How Should you Reinvest Your Savings From Maturing Investment Bonds?
Do you have Investment Bonds that are due to mature this year? Are you unsure about how to reinvest your savings from these Maturing Investment Bonds?
Over the last 20 years many people have received financial advice from their banks. The banks mainly provided Restricted Advice and offered a narrow range of products to invest in. One of these groups of products sere fixed term Investment Bonds. Bank customers would be encouraged to commit to Investments Bonds for a fixed term of five or six years and at the end of the term when the bonds matured, the funds, plus any growth were repaid to the client.
Although Investment Bonds were popular at the time, they are not, in most cases, the best option for getting a good return as they can be expensive. They often have a confusing charging structure and they can under-perform, delivering poor returns.
Since the financial crisis in 2008, many banks have stopped providing financial advice to clients. This means that as the bonds mature, bank customers may find it difficult to get the help they need in order to reinvest.
In fact, some banks have simply written to customers suggesting they reinvest their money in the same bond for a further fixed term of five to six years. The problem with this approach is that reinvesting in the same investment bond no longer delivers tax-efficient, balanced returns.
Torphin Financial Planning can Advise you on Better Investment Options
If you have an Investment Bond which is maturing, it’s very important to seek advice at this time and not get locked into another bond when there are much better options for investment.
In fact, clients of Torphin Financial Planning, Independent Financial Advisers in Edinburgh & the Lothians, are advised to consider alternatives such as stocks and shares, ISAs and Unit Trusts which usually deliver higher returns.
Torphin Financial Planning, Edinburgh, for Advice on Maturing Bonds
Deciding on alternative investment options for your maturing bonds may be the biggest financial decision you have to make, apart from purchasing your home, so make sure you find the best solution for your hard earned cash.
Contact Torphin Financial Planning at our South Edinburgh office and we’ll talk you through your options.
We will strive at all times to ensure you receive the best investment advice tailored to your particular circumstances. However, the value of investments and income from them may go down as well as up and are not guaranteed. Therefore, you may not get back the amount invested.