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Hi

I have got into a contract to invest for the next 17 years with a UK based investment company. I have been with them for about 8 months and after reading your message on index based investing I feel that I am in a unfair deal.

I need to invest for at least 17 months and even after that if I stop there is a monthly charge.

On top of that there is a 7 % bid offer spread as well as a monthly charge which gets hiked up if I do stop contributing at some stage.

Any suggestions on how to get out of such a deal or should I grin and bear with this?
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Does this mean that you have to give them money every month for some period of time. What happens if you just stop sending in money? You could look at how much you have put in and compare with what happens if you just stop paying.

You have gotten yourself into an outrageously bad deal. Do whatever you can to get out of it.

With a 7% spread and a fee, you are likely to make very little over the period.

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See if you can't terminate the contract early. From what you've said, it seems like an early cancellation penalty might be less than what you'd pay them over 17 years.

Foolishly Yours,
Cameran
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Hi

I have to give them a regular payment every month for the next 17 yearrs. Basically if I keep it for say seventeen years the 7 % paid in the first year gets amortised over 17 years. Similarly the amount I paid in the second year for 16 years and so on. The amount I paid e.g. in the fifteenth year will get divided over the next two years.

So basically i am stuck for the long term and If I get out early I will have a really heavy charge.

On top of this is the monthly charge of course.

Feel like a real fool (??)

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