Bond Vs Collective
I Have a new client and in discussions with the advisor with the best route for the funds to be invested. Let me set the scene.
- Client in Care home, slight dementia, son's have LPA.
- Client has just sold their home and looking to invest the funds for income to pay for the care needed.
The advisor immediately went to a bond and taking 4.5% from the onshore bond as income to pay for the shortfall for care.
I raised the question and just asked if she has considered a GIA and ISA for the income. Not advising the advisor, just raising the question. The income would be taken for the ISA as Tax free income and Bed & ISA each year using her CGT allowance.
Her argument was that the bond is 'simpler'. I believe they are pretty much the same lets be honest.
Where I am going with this is, how do you guys compare products for these situations. I used the Prudential comparison tool and still no luck with the advisor. I am not saying the GIA is the solution only how can we prove that there are alternatives that also have reason to look into ?