Wealth management is as important as building wealth for small business owners. Poor wealth management can evaporate all of the hard earned money. A new plan called modular iPlan provides a great alternative to many small business owners looking for a new retirement plan option. With great flexibility and transparent pricing, there are number of positives to modular iPlans, but what about any negatives or things to watch out for? In this blog post, we take a balanced view, assessing both the pros and cons so that you can find out if a modular iPlan is the best choice for you.
What are the Pros?
A number of different iPlans are available depending on your requirements. Here, we list just three so that you can get a sense of what is available in the UK market:
- Modular iSIPP – an online SIPP which offers a wide range of investment opportunities, many modular iPlan owners use this as a core SIPP and add further investment options.
- Modular GIA – a simple way to hold investments directly outside tax wrappers, a modular GIA is a single platform with an attached cash account. This means an owner can invest or withdraw regularly.
- Modular ISA – a new individual savings account announced by the government in 2014, the modular ISA allows for an increased £15,000 investment limit and allows you to hold stocks and shares in the same ISA.
What Should You be Wary of?
As with any financial product, modular iPlans aren’t for everyone and if you’re unsure, you should seek support from a financial advisor or online sites such as Unbiased.
When considering whether you should take out a modular iPlan, there are a number of factors that you simply must consider; especially as pensions and tax regulations could change in the future, impacting on your retirement wealth planning proposition. In addition, it is also important to remember that any change in your own circumstances could also impact on the tax treatments in your modular iPlan, making this something to watch and consider carefully before investing.
In addition to this, it is very important to remember that the value of any of your modular iPlan products is largely determined by the investments held within it. This means that some may not necessarily return the amount you originally invested, meaning your capital is at risk. Because the value can go up as well as down, it is essential that you monitor your modular iPlan closely, especially as it can impact on the benefits of other products.
To conclude, modular iPlans provide good retirement wealth planning proposition, but it is also essential that you fully understand the risks involved, too. Remember to seek independent financial advice if you remain unsure about whether a modular iPlan is right for you.
