View more on these topics

Julian Gibbs

Eurolife has just introduced its High Income or Growth Plan 3, which is

even more ingenious and lower risk than its previous plan. It pays 0.8 per

cent a month, 10.5 per cent a year or 34 per cent growth over the term of

three years and two months.

The return is tax-free for Isa and Pep transfers. Direct investors, who

may place up to £1m

in the plan, pay only 10 per cent income tax or

32.5 per cent for higher-rate taxpayers.

The only time that investors may lose capital is if 10 or more of the 30

shares to which it is linked fall by more than 30 per cent during the

period and do not recover. The shares are all blue chips,

a few of which have fallen heavily over the past three years and are, in

my opinion, most unlikely to fall by another 30 per cent over the next

three years.

They include Marks & Spencer and Invensys, which have fallen by over 30

per cent in the past three years but are on the way to recovery, as well as

shares like Barclays, British Telecom, Cable & Wireless, Glaxo SmithKline,

HSBC, Legal & General, Prudential, Royal Bank of Scotland, Shell and


Most of these are considerably off their highs and should show steady

progress over the next few years. Falls of 30 per cent or more are most


Most City institutions are forecasting the FTSE 100 to rise by around 15

per cent in the next 12 months, according to a survey of 12 leading

forecasters carried out by L&G. The highest forecast is 29 per cent by

Schroders and lowest is 8.7 per cent by Merrill Lynch.

It is expected that UK shares will rise further

over the next three years, provided the new UK

Government continues a prudent economic policy. Of course, it is likely

that four or five of the 30 shares may do badly but, as

long as not more than nine fall by 30 per cent, the investor&#39s capital is

returned in full.


Scarborough steps & flexes

Scarborough Building Society has brought in the stepped flexible lifetime discount mortgage.The mortgage has an initial discount of 5.54 per cent for the first six months of the mortgage, giving a payable rate of 4.45 per cent for loans of up to 95 per cent of valuation. After this period for the rest of its […]


What&#39s wrong with independent financial advice? Nothing with theprinciple, of course, but we never seem to be far away from the next whineabout persecution or the rising costs of being in business. Should wereally be surprised? After all, is the sector not suffering from somefairly fundamental structural flaws? An ageing demographic, coupled with a pitiful […]

FSA adopts light touch for exempt advisers

The FSA has issued guidance on overseeing professional firms, includingsol-icitors, which carry out limited investment advice activities but arenot regulated by the FSA. The Government asked the regulator to provide safeguards to consumersdealing with firms which do not require directFSA regulation but whichmight advise on certain investment areas. The regulator says this area is perceived […]

Seller&#39s pack cast aside for now but LTC bill gets through

The dissolution of Parliament ahead of the general election has led toseller&#39s packs falling by the wayside while proposals on long-term carejust scraped through. The election also means that the announcement of the second Myners&#39 reporthas been put on hold. The failure of the Homes Bill, which contained the proposal for seller&#39spacks, to pass through […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm