With Profits
With Profits: There is several types of with profits investments and we will discuss then during the course of this page. We will give you our honest opinion on traditional with profits and stakeholder with profits so hopefully you can gain an understanding of both of these types of products. In the past many people who invested into a with profits fund thought that it was low risk but in recent years many people have got a return less than their investment due to several factors. During this page we will not give you advice but facts so you can make up your own mind, so whether you are looking to invest in with profits or complain about being mis-sold a with profits product we hope the information on this page will help you as we take the opinion that we are here to benefit our customers and no one else.
With Profit Bonds
With Profit Bonds: Many companies offer this type of product which is a medium to long term investment between 5-10 years, if you have been advised to move before this period then you need to question the advice given. Most people when sold this product were never advised about the possibility of an MVR Market Value Reduction being applied and it is only in recent years that companies have started to apply this type of penalty to this type of product. They have the right to implement this on with profit bonds in exceptional circumstances when people wish to en cash their investment. Many companies had MVR's of up to 30% which most people were unaware would happen. Another point to be aware of the with profit bond providers do not have to return the full gain made in any one year to the bonuses as they are allowed to take charges from these types of funds whatever they feel necessary within reason which in our opinion is not treating customers fairly and this should be set so customers are aware like other products such as Unit Trusts Equity Isa and many other investment types.
Endowment Policies
Endowment Policies: These were one of the most popular investments in the past with either paying a monthly premium or investing a single lump sum. Some companies still offer these types of products and if you are looking for this type of investment we would suggest you read all the booklets that you will receive to make sure you understand what you are entering into even for children's savings. Many people in the UK had taken endowment policies for their mortgage and have found that they will have a shortfall on their mortgage at the end of the term so ask yourself this do you really want to top up a policy that has under performed which many people have in the past. Again we are not saying that endowment policies are right or wrong because we do not understand your circumstances so we would not give advice to purchase such as policy. Generally an endowment policy has a sum assured attached to the policy in case you die before maturity but if you look at a savings plan and a level term insurance policy then you may find you are better off at the end of the term depending on your circumstances.
Pension Annuity
Pension Annuity: Some companies in the UK financial market offer with profit annuities. Are these good or bad you have to decide for yourself and take care with your attitude to risk when deciding what to do. Some providers offer very good rates compared to traditional annuities and give you a guarantee on payments for a set period such as 1-2 years. The amount you can get from a with profits annuity can sometimes out way a substantial amount over the guaranteed period so we suggest you work out the income over the guaranteed payment period and the minimum they will pay in a bare market to the returns you would you receive under a traditional annuity. Some providers will give you a with profits pension annuity quote using set bonus rates which can be very beneficial in looking at your options against traditional annuities. We will supply further details in our dedicated page to annuities.
With Profits
With Profits: Most of the with profits funds in the UK market have various asset classes held within the with profits fund but what most people do not realize is that generally between 50% to 70% of these funds are held in equities (stocks and shares) both in the UK and overseas markets. With this is mind most people in the UK invested in with profits because they thought they were a safe savings plan and were acceptable for someone with a cautious attitude to risk which has never been the case. If you fall into this category then we suggest you obtain your file from the provider where your investment is held and get an expert to look over this on your behalf and give you an opinion if they feel you have been mis-sold the investment.
With Profits Help
With Profits Help: The FSA recently brought out a treating customers fairly rule which the financial sector has had to adapt to so people who are looking for advice in the financial market get clear advice from the advisor and from the provider. This should help the client understand the product they are going to invest in more but before you invest please ensure you are aware of the costs for the advice either by commission or fee based and your attitude to risk. Do not be swayed on your attitude to risk as this is one of the major factors which will influence where your investment will go. This applies to people who still wish to invest in with profits funds. We would always suggest that prior to the advisor calling you ask them for a copy of their attitude to risk questionnaire to be sent to you so you can complete this without being swayed one way or another.
With Profits
With Profits: We have teamed up with a claims management company with financial experience who will review your investment if you think you have been mis-sold your with profits investment in the past. If you would like to discuss this further then please use the contact button at the top of the page and we will pass your details to the company who will call you and give further advice on this process. We would only recommend this if you feel strongly that you have been mis-sold your with profits investment in the past. This service applies to all with profit products and other financial products. We offer this service as we want to ensure our clients are getting the best service possible for all their financial needs.
With Profits Summary
With Profits Summary: Moneyandme would like to thank you for taking the time to read this page and hope you have found the information helpful. If you would like any further information then please use the contact button and we will try and assist you with your query. We would also be grateful if you could supply feedback on this or any other page you have visited by using our feedback form at the top of the page. This will allow us to improve the service to our clients when we do upgrades to the web site and we will take all feedback on board before we make these changes.
Other Products and Services
Other Insurance Products: Moneyandme.co.uk offers a large selection of insurance policies including car insurance and income protection policies to protect your car loan repayments in the event of Accident, Sickness or Unemployment which we strongly recommend in the current economic climate. Our aim is to save you money on your Insurance needs whether they be mortgage protection, Life insurance, House insurance or any other products.
You will find some popular links at the bottom of this page and more specific insurance needs at the top of the page. We hope you have found this page and other pages throughout the site useful but if there is anything you think we can add or improve on then please use the feedback tab at the top of the page as we will take your feedback into consideration for the future development of this site. Moneyandme.co.uk would like to thank you for taking the time to read the information on this page and hope you found the information useful.
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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is targeted to UK consumers.
Money and Me is a marketing company and we pass enquiries to the brokers who are authorized and
regulated by the Financial Services Authority for the purpose of arranging Mortgages and Insurance Products.
Company Number : 06934251