Where to put your cash.

Beatrice78

Hi I am posting this thread on behalf of my father.

He had £8'000 in an AXA investment bond via the Bham Midshires started in May 04. It did increase to £10'100 but has now fallen to £9'600.

He hasn't got an Isa, so I presume puttting £3k into that would be the best option? but what do I advise for the rest?

He doesn't mind how long it is tied up for.

Many thanks in advance

prudentsaving42

Isa, Isa, Isa!

Baldur

Beatrice78 wrote: »

He hasn't got an Isa, so I presume puttting £3k into that would be the best option?

The Cash ISA allowance is £3,600 now, rather than £3,000.

Beatrice78

I thought ISA would be the best, any ideas where I would advise him to put the remaining £6k?

Thanks

The_Fiddler_2

He could put another £3.6K in a S&S ISA

Lokolo

Does he have a job?

If he doesn't have a job he can put in a regular svaings account and fill an R85 form out to get tax free interest, but you can only get that if you earn less than personal allowance.

If not, he can always put it in a year fixed until next tax year, and put another £3600 in ISA.

dunstonh

An investment bond of £8000 is almost certainly a mis-sale. ISAs and unit trusts would have been more tax efficient (£7k in ISA and £1k in unit trust).

Typical sale by a bank/building society sales rep.

However, ignoring the potential mis-sale, it is currently in a product with a 5 year tie that doesn't end until next year. The product itself has around 300 funds yet you have only mentioned the tax wrapper. Not where it is invested and how that compares with your Father's risk profile. With respect, all the above posts should be ignored as they give suggestions without knowing the facts. The AXA bond has low risk funds, a cash fund and a range of funds to suit all risk profiles. They also focus on savings accounts but your father chose an investment and the timescale comment suggests he still wants an investment and not a savings account.

There is a more information required about what your father wants, his tax position, his overall assets and liabilities and risk profile before any real suggestions can be made.

jamesd

Beatrice78, all those who mentioned cash ISAs seem to have ignored the time period of the investment and suggested cash inappropriately to someone after a longer term investment where cash is unsuitable.

For new money it would probably be appropriate to select investments within a stocks and shares ISA. Dunstonh mentioned that the term of the current investment hasn't ended yet and since it has many investment options available within it looking at the investments in use now and the ones available seems like the best course for the moment.

The small drop that's probably happened only over the last year isn't something that should be of concern for any long term investor.

What prompted you to ask the question here? Is your father unhappy with some aspect of the investment wrapper or investments held within it?