Do you think I got a good maturity value?

jack_spratt_2

Just felt I had to stick my nose in regarding the payouts of with profit funds !!

Everything which is said and done is with the benefit of hindsight !! if it was that easy to predict which funds and what investment vehicle to use there would be many rich IFAs or adviser's on the board posting !!
With profits funds had for many years been the stable investment which many people posting on the board used to pay of there off endowment mortgages with and receiving a substantial lump sum as well .
Things move on what was flavour of the month 15 -20 years ago is not now ( many IFAs sold with profit policies)the financial markets change .
The company mentioned by the original poster is not alone in reducing payouts on with profit funds all companies are doing the same ! the idea was that with profit funds would even the low and peaks of the investments.

People seem to forget that the extra compliance procedure's( and commission) etc put there by the FSA over the last 20 years has to be paid by someone !!and you can bet it will not be by the shareholders but by the policyholders

dunstonh

but terrified that if I do not do something I will lose the lot.

Why do you think that?

We cannot advise you to surrender. However, you can compare the cost of surrender by looking at the current value and the surrender value and whatever the difference is, is your cost.

harryhound

I've just done a Google search on this forum for
Endowment
Maturity
Tax
"Higher Rate"
and I've still got 99 hits to choose from - so this one is as good and current as any.

I am just about to reach the end of my relationship, after 25 years, with a zombie fund called "London Life" and administered from "The Pearl Centre".(That says it all)

It has been an education and there have been moments of fun and high drama.
It all started when I MEW'd my mortgage and decided to restructure my payments.:o:o:o:o:o

My chosen investment vehicle turned out to be the first falling over Life Insurance company, called London Life. It was a bit like the Northern Rock of the Insurance industry, running out of cash after the stock market slump of 1987 (Remember the Thursday night of the tornado in SE England?)
Even Equitable Life got very sniffy when offered a chance to merge with London Life:rolleyes::rolleyes::rolleyes::rolleyes:

Everything came to a head at a meeting in the Barbican of the City of London.
It is the nearest I've seen the middle classes of UK creating a riot.
In the end the High Court had to intervene.:j:j

That said, I was really impressed by the breadth of knowledge of some of the IFA's in the audience, and the sympathetic help they were able to offer to some young married couples, up to the eyeballs in mortgage, who had come along to see what all the fuss was about.:T:T

In the end Australian Mutual Provident had a (failed) go at revitalising the firm - but they went down the demutualise route, over reached themselves and got in a mess.
(I had fun swapping notes with the Aussies over the net; forums like this were in their infancy in the days of primitive modems) :beer:

I got a bunch of shares somewhere along the line that proved to be some compensation for the falling returns on the policy.

That was then, this is now:

I've paid in 6690.75 and should get a cheque for 14551.17.
Can some number cruncher let me know what sort of return that is compared with inflation ?:hello:

Presumably the "10 year rule" still applies for not paying any more tax on the payout?
[You would think the computer could be programmed to check how old the policy is and omit the warning that "The maturity of the policy is a chargeable event.............". ]

Harry