INVESTMENT BONDS
An investment bond is actually a life insurance policy which allows for the investment of a lump sum with the potential for medium to long term growth (5-10 years or more) into a variety of fund options looked after by professional investment managers. Of course, like any investment, the value of the fund can go down as well as up.
Investment bonds fall mainly into two categories, onshore and offshore, and generally require a minimum investment amount of between £5,000 to £10,000. You must be 18 years’ old to have one with a maximum entry age of around 85.
Investment bonds allow the investor to make one off and regular withdrawals up to 5% of the original amount invested each year without giving rise to an immediate tax liability. However; the tax is, in effect, only deferred up to a maximum term of 20 years so there could be a tax liability when you cash in the bond. You should speak to your advisor or tax advisor to understand how this could affect you. Our investment experts can advise you on a range of whole of market options.
Speak to one of our investment bond experts today.
How we consult with you
When considering your investment bond; we begin and end with you. We will consider your current financial arrangements; salaries, existing pensions, assets, savings and investments. We will ask you about your financial goals, and how you want to live now; and in your retirement. We will ask you about your future plans, and your cash flow requirements. We will combine both analyses and create a long-term financial plan for you that assesses how much cover you would need to maintain your lifestyle. The new investment bond illustration will outline in plain English, what your beneficiaries would receive should you die, and the details of your investment fund.
We will then put in place a structured review process once you have started your investment bond. This involves regular updates to check that your investment and life assurance policy are still taking you in the right direction and that your life-stage needs have not changed. We will automatically update your investment bond allowing for any major life changes, such as marriage, divorce, the birth of a grandchild, or a change of income.
We keep you informed and respond immediately to any questions that you may have about your investments, or the wider economic environment. We will make sure that we catch the life events that can change financial circumstances. At all times we will tailor the service that we provide to your personal requirements. Ours is a personal service. We are always on the end of a phone and will respond speedily to emails. Ultimately; we want to put you at the helm of your financial plan, safe in the knowledge that we are keeping things ship-shape for you.
