It is our role as financial advisers to help you choose the right investment in order to help you meet your objectives. It takes some thought to clearly prioritise your investment aims, and often compromise is required because an investment cannot be both completely safe and achieve excellent returns at the same time. Some people prefer to invest in completely safe funds with modest returns. Others are prepared to take considerable risk in the hope of making sizeable gains. Most people are somewhere in between, and you must decide your own position before arranging any investment.

Investment Bonds. Investment bonds are an excellent investment vehicle for lump sum investments. They can be used to generate capital growth, or provide a regular income.  You can use an investment bond to invest in cash, corporate bonds, shares or property in any proportion that suits your requirements.

You can withdraw up to 5% of the value of your bond every year for 20 years tax free, as it is seen as a return of your capital rather than income.

Inheritance Tax. Investment bonds can be placed under trust, and as such can be used to move assets out of your estate to mitigate inheritance tax.

Everyone who has an estate over £285,000 (2006—2007) is currently liable to inheritance tax.  40% is levied on the excess over the Inheritance Tax threshold. As property prices continue to rise, inheritance tax will effect an increasing number of ordinary people. It is important to be aware of the options open to you to avoid inheritance tax, and the implications that taking ‘no action’ could have on your children and grandchildren.