Extending Endownments

unmissable

Here is a different suggestion. I have the first of several endownments due to mature next year. I have made the decision to keep with them having considered the comments posted on this forum. However, it looks like the market is diving, just as my policies mature. Is there an option to extend a policy for 3 or 5 years hoping (gambling) that bonuses (especially terminal bonuses) will increase again.

This forum constantly discusses cashing in endownments to minimise losses, but how about extending an endownment to wait (hope) for better times?


It is quite apparent that the smoothing process does not really apply Standard Life, which my emdownments are with, has decreased its terminal bonuses, despite the smoothing process and despite being forced to have large holdings of cash based investments. Surely there is a point when the economy will make it worthwhile waiting a few years to cash in on better returns?

BTW I am Mortgage Free now, so the endownments are purely savings vehicles.

I realise that the answer relies on having confidence that the market wil improve, but assuming that it will (over 3-5 years) I would appreciate comments.

dunstonh

but how about extending an endownment to wait (hope) for better times?

You cannot. Although you can put the maturity into the same or similar investment funds within unit trusts (unwrapped or within a tax wrapper if applicable). That will enable you to remain in the markets until you are ready to come out.