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>> No. 5698 Anonymous
13th July 2015
Monday 2:49 pm
5698 Endowment Policies
When endowment policies became popular in the UK from the late 70s through to the early 90s was there much criticism of them or were they seen as the de facto mortgage set-up?

I have two family members who are having to work past retirement because they are financially illiterate but which they blame on the failure of their endowment policies. When I have asked them why they didn't just get a normal repayment mortgage they imply that endowment policies where pushed very heavily to the point that everyone had one.

Does anyone know if this was the case? Was there any skepticism in the national press about them?
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>> No. 5699 Anonymous
13th July 2015
Monday 3:12 pm
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u tryin to get well endowed m8? i cn get u sum pills
>> No. 5700 Anonymous
13th July 2015
Monday 5:56 pm
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They were actively missold. Take out an endowment and it'll pay off your mortgage with a nice little surplus to treat yourself with. Of course a growth rate of 12% each year is achievable.
>> No. 5701 Anonymous
13th July 2015
Monday 6:07 pm
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I thought it was a post about well-endowed politicians, becoming popular in the UK, at first glance.
>> No. 5702 Anonymous
13th July 2015
Monday 9:42 pm
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Did people not realise the promises were ridiculous?
>> No. 5703 Anonymous
13th July 2015
Monday 9:44 pm
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>actively missold
You do understand what those words mean, right?
>> No. 5704 Anonymous
13th July 2015
Monday 11:14 pm
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You do realise that being the sort of geek who actually, actually, understands the what how and why a mortgage is puts you in a significant minority of the population, right?
>> No. 5705 Anonymous
14th July 2015
Tuesday 6:42 am
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Disclosure requirements back then weren't what they are now. Many people do not understand financial matters beyond cash deposits, or in some cases have a little knowledge which can be more dangerous than having none at all, so if they go to a bank and are shown the high levels of returns at the time and told that a mortgage will definitely be paid off by the endowment then they will be suckered in.

I can't think of any type of investment vehicle which hasn't been missold. When personal pensions were introduced in the late 80s, which were less restrictive than the previous retirement annuity contracts, there was widespread misselling which led to over a million people being told to take one out instead of joining their employer's final salary scheme.

That being said, people do not help themselves. Research into annuities shows that many people know they will get a much better deal if they shop around but they can't be arsed and accept a poor deal from their existing pension provider. With endowments people have been warned about their shortfalls for years, so it shouldn't be a nasty last minute surprise to anyone.
>> No. 5706 Anonymous
14th July 2015
Tuesday 3:01 pm
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I can't imagine not understanding a financial contract before I sign one. Blimey.
>> No. 5707 Anonymous
14th July 2015
Tuesday 3:42 pm
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I can't imagine you understanding complex financial contracts.
>> No. 5708 Anonymous
14th July 2015
Tuesday 7:49 pm
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Surely the financial press would at least realise that the promised returns were not realistic.
>> No. 5709 Anonymous
14th July 2015
Tuesday 8:00 pm
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That was unnecessary and misplaced.
>> No. 5710 Anonymous
14th July 2015
Tuesday 11:43 pm
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i think we're back to >>5703 again.

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