Professional Finance people no better than amateurs

bigfreddiel

shortfall on endowment mortgages with Aviva

Just to remind everyone that you should be very aware to treat any advice from any finance advisor (salesman) or whatever with a large pinch of salt.

Endowments have hit the headlines again, some 70,000 people will find out that their endowments will not cover their mortgages.

now presumably we're talking about a 25+yr investment and still these professionals cannot get it right - aren't we told that investments are for the long term so how long is long enough!

we're also told that previous performance is no indication of future perfomance.

taking those two points into account why do advisors then use projections with ludicrous rates of growth from historical data that we've been told not to trust?

just a thought

fj

Meeper

So, is there any point to these threads you post up every other day or so saying that IFA's are a bunch of crap, or are you just trying to make yourself look like a fool with a chip on his shoulder?

dunstonh

This forum appears to be no longer about savings and investments but posting threads that are purely designed to create argument which a small minority get off on.

longleggedhair

Agree with the OP, there are alot of greedy salesmen out there taking advantage of the less savvy. Be careful and dont let them con you.

bigfreddiel

Meeper wrote: »

So, is there any point to these threads you post up every other day or so saying that IFA's are a bunch of crap, or are you just trying to make yourself look like a fool with a chip on his shoulder?

meeper my old chap - methinks you are the one with a chip on your shoulder - i can't imagine why tho'.

my post is topical - its been reported in the news today

and secondly we all know investing is for the long haul so is 25+ years long enough?

why then are endowments not meeting their targets?

my conclusion is that professionals are no better than any well informed amateur. discuss.....

cheers fj

ses6jwg

I am inclined to agree with the op

IronWolf

Just investing long term doesn't mean you're guaranteed a decent return.

Firstly you have to invest wisely. Secondly it all depends on the economic situation. If you had invested mostly in gilts 25 years ago you'd probably be quids in now, but equities are still at low values so cashing in now wouldn't give great returns in all probability.

qpop

1) No link to the news article
2) No recanting of facts
3) Topic title irrelevant to actual content

/thread

longleggedhair

qpop wrote: »

1) No link to the news article
2) No recanting of facts
3) Topic title irrelevant to actual content

/thread

But he told the truth! Perhaps you dont like that!

atush

bigfreddiel wrote: »

shortfall on endowment mortgages with Aviva

Just to remind everyone that you should be very aware to treat any advice from any finance advisor (salesman) or whatever with a large pinch of salt.

Endowments have hit the headlines again, some 70,000 people will find out that their endowments will not cover their mortgages.

now presumably we're talking about a 25+yr investment and still these professionals cannot get it right - aren't we told that investments are for the long term so how long is long enough!

we're also told that previous performance is no indication of future perfomance.

taking those two points into account why do advisors then use projections with ludicrous rates of growth from historical data that we've been told not to trust?

just a thought

fj

Went to see a bank abt a mtg in the 90s (not an IFA) and they told me (natwest) they were only doing endowment mtgs. I said, don't be so stupid, I want a repayment. They said, sorry we aren't doing them, so I walked out the door (forever as I no longer have accts with them- I moved it to the bank who gave me a repayment mtg).

Yet again, a stupid article claiming IFAs are the bad ones for selling endowment mtgs. EVERYONE was back then, I struggled to find repayment ones on good terms. And more of them were sold by tied FAs anyway.

Your (and others) continuous IFA bashing is quite frankly just showing your own lack of knowledge. And no, I am not one nor do I know one.

jimjames

atush wrote: »

Yet again, a stupid article claiming IFAs are the bad ones for selling endowment mtgs. EVERYONE was back then, I struggled to find repayment ones on good terms. And more of them were sold by tied FAs anyway.

Your (and others) continuous IFA bashing is quite frankly just showing your own lack of knowledge. And no, I am not one nor do I know one.

This was exactly the situation when I got my first mortgage in 1994. The bank adviser couldn't believe/understand why I didnt want to take out such a great product like their endowment and wanted repayment instead.

They did eventually allow me to take out a repayment as I wanted. I think there is also an element of personal responsibility here, too many things are blamed on the person selling not the person buying.

If something is too complicated to understand then ask questions until it is understandable or don't buy at all.