How to Ditch your Crap With-Profit Bonds without Penalty

missile

Geoffo_M wrote: »

How exactly? Do you have a link please?

Jem16 beat me to it:T

You need to click on the icon to register your bond.

2010

Thanks for the link to register to view the policies.

Today I posted all the details required for cashing in on the 10th anniversary so I`ll be soon out of it.

Just one thing to add, if it wasn`t for the 10 year get out the MVR would have been a massive fifteen (15%).

No final bonus

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so what happened to the "smoothing out effect" which these policies were promoted on.
Money held back from the good years to compensate for the bad.

Too many greedy fingers in the pie and no accountability.

Steer well clear, at least !!!!!! Turpin wore a mask!

dunstonh

No final bonus

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so what happened to the "smoothing out effect" which these policies were promoted on.

10 year returns have been dire. Smoothing has occurred. Its just that over the 10 year period its been smoothed up and smoothed down again.

Money held back from the good years to compensate for the bad.

The last 10 years have had two stockmarket crashes of a level that historically you get 1 of that size in a 20 year period. Let alone 2 in 10 years.

Too many greedy fingers in the pie and no accountability.

The aviva with profits fund has a similar asset spread to the balanced managed fund. Over the last 10 years, the balanced managed fund would have returned 10.56% in total. How much has your With profit fund made? (more than 10.56% thats for sure).

10 years ago was a pretty bad time to invest. Within 3 years, the fund had lost 32%. The 5 years that followed so it recover that but then the credit crunch and global recession came along. This time last year, the fund would have been nearly 20% less than the point of investment. Its crept back up again but only just in surplus.

Steer well clear, at least !!!!!! Turpin wore a mask!

You just need to steer clear of all investments in future as you don't want to understand them. It wouldnt have mattered if you had chosen any other provider or investments of a similar risk profile. In fact, had you chosen more modern investments, you would probably have been worse off.

missile

I calculate that my bond returned 4.25% AER over the term. Not great, but in these difficult times certainly not a disaster.

2010

I notice when these products are being promoted they give examples of returns over a certain period using three different percentages,such as 4%, 7% 9%.
I`ve never seen one that said the returns could be dire and gave a minus 15% example.

The other great speil at the time was of course to warn you that there could be a MVR imposed but "to date this has never,ever happened".
Well it has now and you could be robbed of 15% of your dough.

As I have said before, I would have been just as well off,probably better, if I had put the same lump sum into a 5 year fixed rate savings account and done the same again for a further 5 years.

10 year returns have been dire. Smoothing has occurred. Its just that over the 10 year period its been smoothed up and smoothed down again.

This sounds more like an Asda "roll-back" advert than a serious explanation.
So it`s been rolled back a lot more than it was ever rolled up

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I know, the old excuse "stock market turmoil".

2010

ZenBuckner wrote: »

One of the most talk about stock picks can be right here! At 400% gainers.

Yet another idiot "financial advisor"

dunstonh

I notice when these products are being promoted they give examples of returns over a certain period using three different percentages,such as 4%, 7% 9%.

They give examples of 4%, 6% and 8%.

I`ve never seen one that said the returns could be dire and gave a minus 15% example.

Thats because its not possible on the plan. However, it does state with those illustrations that they are examples only and that you could get more or less than those examples and could get back less than you pay in.

The other great speil at the time was of course to warn you that there could be a MVR imposed but "to date this has never,ever happened".

Which was true.

Well it has now and you could be robbed of 15% of your dough.

Except is hasnt.

This sounds more like an Asda "roll-back" advert than a serious explanation.

Its clear that rather than choose to understand how these things work you want to remain ignorant so you can rant and rave like a lunatic.

2010

I know exactly how these products work, they are sold primarily for fat commissions whether suitable or not and for unaccountable "charges".

The proof of the pudding

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and the general consensus on this thread is they are not worth a toss and to exit penalty free as soon as you can.

You of course have a vested interest to try and defend the indefensible.
A dire ten years,stock market turmoil, etc,etc., are just some of the excuses

The fact of the matter is neither you or any other FA can predict what`s going to happen in the future but only what`s happened in the past.

Try telling your next "sucker" that these products have been crap performers in the past and see if they still want one.

Roll on mid August when I finally get my money without it being robbed of 15% MVR.
People are leaving these products in droves at the no MRV stage because they finally realise that the product is a loser.
They are voting with their feet, tired of poor performance and feeble excuses from FA`s.

dunstonh

You of course have a vested interest to try and defend the indefensible.

Really? Tell me how much I have earned out of your bond then?

A dire ten years,stock market turmoil, etc,etc., are just some of the excuses

So, its clear you don't know what you are talking about.

The fact of the matter is neither you or any other FA can predict what`s going to happen in the future but only what`s happened in the past.

Correct.

Try telling your next "sucker" that these products have been crap performers in the past and see if they still want one.

They havent been crap. They are now obsolete compared to modern alternatives but they are not crap.

You still havent told us how much money you have made on this investment. Is that because it hasn't done as bad as you make out?

Old_Slaphead

For info....


My WPB June 2000-June 2010

Gain in unit price +30.5%

Gain with MVA +10.6%

Allshare index (3000 down to 2700) -10%
Dividend yield (at 3%pa) +35% compound
Man Charges (say 1%pa) -12% compound

I know it's more like Bal Man fund rather than tracker but if Bond had peformed in line with All Share index it would have yielded approx 13% though I would have hoped that it should have done better.

All things considered I'm glad to be out with 30%