stick stop or fold
Discussion
i pay £60 a month into a saving plan x 10 years so i have paid in £7200 over last 10 years out of wages
the plan has now matured and is worth £10,199
i have 3 options
stick with the policy for another 10 years paying £60 a month
stop paying in but keep the policy going 10 years or
fold take the money now
the value of the policy can rise and fall
would brexit ruin it or do i just take the money i know its not a lot of money for most people
but its a lot for me
the plan has now matured and is worth £10,199
i have 3 options
stick with the policy for another 10 years paying £60 a month
stop paying in but keep the policy going 10 years or
fold take the money now
the value of the policy can rise and fall
would brexit ruin it or do i just take the money i know its not a lot of money for most people
but its a lot for me
loafer123 said:
What is the risk profile?
Embedded return was 6.6%pa.
Was that fair for the risk?
Could you explain your phrasing please? I'm not trying to be funny, but what do you mean when you say risk profile? And what is an embedded return? As opposed to an annual return or overall return?Embedded return was 6.6%pa.
Was that fair for the risk?
Tyre Smoke said:
loafer123 said:
What is the risk profile?
Embedded return was 6.6%pa.
Was that fair for the risk?
Could you explain your phrasing please? I'm not trying to be funny, but what do you mean when you say risk profile? And what is an embedded return? As opposed to an annual return or overall return?Embedded return was 6.6%pa.
Was that fair for the risk?
I am asking whether it was a repeated each way bet on the horses every Tuesday or invested in a AAA bond fund or somewhere in between.
As for the embedded return, I did a 5 minute cashflow to work out what return he had got on his money on an annualised interest rate basis.
Basically, what risk/reward was it?
It would be interesting to know how much the provider has taken in charges over 10 years - but that won't be itemised on your statement of course.
Over 10 years I doubt Brexit will make much or any difference, and as your payments are spread over time you'll spread the risk too - boffs call this pound-cost averaging.
If you don't need the money, and 6.6% is much better than any savings account, you may as well stay with it.
Over 10 years I doubt Brexit will make much or any difference, and as your payments are spread over time you'll spread the risk too - boffs call this pound-cost averaging.
If you don't need the money, and 6.6% is much better than any savings account, you may as well stay with it.
Brexit already priced in arguably.
In 10 years time , assuming same 6.6% growth the pot would be just over £29k.
Not a bad little pot for 'only' £60 a month!!
Or pay in nothing more and have £19k. I guess it depends how much you will miss the £60 each month.
In 10 years time , assuming same 6.6% growth the pot would be just over £29k.
Not a bad little pot for 'only' £60 a month!!
Or pay in nothing more and have £19k. I guess it depends how much you will miss the £60 each month.
Edited by covmutley on Monday 8th October 21:36
loafer123 said:
Tyre Smoke said:
loafer123 said:
What is the risk profile?
Embedded return was 6.6%pa.
Was that fair for the risk?
Could you explain your phrasing please? I'm not trying to be funny, but what do you mean when you say risk profile? And what is an embedded return? As opposed to an annual return or overall return?Embedded return was 6.6%pa.
Was that fair for the risk?
I am asking whether it was a repeated each way bet on the horses every Tuesday or invested in a AAA bond fund or somewhere in between.
As for the embedded return, I did a 5 minute cashflow to work out what return he had got on his money on an annualised interest rate basis.
Basically, what risk/reward was it?
Tyre Smoke said:
I'm not an IFA and have no idea what you are talking about! It was a genuine question. Your answer has left me even more baffled than before!
he's asking how risky the investment profile is?it has returned 6.6% annually, thats a pretty good return.
But, was the money invested in something 'high risk' (the equivalent of gambling eg: punting it on the horses, high risk high reward, equities/ emerging markets.......) where it could be up 20-30% (or bust!). If it was invested in markets that are high risk and only return 6.6%, then thats been a pretty rubbish performance based on what was expected.
If it was invested in something 'low risk' (government bonds etc....) that should return 0.5-2%, but it managed to return 6.6%, then thats been a great investment. completely out performed what it was meant to.
if it was invested in something in between expecting 3-10% return (blue chip stocks, ftse 100 funds?), then its done exactly what it was supposed too. there for, a good investment, it does what it says on the tin, they've not gambled hugely, not gone too safe.
malks222 said:
he's asking how risky the investment profile is?
it has returned 6.6% annually, thats a pretty good return.
But, was the money invested in something 'high risk' (the equivalent of gambling eg: punting it on the horses, high risk high reward, equities/ emerging markets.......) where it could be up 20-30% (or bust!). If it was invested in markets that are high risk and only return 6.6%, then thats been a pretty rubbish performance based on what was expected.
If it was invested in something 'low risk' (government bonds etc....) that should return 0.5-2%, but it managed to return 6.6%, then thats been a great investment. completely out performed what it was meant to.
if it was invested in something in between expecting 3-10% return (blue chip stocks, ftse 100 funds?), then its done exactly what it was supposed too. there for, a good investment, it does what it says on the tin, they've not gambled hugely, not gone too safe.
Thank you. A very eloquent explanation.it has returned 6.6% annually, thats a pretty good return.
But, was the money invested in something 'high risk' (the equivalent of gambling eg: punting it on the horses, high risk high reward, equities/ emerging markets.......) where it could be up 20-30% (or bust!). If it was invested in markets that are high risk and only return 6.6%, then thats been a pretty rubbish performance based on what was expected.
If it was invested in something 'low risk' (government bonds etc....) that should return 0.5-2%, but it managed to return 6.6%, then thats been a great investment. completely out performed what it was meant to.
if it was invested in something in between expecting 3-10% return (blue chip stocks, ftse 100 funds?), then its done exactly what it was supposed too. there for, a good investment, it does what it says on the tin, they've not gambled hugely, not gone too safe.
covmutley said:
Brexit already priced in arguably.
In 10 years time , assuming same 6.6% growth the pot would be just over £29k.
Not a bad little pot for 'only' £60 a month!!
Or pay in nothing more and have £19k. I guess it depends how much you will miss the £60 each month.
this i don tmiss the £60 as its taken out of wages i think i will carry on with itIn 10 years time , assuming same 6.6% growth the pot would be just over £29k.
Not a bad little pot for 'only' £60 a month!!
Or pay in nothing more and have £19k. I guess it depends how much you will miss the £60 each month.
Edited by covmutley on Monday 8th October 21:36
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