Firend provident maxidowment

bigmex

:eek:We have just received notice of out FP Maxidwoment maturing - over the last 10 years we have invested £50 per month and now we have been informed it will pay an astonishing £5675 - which alas is less than we have invested in the item - surely this is a con - the hard times have not been around for the past 10 years - all their forecast at the time of opening show 4 - 8% growth - can anything be done - or is this yet another rip off?:mad:

dunstonh

over the last 10 years we have invested £50 per month and now we have been informed it will pay an astonishing £5675 - which alas is less than we have invested in the item - surely this is a con

Investments can go down as well as up and you managed to pick the worst 10 year period in generations.

the hard times have not been around for the past 10 years

No they havent. However, the first chunk of good years is when you virtually had nothing in it. So, didnt really benefit from it. Then we had a major stockmarket decline (tech stocks, Sept 11th, US accounting scandals) at the start of the millennium. Then we had 5 really good years but then a near drop by half in the last 18 months.

all their forecast at the time of opening show 4 - 8% growth

They are not forecasts. They are example illustrative values assuming straight line returns. Investments never give straight line returns and you can bet your life you will never get exactly 4% or 8%. The figures shown are set by the FSA not the provider.

can anything be done

No. You cannot complain about investment returns.

or is this yet another rip off?

Its not a rip off. Yes, the product you have is obsolete but the fact you unfortunately had the worst 10 year period you could ask for is not something you can complain about.

Its the risk you take when you invest. Anyone investing in March this year is already around 20% up. Anyone investing in March the year before is in a loss position. Its just the way it goes.

G_M

all their forecast at the time of opening show 4 - 8% growth -

Sadly that's what it is : a forecast. Not even the weather men can predict a 'barbeque summer' accurately, and predicting 10 years .....?

Losses have been significant in the last 18 months - 2 years ago the fund probobly was in profit, but with stock markets, timing becomes critical. If you have the option, you could stick it out as markets are rising at present and could win back some gains, but it depends on the terms of the policy.