How to Ditch your Crap With-Profit Bonds without Penalty

parcival

I am factoring in a small MVR on the 3 special bonuses - like you I am getting out regardless.

My Policy has never had a terminal bonus and I am not expecting one. In fact if the MVR's are removed before the 10 year anniversary next August I'll cash it in. I am watching it like a hawk. Needless to say I will not be darkening Aviva's door ever for anything.

parcival

Update - just checked policy valuation and MVR has been cut by two thirds but no sign of a terminal bonus.

Let's hope investment values continue north and then maybe all MVR's will be reduced.

Old_Slaphead

2010 wrote: »

Do you know what those rates are?

https://www.aviva-for-advisers.co.uk/adviser/site/public/news/all/article/?WCM_GLOBAL_CONTEXT=/Hybrid%20Content%20Library/news/published-news/aviva+reduces+market+value+reductions+in+light+of+improving+market+conditions

No but as my 2000 MVA has been reduced by 2/3rds I'm assuming that 2008 will also be.

Recently spoke to Aviva customer services who suggested that MVA to be applied on 10 year portfolio bond should be negligible as it would only be a few % on the 2008 reattribution.

Old_Slaphead

Got the final statement today - at 10 years MVA was £20 and future carry forward no MVA guarantee around £1500 (in other words that would have been MVA if I'd chosen to encash before 10 year anniversary).

In the words of the dragons - I'm out (thank goodness)

2010

Old_Slaphead wrote: »

Got the final statement today - at 10 years MVA was £20 and future carry forward no MVA guarantee around £1500 (in other words that would have been MVA if I'd chosen to encash before 10 year anniversary).

In the words of the dragons - I'm out (thank goodness)

Thanks for your input OS

I`ve been away for a week and just catching up.
Like you no matter what the MVA

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I`m out.
The earliest I can request a complete cashing in is 8th July for the 10 year anniversary on 7th August.
I`ve already made the letter out.
I`m assuming they then send a final statement showing the payment and any applied MVA for the special bonuses,and final bonus (not holding my breath over this though,expecting usual tripe about "market conditions"

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what happened about "the smoothing out effect" ?)

I wont be investing in any more financial products that can`t even keep up with a fixed term savings account.
10 years ago if I had fixed the lump sum for 5 years and then did the same again, would have made more money.

Too many sticky fingers in these products and advise more geared to their commission than actual benefit to the investor.
Greed at every level.

Geoffo_M

My 10 year anniversay is 26th August, 2010 - and like most others, I can't wait to get out. What are the formalities here. In the first instance, do I write to them signifying my intentions. Or do they automatically send out a letter asking what I want to do?

missile

They will contact you

Old_Slaphead

Make absolutely clear that you want to surrender on expiry of 10 year term and under the no MVA condition.

I sent letter a month early & even tho' my instructions were crystal clear (as they acknowledged), they were in process of encashment after 9yrs and 11months with full surrender penalties. As if anyone would be that mad !!! Fortunately I phoned to check that they had my letter when their "oversight" became apparent.

Clearly, as the letter was unequivocal, they would have had to rebate my MVA if the early transaction had gone ahead

parcival

Well done to you all for getting out and not even considering giving these sharks a second chance.

Still a year off for me........................that will just leave me in the Standard life WP (this makes Aviva look good) and the Prudential WP (which I don't really have an issue with)

studio_two

Geoffo_M wrote: »

Aviva policies bought in year 2000 have the highest MVR at 18%. Anyone whose 10 year anniversary is this year would do well to get out. Next year's MVR is currently listed at 10%

Hello,

My Father has an AVIVA "Portfolio Bond" (purchased 10 years ago). How can I find out if he can cash in without incurring the MVR?

Many Thanks.