What should we do with our money?

dib-dab

We have been procrastinating for far too long over how to invest our money which has ended up with us doing absolutely nothing with it. I am keen to do something so that we don't continue in this way for another couple of years!

We seem to be attracted to more 'interactive' opportunities such as property, peer to peer lending etc. I think this is because almost 5 years ago we were talked into regular payments into a 5 year plan and it has performed badly - as a result we stopped paying into a year ago and in January we will be able to withdraw the money and at present it is 2% down on what we have paid in (it has recovered from a much bigger loss), what a horrible waste of 5 years. So we want to feel that we are doing something that we have a little more control over - obviously understanding that everything comes with a varying element of risk.

We currently have around £15k available cash and in January, unless the fund tanks again, we will have another £55-60k.

We live in the UAE and the amount we will receive from the 5 year plan is in $ so the £ amount is obviously dependent on exchange rate.

We already own 1 property but this was the property we used to live in and we have a repayment mortgage which is proving very difficult to move to interest only. So that property is fairly poor from an investment point of view although we do have a decent amount of equity in it - depending on market value of course - but believed to be around £60-65k equity at the moment. We thought about selling but have been advised against it in the current market so we will continue to let it out for now.

Just wondered whether anyone has any pointers for a very indecisive and inexperienced (in terms of investing) couple! I am particularly interested to hear about more unusual investments as well as the standard things.

Thanks in advance

lpgm

dib-dab wrote: »

I think this is because almost 5 years ago we were talked into regular payments into a 5 year plan and it has performed badly - as a result we stopped paying into a year ago and in January we will be able to withdraw the money and at present it is 2% down on what we have paid in (it has recovered from a much bigger loss), what a horrible waste of 5 years.

People here will want to know exactly what this plan is, and if you paid any penalty for having stopped paying into it.

Putting money into stockmarket investments over a long period of time is one of the least controversial ways to build wealth. Having the 'control' you talk about can lead to bad investment decisions.

AnotherJoe

dib-dab wrote: »

We have been procrastinating for far too long over how to invest our money which has ended up with us doing absolutely nothing with it. I am keen to do something so that we don't continue in this way for another couple of years!

We seem to be attracted to more 'interactive' opportunities such as property, peer to peer lending etc. I think this is because almost 5 years ago we were talked into regular payments into a 5 year plan and it has performed badly - as a result we stopped paying into a year ago and in January we will be able to withdraw the money and at present it is 2% down on what we have paid in (it has recovered from a much bigger loss), what a horrible waste of 5 years. So we want to feel that we are doing something that we have a little more control over - obviously understanding that everything comes with a varying element of risk.

So essentially, because you made a poor (but not disastrous) choice, you are looking at things that are even riskier. Because whatever share-based (I guess) investment you went for was not good you've decided all share-based investments are bad, and all share based investments would lock you in for five years???

We currently have around £15k available cash and in January, unless the fund tanks again, we will have another £55-60k.

We live in the UAE and the amount we will receive from the 5 year plan is in $ so the £ amount is obviously dependent on exchange rate.

We already own 1 property but this was the property we used to live in and we have a repayment mortgage which is proving very difficult to move to interest only. So that property is fairly poor from an investment point of view although we do have a decent amount of equity in it - depending on market value of course - but believed to be around £60-65k equity at the moment. We thought about selling but have been advised against it in the current market so we will continue to let it out for now.

Just wondered whether anyone has any pointers for a very indecisive and inexperienced (in terms of investing) couple! I am particularly interested to hear about more unusual investments as well as the standard things.

Thanks in advance

That would be a great way to turn your investment into 0% instead of the 100% you have with your current plan, of which, as said, details please.

dib-dab

The plan we were paying into was a Generali Vision plan, I don't know if it something which is available in the UK. Unfortunately we don't have much decent financial advice here and for those of us who don't know where to start it means that we can get suckered into these things and missold. There is not the same regulation here that there is in the UK. We were involved in the original decision of selecting which types of funds the money would be paid into but we were told that the money would actively managed (it was not) and then given poor advice when we voiced concerns about the performance of the plan.

There was no penalty for stopping the payments into the plan but they do continue to charge the fees regardless of whether you are paying in or not. However a certain proportion of the fees are linked to the balance in the plan so in that sense we have paid less.

