Equity bonds - too good to be true?
Discussion
Just chatting with a mate who's been fortunate enough to inherit over £25K.
Asked him what he was planning to do with it thinking it'd be the usual pay down mortgage, clear the overdraft etc.
He reckons he's been talking to a "financial advisor" and is thinking of putting it into equity bonds and reckons he's going to earn £300 a month from it!
I've never heard of these, and it seems too good to be true.
Is it?
Asked him what he was planning to do with it thinking it'd be the usual pay down mortgage, clear the overdraft etc.
He reckons he's been talking to a "financial advisor" and is thinking of putting it into equity bonds and reckons he's going to earn £300 a month from it!
I've never heard of these, and it seems too good to be true.
Is it?
Ari said:
Just chatting with a mate who's been fortunate enough to inherit over £25K.
Asked him what he was planning to do with it thinking it'd be the usual pay down mortgage, clear the overdraft etc.
He reckons he's been talking to a "financial advisor" and is thinking of putting it into equity bonds and reckons he's going to earn £300 a month from it!
I've never heard of these, and it seems too good to be true.
Is it?
How much commission does the salesman get from that?Asked him what he was planning to do with it thinking it'd be the usual pay down mortgage, clear the overdraft etc.
He reckons he's been talking to a "financial advisor" and is thinking of putting it into equity bonds and reckons he's going to earn £300 a month from it!
I've never heard of these, and it seems too good to be true.
Is it?
http://www.moneyweek.com/investments/why-you-shoul...
has he ever heard of the internet and google? ..it might help him keep hold of his money a bit longer
has he ever heard of the internet and google? ..it might help him keep hold of his money a bit longer
Hmm.. interesting. From the way he was talking I don't think his were guaranteed (ie they could go down in value). He also seems to think that they bring in a return which, reading the above, doesn't appear to be the case.
I suspect that, if he does it, this could be a case of a fool and his money...
I suspect that, if he does it, this could be a case of a fool and his money...
Ari said:
He reckons he's been talking to a "financial advisor" and is thinking of putting it into equity bonds and reckons he's going might earn £300 a month from it!
EFA. Then again he might just get his money back .. which he could do by leaving it almost anywhere but on a car roof.Ari said:
Hmm.. interesting. From the way he was talking I don't think his were guaranteed (ie they could go down in value). He also seems to think that they bring in a return which, reading the above, doesn't appear to be the case.
I suspect that, if he does it, this could be a case of a fool and his money...
Try and find the name of the product and we can attempt to evaluate how it is constructedI suspect that, if he does it, this could be a case of a fool and his money...
I used to be on the other side of these deals (ran an exotics desk), and while they can be reasonable value when they go out from the trading desk, they generally have a few too many fees tagged on by the time they hit the street if they go through an advisor. As said above, though, get the name, and the real value should be easy enough to work out.
Edited to add, in all my years in banking, I don't think I've ever heard anyone use the phrase "Equity Bonds". It seems a strange one. They'd more normally be described as equity linked or index linked notes.
Edited to add, in all my years in banking, I don't think I've ever heard anyone use the phrase "Equity Bonds". It seems a strange one. They'd more normally be described as equity linked or index linked notes.
Edited by NorthernBoy on Monday 29th November 22:36
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