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i need of advice
the_clangers
Posts: 2 Newbie
hi, my mother has a with profit income fund that she started over 10 years ago with aviva.
when she started the fund she invested £20k and recieved approximately £90 per month from it,this droped very soon after starting it and now she recieves £25 per month.
would she be better off investing the money elsewhere?
when she started the fund she invested £20k and recieved approximately £90 per month from it,this droped very soon after starting it and now she recieves £25 per month.
would she be better off investing the money elsewhere?
0
Comments
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would she be better off investing the money elsewhere?
Possibly. Possibly not. Given the small amount involved, it is unlikely that the investment bond tax wrapper is the most suitable. S&S ISA would be a better tax wrapper unless there is something about the investment bond tax wrapper that suits her needs.
Why has the withdrawal amount reduced? Typically you can draw 5%-7.5% p.a. of the initial investment amount on a regular basis.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
thankyou for you quick reply.....i have no idea why the payments are now redused...andse my ignorance what is a s&s isa?....she has other investments of a lesser amount that pays her more....im just trying to establish wether or not she should close the account and invest her £20k elsewhere for a better monthly return0
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andse my ignorance what is a s&s isa?
stocks and shares ISA.she has other investments of a lesser amount that pays her more.
The investment bond is not income. It is a monthly capital withdrawal. She decides how much she wants to withdraw. On 20k, she can draw £83.33 pm without creating a chargeable event for tax from the investment bond. The amount withdrawn, whether it is £25 or £83 has no link whatsoever to the investment return. i.e. if could be making 10% a year or 2% a year and she can still draw £83.33pm.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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