Standard Life, traditionally one of the better and bigger bonus paying companies have announced that roughly half opf their with-profit policyholders will have their bonus reduced this year. The bonus is set to be cut from 1.50% to 1.25% – hardly something to write home about- or indeed reflecting investment returns over the last 12 months. They estimate that this will be relevant to around 500,000 policyholders.

My main gripe with this is not with Standard Life, but with the concept of “with-profits” which was originally thought to be an investment process that smoothed the ups and downs of the market, providing a lower risk investment strategy over the long-term. In pratice, it is virtually impossible to value a with-profit investment or indeed have much clarity in projecting future growth. However, they are certainly not what everyone was led to believe.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting