Risks

The main risk associated with using an investment to fund care is that the income is not guaranteed and if the investment does not provide the required level of income to meet the care fees then it will also be necessary to take withdrawals from the capital.

This will lead to an eventual erosion of the capital, especially if you were to require care for longer than expected.

There is an additional risk that the investment returns may go against you and that your investment may fall in value, again this will lead to it being necessary to use the capital towards the care fees.