130% of any rise in the FTSE?

JasonG_2

dunstonh wrote:

The last GEB I sold was in 1996. Havent seen a good one since then. Some look attractive but when you look at them closely they are not. BTW, the last ones i did were income related. Capital returned if no drop on the FTSE100 with a quarterly income of 5% in year 1 increasing to 10% in the final year (a damned good return at the time for an income product). Now, if there happened to be a release of that again, I would potentially look at these products again. However, a 130% version does nothing for me.

These products are pushed mainly by banks and building societies. They are targetting the unsophisticated customer who wouldnt know a good deal from a bad and are easily sucked into these. After all, anyone going to the bank for advice clearly isnt looking for a good deal.

I used to work for a bank and used to see some awful IFA related advice, some poeple like the security they feel from the banks, some now have multi tied panels, they have some of the strongest internal systems, compliance. Yearly MOT type tests. I was amazed when i changed to IFA, how this changed. The processes required were much less stringent.

Personally I agree that the whole of market or IFA model is stronger, but horses for courses, they each have there plus's and minus's. Usually down to the quality of advice.