Standard life to Float Windfall Shares

leosayer39

Hi all,

Hi Payless,

Just spotted your post dated 6/04/04.

Many thanks for that, I'll bear it in mind

Leo

payless

Milarky

sorry I overlooked your post- Leo's post bumped it back up.

Now, would you expect the windfall benefits to be 'proportional' (in some sense - I don't mean 'exactly' proportional) to the amount reinvested (as seems suggested by the "some or all" quote from the BBC)?

Suppose you could say that those with matured policies have already rec'd the benefit of mutuality status and should not get anymore- but in practice don't think that will be the case - so  sorry can't really second guess the outcome.

Do you imagine the reinvestment period is limited only to the qualifying deadline - rather than for a fixed time as with a conventional investment product (eg 5 years)?

the 5 yr "rule" is a strange one
a. Very basically - a period often said to invest as a min period to give chance to ride out the market changes- as seen recently this may not be long enough !!!-
and I think ( personal view - not  intended as advice-  and  I don't give investment advice- anyway) its a bit of a "daft" rule anyway- surely if one is to invest in equity based products, one should therefore be willing to take the risk of equities - that can go up or down.  With equities it is sometimes best to take a profit or a loss earlier. Ok the wp bond may aim to smooth it out over a period - but as we have seen with recent MVAs the insurer will usually have the final say!
(although  seen a couple of 5 yr gurantees come back)

Could say those reinvesting funds have already in effect been invested for 10-25 yrs anyway- this is a roll over of returns already made.

b. The 5 yr rule is also used in relation to commission , as many wp bonds are sold with fairly high / non reclaimable commission to adviser , this is often either deducted from the initial bond value, or more often is recouped by (higher) management charges in the first 5 yrs - pull out earier  and these charges are levied on encashment  as a penalty, this ensures that the adviser
get to keep his money, but the insurer is not out of pocket either (nice!).
Would like to think taht the roll over product would be free of these extra charges/commission , so not so much an issue here.

leosayer39

Hi all,

Bit off topic, I know. Anyway,

Many, many, many thanks to you Payless! You have inadvertantly answered a question for me.

I have noticed, all over the site, from time to time, the word 'bump' ??? ??? ???, appears on a thread.

Bump; all by itself. Lonely little thing.

Now I know what the poster was doing. Silly silly me.

Leo

Dec_3

Hi
Does anyone know that if you do get a windfall can you then just transfer from a with profilts pension to another type? I have a with profits pension. I am 36 years old and have had it for 13 years.

dunstonh

Hi
Does anyone know that if you do get a windfall can you then just transfer from a with profilts pension to another type? I have a with profits pension. I am 36 years old and have had it for 13 years.

Once the windfall is paid, you are free to move the pension.

A pension transfer is something you shouldnt do off your own back. Get advice from an IFA at the time as there are a number of things that need to be investigated before you transfer. Some older personal pensions have some weird and wonderful charging structures where you lost a lot in charges at the start but got 102% allocation (for example) thereafter. You may be able to switch into the unit linked funds for no charge.

Lady_K

I have a voting form from SL for this and havent filled it in yet. Do you think its best to vote to demutualise?

rizla01

Lady_K wrote:

I have a voting form from SL for this and havent filled it in yet. Do you think its best to vote to demutualise?

Unless you have any reason for them not to demutualise then vote yes.
I think that the large majority will be doing just that.

You also stand to gain if that is the overall majority vote because you will end up with shares in the company, which you can either redeem or keep.

EdInvestor

Lady_K wrote:

I have a voting form from SL for this and havent filled it in yet.

You do? I think this may be for something else ( is it perhaps left over from this year's AGM in May?)

The DM vote is not due to be held until next year.

civicwalker

I completed a confirmation of entitlement personal details form last week and returned but not ballot paper.

worried_and_confused

Lady_K wrote:

I have a voting form from SL for this and havent filled it in yet. Do you think its best to vote to demutualise?

I don't see how you can have a voting form already... they have recently sent out confirmation of details forms, with the plan being to have the vote next summer.