Insurance companies offer investment bonds that can be linked to funds invested in equities, fixed interest funds, property funds, or with-profit funds. They also offer a high degree of income flexibility in that it is possible to withdraw a monthly income at a level determined by each investor. This can be a very attractive feature provided care is taken to ensure that income withdrawn is no greater than the returns generated by the fund. They can also be useful for tax planning as it is possible for the higher rate taxpayer to withdraw 5% income for up to 20 years with no personal liability.
Posted in: Investments
