Exploring why they are an attractive option to mass-affluent investors
Onshore investment bonds appeal to investors for their lower risk profile and contribution to a diversified portfolio. Many investors have traditionally favoured a portfolio allocation of 60% equities and 40% bonds. This approach capitalises on the differing performances of these asset classes across varying economic climates—a particularly advantageous feature during periods of market volatility.
Utilised to acquire a diverse array of shares and assets
When considering investment options, one intriguing avenue is the investment trust. As a form of public limited company, investment trusts gather capital by issuing shares to investors. This pooled capital is then utilised to acquire a diverse array of shares and assets, with each trust pursuing distinct objectives and containing a varied investment mix.
Safeguarding your interest, dividends, and capital gains from taxation
For UK residents, one of the most effective ways to minimise tax on investment returns is through an Individual Savings Account (ISA). These accounts are a ‘tax-efficient wrapper’, safeguarding your interest, dividends, and capital gains from taxation. Whether your financial goals are short-term or long-term, ISAs can provide the flexibility and security you need.
Is your asset allocation aligned with your risk tolerance?
Your retirement portfolio is the backbone of your financial security, ensuring a comfortable lifestyle during your golden years. For those with substantial savings, the dream of living off the returns without touching the principal is achievable. However, many retirees will eventually need to dip into their funds, making effective management crucial.
Experiences of the past and potential future scenarios
The latest research reveals a significant disparity in perceptions regarding retirement experiences of the past and potential future scenarios. Over the past 50 years, a ‘hard stop’ or ‘transitional’ retirement has been the predominant way people have transitioned into retirement. A ‘hard stop’ refers to an abrupt end to working life, while a ‘transitional’ retirement involves gradually reducing working hours.
How retirees are impacting their financial future by accessing pension pots too soon
More than three-quarters (78%) of retirees have already dipped into their pension pots by the time they retire, according to recent data[1]. Of these, more than half (52%) withdraw funds five years before their Selected Retirement Age (SRA), with 21% opting to start taking out funds nine to ten years before they retire.
