AVIVA International With-Profit Bond

2010

atush wrote: »

But if you are as sophisticated an investor as you say, you should have done more research or like me and others taken your bad decison on the chin.

I wouldn`t describe something that made me money as a bad decision.

I`ll repeat my point for the last time just for you.
I could have done better if I had put the lump sum into a fixed rate savings account for the same period of time.

The other point being that nearly everyone now considers WP Bonds as a bad investment.
Just Google it.

2010

Linton wrote: »

I have held a Pru WP policy for almost 10 years. It has averaged 5.1%, tax free, despite all the economic storms in the mean time. So I am happy.

For comparison, the HSBC FTSE100 tracker has averaged 3.1% in the same period.

I`m glad you think you have done well.
Try drawing your money out and see how well it is after the MVR.

darkpool

dunstonh wrote: »

Annual bonuses are not explictly reduced by MVR.


You need to put that in context as there has been a recent stockmarket fall. August say a 20% drop on the markets.

ehhhhmmm ok, so what does a MVR explicitly reduce then? surely when you get the letter from the insurance company saying they have reduced your policy value you don't really care how they done the calculation? You really only care that the money you were banking on has been reduced.

I honestly thought the main selling point of WP policies was the "smoothing" process. You must admit it's dishonest for the fund management industry to use that in sales literature, then when the going gets tough they decide just to ditch it.

If any other industry done something similar you'd have folk up in arms complaining. Yet when it's the financial industry people just seem to accept it.

Let's be honest, if you went to a car showroom and was told a car had leather seats, then when the car was delivered it had cloth seats you would be complaining and writing to newspapers. Why should the fund managment industry be any different? Hiding behind small print seems a strange way to build customer loyalty.

Linton

2010 wrote: »

I`m glad you think you have done well.
Try drawing your money out and see how well it is after the MVR.

Just talked to Pru as I may want to use the money for other things. There is no MVR because:
a) The WP fund is in a good state
b) Any withdrawal below £25K after 5 years investing is free from any MVR that may otherwise be applied.

My current interest rate is 5.3% net - no taxes applicable for standard rate tax payers.

It all looks like a pretty good deal to me.

It's all very well having your rather ignorant prejudices, but I think you will find that if you were to put them to one side and investigate the facts your investing would become rather more lucrative.

darkpool

Linton wrote: »

Just talked to Pru as I may want to use the money for other things. There is no MVR because:
a) The WP fund is in a good state
b) Any withdrawal below £25K after 5 years investing is free from any MVR that may otherwise be applied.

My current interest rate is 5.3% net - no taxes applicable for standard rate tax payers.

It all looks like a pretty good deal to me.

It's all very well having your rather ignorant prejudices, but I think you will find that if you were to put them to one side and investigate the facts your investing would become rather more lucrative.

ehhhmmmm well, yes I suppose apart from all that bad publicity about endowment mortgages not being able to pay off the mortgage and all that complaining about WP holders getting money clawed off their policy there is absolutedly no reason to have a prejudice against WP policies.

perhaps you could share your policy value and your monthly contributions?

2010

Linton wrote: »

Just talked to Pru as I may want to use the money for other things. There is no MVR because:
a) The WP fund is in a good state
b) Any withdrawal below £25K after 5 years investing is free from any MVR that may otherwise be applied.

My current interest rate is 5.3% net - no taxes applicable for standard rate tax payers.

It all looks like a pretty good deal to me.

It's all very well having your rather ignorant prejudices, but I think you will find that if you were to put them to one side and investigate the facts your investing would become rather more lucrative.

If what you say is correct, then fair enough, if not you`re only fooling yourself.
I`ve already got my money out with a tidy profit but yours is still in there.
You seem to have a unique bond, whereas most other Pru "investors" are suffering.

No prejudices, just simple facts.

fairleads

2010 wrote: »

Out of the hundreds of financial products available you`re bound to get the odd one or two that do well.
The problem is that these IFA can only tell you about them after they do well.
The chances of an IFA picking one for you is remote.
They are mainly commission driven and sell what`s good for them rather than what`s good for the "investor" (mug).

As I said in a previous post just Google "WP bonds are rubbish" and you`ll find no end of unhappy people.

Having said that, people are their own worse enemies by going to these people in the first place.
Fee based or commission based the "investor" ends up paying for what`s mainly bad advice which will cost them dearly in the long term.
If people really want to risk their hard earned on these financial products they should do their own research, pick their own products and then go to an execution only broker, where they will at least get some of the commission rebated back to them.

Most people with a lump sum to invest would do just as well putting it in a 5 year fixed rate savings account rather than listening to and paying the chancers (IFA) of this world.

I'll second that.

dunstonh

You seem to have a unique bond, whereas most other Pru "investors" are suffering.

Please provide facts to back that up.

Pru are the most successful provider of this type of investment and their returns have been very consistent over the years. So, your opinion is the complete opposite of the general position of Pru policyholders.

2010

http://www.moneymarketing.co.uk/pensions/-adviser-slams-pru-for-20-mvr-on-switch/1039407.article

An adviser has hit out at Prudential after it said it will levy a 20 per cent market value reduction on a member’s with-profits fund if the money is switched to a different Pru product.

Even "one of your own" is moaning about them.

darkpool

dunstonh wrote: »

Pru are the most successful provider of this type of investment and their returns have been very consistent over the years.

so if Pru are one of the most successful providers of these investments and they are charging a 20% MVR how bad are the rubbish providers?

i'm sooooooooo glad i don't have any investments with companies that can just decide to whip about 20% of my money because they feel like it.