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No stairway to heaven

Article Abstract:

Escalator bonds have been heavily advertised and have become increasingly popular in the UK. They offer high interest rates, but these may not be paid until the last part of the investment term. Investors need to understand that they have to commit their funds for a long period. Early withdrawals may be permitted, but there tend to be penalties in terms of lost interest. Investors should compare rates with those offered by flat-rate bonds, and should not commit their funds if they are likely to need to make withdrawals.

Analysis, Bonds, Bonds (Securities)

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Escaping traps

Article Abstract:

UK investors should beware of savings traps since sales literature is often unclear and may omit important facts, while salesmen are motivated bu commissions. Companies seeking to attract investors tend to be keener to attract new investors than care for existing investors. Investors should always ask questions so they have a clear idea of the nature of the investment product they buy, and they should not just be concerned with cost, since investment performance is also important.

Economic aspects, Financial services industry

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A new Pep manager for the new year

Article Abstract:

Holders of UK personal equity plans (Peps) may consider transferring if their Peps are performing poorly, may they may face tax problems and exit charges. Peps are long-term investments, so one year's poor performance may not be grounds for moving. Transfer guidelines are being negotiated with the UK Inland Revenue, but until they are decided, the new Pep managers should be saked to start the transfer. Switches may take some three months before they are completed.

Tax planning

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