How to Ditch your Crap With-Profit Bonds without Penalty

dunstonh

Old_Slaphead wrote: »

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.

Problem is that the all share index tracker is further up the risk scale. Over the long term, you generally expect higher risk investments to perform better (or at least give that potential to perform better).

2010

dunstonh wrote: »

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?

It`s not done as well as a simple, straight forward fixed rate savings account that I`ve mentioned in at least two previous posts.
(a 5 year fixed followed by another 5 year fix)

If it wasn`t for the three special bonuses it would have been a great deal worse.
Not forgetting it was sheer luck that these bonuses were paid during the life time of my bond.

Also there`s the five years of charges that were taken for the so called running of the fund.
Plus whatever the FA`s take is every year for selling the policy in the first place.

If it wasn`t for the 10 year no-MVR, the returns would have been dire and a good deal less than a simple fixed rate savings account, where the money could have been released at the five and the ten year period and no 15% snatched from it.

These are the plain facts and that`s why I`m getting out now on the 10th anniversary and will never,ever invest in the same or similar again.

dunstonh

It`s not done as well as a simple, straight forward fixed rate savings account that I`ve mentioned in at least two previous posts.
(a 5 year fixed followed by another 5 year fix)

I doubt that is the case personally. Thats why I think we need figures. Missile posted his and it shows it hasnt been worse than savings accounts but about the same.

Also there`s the five years of charges that were taken for the so called running of the fund.
Plus whatever the FA`s take is every year for selling the policy in the first place.

Why only 5 years of charges when its been 10 years? The FAs take is not explicit so you havent been paying that directly.

2010

dunstonh wrote: »

I doubt that is the case personally. Thats why I think we need figures. Missile posted his and it shows it hasnt been worse than savings accounts but about the same.

Why only 5 years of charges when its been 10 years? The FAs take is not explicit so you havent been paying that directly.

In 2000 you could easily get a 5 year fixed rate paying 6.25% gross (5% net)
In 2005, 4.75% gross (3.8% net)
These rates are probably just average and could have been beaten.

The 5 years of charges, taken in the form of units from the bond, were the T & C of this particular Bond.

Once again I have calculated putting the same lump sum into a fixed rate savings account and it wins hands down.

Once again I will say if the 15% MVR had been implemented, and no special bonuses had been paid, then the returns compared to a fixed rate savings account (with no risk attached) would have been pathetic to say the least.

dunstonh
even you can be wrong sometimes and in this particular case you are.
Facts are facts.

jem16

2010 wrote: »

Facts are facts.

Can you provide the figures please as this would be helpful so we can see how good/bad it has been?

What did you invest and what will you be getting back?

parcival

Called Standard Life yesterday about my bond that was taken out in August 2001. The MVA has been removed and it has a small (very) Final Bonus. On that basis I have encashed it. Performance was abysmal - 52k invested, 63k returned.

Have another bond with the Pru and they have confirmed that the MVA has been removed and Final Bonus improved. Will keep this one as performance has been OK.

Aviva bond still has MVA - but only another year to go and the 10 years will be up.

studio_two

2010 wrote: »

I sent off a letter requesting surrender of my policy with no MVA on the 8th July, the first chance I had inside the 3 month "window"

I received back two days later my forecast and also the proof I have to send regarding money laundering regs.

Basically I have to get a photo copy of my passport "certified" by the likes of a bank manager, who has to sign it and confirm it`s a true likeness of me.
He also has to witness my signing the request form,etc.
The whole lot including policy documents to be sent off within 28 days or they`ll assume I no longer want to cash it in.

My father telephoned Aviva yesterday (it's a pity I wasn't in attendance). I'm setting out a letter advising them that he wishes to surrender the policy at the 10th anniversary with NO MVR.

There was no mention of a "passport check", but they did ask him to consent (in writinh) to an "third-party electronic identity check"

Anyone have any idea what this is exactly?

Stephen

2010

It doesn`t have to be a passport, but for me that was the easiest option.

What it said was they need one form of photographic evidence or two non photographic.
They don`t accept original documents,only photo copies which have to be "certified" by a "professional" such as a bank manager,solicitor,notaries or even an authorised FA.

When you write asking for surrender they will send you all the bumph regarding what they want.

I received my money via BACs on the third working day after the 10 year anniversary.

In fact you don`t have to wait for the actual 10th anniversary.
One month before the anniversary the bond goes into a "3 month window" and can be cashed in any time in that period, MVR free.

jerhams

Hello Everyone, need some help with this company :mad:

I have invested £25000 in 2007, I transfered from Norwich Union!!!

So it has only been 3 Years with the Aviva company, or does it start from when I was with Norwich Union???

Cash In Value 23 August 2009 was £23,591.44

Cash In Value 23 August 2010 was £26,006.59

Total Bond Value is £29,179.80
this the value of my units including any final bonus and before any market value reduction.

Total Bond Value on death is £29,208.90

so aviva have worked out if I cash it in this year I would have to pay:

£2,368.88 in Market Value Reduction With Profit

&

£804.33 in Early cash in charge

Is it worth keeping it invested with this company or should I invest some where else????????????????

Also can I take some money out like £6000 and invest it some where else with out any charges, or will they still hit me with the above charges even those I have left some money in????

Hope you can help (Any One :A)

Many Thanks

A concerned man:eek:

dunstonh

So it has only been 3 Years with the Aviva company, or does it start from when I was with Norwich Union???

The logo in the corner makes no difference. Its the date of your contract.

Is it worth keeping it invested with this company or should I invest some where else????????????????

You can invest elsewhere within the existing product. You have over 100 unit linked funds including all the major external funds available.

Also can I take some money out like £6000 and invest it some where else with out any charges, or will they still hit me with the above charges even those I have left some money in????

Logically, that wouldnt make any sense. Insurance companies are not that stupid.