Norwich Union £1K windfalls in doubt

sabretoothtigger

I vote b, isnt there a point they can avoid the surrender penalty

baby_boomer

I forgot that possibility with some insurers.

Let's call that

d) a paper valuation you can be sure of realising at a future specified date(s)

maryotuam

We have £20k invested in a NU with profits bond bought in 2001 but because we are both retired I'm wondering if it's a good idea to cash it in now despite the MVA. We will very likely need access to that money in 5 years time and it doesn't seem like a good enough time frame for the bond to recover. This credit crunch/recession seems to me to be likely to have negative effects for at least the next 5 years. I wonder to myself if share prices were over inflated in the first place?

Any one think it's a good idea to cut our losses by transferring the with profit bond into a saving account?

sabretoothtigger

Im not sure thats necessary, the biggest falls in stocks are seen at the start of a recession as expectations are reversed and the bottom is reached long before the economy recovers. I forget where I read that but it rings true to me

I dont think the present level is over inflated unless banks have got their writedowns wrong (greatly)

ftse100, orange is 200 moving average

alared

maryotuam wrote: »

We have £20k invested in a NU with profits bond bought in 2001 but because we are both retired I'm wondering if it's a good idea to cash it in now despite the MVA. We will very likely need access to that money in 5 years time and it doesn't seem like a good enough time frame for the bond to recover. This credit crunch/recession seems to me to be likely to have negative effects for at least the next 5 years. I wonder to myself if share prices were over inflated in the first place?

Any one think it's a good idea to cut our losses by transferring the with profit bond into a saving account?

Have a good look at your WP policy because most of the NU policies have a clause stating that you can cash in your policy in year ten and no MVA will be applied.
Also,with a bit of luck,by 2011 these comedians should have coughed up some of the "orphan fund" money they promised us three years ago.

dunstonh

We have £20k invested in a NU with profits bond bought in 2001 but because we are both retired I'm wondering if it's a good idea to cash it in now despite the MVA. We will very likely need access to that money in 5 years time and it doesn't seem like a good enough time frame for the bond to recover. This credit crunch/recession seems to me to be likely to have negative effects for at least the next 5 years. I wonder to myself if share prices were over inflated in the first place?

Any one think it's a good idea to cut our losses by transferring the with profit bond into a saving account?

The current bonus rate is 4.25% and there are special bonuses of over 3% being added each December for the next three years. So, thats a return of 7.25% pa that you will get and the terminal bonuses have crept up a little in the last week.

Your assumptions on investment returns and share prices are historically incorrect. Markets act in advance as SBT highlights above. Also, the MVR is only likely temporary and designed to penalise those that dont wait to their MVR free exit point.

alared

My "free exit" point will be Aug 2010 and that`s when I`ll be exiting,bonus or no bonus.

If the truth was told, NU would gladly like to welch on any deal they`ve dragged out over the last three years.
In fact it wouldn`t surprise me to see this whole issue suspended due "to market conditions".
They`re not to be trusted.

dunstonh

If the truth was told, NU would gladly like to welch on any deal they`ve dragged out over the last three years.
In fact it wouldn`t surprise me to see this whole issue suspended due "to market conditions".
They`re not to be trusted.

I would like NU to cancel the reattribution and keep the money. I prefer the safety over the short term gain. However, there is no indication the special bonus is being cancelled and NU have confirmed they are paying it in December as planned. Currently it is looking like 3.6%.

Alared, what is your bias against NUL&P?

alared

Dunstonh

I`m all for getting the bonus but why don`t they just get on with it and pay the whole amount and stop wheeler dealering.
At the end of the day NU are receiving plenty from the deal or they wouldn`t have bothered in the first place.
I notice that the Pru have done a U turn,there`s still time for NU to backtrack.
Pay the full amount this December and be done with,afterall it`s supposed to be our money.
I`ll be exiting free in Aug 2010,no matter what.

katies_mum

I had a small policy mature a few months ago and there is another due to mature September 09 - if they decide to make this payment would I get something? don`t really understand! Thanks