Endownment help - Have I understood correctly?

wrenlegs

We have an old RSA/Phoenix with profits endownment. It was staken out in 1987 and will mature in 2013. We have been paying £42 a month and according to the 2007 statement the basic guaranteed sum is £11,550 and we have a current bonus of £5900. So, I work out that by 2013 we have paid in a total of just over £12k we will definately get back 80-90% of £11k PLUS the bonus (so roughly £16k). Therefore, as far as I understand it, if we dont get anymore bonuses or a final bonus, we have accumulated £4k for our £12k investment (it was supposed to make £35k) :rolleyes:

Firstly, my Q is are my calulations above correct?

Secondly, if they are, is it still worth finding out how much we'd get by cashing in the endownment now and investing our £43 a month elsewhere to amass more or should I gamble and just let it run (I have no idea how much they would offer)?????

EdInvestor

If you keep paying the premiums to maturity you will get back the guaranteed sum assured plus the declared bonuses, so far (from what you say) amounting to 17,450. There may also be a terminal bonus but it's very unlikely to be large.

Ask for a surrender value for the endowment.Do you still have a mortgage?If so, what interest rate are you paying?

wrenlegs

EdInvestor wrote: »

If you keep paying the premiums to maturity you will get back the guaranteed sum assured plus the declared bonuses, so far (from what you say) amounting to 17,450. There may also be a terminal bonus but it's very unlikely to be large.

Ask for a surrender value for the endowment.Do you still have a mortgage?If so, what interest rate are you paying?

We have also have a 35k repayment mort and are paying 6.15% but are now able to change to a lower rate (hopefully this week)

Dick_here

wrenlegs wrote: »

Secondly, if they are, is it still worth finding out how much we'd get by cashing in the endownment now and investing our £43 a month elsewhere to amass more or should I gamble and just let it run (I have no idea how much they would offer)?????

Now is not the time to be surrendering a wp endowment, unless you either need the money immediately or you still have a mortgage dependent upon it paying out sufficiently. If neither apply to you, stick with it.

EdInvestor

!!!!!!_here wrote: »

Now is not the time to be surrendering a wp endowment, unless you either need the money immediately or you still have a mortgage dependent upon it paying out sufficiently. If neither apply to you, stick with it.

Sorry but that's not correct.This is a zombie endowment which actually should have been surrendered years ago.All endowments are not the same and a proper analysis needs to be done in each case.

wrenlegs

Thank you for your replies. I will ask them for a surrender value (maybe even before 8pm tonight) and see what they say. Ill probably get back with the figure to see what is the best way forward for us. Im so glad this forum exists :beer: