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L & V Flexible Savings Plan-any help?
convict90210
Posts: 61 Forumite
Hi, does any one have any comments (good or bad!) about this savings plan in terms of past performance or general experiences? Have held this for 3 years and am wondering whether it is as good a long term investment I first thought..
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Comments
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In a word.... "awful".
This is an endowment policy. It invests in the LVFS With Profits fund. These stopped being sold on advice basis in the late 90s as there was no way to justify using one. A few companies still persist with them on direct offer basis (mailshots etc) as there is no liability for advice given.
Having looked at the KFD, it has high charges with a reduction in yield of 2.3%. The charges will actually be higher as the with profits fund is a 90:10 fund but charges on that fund are implicit and not explicit so dont get included in the figures.
Basically, it makes it around double the cost of a unit trust and higher tax than an Stocks and shares ISA or unit trust. The investment fund is undesirable and low potetial. You are paying more in charges than an IFA arranged regular contribution ISA/UT even if the IFA was taking full commission. Indeed, even the banks have better products.
It wasnt a good investment to go into 10 years ago let alone 3 years ago.
I'm not sure I can paint a worse picture. Sorry.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
That wasn't what I wanted to hear but thanks!!
I have paid in 3 years worth of contributions (total of £1800 so far) and the plan guarantees to pay out £6000 over the 10 year period so at least the contributions are covered...As this is not looking good at all would it be wise to 'bite the bullet' and cash this in rather than keep on paying in? Guessing if I cashed in now would get around £1500 ish..? 0 -
Have just been quoted £1600 to cash this plan in now..Anyone got any ideas what I should do? Would really appreciate it!! Please PM
Thanks 0 -
Keeping it is probably throwing good money after bad. It isnt likely to make much and the charges are high. Taking a £200 hit is 11% of your contributions but with 7 years to, a low cost and better potential alternative would easily have the potential to make up that £200 plus more. So, I would be inclined to take the hit now and go with a unit trust or investment trust ISA instead.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Which was what I was thinking after your comments yesterday...
Thanks for your (honest) advice dunstonh!!0
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