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Where are some of the worst places to keep your money?

Do you have any money trapped in a ‘dinosaur’ investment funds?  Enable’s IFAs in Bishops Stortford can help you dig out any outdated funds and savings plans and get them working for you.

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Estimates by Telegraph Money suggest that monies languishing in “legacy” investments could be as much as a staggering £450bn. Separate research by broker Hargreaves Lansdown arrived at a similar figure of £400bn. How would you know if you have a dinosaur in your portfolio that needs weeding out?  The Telegraph listed some key areas to look at:

With-profits funds, complex savings plans, popular from the Seventies that were sold by life insurance companies as relatively low risk investments, designed to deliver steady returns over set periods. These funds however fell out of favour after returns disappeared following the stock market crash in 2000 so route them out.

Stakeholder pension funds that were launched in 2001,and billed as “revolutionary” have failed to move with times. These deals typically capped charges at 1.5pc for the first 10 years, dropping to 1pc after that. They were cheap at the time but would now be considered expensive, with the average pension fund charge standing at around 0.5pc.

Child Trust Funds (CTFs) meant that parents of every child born from 2002 were given seed money of £250 and another £250 when they turned seven, but in 2010 the scheme was closed and then replaced by Junior Isas in November 2011, which offer better interest rates and choice – make sure you know where that cash is. Enable’s IFA’s can help you sort it out.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Source: The Telegraph

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