With Profit Investments – what should I do with mine?


Flickr_ Search-2
There are several key questions you need to consider: Will you get a good surrender value? But remember here you have to be careful of surrender penalties and Market Value Adjusters (MVAs) – this is where the insurance company keeps some of the profit back because they think their investments are currently undervalued. In addition, if you are a higher rate tax payer, be careful of tax because if the policies have not been running for 10 years there might be some tax to pay.

Ask yourself, what would you do with the money and what level of return are you currently getting?

Perhaps the best value from savings plans is to leave them until maturity, however, if you are in With Profits and the current returns are poor and the prospect of future returns is equally poor, consider cashing in. You would do well to take advice regardless of whether you are going to continue or cash in. Get advice