'The Hartford Safety Net'

Rupert_The_Bear

Hi Everyone

I'm a recently retired new member of these forums.

I have a modest lump sum to invest - I require income from this. My IFA has recommended The Hartford Safety Net which, as far as I can gather, pays 4.5% fixed net interest tax paid while protecting the lump sum.

It all seems too good to be true - has anyone any knowledge of this type of plan/any comments ?

Rupert

dunstonh

Its correct.

Personally I am not a fan but I prefer proper investments. i.e. unit trusts/oeics/sicavs etc. (that doesnt sound quite how i want it to but i prefer funds that give you flexibility and choice comapred to packages that try to be a bit of everything). However, if that is what you want, then it does that. If you want the guarantee then that is a need the IFA has to meet. Guarantees cost so if you dont want the guarantee then it can be a waste of money.

EdInvestor

Rupert_The_Bear wrote: »

I have a modest lump sum to invest - I require income from this. My IFA has recommended The Hartford Safety Net which, as far as I can gather, pays 4.5% fixed net interest tax paid while protecting the lump sum.

Err, isn't this much the same as what's available at your local building society?

Rupert_The_Bear

Dunstonh - Thanks for your response. If I could work the 'quote' thing I'd put up the bit I want to refer to, but I can't - so......

Can you explain the bit about the 'guarantee' ? I'm afraid I don't understand.......

Rupert

dunstonh

Products that have guarantees tend to be more expensive than products that dont. Someone has to pay for that guarantee and will usually be you. This will appear in the form of increased annual management charges or reduced returns.

So, you should only go for a guarnatee if you want one otherwise you are paying for something you dont want or need. If you are happy to accept short term fluctuations then it is a cheaper way to invest and cheaper means more money in your investment over the long term. The negative is that you could lose money in the short term (or more if you go high risk investing!)