Help Please!royal/sun/phoenix

waterboy

Hi and thanks for reading
I have two endows. with RSA/PHOENIX and I need some advice about my options.I hope somebody can help me?
1. Endowment Homebuyers Started June 1988 to cover 27000
2.Surrender value 10979
3. Monthly payments 44.60

B.1. Homeplan started May 1998 to cover 6000
2. Surrender value 1,312
3.Monthly payments 17.77

My mortgage is for 63000 and I am changing in July for a better rate, I was considering cashing in and clearing a 5000 loan and 5000 off mortgage leaving a mortgage of 58000 over 15-20 years. Any advice would really be appreciated. Thanks

EdInvestor

Please post the guaranteed sum assured and declared bonus amounts for the two policies.

waterboy

Thanks Edinvestor

Policy a 1. Guar. sum assured £8,262
Declared bonus for end of 2005 £5,300

Policy b 2. Guar. sum assured £3,066
Declared bonus for end of 2005 £210.43
Thanks hope this helps

EdInvestor

As usual the situation with these zombie Phoenix/RSA endowmnts is pretty clear cut.You are unlikely to get much more than the guaranteed value at maturity with these policies

With policy one if you cashed it in and put the proceeds on deposit@4% also paying in the premiums to maturity, you should end up with 18,805, compared with the guaranteed value of 13,562.

With policy 2 if you followed the same approach you should end up with 7,785 compared with the G/V of 3,276.Be sure to replace the life cover if you need to before surrendering.

Let me just mention something here with these Phoenix/RSA policies:

While it's usually pretty obvious that you will be better off if you surrender a Phoenix endowment and use the money to reduce the mortgage, this is not so with a Phoenix/RSA pension policy.

DO NOT transfer or take benefits from a pension at this company without taking advice or at least posting in the MSE Pensions forum about it. You could lose out big time if you did this.

waterboy

Thanks very much Edinvestor - I appreciate your time to look at this and just one more query- I had contacted a TEP and they are offering £600 more than surrender value of the large endw. As I have never done this before are TEP's genuine or can you get ripped off? Thanks again.

EdInvestor

Hi Waterboy

Which TEP firm? There's one called "Integrity" that seems a bit dodgy. Also some of them will offer you a price, but then you have to wait until they on-sell the policy before they pay you.Can take a while.

waterboy

Hi Edinvestor the name of the TEP is FASTSTEPS (ZUCKER ASSOCIATES) Today I received the paperwork which seems in order. Although I did wonder if there was a spelling mistake - Sucker!! As I said before this is all new to me so any help would be appreciated. Thanks in anticipation.

HelpWhereIcan

Do not mean to try and hi-jack this thread in anyway and am not trying to make any point, but I thought that some Resolution/Phoenix policy holders may find the following document useful:

http://www.resolutionplc.com/pdfs/Resolution_PolicyPayouts_WithProfitsPolicies.pdf

As it says, it is the first time in a number of years that figures for comparison tables have been released for some of these funds. I managed to find it when looking for the performance of a Britannic Policy I have.

Apologies for any repost/stating the obvious.

EdInvestor

HelpWhereIcan wrote:

As it says, it is the first time in a number of years that figures for comparison tables have been released for some of these funds.

This is just a start and it's been likely pulling teeth to get this far.

We have been pushing the FSA on it - and the companies are now required to issue some info

But only if you pay a fee:mad:

It adds insult to injury to all the victims trapped in these zombie funds and trying to work out how to get out.