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IFAs urged to consider VCT as alternative to pensions

Noble director Patrick Booth-Clibborn is calling on IFAs to consider VCTs as a credible alternative to top-up pensions, for those willing to take on the risk.

He says that while the risk/ return profile of VCTs is different from most pensions, if IFAs are looking for a five-10-year investment, VCTs can be used in a long-term pension plan.

The investment profile of VCTs is higher risk than the bonds and shares that make up most pensions but Booth-Clibborn thinks that in the current climate it is no less risky to invest in a diverse portfolio of smaller companies than in a portfolio of FTSE 100 firms.

Noble is recommending four VCTs in four sectors for this tax year – the Enterprise VCT, the Invesco Perpetual Aim VCT, the UniVen VCT, and the Quester VCT.

Booth-Clibborn says: “The tax advantages of VCTs and the disillusionment of investors in branded pensions following their well publicised problems should act as a prompt for people to question whether a pension is the only way to save for the future.”

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