In today’s uncertain financial climate it’s important to ask oneself “am I getting the best value for my money”, with new Deposit protection rules in place Banking security has increased however with the low interest rates being offered today and inflation rates above these rates, you could be losing money in real terms.
Insurance Bonds or “wrappers” are a great way of accessing a wide range of investment funds at costs not usually available to private individuals.
If one invests directly in investment funds, there is an entry cost of usually between 3% & 5%, without meaning to state the obvious this means your investment is in a negative position straight away, and could take some time to recover.
Insurance Companies benefit from discounts from most investment funds and are able to buy at NAV (Net asset value), so no up-front fees, a considerable saving!
When putting your money in a wrapper with a large insurance company there is no up-front charge for the wrapper and only annual, quarterly and transaction fees, these fees are based on the initial premium and not on the value, so any gains made are of immediate benefit. This is a long-term solution with a minimum timescale of 5 years.
Another advantage with investing this way is that one may be able to access some investments that would not normally be available to an individual investor.
Get a Better Return On Your Capital