Investing for My Retirement
Q I have about pounds 25,000 in the building society to invest for when I retire in six years' time. I would welcome any suggestions as to what may be suitable.
A There are literally hundreds of different investments to choose from, some offering guarantees, some geared to income, others for growth, and a few are tax free. The important point is that there is no 'Ideal' investment that suits everyone, because each person's circumstances and needs are different. You should consult an Independent Financial Adviser who will assess your situation, and offer you a variety of options that may be suitable. He or she will be able to explain the pros and cons of each investment and you will be offered a wide range of different companies rather than the products of just one company as happens if you consult the majority of banks or building societies for financial advice.
If income is not an immediate priority and you aren't going to need the money for at least six years, you should be looking for an investment that can offer the potential for capital growth, so I would suggest an equity linked fund. I you haven't used up your ISA allowance for this year then you can invest up to pounds 7,000 so that all of the proceeds will be free of tax. The remainder could be invested in a normal unit trust for conversion into an ISA at a later date using the current pounds 7,000pa allowance.
There are a wide range of plans available and choosing the most suitable one for your needs can be very difficult without some professional help. A free factsheet on Equity Based ISAs is available by ringing 0800 544644. …