Any thoughts on my endowment

morrow56

Hi Everyone

I respect a lot of the excellent advice given on this forum re endowments. Could you guys possibly have a look at my 2 endowments and give me your opinions with regard to them maturing in a couple of years time. I need a total of £38,500 to clear my mortgage in May 2010.

Thanks in advance

Figures are at 30th July

Provider Scot Am / Prudential
Guaranteed sum assured £7959
Declared bonuses £7643
Surrender value £22,026
Monthly premium £30.14
Maturity date May 8th 2010
Maturity forecasts 4% £24,200 - 6% £25100 - 8% £26,200
interest rate on mortgage Fixed Until May 2010 at 4.54%
Terminal Bonus 57%

Provider Scot Am / Prudential
Guaranteed sum assured £3341
Declared bonuses £1714
Surrender value £6590
Monthly premium £16
Maturity date Apri 8th 2010
Maturity forecasts 4% £7340 - 6% £7620 - 8% £7870
interest rate on mortgage Fixed Until May 2010 at 4.54%
Terminal Bonus 52%

morrow56

Anyone with any thoughts please

stulaunch

Hi morrow56, i'm interested in findings on these as my endowment is from same company, and reading other posts regarding lowering of terminal bonuses, due to market conditions, was wondering about my own endowments.
I wont hijack your thread, but was wondering how you get upto date figures.
Have you just recieved yearly forcast, as i believe mine are due around now, or can you ring anytime to get this information.
many thanks

morrow56

HI Stulaunch

I just phone up Prudential and ask for all the above figures

Fairly straightforward actually and I intend to do it on a regular basis from now on - have your previous bonus statement with you when you phone and then compare the figures

dunstonh

Can you give us the target figures for both of them?

Here are the success rates for Scot Am endowments:

2004 - 89% of endowments hit target (of those falling short, the average shortfall was £890)
2005 - 95% of endowments hit target (of those falling short, the average shortfall was just £49. The average surplus was £2409)
2006 - 96% hit target (average shortfall for those falling short was £700 and average surplus £2600).
2007 - 98% hit target (average shortfall for those falling short was £518 and average surplus was £3348).
2008 estimate - 98.2% expected to hit target with average suprlus of £2280 and those falling short, average shortfall will be £362

morrow56

Thanks Dunstonh

Policy 1 target is £22610
Policy 2 target is £7390

Total £30,000 but I need £38500 to pay off my mortgage due to my cashing in a horribly performing Scottish Equitable unit linked policy

Thanks for your help

dunstonh

So, currently, both endowments are in a surplus position. Scot Am have been exceeding 8% p.a. for a number of years now so it is paying more than the mortgage interest rate.

Plus you would pay a penalty on surrender and an early redemption charge on the mortgage if you repay it during the fixed rate.

Depending on those charges, I think its worth staying put for now. You have a dirt cheap mortgage rate which I bet you are pleased with.

Dick_here

dunstonh wrote: »

Can you give us the target figures for both of them?

Here are the success rates for Scot Am endowments:

2004 - 89% of endowments hit target (of those falling short, the average shortfall was £890)
2005 - 95% of endowments hit target (of those falling short, the average shortfall was just £49. The average surplus was £2409)
2006 - 96% hit target (average shortfall for those falling short was £700 and average surplus £2600).
2007 - 98% hit target (average shortfall for those falling short was £518 and average surplus was £3348).
2008 estimate - 98.2% expected to hit target with average suprlus of £2280 and those falling short, average shortfall will be £362

Are you able to provide these figures for all companies, dunston ?

dunstonh

!!!!!!_here wrote: »

Are you able to provide these figures for all companies, dunston ?

No. Some companies publish the data. Others do not. Pru do because their figures are so good. (note that the figures above are Scot Am now badged as Pru and not Pru orignals which have a 100% success rate).

morrow56

Thanks again Dunstonh

As I say earlier I need my policies to mature on May 8th 2010 at a figure of £38500.

Given the figures at the moment do you think they could mature at around the £38,500 figure

Thanks so much

dunstonh

Given the figures at the moment do you think they could mature at around the £38,500 figure

Obviously a total estimate but I wouldnt be surprised to see the Scot Am ones total around 33k.