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&#39Safe drawdown can bring boost in market rise&#39

Current economic conditions make investing in income drawdown now safer than ever, claims the Income Drawdown Bureau.

It says the Equitable Life and corporate accounting scandals have scared investors into shunning the stockmarket and instead put their money into annuities, which they see as safer but it says they should also now consider drawdown.

The bureau claims drawdown is an attractive option as it allows investors to benefit from recovering equity markets. It also points out that as the amount of income people can draw down has been limited to 25 per cent over the last seven years, funds require a lower investment return to maintain the income they provide. This, it says, makes income drawdown a safer option for investors starting off today.

It recommends reducing the amount drawn as a useful tool to maximise the invested value and also to reduce the amount of tax paid.

Director Ronnie Lymburn says: “Too many people with sizeable funds who have been hit by tumbling equities in the run-up to their retirement are locking into fixed conventional annuities, thereby ensuring they have no hope of participating in any stockmarket recovery.

“While they have good reason to be cautious, by structuring a portfolio with a range of assets drawdown can be a very sensible option. Additionally, new investors have a lot to gain from the attractive death benefits offered but also from the impact of the current economic climate which has actually made income drawdown a safer bet.”


Man hedge fund guarantees 120 per cent

Man Investment Products has unveiled Man multi-strategy series 4, a fund of hedge funds that is structured as a capital guaranteed bond.This product differs from previous products in the Man multi-strategy series in that it guarantees investors a return of at least 120 per cent of their original investment. A profit lock-in feature means that […]

Lazard leaps into third spot in Isa league

Morningstar, which gives investment houses with at least five rated Isa funds an overall average rating, scored Lazard 4.2 out of five, putting it behind GAM in first place and BGI in second with ratings of 4.5 and 4.25 respectively.It was the first month Lazard had five rated Isa funds to qualify.Standard Life Investments and […]

First State joins Skandia fund range

First State Investments is joining Skandia&#39s fund range, with three funds becoming available from November 1. First State&#39s Asia Pacific, global emerging markets and Global growth funds are the first to become available to Skandia life, pension, multiIsa, multiPep and MultiFund investors.

Eurolife replaces Wootton

Eurolife Assurance is appointing Nick Greenwood as chairman and managing director.Greenwood takes over as managing director from David Wooton who was forced to step down following an investigation by the FSA.Greenwood was formerly an independent life insurance consultant and was a director and general manager of Windsor Life from 1994 to 2001.


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