Is my endownment under performing badly

skint_geordie

Hi everyone,

Recently doing a review of my finances and wonder whether my endownment policy is under performing.

I took it out in 1997 to pay for a mortgage (bad move), but changed to a repayment mortgage some years ago and decided to keep the endownment going to earn me a few bob after 25 years.

I have compared, what I have paid in with what the yearly ' value of units in funds' statement says and it is making a lot less than what I am puting in. That was untill last year from May 03 to April 04 it made and extra £200 to what i had paid in this year.

But overall I am down about £1500.

Is this normal on a endownment policy.

P.S. i had a review on the policy for the 'mis-sold' fiasco, but it came back that it was not mis-old.

Many Thanks

dunstonh

The value would lower than what you paid in. Its only been going 7 years and you wouldnt expect it to break even until around year 10.

The bulk of the charges are taken out in the first couple of years plus we had a stockmarket crash in the last few years.

The stockmarket crash is great news for those that started plans in the last few years and have a long maturity date and invest in unit linked funds. You are now buying your units much cheaper than they were priced 5 years ago.

I would be surprised to see a 1997 endowment sale come back as mis-sold. Not impossible but by that time all sorts of warnings were being added to reason why letters (as they were called then).