Cofunds

thriftybabe

My MIL has a very small holding in Cofunds. She is not quite sure what it is i.e. shares or pep holding. I have had a look at it and it says that the product is PEP, ISA & Investment funds. She is a pensioner and she was advised to take this out last year by a FA. It is a very small holding of £3645.78. She has had a charge of £111.00 taken out of it at the beginning. I take this is an admin charge or something. Surely at her age they should not be advising her on things like this. She does not have huges somes of money to be investing. Any thoughts or advice would be grateful.

McSaver

Dont worry some investment products have initial fees to start of with. some can be around 5% so thats normal.

dunstonh

Surely at her age they should not be advising her on things like this.

Why not? Many of my best clients are pensioners. Just because you get to 65, it doesnt mean you become senile. Indeed, the benefits of a fund supermarket and the use of the ISA/PEP tax wrappers can be more beneficial to the over 65s than basic rate taxpayers under 65.

She does not have huges somes of money to be investing.

If its a PEP, then she has held this over a decade. Cofunds are a major fund supermarket and like other fund supermarkets, they get a lot of their business from re-registrations and transfers from older holdings. Maybe this was an old holding transferred?

thriftybabe

I think you are right Dunston in that she has had older funds transferred over to this. My father in law and mother in law want to enjoy their retirement by going on holiday and are worried as they feel they do not have enough funds to last their life time. I would have thought that as my father in law who is 70 this year should not be looking to put his money away for any length of time as he wants to go and enjoy it.

dunstonh

I would have thought that as my father in law who is 70 this year should not be looking to put his money away for any length of time as he wants to go and enjoy it.

70 still means he could have 15-20 years or more.

ISAs and PEPs are tax free and investment with Cofunds (like any other fund supermarket) have no tie in and allow withdrawals without penalty. It is open ended. They also offer the usual 1000 or so unit trusts/oeic/sicavs which cover non stockmarket areas as well as stockmarket. They could have a high yielding bond fund or they could have a top of the risk focused equity fund. Typically risk does reduce as you get older but that doesnt mean you should go cash on the lot. Especially not at the "young" pensioner age of 70.

What people should do with their money really depends on their circumstances. If they want to blow the lot then they would typically not use invesmtents. If they want to keep a float which will probably not be used unless in an emergency, then investing is fine.