With profits bonds
Monday 23 June 2008
Some years ago The Financial Mail led an article about our warnings on with profits bonds. Since that time investors have still invested into these products as they are attractive for salespeople to sell. Clearly no relationship there between the quality of the investment and the adviser commission!!
However, it has been an on-going debate and we have joined it once again. Sylvia Morris of the Mail (click here for the full article) in her article stated…
“Hundreds of thousands of investors continue to suffer appalling returns on money trapped in with profits bonds from insurance companies. The worst of these bonds pays just 1.25% a year despite keeping your money for ten years. This compares with the 7%-plus being paid for no-risk saving on the High Street”
We are mentioned in the article stating… Nic Round, of IFA Murray Round, says: "With-profits are opaque and you don't have a clue as to where your money is invested. There are better alternatives around."
Clearly there are still thousands of investors who have not reviewed these plans. But when you do, try not to jump from the frying pan into the fire.
I recall an insurance product provider…who should remain nameless, has been looking to promote their own range of managed life assurance bonds which are dressed up to look attractive for anyone looking to exit from with profits bonds. In fact, they have a dedicated web site for financial advisers to build information on the with profits bonds in the hope instead investors will buy a new policy. Whether these are in investors' best interests I very much doubt, so if you have a with profts bond think very carefully about your next investment before exiting from your existing one.
Categories: Asset Class Management, Research, Risk
posted by Murray Round Wealth Management @ 14:17,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
Welcome to our Blog
Our Blog focuses on the three Ts...truth, transparency and trust. The world of investment management is fraught with self interested parties keen to sell investment products but wrapped up as 'advice'. Only with totally transparency, can investors make informed and successful decisions. We have included various categories for simpler navigation, alternatively search our Blog using key words you think are relevant. We hope you find something of interest to you.
Contact Us
We welcome your enquiry to us. Simply click on Contact Us' link at the top of the page. You may also email us at service@murrayround.co.uk or telephone 01743 248108.
Visit us again!
