Ask The Experts Answers

I've had a Clerical Medical product for 5 years - namely NonEqManLF.  Because of the present turmoil in the financial markets etc. the value has dropped slightly ie 1,000 pounds I was wondering if it would be a good idea to start filtering cash from this product to my Telephone cash ISA with Alliance & Leicester account i.e. the max amount of 3,600 pounds before 01/01/09 (when my annual interest is applied) and a further 3,600 pounds shortly after this date.

I thought this might be a way of keeping the value as I have been getting a good rate of interest on the ISA over the 5 years. Do you agree or is this a bad time to move cash out of this investment ? Jean

Answer

Dear Jean, in response to your question to myeggnest, firstly I cannot give any specific advice without looking at your full situation but can give you a few points, but if you would like to speak to adviser in your area I am more than happy to arrange for someone to contact you.

In generic terms what you are talking about regarding the NonEqManLf fund is what's called a unit-linked fund and the unit price will go up and down as the assets it is invested in go up and down. The unit prices will be lower now than they would have been for some time so therefore if you move money out of this type of investment at the moment you will be moving less money out than if you waited for the unit price to increase. Conversely if you moved money into this type of product as the unit price is relatively low you would be able to get more units for your money and therefore would effectively by buying in at a discount.

Regarding your point about cash ISA's you have an annual allowance of £3,600 but this allowance is per tax year, i.e. from 6th April to 5th April so if you put some money in before 1/1/2009 you won't be able to put any further money in until after 6th April 2009, maybe I'm mis-reading what you're trying to say but another thing to bear in mind is interest rates can vary over time, so really you would need to sit down with someone to go into a bit more detail of exactly what you're trying to achieve.

I hope this helps but please let me know if you would like to get some advice and meet one of my colleagues more local to where you are based or feel free to phone me.
Regards Steve

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH

Email: sweisner@myeggnest.com
Tel : 020 7382 0437
Fax : 020 73740462  

If you have a question for Steve or anyone of our other resident Expert, please complete our Ask the Expert Form HERE.

back to top

Bookmark this page

What is Social bookmarking? Social bookmarking allows users to save and categorise a personal collection of bookmarks and share them with others. This is different to using your own browser bookmarks which are available using the menus within your web browser. Click on the "Bookmark" link above to share this article on the social bookmarking site of your choice. Read more about social bookmarking at Wikipedia - Social Bookmarking

MyEggNest's Recommendations Greasypalm.co.uk Boost your children and grandchildren's Child Trust Fund and Children's Savings.  MyEggNest has teamed up with Greasypalm - the UK's first online rewards programme to pay you in cash, to save for your children's future. It is a free savings club which earns cashback on your shopping from hundreds of different shops.   Selected Retailers: Mothercare 2% cashback Funmum 5% cashback Bump To 3 5% cashback Igloo Kids 5% cashback Boots 1.75% cashback

Radcliffe & Newlands Lump Sum Investments Puzzled by lump sum investing? Get help from qualified investment professionals. Click here for more information.

back to top