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Scottish Widows Flexible Option Bond-good for 2%!
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If your IFA is any good, he/she will organise a diversified portfolio of funds based on your risk profile. The tied FA will not be able to do that so there will be absolutley no point in seeing the tied FA again.
Let the IFA take over the whole investment.0 -
RammieD, did you find, like me, that the SWid's website is now saying "temporarily unavailable" what are they hiding? I also got a letter (academic now as I cashed in-but hey, they obviously forgot) saying that those with any money in the Property Fund are now locked in for 180 days, and you will only get whatever the value is in 180 days. I lost 8.2k on a £100k bond after a 4 year investment, but almost feel lucky that I cashed-in before I lost more. Before the SWid's website crashed the bonds I was invested in had dropped another few thousand! Close call......0
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Wurz,
We do get the 'temporarily unavailable' from time to time, usually about this time of night, but it usually is available first thing next morning.
We have not had any letters from Scottish Widows, but that is probably to do with the type of fund?
It is ironic that SW are running a series of TV ads at the moment!
As you can see on my previous post, we have today started initial discussions with an Independent Financial Adviser, something we should have done from day one.
Oh for a bucketful of hindsight.0 -
RammieD, know just how you feel. Still, you'll be happy to know that (quote) "Lloyds TSB launched a new bank account today that enables Muslims to transfer money around the world without breaking the laws of Islam" I wonder if they lose money, and if/when they do, will they put a Fatwa against the bank?0
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Urgh, yes I just received a very expensive looking Scottish Widows booklet through the post today included with this month's Moneywise magazine
Can't imagine how much it must have cost, very expensive paper and print quality, must be at least £2-3 per booklet!
I suppose at least we can say we're sponsoring the Olympics indirectly - I doubt SW will be in a rush to send us all VIP seats to the games though somehow...0 -
Hi RammieD,
Is the SWid's website up and running again? and have you been hit by the "we are locking you in to 180 days" letter?0 -
Hi Wurz,
Been out all day, just returned, only just seen your posting.
The site was working OK this morning, but just tried at 00.50 and 'unavailable' again.
We still have no contact from SW, we have now cancelled our meeting planned for next week with the tied FA, now concentrating on working with the Independent FA.
It was good to see the fund value and cash-in value rise by about £500 today (sorry yesterday).0 -
It was good to see the fund value and cash-in value rise by about £500 today (sorry yesterday).
At least some good news, hope it continues. I'm now thinking of the next investment but I certainly wouldn't want to tie-in for another 5 year penalty clause. Makes you wonder, if these bonds offer a 108/9% initial investment (which as dunstonh says, covers initial fees etc) why can't we buy a bond at face value that doesn't have penalties. It's almost as if the vendor has no faith in his own product. Now, if someone said "I can beat your average high street deal" with no penalty lock-ins, I'm sure there would be interest!0 -
They do need to get back that initial higher allocation if someone leaves, so a penalty for at least some of that isn't unreasonable for a few years.0
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why can't we buy a bond at face value that doesn't have penalties.
You can. Its called choice. If someone doesnt want one with a tie in then there are plenty out there that dont. Many of the providers offer different versions and/or different options to allow the shape of the charges to be altered. i.e. reducing initial allocation to lower annual management charges or reducing initial allocation to remove 5 year step down penalty and/or establishment charges.
Again, your problem is that you bought from a tied agent who didnt have those options.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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