10 year investment plan fails to achieve target

mrken30

I took out an investment plan 10 years ago to supplement my endowment. However it has failed by a long way to achieve target. Is there anything I can do about this? Are these treated the same as endowment policies? Hopeful for any advice on this

dunstonh

You cannot complain about performance of investments. The rate of returns will fluctuate and no-one can issue any guarantees. This is why illustrations always show 3 example rates of return and carry the warning that those rates are not guaranteed and just examples. You could get back more or less than this....

EdInvestor

mrken30 wrote:

I took out an investment plan 10 years ago to supplement my endowment. However it has failed by a long way to achieve target. Is there anything I can do about this? Are these treated the same as endowment policies? Hopeful for any advice on this

Is it also an endowment? Who is it with?What is it invested in?

mrken30

It worked like an endowment providing life cover ect, but was only for 10 years. Was originally with Allied Dunbarr, now Zurich . It wasnt attached to my mortgage though. It was sold as this could pay off a big chunk of my mortgage in 10 years. The problem was , that there was a 10 year tie in and very difficult to get out of

dunstonh

Allied crowbar used to sell a lot of MIPs. You used to come across them very often in past. MIPs were heavily sold my tied agents (luckily, they weren't often sold by IFAs with many commenting how bad they were long before it was acknowledged universally that they were bad). The ceased being good value after 1985 and the removal of LAPR. Although higher rate taxpayers could still benefit from them. That was until the introduction of regular contribution PEPs when there was really no justification for MIPs at all after that. (Although low risk MIPs investing in Property, Gilts and corporate bonds could still be justified as PEPs couldn't invest in those to begin with).

I would say that most MIPs were mis-sold. Not on the basis of risk as we are not talking with profits here. However, more on the suitability because PEPs would have been available with lower charges and better taxation. That would be the approach I would take if I was to complain about it being mis-sold.