FTSE 100 advice

Reaper

My first attempt to post told me my IP address had been banned. Odd. Ah well I'm back now.

badger09 - as dtaylor84 says your link says what it will be measuring, mine shows how it turned out after the first year.

dtaylor84 - I can't believe I missed post 6. I spent ages trying to find how it was performing only to discover she had already told us. "D'oh" as Homer Simpson would say.

Well done calculating the next return.

So in summary the OP has nothing to worry about. The capital will (almost certainly) be returned at the end of the 5 years, plus the following:

Year 1 9.73%
Year 2 10.73%
Year 3 6.94%
Year 4 7.29% estimated
Year 5 unknown

I'm pretty sure the return will be simple not compounded, so the OP just needs to apply each of the percentages above to her original capital to find out how much extra she has made. These are "locked in" so will not be taken away even if the market falls next year.

dunstonh

My first attempt to post told me my IP address had been banned.

I had that too. Looks like a board admin was getting carried away in the settings

bigfreddiel

dunstonh wrote: »

I'm not sure telling the OP to invest in ETFs is a good idea .....

well it was only one of three options

and when you diy i think it focuses your mind more than following what a salesman has told you, presumably after a few hours of hard sell sometimes known as fact finding

for example - i asked an everest double glazing salesman for a quote for 2 patio doors - 3 hours later we cam to a price of £2700 reduced from £8,000!

then i got a local company to quote - took 10 minutes and a written quote in the post the following day £2100

so remember fas/ifas/tied products - they're all just salesman - they're just earning a living like you and me - but its your money thats paying them and there is no guarantee unlike the double glazing!

Stephb1986_2

So am I right in saying that 27.5% on £5000 = £6370 that is not including year 4 and 5.

The reason I contacted the holding company (Close Brothers) and told them not to speak to anyone about my accounts is because the firm that the IFA worked for are not on good terms with my family so wouldn't trust them as far as I could throw them. Also the IFA herself I don't want her dealing with my accounts anymore I'm just going to sit tight until it kicks out and I get my money back.

Thank you everyone for your advice

Steph x

dunstonh

so remember fas/ifas/tied products - they're all just salesman - they're just earning a living like you and me - but its your money thats paying them and there is no guarantee unlike the double glazing!

The advice is guaranteed. If the advice is bad then there is consumer protection in place. The advice is what you are buying. The returns on a product are not guaranteed but that isnt what you are buying.

The reason I contacted the holding company (Close Brothers) and told them not to speak to anyone about my accounts is because the firm that the IFA worked for are not on good terms with my family so wouldn't trust them as far as I could throw them. Also the IFA herself I don't want her dealing with my accounts anymore I'm just going to sit tight until it kicks out and I get my money back.

The reason I contacted the holding company (Close Brothers) and told them not to speak to anyone about my accounts is because the firm that the IFA worked for are not on good terms with my family so wouldn't trust them as far as I could throw them. Also the IFA herself I don't want her dealing with my accounts anymore I'm just going to sit tight until it kicks out and I get my money back.

Are you sure it was an IFA? That product, AFAIA, was a tied agent product. However, there is still no problem identified with that product.

Stephb1986_2

She said she was and independent financial advisor and she is also on the FSA register.

She did only recommend Zurich products though. She told me to make a will incase something happened to me (I was only 22 at the time) So I made a start on a will with her and she just left it half filled in She told me to invest in gold coins that the return was fantastic and I would double my money in 12 months (They lost money) It's just been one thing after another.

Out of £40,000 she helped me invest I have this £5,000 left in the space of 4 years I must admit I have cashed out a few things because I set up my own business etc but non of the products made any money it either lost me money or I came out with what I put in.

I was 22 at the time of investing she could of sold me rocking horse poo telling me it would make money and I would of believed her because I was naive then. I've come back to earth with a large bump now I want to buy a home next year and I'm also getting married (Luckily I've saved for this) but I was hoping the money I had invested would of made it so I had a large deposit and a small mortgage it's now not the case when you look at it so as you can imagine I'm pretty gutted

Thank you everyone for the advice given at least I know where I'm up to with the investment.

Steph x

Reaper

Stephb1986 wrote: »

So am I right in saying that 27.5% on £5000 = £6370 that is not including year 4 and 5.

Yes, and £6734.50 if you include the estimate for this year.

Note that will not be the surrender value if you cash in early. I don't know what the T&C say but with these sort of plans you would likely be heavily penalised for early surrender. I suggest you leave it to run for the full term.

IronWolf

Stephb1986 wrote: »

She said she was and independent financial advisor and she is also on the FSA register.

She did only recommend Zurich products though. She told me to make a will incase something happened to me (I was only 22 at the time) So I made a start on a will with her and she just left it half filled in She told me to invest in gold coins that the return was fantastic and I would double my money in 12 months (They lost money) It's just been one thing after another.

Out of £40,000 she helped me invest I have this £5,000 left in the space of 4 years I must admit I have cashed out a few things because I set up my own business etc but non of the products made any money it either lost me money or I came out with what I put in.

I was 22 at the time of investing she could of sold me rocking horse poo telling me it would make money and I would of believed her because I was naive then. I've come back to earth with a large bump now I want to buy a home next year and I'm also getting married (Luckily I've saved for this) but I was hoping the money I had invested would of made it so I had a large deposit and a small mortgage it's now not the case when you look at it so as you can imagine I'm pretty gutted

Thank you everyone for the advice given at least I know where I'm up to with the investment.

Steph x

That is misconduct, she cannot tell you that something will 'make money' although I'm not sure how you have lost money on gold coins?

dunstonh

She said she was and independent financial advisor and she is also on the FSA register.

She did only recommend Zurich products though.

She lied to you then. The product is a tied agent product that was available through the Zurich tied sales force. An IFA cannot only recommend one company and indeed, there isnt much that Zurich do (or did) that an IFA would take much interest in.

Many Tied agents have historically tried to give the impression they are independent. Some by discretely not saying anything. Others by perhaps using the mortgage market to give that impression or some by just telling outright lies. You had a liar.

If you check the FSA register for her and look at her history, the firm names will tell you if she was tied to a company or not. If it mentions Zurich or Openwork or Allied Dunbar then she was a tied agent of Zurich. Not an IFA. If you are not sure where to look then PM me (rather than name her on an open forum) and I will look her up for you and show you where it says it.

So, with that and some of the other things she is saying, she sounds like someone that the industry could do with getting rid of.

doughnutmachine

dunstonh wrote: »

She lied to you then. The product is a tied agent product that was available through the Zurich tied sales force. An IFA cannot only recommend one company and indeed, there isnt much that Zurich do (or did) that an IFA would take much interest in.

Many Tied agents have historically tried to give the impression they are independent. Some by discretely not saying anything. Others by perhaps using the mortgage market to give that impression or some by just telling outright lies. You had a liar.

Correct me if I'm wrong, but IFAs can only sell a relatively small selection of financial products as well? For instance you can't recommend directly held shares or property?