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Golden fleece

Is the endowment review just another opportunity to fleece the client?

I today received endowment review data for a new client. With the inevitable shortfall letter came an illustration for an increased premium to deal with the potential shortfall. The extra premium is 25 per cent of the current cost.

At the 4 per cent growth rate, more than double the possible shortfall is projected at maturity. On page two, an allocation rate of 43 per cent is shown for three years and more initial commission for the original introducer.

Is the endowment review just a way of generating API and commission? If it is, congratulations to those who are profiting from the solution, just like they profited from creating the problem.

Ian Sinkins Choice Financial Associates, Cannock, Staffordshire

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The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

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