term.  Thank you again for your advice I appreciate it.   Sue 

dunstonh

My bank manager told me to leave it which I did.  I have not lost any money just not grown as much as I hope

It was a marginal step up from cash savings.

.  I am a bit adverse to investing in shares etc.

Which is a shame as in the same period you would have made so much more despite there being multiple stockmarket crashes in that period.   Your fund is the one at the bottom.    Fund C would be the one that most of the population is suitable for. i.e. the middle ground.

Susan1942

They say I can change the funds my plan is invested in.  I can make 12 switches a year at no cost.  After that there is a charge of £15.
They say if I wish to change funds that I am invested in to contact them but I would not really know what or where to go.  The other investments I have are performing better than this one,  
Again thank you for looking at this for me.  I do appreciate it. Sue 

Susan1942

I know too that I have got too much money in my current account.  Santander pay interest up to £25,000 but that is reducing to I think  2.0% in December 

DRS1

Susan1942 said:

I know too that I have got too much money in my current account.  Santander pay interest up to £25,000 but that is reducing to I think  2.0% in December 

Not sure if you get it with your current account but there is a Santander Edge Saver which pays 6% on up to £4000.

DRS1

Susan1942 said:

They say I can change the funds my plan is invested in.  I can make 12 switches a year at no cost.  After that there is a charge of £15.
They say if I wish to change funds that I am invested in to contact them but I would not really know what or where to go.  The other investments I have are performing better than this one,  
Again thank you for looking at this for me.  I do appreciate it. Sue 

Can you ask them for details of the alternative funds available - I am guessing there is a limited number of them.