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AMP Australia takeover impact on your savings

AMP Australia takeover bid – Is this the end of AMP?
What about your savings?

If you have any savings, superannuation or insurance with AMP or you know someone that does, this could be a very important information for you. Soon we might witness the end of AMP. The questions is: should you stay with AMP and find out what is going to happen to your money or should you run away and take your money with you?

AMP must be the biggest casualty of the Royal Commission, with more breaches discovered in AMP conduct than most other financial institutions.

AMP lost hundreds of advisers and financial planners, many policy holders left the company, not to mention the disastrous performance of AMP shares, that have been sliding in price from over $6.40 in 2015 down to a $1.00 in March 2020.

And then suddenly, on Friday 30th November 2020, AMP shares went soaring some 20% on the news of a takeover bid from the US private equity giant Ares.

The surprising thing is that Ares is interested in buying the whole AMP business – the stellar AMP Capital, just about the only part of AMP that works and has been providing Australians with some great performance as one of the leading fund managers.

But Ares is also willing to buy the problematic wealth part of the business – which the Royal Commission has had so many issues with.

Most certainly, this is not a done deal, it may or may not go ahead, but if you have any financial connections with AMP, you should be aware and prepared to make solid decisions as it might impact stability of your financial future.

What is the impact on you as a shareholder or a policy holder?

The issue here is that, should that takeover go ahead, you as an investor have no idea what Ares will do with the AMP business they purchased.

Will they keep it as is? Will they cut it to pieces and sell it off bit by bit?

Considering a terrible share price history and performance, this is most likely the only good news you have had for many years. Your choice is do I sell my shares now and get my slight increase in what is a real loss stock, or do I take a chance and wait out what will happen to the take over? This is where you are taking your risk, and don’t count on any solid advice, as there is just too much of unknown.

If on the other hand you have any policies, superannuation, savings plans with AMP, then I think you are really running the risk of possibility of ending up with some foreign company that will be making decisions about your money and your savings.

My recommendation is reviewing your policies, your super, get independent advice, understand your choices, but don’t wait, because the wait might be very much to your disadvantage.

Especially if you are coming closer to your retirement, or you have already retired, do not take any chances, but start acting now and find out your choices.

You do not want to risk your entire life savings for the unknown transaction outcome of AMP.

If you are unsure what to do, feel free to contact me.

You can visit my website AboutRetirement.com.au or check out my YouTube channel.

I hope you found this article beneficial.

If so, please share it, as this information may help your friend or a member of your family, as a lot of people might be impacted if they do not act in a timely manner.

Also, feel free to leave comments or questions below this article and I will reply to each one of them.

Wishing you happy investing..

by:  Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement

Did you watch the federal budget 2020-21? Here are my reviews:

  1. If you would like to read about the Budget’s changes to SUPERANNUATION – click here
  2. If you would like to read about the Budget’s impact on PENSION & AGED CAREclick here
  3. If you would like to read about the Budget’s impact on YOUR TAXclick here

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