Any thoughts on my endowment

morrow56

My problem about surrendering is that I am on a 5 year fix of 4.54 with A&L till the end of my mortgage

If I try to overpay my mortgage by that amount I will incur penalties I am sure

Thanks for your help - I admire all your efforts on this board

Andy

EdInvestor

In that case save the money in a high interest account/ NS&I index linked certificates/your cash ISA.

This will give you a higher return.For instance if you can get a net (after tax) return of 6%, the first endowment will provide 25,514 at maturity with no risk.

Every little helps

morrow56

Hi guys

Thought I would post updated figures for my 2 Scot Amicable endowments

Any thoughts or comments on how they are progressing would be very much appreciated

Hopefully anyone with similar endowments will also find something in the information to help them as well

Projections at 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%


Projections at are at 24th October

Provider Scot Am / Prudential
Guaranteed sum assured £7959
Declared bonuses £7643
Surrender value £22,399
Monthly premium £30.14
Maturity date May 8th 2010
Maturity forecasts 4% £24,400 - 6% £25,200 - 8% £25,900
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 £6722
Monthly premium £16
Maturity date Apri 8th 2010
Maturity forecasts 4% £7430 - 6% £7640 - 8% £7860
interest rate on mortgage Fixed Until May 2010 at 4.54%
Terminal Bonus 52%

Any comments guys please feel free

stulaunch

I've recently had surrender values on my Scot Amic/Prudential endowments,
mine too matures in 2010.

I didn't get a terminal bonus percentage though, should i have asked for one? What does it mean when it says 57%?

I didn't surrender but thought i'd check monthly to see if it deteorates any.

Seeing your post remindes me its time to check again.

morrow56

HI Stu

As far as I know the 57% is your sum assured and accured bonus added together and you then take 57% of that figure to get your total of what your policy is worth when it matures

Maybe one of the excellent guys who regularly post on these threads could confirm that

slummymummyof3

Even with being tied in to your current lender, I think you will find you are able to make overpayments to a certain limit (I am allowed to overpay £7,500 pa before I am penalised) I would be tempted to check this out with A&L as I am fairly certain you will be allowed to overpay to some extend without being financially penalised.

hansi

Will the current "credit crunch" have any adverse effect on a maturity date of May 2010. I know this is a "crystal ball" question but even though the endowment has now reached its "target" figure,I would consider surrendering now but then I would lose the final bonus. Any suggestions, or what would you do in my situation?

hansi

Re my previous post which remains unanswered, where do Scot Am/Prudential invest my endowment money, as they seem to have a very good record. Dunstonh, I know you're very clever with this sort of thing:beer: , hypothetically, would you surrender now at the target figure or wait till maturity?

dunstonh

Pru did move a lot out of the markets before the drop came so they should be well placed to move back into the markets at a lower point which should see them better for the long term. Pru did something very similar before and after the last major downturn and recovery. No guide to the future but useful info. Also, year on year figures from Pru showed that some of their plans were actually up over the last 12 months despite market conditions. Those that fell in value didnt drop by much either.

I think we have probably got to the point where if you have done nothing now you may as well wait it out and keep it under review.

EdInvestor

hansi wrote: »

Will the current "credit crunch" have any adverse effect on a maturity date of May 2010. I know this is a "crystal ball" question but even though the endowment has now reached its "target" figure,I would consider surrendering now but then I would lose the final bonus.

Who is your provider?

You would not lose the terminal bonus if you surrendered now, though there may be an MVR exit penalty. This is a common mistake.On the other hand your TB may have fallen by the same amount or more by 2010 anyway - all TBs are falling now.

Suggest you check the S/V now and see if it is still over the target figure.It is is, I'd be tempted to cut and run, why take a risk?