£100,000 to save where?????

jamesd

Offshore bonds can be useful. See the bond part of You can still earn more offshore and Offshore investing doesn't have to be taxing. It's also possible to use offshore bonds to time when you take capital gains, so you can take income for a few years then no income during a year when you cash in the bond and take capital growth. That way you can reduce tax on large amounts of capital growth.

In your original post you wrote "Will be emigrating abroad in 1/2 years" and that indicates why an offshore bond may be more suitable for you than an onshore one: you can get tax free growth offshore, not bring that growth into the UK, then emigrate and not have to pay the UK tax at all because you won't be in the UK when you take the lump sum.

So, the second one seems to be more on track for meeting your needs. What did he say about which investments to use within the bond?

pspsi_cola

jamesd wrote: »

Offshore bonds can be useful. See the bond part of You can still earn more offshore and Offshore investing doesn't have to be taxing. It's also possible to use offshore bonds to time when you take capital gains, so you can take income for a few years then no income during a year when you cash in the bond and take capital growth. That way you can reduce tax on large amounts of capital growth.

In your original post you wrote "Will be emigrating abroad in 1/2 years" and that indicates why an offshore bond may be more suitable for you than an onshore one: you can get tax free growth offshore, not bring that growth into the UK, then emigrate and not have to pay the UK tax at all because you won't be in the UK when you take the lump sum.

So, the second one seems to be more on track for meeting your needs. What did he say about which investments to use within the bond?

Thankyou thats really helpful jamesd. I was really weiry about offshore as i thought they were dodgy but reading the links you provided have reassured me.

He said he was going to put all my savings under 1 portfolio bond (AIG) but then i mentioned i wanted to spread the risk and put it in to several bonds all under the AIG portfolio. He said that was ok. He mentioned bank of scotland international (i think), nationwide (i think), IOM and some others that i am familiar with that are on shore too. Was he advising me correctly?

Also am a bit worried since the leaflet he left me said that AIG life international is NOT covered by the UK financial services Compensation Scheme. Instead its covered by IOM life assurance regulations which provides up to 90% cover of the value of policies. How reliable would they be?

One last question - if i go for offshore and when i declare the savings, will i still be able to claim WTC and CTC?

Thankyou.

pspsi_cola

I was having some doubts about the offshore advise given and something didn't feel right, so i rang yet another IFA today as to his opinion on what the other IFA advised.
Low and behold he talked me through it and made me aware of many things that the other IFA didn't! ie - it involved stocks and share so it carried risk, that there were charges to set up (other IFA said there weren't) and a fund manager charge. He said that whilst the managed portfolio bond was great for when i emigrate, it didn't take into account the risk i was prepared to take. So now i have a meeting with this other IFA. This will be the 3rd IFA i see.

This really makes me doubt IFA intentions and i am that close to sticking it all in high interest savings account, just to be done with it!

any advice re the above greatly appreciated.

jem16

You say you are emigrating in 1/2 years and this money is the proceeds from your house sale here.

How long will this £100,000 be saved for? Will you need access to this money in 1/2 years when you emigrate or are you not planning on touching the money?

If you need the money in less than 5 years you should stick purely to savings accounts. For that you do not need the services of an IFA who is there for investments.

If you intend to not access the money for over 5 years then savings is not a good option as inflation will eat away at the value.

pspsi_cola

jem16 wrote: »

You say you are emigrating in 1/2 years and this money is the proceeds from your house sale here.

How long will this £100,000 be saved for? Will you need access to this money in 1/2 years when you emigrate or are you not planning on touching the money?

If you need the money in less than 5 years you should stick purely to savings accounts. For that you do not need the services of an IFA who is there for investments.

If you intend to not access the money for over 5 years then savings is not a good option as inflation will eat away at the value.

hi jem,
the money will need to be saved for max 2 years. I will be taking it with me when i emigrate as i will buy my next home with it over there. I guess what your saying makes alot of sense - maybe savings accounts is the way to go.

pspsi_cola

cometo think of it - what about a normal off shore savings account. would that work for the time span i have?

Really sorry i am all over the place with this.