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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

The Jockey Club Racecourse Bond

An Interesting Investment Your Financial Adviser Will Not Be Telling You About !!!

 The Jockey Club Racecourse Bond

Why not?

No remuneration in it for him.

But probably more importantly the Regulatory/Compliance risks to him of getting it wrong and recommending the Bond to an unsuitable client are just too high. That does not mean it wouldn’t be an entirely suitable and profitable investment for you.

The Jockey Club Racecourse Bond

The Jockey Club Racecourse Bond is designed to be a simple investment opportunity offering an attractive fixed-rate return.

The bond at a glance.

Offering 7.75% gross interest per annum made up of:

  • 4.75% gross interest payable in cash and . . .
  • 3% gross interest payable in Rewards4Racing Points, which can be redeemed to purchase in full or to gain a discount against any online transaction through The Jockey Club Racecourses’ websites including tickets, restaurant packages, hospitality packages and racecards.
  •  Five-year initial fixed term
  • Open to subscriptions between £2,000 and £100,000
  • Non-transferable

The Jockey Club Racecourse Bond will be live for application for a limited time period from 24 April 2013. Applications are not accepted before 24 April 2013.

OUR THOUGHTS:

  • The 4.75% interest is competitive but if you do not opt out from the additional 3% interest payable in the form of Rewards4RacingPoints it becomes a very interesting investment.
  • Don’t even think about this if you are not absolutely sure you can tie your money up for a minimum of 5 years. The only way out is to die and that may be a tad too drastic!!!
  • You must download, read and be sure you understand the Invitation Document – yes all 54 pages – the most important of which may be page 23, “risk factors.”
  • If you are satisfied with the 4.75% basic interest rate and are not sure you will use the Racing4Rewards points then make sure you fill in the opt-out box on the application form otherwise you will still be taxed on the value of points you have not used.
  • If you expect to use the Racing4Rewards points then be sure to read and understand the rules of the scheme. For example periods of inactivity could result in you losing all your points even though you paid tax on their value when granted.
  • Although the Invitation Document states that the Bond is a suitable investment for Self Invested Pension Schemes (SIPPs) you should only apply if you are prepared to waive the Rewards4Racing points. The consequences of obtaining a personal benefit from a pension scheme investment is a penal tax charge called “an unauthorised payment surcharge” and that will happen as soon as you use your points!
  • Finally, although this is stated to be a five year Bond that is in fact the minimum period and you will need to ask for your money back after 5 years unless you wish to stay in. Rather one sided as they can redeem at any time!!!

Here is the link for full information.

*** CLOSING DATE: 17 May 2013 ***

 

IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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