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Ok so verbatim from their financial advisers response that was shared to me (and I would note that this was for an investor that may have expressed a preference for return of their capital rather than return on their capital) but nonetheless my opinion on it is that 1) the forecast returns are probably realistic for long term and vehicles that suggest consistently delivering more than that are maybe not everything they seem and 2) that’s a hell of a fee burden both for the octopus scheme and the ifa initial and ongoing costs.
“We discussed the option of using Business Relief as a diversifier to what you already hold directly. I highlighted the Octopus proposition as a potential alternative and I have attached some information about this scheme. The scheme is traditionally used for mitigating IHT but we have been using it more recently as a proxy for capital preservation and modest growth. The target annual growth is 4.2% which nets down to about 3% after Octopus take their fees. The growth rate is not capped but it is unlikely to be significantly higher than 3% over the long term. Another company we use offer a similar strategy but it is less diversified than the Octopus offering, although their target growth rate is higher at around 4.5% net of charges.
As intimated, typically our initial charges range from 1% to 2%, in this instance I can confirm that we would apply an initial charge of 1.5%. Our ongoing charges typically range from 0.5% to 1%, if the total investment was below £500,000 then the ongoing charge would be 0.70%”
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user116219
One child so she can hold £50k of Premium Bonds too. Perfectly legal. Just have to cash out before she's 16yo otherwise she gets complete control (just checked this as I'd assumed it was 18). (It'd be slightly less than £50k in her name as she already has some PBs with money she has been given, that's not mine to fuck around with.)
As you say, ISAs could help with another 3 x £20k (or 6 x £20k if I keep a chunk for after 6th April 2025) but there would still be more than half of the lump left to deal with.
Yes, that's what I'm saying too. I was asking if anyone has any specific advice/experience (especially with any "wealth management") rather than general "stick it somewhere that's tax efficient" advice.
No problem if no-one has any, didn't expect it and I may not end up in this situation but I'd like to have a better understanding of things in case I do.