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CrashBy40%

Unit Linked Saving Plan- Best To Cash In?

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In 1996 i took out a Unit linked savings plan with a company known as United Friendly, taken over by Royal London a few years back. This was a bad idea back when i was young and didnt know better and didnt want to cash in early due to losing most id put in. This plan is worth around the 8k mark and has a year left to run, the returns are not going to be great. Do i grit my teeth and hold out for the last year or pull it out now and put it somewhere more productive?.

*sorry wrong forum

Edited by CrashBy40%

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In 1996 i took out a Unit linked savings plan with a company known as United Friendly, taken over by Royal London a few years back. This was a bad idea back when i was young and didnt know better and didnt want to cash in early due to losing most id put in. This plan is worth around the 8k mark and has a year left to run, the returns are not going to be great. Do i grit my teeth and hold out for the last year or pull it out now and put it somewhere more productive?.

I'm not sure what sort of investment you've taken out, whether it's an open ended thing like a unit trust or a fixed investment term. If it's an insurance type policy with a fixed term then I wouldn't cash it in as most of the gains are accrued in the final year, you may suffer some penalties that are greater than a drop in the market.

In one case a member of my family used to have one of these policies based on a fixed investment term, they used to knock the door every month or so and collect the premium, about a year before the policy was due to expire the usual rep was accompanied by a 'manager' who tried to persuade them to surrender the policy early, he even had a bundle of notes and proceeded to count out over a couple of grand on the table... before he got too far they were duly told to get knotted. When the policy expired a year later the balance was nearly double what was offered by the temptatious knave.

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In 1996 i took out a Unit linked savings plan with a company known as United Friendly, taken over by Royal London a few years back. This was a bad idea back when i was young and didnt know better and didnt want to cash in early due to losing most id put in. This plan is worth around the 8k mark and has a year left to run, the returns are not going to be great. Do i grit my teeth and hold out for the last year or pull it out now and put it somewhere more productive?.

*sorry wrong forum

Yep!

I've had a couple of these type of policies in my lifetime too!

Frankly - they are cr@p!

However, you may be able to ask for a 'Partial Surrender' (make sure you clairfy there should be no penalty). This might allow you to access 'some' of your cash without taking the massive hit that you otherwise would it you attempted to cancel the policy in full.

These things (policies) really are NEVER in your best interests - NEVER!

You would be far better putting your money directly into individual shares, cash or even Gold bullion - at least you can cash out without any restrictions.

Good luck!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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