4%, 6%, 8% - What stock market rate is it now ?

Dervie

Over the past two years the stock market has been rising steadily.
Endowment polices are based on 4, 6 and 8 % growth projections.

What was last years growth, greater than the above ?

What is the current growth rate ?

I think endowment polices should be doing better now, the stock market is doing better.

ANY ONE KNOW THESE RATES?

Dervie.

ReportInvestor

Hi and welcome to the site,

I'm sorry to pour cold water on your optimism but there are plenty of funds where 6% over the long term is just not going to happen, even with a better performance in 2005. Those standard rates may be reduced in future. Some companies have already taken the precaution of doing so.

What you need to know is the % of your endowment fund invested in shares & property. This varies considerably but is lower on average than it used to be.

If your fund held shares on the way down and sold them at the bottom, then you won't benefit much from the recent rise.

And the other factor is the costs of guarantees and previous overbonusing that are still having to be paid for somehow . Again, these vary from fund to fund.

dunstonh

Dervie wrote:

Over the past two years the stock market has been rising steadily.
Endowment polices are based on 4, 6 and 8 % growth projections.

What was last years growth, greater than the above ?

What is the current growth rate ?

I think endowment polices should be doing better now, the stock market is doing better.

ANY ONE KNOW THESE RATES?

Dervie.

An endowment doesnt make any money or lose any money. It is just a tax wrapper/product which contains investments.

If you invested in gilts, corporate bonds and property, it wouldnt matter what the stockmarket did directly as you are not invested in it.

There are thousands of investment funds out there investing in all sorts of sectors. Many of which have done very well recently, others less so. For any sort of comment to be made on your fund(s), then we really need to know what fund(s) you are in invested in.

Woby_Tide

it's also a bit worrying that you've been sold an endowment without really having it explained to you how it works