Encashing Zurich investment bond to then reinvest in Zurich execution only investment bond

B

bobinvest

New Member
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Hi All

Through a broker I have a Zurich Matrix Investment Bond and Savings Plus Plan set up since July 2022. I have been reading up a lot more on AMC and can see that the three funds I am invested in are all at 1.5%:

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Having done some reading on here I can see that there are execution only options (also through Zurich) for both the investment bond and savings plan that would have potentially significantly reduced AMCs attached.

My questions are:

(1) Is it possible to stop paying into the current Zurich savings plan and set up the execution only Zurich savings plan instead?
(2) The amount in the investment is about €85k after tax, is it a good idea to encash this in July 2025 (once the early encashment penalty ends) and reinvest in the execution only investment bond?

Thanks
 
1. Yes
2. The correct protocol here is to get your advice on the LAET implications of cashing in a bond and transferring it elsewhere from the advisor who's getting paid the big commissions from the 1.5% AMC. I'd be straight up and tell them exactly what you're doing and ask them for their advices in writing. It's their job.

This forum could probably do with an updated key post on these unit-linked investment bond products. It's no use pretending that people are not going to buy them because ETFs exist or that they are not going to be sold. My understanding is that a lot of these products were sold last year. Most of the key information is from bygone days and based on old knowledge.

They'll definitely be in focus again with potential changes to taxation, levy etc. etc. I think there was just one submission on the review that mentioned the way that buyers get 'stuck' in expensive products because of the way LAET is structured. Wouldn't it be great (consumer friendly) if you could move, just like pension.
 
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