Anyone heard of PruFund?
Discussion
Ray,
No one who is new to investing is going to get 7% without a measure of risk. PruFund isn't bad, but it's far more complicated and pricy than you might need to be exposed to. It's a 'With Profits' product, ask your IFA to quantify the risks and you might want to ask him if there are any other cheaper (not always best, I concede) and simpler to understand products.
http://www.pru.co.uk/investments/bonds/investment_...
No one who is new to investing is going to get 7% without a measure of risk. PruFund isn't bad, but it's far more complicated and pricy than you might need to be exposed to. It's a 'With Profits' product, ask your IFA to quantify the risks and you might want to ask him if there are any other cheaper (not always best, I concede) and simpler to understand products.
http://www.pru.co.uk/investments/bonds/investment_...
I'm always concerned when I see WP funds and bonds mentioned.
The fees are very opaque and the last few years performance almost non-existant. To be fair the Pru is probably the only one to have booked this trend to an extent.
OP have you used your ISA and CGT allowances each year? Are you paying higher rate tax? There's a good few things to be considered way ahead of the Pru WP Bond in my opinion.
The fees are very opaque and the last few years performance almost non-existant. To be fair the Pru is probably the only one to have booked this trend to an extent.
OP have you used your ISA and CGT allowances each year? Are you paying higher rate tax? There's a good few things to be considered way ahead of the Pru WP Bond in my opinion.
I'm not recommending, as I don't know you're full situation, but an onshore investment bond is taxed on all returns against income tax, internally at 20%, and if you're a non-taxpayer you cannot reclaim it or use your nil rate for CGT of £11k in current tax year. Withdrawals if you're a HRT have a further liability to tax, outside of a small 5% deferred facility.
So from a tax perspective ISAs, tax free apart from 10% on ACT on dividends, and using you nil rate for CGT, it's then taxed at 18/28% rather than 20/40% for income, make much more sense to most UK investors.
There are a miriad of ways to get involved in the markets with funds via these more tax efficient routes, and very often at much less cost than the investment bond route. For example ETFs tracking various indices can be as cheap as chips, think less than 0.5% pa.
I see investment bonds and automatically think high cost, average performance,but a well remunerated advisor I'm afraid.
In my sector of the market, think Hign Net Worth types, we only use investment bonds for longer term offshore tax structuring once all onshore options have been used and even then we're talking portfolios generally in excess of £500k. We do not generally use their onshore equivalents because of the above issues.
Hope that's of some help, but shop around before taking advice, there are good, bad and down right dangerous advisers out there!
So from a tax perspective ISAs, tax free apart from 10% on ACT on dividends, and using you nil rate for CGT, it's then taxed at 18/28% rather than 20/40% for income, make much more sense to most UK investors.
There are a miriad of ways to get involved in the markets with funds via these more tax efficient routes, and very often at much less cost than the investment bond route. For example ETFs tracking various indices can be as cheap as chips, think less than 0.5% pa.
I see investment bonds and automatically think high cost, average performance,but a well remunerated advisor I'm afraid.
In my sector of the market, think Hign Net Worth types, we only use investment bonds for longer term offshore tax structuring once all onshore options have been used and even then we're talking portfolios generally in excess of £500k. We do not generally use their onshore equivalents because of the above issues.
Hope that's of some help, but shop around before taking advice, there are good, bad and down right dangerous advisers out there!
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