Endowment Diary

dunstonh

Jolly good thing With profits is being phased out IMHO. It's a very risky way to invest your money with loads of hidden costs and charges as well as unexplained risks. Might work in booming markets, but quite unsuitable these days.

Nothing wrong with the principle of with profits at all. Its just making sure you get the right company and contract. With profits is a medium risk investment. That is lower than most UK equity funds. However, when put with a contract which offers no MVR at all after the 5th anniversary or death, then it is still a very suitable contract for the right person. IHT planning where the only time the money is coming out is on death but the client doesnt want direct equity holdings (and fluctuations) are a good example of where it is still appropriate.

As I have said before, its not the answer for everyone (when perhaps it was used that way in the past), it is now just another investment fund which is suitable for certain requirements.