Endowment novice seeks help... please!

Poor_Tommy_Atkins

Hi,

My first post here and I hope someone can help.  I’m a member of HM Forces (ARMY) and currently …….. ‘abroad’ shall we say.  I have no access to a financial advisor where I am and won’t have for quite some time! So I’m looking for some advice from here please.

When I was new to my job I started a couple of investments with Standard life.  I’ve read a few of the posts regarding SL, but ‘still none the wiser (‘s not really my thing!) and I’d like to hear your ‘comments’ (If you were me sort of thing) on where I stand and what I could/should do.  I won’t hold anyone responsible for anything. I’ll make my own decisions.

This is what I’ve got……

(1)
‘HOMEPLAN’ Endowment
Started Jan 1994 - Matures Jan 2019
Monthly Payment £36.99
Current Value £4780.17
Surrender Value £4764.96   as at 12 Nov

(2)
‘VERSATILE INVESTMENT PLAN’
Started Dec 1995 - Matures Dec 2020
Monthly Payment £50.00
Current Value £5752.90
Surrender Value £5513.25   as at 12 Nov

Both are ‘With Profits’

Right then, I know that SL are de-mutualising in the not too distant future and I may be in line for a wee payout so, ........ do I, Hold on to them? Surrender them? Sell them? Try to increase/decrease any payments? Anything?

I’m completely at a loss as at what to do with them as all I’ve ever done is pay into them for the past X years without really thinking about them.
And what’s all this about being ‘miss-sold’ policies?

Thanks in advance guys, hope to come back on here soon to see what’s been said

PTA

dunstonh

Should you surrender now? no.
Should you increase your payments? No

There is more information needed than you have posted. Some of which, you probably wouldnt know and would need to be obtained from the company (such as target growth rate).

You should look at your projected shortfall and budget on the 4% figure. With Standard Life, they have the potential to exceed that but better be safe than sorry.

To cover this shortfall, start saving into a savings account. Once the standard life has demutualised we can see what has been paid out and how it has been paid out (options include issuing shares or making a payment into the plan). Then at that point you should decide if it is worth switching to repayment basis or keep with the endowment.

If you were not aware that the plan didnt have a guarantee to pay the mortgage off, then you have grounds for complaint. You must do this soon though if it is the case as the is a time limit in effect and Standard Life will be closing their door to new complaints soon.

Poor_Tommy_Atkins

Thanks for that ;D

What information could I post here that would make things easier to comment on?

I was sold the 'Endowment' policy as a way of simply saving. I have no morgage, it was put to me that,

" this is a way of paying a morgage for a house you don't have yet, it make's it easier in the long run...."

Which it has to be honest, (even though I still hav'n't bought a home, I've saved a few grand without missing it, BUT it aint going to make the £30,000 which they said it would when I took it out.

What else, if anything 'could' I do?

thanks again

PTA

dunstonh

I have sent you a PM. take a look at that for more info.

Liz19

I am looking to remortgage at the end of December when my current deal comes to an end. I have two endowments which are not performing well and I have virtually decided to surrender them and use the money to reduce my mortgage. I have put in a complaint of misselling to the building society, should I wait to see what happens before surrendering or does it make a difference?