Capital Investment bonds are designed to give capital growth and/or income over the medium to long term with access to your money by taking regular or one off withdrawals. Most bonds are designed for investment over at least five years. If you cash in your investment before that time, you are likely to be charged an early-surrender penalty.
Bonds are set up through insurance companies without the need for a check on your health status and normally people of any age can hold a bond. Bonds can be opened onshore (within the UK) or offshore (usually in the Isle of Man or the Channel Islands) to take advantage of tax concessions. The decision will depend on your personal tax situation.
There are no maximum limits to invest, but barriers to entry can start higher than other investments, with a £10,000 entry point being not untypical.
Drawing down income from a capital investment bond can be an option, though obviously any income drawn down will deplete the original capital. You may be able, depending on the policy, to make additional payments to the bond at any time, as well as one-off withdrawals. With a capital investment bond an investor could make a profit from any stock market upturn and in some bonds their capital can be protected should stock markets fall but this protection comes at a cost.
Capital investment bonds have management charges and these vary greatly. They are usually levied as an annual fund charge or even as an initial charge and early en-cashment charge.
Trafalgar International fully advised on, and managed the transfer of my UK held private pensions into QROPS.
Over a number of one to one personal meetings I received advice outlining the process and advantages of QROPS for someone living outside of the UK.
All my questions were answered and clarification provided when requested.
I have been very pleased with the service provided by Trafalgar International.
My husband and I have become fond of our adviser at Trafalgar International thanks to his untiring efforts with our financial.
They are trustworthy and honest and always gives us a thorough and professional service.
I would happily recommend Trafalgar International to anyone seeking financial advice.
Trafalgar International have been our Financial planners for some time and has always given a good service.
They always seems to have time for us and are both good at their job and a pleasure to deal with.
As professional financial advisers we can help you make informed decisions about your financial future, short, medium and long term.Read more
A well prepared pension plan which is regularly reviewed should go some way to providing you with a reasonable level of income in your retirement.Read more
Qualifying Recognised Overseas Pension SchemeRead more