How do I find a good investment bond?

23 June 2021

Got a question?We'll put your question to our panel of helpful advisers

Question by James

I'm considering using an investment bond as a tax-efficient way of taking an income from a sizeable slug of capital but with a chance the capital will grow (or more realistically, not be completely gone!) after I've taken circa 5%/year for 20 years. I feel like they are a 1980s solution from the good old days when the Pru still knocked on doors - but can they still have a role to play, or have they been superseded by other options? And how do I find a good one, there don't seem to be mentioned in the best buy/league tables? I noted BM doesn't mention them either?


Answered by Mark Russel

Hello James

Thank you for your question which hopefully I can help you with.

Investment bonds are very much still around and are available but sadly the days of 'the man from the Pru' have long gone. Whether an investment bond and taking a regular withdrawal is the right solution for you very much as it always does depends upon your overall circumstances, objectives and goals.

You should always start with what are the goals you are trying to achieve and then build your financial planning around these. It might be that a combination of solutions will give you the optimum return and always spread the risk/volatility your invested monies are exposed to.

I hope that the above helps and if you require any further advice and assistance, please do not hesitate to come back to me.

Kind regards

Mark Russel
Chartered Financial Planner

Answered by

Mark Russel

Chartered Independent Financial Planner

I have 22 years’ experience as an Independent Financial Planner, with 8 working for the award-winning firm, True Bearing Chartered Financial Planners. I became a financial planner to help improve the lives of my clients and ensure that by working alongside them that they can achieve their goals and aspirations in life.