Everest Climber
Registered User
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- 6
Hello,
Apologies if this is in the wrong thread, this is my first post. Please feel free to move it.
Back in 2012, my father invested €200k in an alternative energy project. Without going into too much detail, it was supposed to pay simple interest of 10% per annum for 20 years, following which my father would get his €200k back. Things have gone very smoothly so far and he has been receiving his €20k per annum in interest each year. It might sound too good to be true given interest rates today, but the world was obviously a very different place in 2012 and my father took a bit of a risk, which seems to have paid off. The investment has 13 years to run.
He was recently contacted by his financial adviser who set up the investment (a family friend with some involvement in the alternative energy project) who told him that his €200k is being returned to him and he will not be receiving any future interest payments. The financial adviser said that the alternative energy project is being sold to a private equity company and the investors, such as my father, are having their principal returned to them, but are not being compensated for future loss of interest payments. I am only relaying what the financial adviser explained to my father and it sounds pretty vague and unsatisfactory to me. The financial adviser has asked my father to meet with him in a few days and sign the relevant paperwork.
My father is hugely disappointed as this puts a serious dent in his retirement plans and may require him to start working again (at the age of 67, with some complicated health issues, so not ideal).
At a basic, fundamental level, this sounds unfair, and I suppose my queries are:
1. Who should my father seek advice from about this? My sense is that an independent financial expert who is familiar with investments such as these would be more useful than a solicitor. Any suggestions would be very welcome. We would be happy to engage someone formally and pay them the going rate for advice.
2. Has anyone ever heard of something like this happening before?
Thanks very much for reading and for any suggestions. Apologies for the lack of detail - I wasn't even aware that my father had made the investment back in 2012 and I'm only finding out the details now.
Apologies if this is in the wrong thread, this is my first post. Please feel free to move it.
Back in 2012, my father invested €200k in an alternative energy project. Without going into too much detail, it was supposed to pay simple interest of 10% per annum for 20 years, following which my father would get his €200k back. Things have gone very smoothly so far and he has been receiving his €20k per annum in interest each year. It might sound too good to be true given interest rates today, but the world was obviously a very different place in 2012 and my father took a bit of a risk, which seems to have paid off. The investment has 13 years to run.
He was recently contacted by his financial adviser who set up the investment (a family friend with some involvement in the alternative energy project) who told him that his €200k is being returned to him and he will not be receiving any future interest payments. The financial adviser said that the alternative energy project is being sold to a private equity company and the investors, such as my father, are having their principal returned to them, but are not being compensated for future loss of interest payments. I am only relaying what the financial adviser explained to my father and it sounds pretty vague and unsatisfactory to me. The financial adviser has asked my father to meet with him in a few days and sign the relevant paperwork.
My father is hugely disappointed as this puts a serious dent in his retirement plans and may require him to start working again (at the age of 67, with some complicated health issues, so not ideal).
At a basic, fundamental level, this sounds unfair, and I suppose my queries are:
1. Who should my father seek advice from about this? My sense is that an independent financial expert who is familiar with investments such as these would be more useful than a solicitor. Any suggestions would be very welcome. We would be happy to engage someone formally and pay them the going rate for advice.
2. Has anyone ever heard of something like this happening before?
Thanks very much for reading and for any suggestions. Apologies for the lack of detail - I wasn't even aware that my father had made the investment back in 2012 and I'm only finding out the details now.