Petem95

Rannoch, what guaranteed bonds are offering an 8% return?

Be careful with that one - its one where you dont get any interest paid for the month you make a withdrawal. ICICI and Icesave and paying 5.45% with no fees to withdraw.

Matteeboy

Pete - Very unlikely to draw it and I'm keen to stick the money with a name I know and trust - ICICI are some Indian bank (I think) and I'm not convinced on Icesave.

Petem95

I can understand that, I also use Bradford and Bingley who's instant access saver pays 5.35% AER. Remember to not put more than £35k into any one account as its only insured to that amount.

Matteeboy

Really? Didn't know that!

Thanks - Very useful advise!

XRS

Does anyone know where you can get a history of the FTSE 100 (if that is what this was linked to)? It took a big fall in the first half of 2002, so maybe Elmer invested at the top of the market and it has only just got back up to those levels?

TelBoy

Actually i'd be pretty annoyed. It started 2002 at about 5,200 and ended 2006 at about 6,200.

Like many funds, however, they took such a beating in late 2002/early 2003 that the fund managers probably didn't get back in again soon enough. From the low of about 3,500 in March 2003 it's been pretty much a one way street, with only the fairly sharp (and temporary) sell-off in April 2006 interrupting the trend.

paulr

20% per year IN HINDSIGHT is an easy call to make. However i'd still be dissapointed with such a return if i'd done it as an investment for growth.

Matteeboy

Errrmmm - Would you make an investment for any reason other than growth?!

TelBoy

Regular income, such as from dividends.

Trout

iTrader: (1)

Norwich Union Life ran a guaranteed bond series about three years ago that had 8% guaranteed over the first two years at least. This was at a time when their principle with profits fund was returning zero and they wanted to reinvigorate the with profits marketplace. Not sure about the last couple of years as I have been out of that business.

The main problem with short term equity products is that they cannot take account of long term equity growth AND upfront fees on these types of products are between 2 and 6% so you lose out a huge chunk up front before you start unless you do a deal with your provider or IFA.

paulr

And people wonder why no-one is investing in pensions. Its an issue of *TRUST*.

TelBoy

Between who, Paul?

paulr

Joe public and the whole finance industry.

My dad had a pension with Equitable life. Everyone said its the provider of accountants,you cant go wrong. I remember reading the contract and it GUARANTEED a return of 6% (i think) per annum. When it came to claim they never honoured it. Where i come from thats called THEFT and they got away with it.

Trout

iTrader: (1)

Can you elucidate?

In my experience people don't invest in pensions because it is easier to put money into fast cars, fast women, plasma TVs and great holidays. It is more a question of bird in the hand and two in the bush.

It would be true that the combined efforts of rubbish regulation and mixed up providers have not helped the cause - but it is primarily an easy excuse.

Rannoch

paulr

Not in my case. I put 3k per year into a cash ISA which i know is not a good way to save for my old age,but at least its transparent and easy to understand.

Trout

iTrader: (1)

Fair point - Equitable is a disaster like the Titanic - however there are far more providers where this did not happen.

In terms of the Equitable - no one 'got away with it' as it was a with profits fund and so owned by ALL the policy holders. ALL the policy holders lost out due to declining funds, not just those with guaranteed products.

Equitable is a rather sad example of mismanaged funds and optimism over equity returns.

It is also very much a minority player in a niche marketplace.

Lydia72

Stick it in Premium Bonds, you won't earn anything but you could win and if you do it's tax free, when the limit was £20k the odds were something like 1 in 12 that you could win something.

mart360

It amazes me that the ground dosen't whither and die when you look at it,


If your such a clever sod , perhaps you can clarify why he only got £151 ???

Re the life insurance, it was sold to me, as a ten year term policy, with a payment back at the end.

did you miss most of the eighty's, when mis-selling of insurance / endowments happened, or were you one of the perfect ones, who never ever got caught up in that?

sometimes you eagerness to be caustic, overlooks reading between the lines.

I for one know for a fact i got stung on the managed account stuff, when 2% of what i put in, and earn't every year was taken back in fees.

Mart

Trout

iTrader: (1)

As I said very early in this thread he would have paid a commission up front to the IFA - around £3-4K of his £50k. Over a 25 year policy returns should more than compensate for that, over 5 years it is very difficult.

The second reason is compounding. It takes a while to build up strong returns as the capital earning interest is small. Over a long term policy compounding 'can' give outstanding returns. Over a short term compounding does not kick in at all.

Finally, a period of very low interest rates and low equity returns. The type of policy he had would have been in safe investments and so the return would have also been low.

So, proportionately high fees for the policy term AND little chance for compounding to kick in AND the compounding was at a low interest rate. Overall very poor return which I also predicted before he posted what he actually got. I only put in the high estimate to make him feel better and hope for his sake that the money had been simply on high interest deposit - it wasn't

Well, if you were so clearly mis-sold then complain to your IFA/Provider and if you get no joy then go to the FSA. They have a website with details as to what to do if you are mis-sold. I did this and got £11,000 compensation for a £3000 investment

Perhaps in your eagerness to have a point you miss content in the lines or between them.

If you were 'stung' for management fees then I suggest you did not take the time to find out what you were buying. It can be no surprise that managed funds have fees - they always have and probably always will - it has never been a secret.

Matteeboy

Rannoch - Might you be in finance by any chance...?!

Trout

iTrader: (1)

I was once - although everything I have posted is very easily available on the web if you search in Google or go to the FSA, Consumer Association or Which websites (you may need to subscribe to the latter).

mart360

Re complaining about the missselling, Tbh I,m not worried, call it lesson learnt, and walked out laughing...

I still had the life cover until the fund depleted, but the ex was removed as a beneficiery. with regards to the endowment, the value of the endowment vs the propery was so low, i would be very surprised if it didnt make the term amount (27k) and if it made more, there is sod all i can do about it, i took a protected settlement and walked. i,m well shot, and thats priceless in my book.

This time round we went for differing options, interest only and a lottery ticket every week as if!!


10 yr fixed repayment, which is now out of its penalty period, so we may look to move. life insurance portion may well be covered by my employer, so we may be able to do some offsetting there. As i said 20 years ago, it was a lot different.

Mart

MattN

1 in 24,000.

Lydia72

Not much difference there then