help with investment

diane118 · #1 (**permalink**) 01-20-2005, 06:29 AM

hi please could you help me we have had a 5 year bond for 2 and three quarter year our financial adviser wants us to invest in a company called Skandia in the bond income fund bond or the cautious fund. our present investment profits are only 1.5% if we cash it in early we will loose £200 of what we originally put in as we have withdrawn 1,000 last year, if we kept it in it would be worth 3,000 more. He said that Skandia was a world wide company and that they would add 20% to our investment imeadiatly, we would have to invest it for 10 years, we are not too well off and in 6years time we would need to withdraw £9.000 to pay our endownment mortgage off. He said we could withdraw 5% every year without penalties but if we with drew more they would charge 25% and it went down by 2% each year, he said the charges to manage the investment would be 3 and a half per cent and we would make around 5%to 10% depending on what one we went for after the charges are deducted. Please could you tell me if you think it sounds a good invesment and if the company is a good one, also he tells me the investments have only been launched between 1 and half and 2 years running time, and they have the best fund manager in the world hope some one can advise us as to what to do many thanks Diane

terry1156 · #2 (**permalink**) 01-20-2005, 07:37 AM

Anyone who is promising you 20% returns can't be trusted. I would stay away from him all together. You can do some research on the company:

<A HREF="http://www.skandia.co.uk">www.skandia.co.uk</A>
<A HREF="http://www.skandia.com/en/index">skandia.com</A>

He seems like he's out to make money on a commission. You should look at your current bond and decide if you are happy with the return or not. If you are, then do nothing. If you aren't, then you should research the best place to put your money and not rely on him.

JLP · #3 (**permalink**) 01-20-2005, 08:24 AM

Any time they promise you an immediate 20% gain it is probably in the form of a "bonus." All that means is that they will charge you more in management fees. I wouldn't do this. I also would find another advisor. This guy smells.

Also, 3.5% is VERY VERY expensive!

JLP

Tree0164 · #4 (**permalink**) 01-20-2005, 09:53 AM

I would say thank you but no thank you and stay with your current investment.

Good luck

diane118 · #5 (**permalink**) 01-21-2005, 03:31 AM

Hi thanks for all your help diane

moneyrant · #6 (**permalink**) 01-21-2005, 08:57 AM

Crook. Boot him out the house.