Have two endowments: want to sell one..but which?

EdInvestor

notanexpert wrote: »

Endowment No 1;
With Phoenix(formerly Royal Life)
projected maturity value (in 2007 - they say I can't have another one now)
was £15,800 @4%

If you cashed in this policy and put the money on deposit @4% after tax, also paying in the premiums to maturiy, you would end up with 14,679. This is 7% lower than their projection, but the forecast is now out of date and markets have changed a lot since last year.This applies even to Phoenix, whose WP fund is mainly in bonds.

Endowment No 2:
With Friends Provident
projected maturity value (in 2008 - they(unlike Phoenix) seem able to send a projection yearly) was £18,200 @4%

If you proceeded as above with this one you would end up with 16,616 at maturity, 8.7% less than their projection.

The FP policy may fall more than the other one as it has more money invested in equities, but I'm afraid it's not possible to make a recommendation without updated projections from Phoenix.

Of course the fall in interest rates last week means that cash returns will not be as good as before, so the advanatge from cashing in is not as big as it is if you use the money to pay off debt/mortgage.

notanexpert_4

thanks ed for this info


I'll try to get an updated projection from Phoenix and post it on here.


Cripes I wish i'd sold them both last year!!!!!!!!!!

Thanks again.