Tieing money up for 5yrs

Reaper

Jake'sGran wrote: »

I've seen a few posts lately, including one to me, saying "this is the second time you have posted about this". Has this person not got anything better to do that check an individuals older posts or does he just have a brilliant memory?

lol - I don't think it was me that wrote that to you, but I did write "This is the 3rd thread you have started on the same subject" early on in this thread. I didn't look back on their posting history, and I didn't need a great memory either - they were all over a very short period of time and I had posted a reply to each one.

kjmtoday

Well this thread definately convinces me that it was the best thing to do (cancel) I rang L&G but have had no paperwork from them, i will be glad to get my money back in the bank. The A&L received £3750 in commision from L&G for arranging the sale...naturally that rings alarm bells.

Going to ring again.......dont trust any investment now and would rather see it in the bank.

dunstonh

The A&L received £3750 in commision from L&G for arranging the sale...naturally that rings alarm bells.

In itself it shouldnt do. However, you have to look at it in context and value for money terms. Money in the bank earns them as well. Typically around 0.9-1.5% (in normal times often 2-4% pa.). Nothing is free. However, some products disclose the charges, some products have explicit charges and some have implicit charges.

If you buy a washing machine, you dont buy on the basis of what profit the retailer makes. You buy on how much it costs you. That should always be the focus (after investment quality and potential).

dont trust any investment now and would rather see it in the bank.

A&L have done nothing wrong. Its not a matter of trust. You just chose a basic distribution channel that isnt very cheap and doesnt have a good range. If you compare it to restaurants, its a bit like taking the wife out on an anniversary and taking her to McDonalds. You saw a cook, not a chef.

kjmtoday

Like your explanations. Thanks.

mumsandra

I decided to contact an IFA regarding my Portfolio Bond with L&G which was dropping in value dramatically whilst I was withdrawing £250 a month from it. I cancelled the withdrawals, advised by Dunstohn and this helped. The IFA I contacted immediately wrote to L&G requesting all commission was paid to him. I made enquiries myself after not hearing from him for a while and was told,
Renewal commission is paid to an agent to remunerate them for the ongoing review of the portfolio. This is paid out of the Annual Management Charge.
This particular product is managed by The Investor Portfolio Service, Legal & General’s platform and is solely available to Business Partners and Tied Agents to Legal & General. At present we are unable to amend servicing and commission rights to Independent Financial Advisors.
He probably got the same reply and I have had no further contact from him.

dunstonh

This particular product is managed by The Investor Portfolio Service, Legal & General’s platform and is solely available to Business Partners and Tied Agents to Legal & General. At present we are unable to amend servicing and commission rights to Independent Financial Advisors.

That basically means that it was sold by an L&G tied agent and they are refusing to switch it to the IFA. Servicing rights are needed to get things like values and policy info. L&G are very difficult with agency transfers. They dont follow the normal process.

The IFA would have been notified around the same time you were.

kjmtoday

I have twice rang L&G stating that I wish to cancel (within the 30days) not had no policy or cancellation paper. I have sent letter to them yesterday. Really dragging their feet, they keep your money as long as possible hoping it goes over the 30 days. No interest will be given for the bond or investment for the 2 - 3 weeks they have it,

Primrose

In the current circumstances I think five years is rather a long time to have your savings tied up. I previous tied up my TOISA for 5 years in a complicated Guaranteed Equity Bond thinking the market would rise and I would make money out of it. The problem was that the returns were calculated on different complicated stock market returns and when the product matured I found I got back exactly what I'd paid in and not a penny more. I think it's easy to be deceived by some of these deals, and often a simple savings account, ISA or shorter fixed term account ends up being a better and more transparent deal.