AnotherJoe wrote: »

That would be a great way to turn your investment into 0% instead of the 100% you have with your current plan, of which, as said, details please.

When I say unusual, I don't mean I would go with something not proven - if all of the more unusual investments are a fad and purely there to make commission for sales people (much like we are 'advised' on here) then of course I would rather avoid them. I suppose unusual was the wrong word to use - let's say interesting instead.

dib-dab

So essentially, because you made a poor (but not disastrous) choice, you are looking at things that are even riskier. Because whatever share-based (I guess) investment you went for was not good you've decided all share-based investments are bad, and all share based investments would lock you in for five years???


Sorry I didn't notice this when I typed my first reply. No I haven't decided that all similar investments are bad, just that I don't feel I can access good financial advice here and therefore I worry about being sold something similar again. I would rather arrange something myself. If the advice is to look into a share based investment then I would certainly be interested to hear about where I should start with this.

Of course we have the added difficulty of not being UK residents so I guess that this could limit things somewhat in terms of what we would be allowed to have access to.

richyg

Search this forum for Generali Vision.

In fact here is a post. You want to be very clear what the ongoing charges are going to be from the small print.

https://forums.moneysavingexpert.com/discussion/3396314

dib-dab

richyg wrote: »

Search this forum for Generali Vision.

In fact here is a post. You want to be very clear what the ongoing charges are going to be from the small print.

https://forums.moneysavingexpert.com/discussion/3396314

Thanks - I did search Generali earlier but in the 'Search MSE' box and nothing came up, I should have searched within the forum.

Looks like many people are in a similar position! Luckily in January it will be over! We were definitely stupidly trusting of our 'financial advisor' at the time but it was the first time we had had anything to save and we were won over by the friendly British guy who 'was paying into one of the same plans himself'. :rotfl: Extremely naive of us but no point in beating ourselves up over that now - lessons have been learned! One positive of it was that at least it forced us to save each month and I think we would have saved less if we hadn't had that structure. So every cloud and all that......

AnotherJoe

dib-dab wrote: »

The plan we were paying into was a Generali Vision plan <snip>

......
When I say unusual, I don't mean I would go with something not proven - if all of the more unusual investments are a fad and purely there to make commission for sales people (much like we are 'advised' on here) then of course I would rather avoid them. I suppose unusual was the wrong word to use - let's say interesting instead.

GV? OMG. Well, judging by what I've read you'll be lucky to get anything back. You've been stitched up.

Investments should not be "interesting". They are only interesting in the sense of the old Chinese curse. Investments should be dull. So you haven't learned your lesson from this fiasco and are seemingly looking to hurtle into another one.

Repost when or you have actually got some money back from GV.

Then people will suggest some very dull and boring investments.

dib-dab

AnotherJoe wrote: »

Repost when or you have actually got some money back from GV.

Then people will suggest some very dull and boring investments.

I don't enjoy being spoken to like I'm an idiot so I don't think I will bother posting again, shame as I was hoping to get some helpful advice from those more experienced than me after freely admitting that I have been naive in the past.

Thanks all for the responses anyway, some more helpful than others.

richyg

I don't think the poster was intending to treat you like an idiot.

And I am choosing my words carefully here as GV have in the past (so I have been told) come down on posters who they think post negative opinions of them and their company. Allegedly asking for personal email addresses - maybe to sue or threaten to sue. Who knows.

In your case you must go through your contract and work what the levels of charges are.

The alarm bell that triggered when you posted originally is that you say you will be able to access money in January. (after how many years of payments is this ?)

Posters in the embedded threads have talked of 25 to 30 years tie ins - with charges based on original monthly premiums even after making policies paid up or reducing the premiums to less amounts.

I doubt you have had the policy that long (20 or so years) but maybe you have - so what money and with what haircut/early repayment reduction - will you really be able to exercise in January ?. Do you know ?

I think that is the crux of it. And searches on the internet generally don't (in my opinion and clearly others ) seem to result in a positive outcome.

Your mileage may vary. All comments are the personal opinions of the poster and should not be relied on as facts.

Pincher

General Vision will pay out?

Please come back and tell us what happens in January 2017.

So, you think £55k~£60k?

I think we should do a pool.

£0 to £10k
£10,001 to £20k
£20,001 to £30k
£30,001 to £40k
£40,001 to £50k
£50,001 to £60k
£60,001 to £70k


I'll go for £20,001 to £30k