Investment?

Question

I need to set up a policy to repay me 100000 in 30 years time. Can anyone advise what the cost is likely to be per month and what they think the best investment would be? Endowment, ISA etc etc.

Financial advisers will advise whatever gives them the better commision I think!

Answer 1

100000 is not going to have much purchasing power in 30 years. If you meant 1000000, then you are getting there, but even that might not sustain you for the rest of your life in and of itself given inflation/rising costs... If this is for insurance, you should only go for term and invest the difference that you would otherwise have contributed to a whole/variable life policy. Since the S&P over any contiguous 10 years has yielded over 12%, and there are several funds that perform better, if you had say 50,000 to put away now, you would have over $1M in 30 years. Or, if you had 10,000 to invest now and could add 2,000/yr you would get there as well.

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Life Insurance
If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance. Keep it simple and buy term life insurance; it's good only for a specific number of years and then expires. That's okay—life insurance wasn't meant to be permanent; it's there to protect your family before you've had a chance to accumulate enough funds (through investments and savings) to do so. Most people should get a 20-year level term policy that has a value equal to 20 times the amount of annual income your family needs to live securely. For example, if your loved ones need $40,000 a year, then you should purchase $800,000 of term life insurance on the person—or persons—whose absence will affect those left behind. It's not that expensive: A 20-year $800,000 term policy for healthy, nonsmoking men and women who are about 35 years old is around $45 a month. Check out www.selectquote.com to shop for term policies.

Health Insurance
Those who have been laid off or are worried about losing their job and health insurance coverage should shop around. Ehealthinsurance.com offers the largest individual and small-business health plan selection across more states than any other online or offline source. While many employers must extend health insurance coverage to all laid-off employees for 18 months—thanks to a federal law known as COBRA—you must pay 100 percent of the policy premium. Chances are good you can get a less expensive policy by doing your own shopping.

Policies that Protect Possessions
Whether for your house or your car, buy a policy with the highest possible deductible to get a more affordable premium (the annual cost of the policy). Deductibles are what you pay first, before your insurer kicks in any money when you make a claim. These days, insurers will jack up your premium or deny future coverage if you make a lot of claims. So go with a high-deductible policy that you intend to use only for catastrophes. You can shop for homeowner's insurance at www.insweb.com. And for renters: Your landlord's insurance protects only the physical structure of the home. You need to purchase renter's insurance to protect your possessions. Renters-insurance-quotes-online.com has good information and free quotes on policy prices.

Answer 2

Invest regularly into unit trust type investments via a funds supermarket like Fidelity's Fundsnetwork investing in a good mix of things = bonds shares property over the long term.
With a bit more risk do some research and invest in investment trusts these often trade at a discount to the value of the investments that they hold and the total costs of owning them is usually less than for unit trust type investments.
Buy monthly magazines so that you learn more and more about investments there are quite a few, Money Observer is one. Go into a large W.H.Smith regularly and look for financial magazines. Good luck.

Answer 3

As a financial adviser I take exception to the comment in the question. We advise based on customers needs and we match this to the best product on the market. If an adviser fails to do this he may loose his licence. I do not know anybody in the industry that would risk a £75,000+ a year job just to earn a few extra £'s in commission. Anyway have some free advice. The best bet is to save between £100 and £150 per month this should easily clear £100,000 in 30 years however their is of course no guarantee. You should invest in a portfolio ISA through a major company such as Sterling or Scandia (their are many available) by doing this you can invest in one ISA but use up to 100 funds this spreads the risk and diversifies the investment. If you think an IFA is going to get rich of this they would be lucky to earn £300.

I wish you luck with the investment.

Answer 4

Actually, don't do this through insurance. Do it with a straight investment. Insurance means you pay a lot of money in, and they take some off the top and give you the rest. Instead, take the money and invest it. If you can make just 11% a year (which is an average stock market), your money will double in a little over six years' time.

Answer 5

10/10

Answer 6

Look for an Independent Financial Advisor, one who is not tied to any particular provider. Some IFAs may say they are independent but are in fact multi-tied so you may need to look around for a truly independent one.

Answer 7

http://www.ftsie.com