Wrap Accounts (not a service but a way of holding investments)
Historically Life insurance companies have provided pensions
and investment bonds, whilst some have also offered unit type
trust accounts. Many clients have ended up with numerous amounts
of different financial furniture from different providers.
The returns from a number of these companies has deteriorated
lately as they have closed to new business or been swallowed
up by competitors. Fund choice is often very limited.
Keeping track of your of your wealth can also be difficult
as you receive statements at different times of the year and
in different formats/layouts.
A good Wrap account eliminates these problems by providing
a single platform upon which you can access virtually all
quoted UK unit trusts and shares and see at a glance the current
value on a single report. Once you have decided the investments
you wish to hold you then decide the most appropriate financial
furniture to hold those investments. These could include pensions,
ISA’s, PEP’s, unit trusts etc.
A good Wrap account uses an “open architecture”
concept, which means that all the costs are transparent and
accountable. There are no “smoke and mirrors”,
“exit penalties” or “market value adjustments”.
Wraps are the norm in many developed economies are quickly
becoming the preferred choice of leading UK financial planning
practices.
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