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FTSE 100 Kick out plan
baronshouse
Posts: 11 Forumite
Help - i need some advice.
I am thinking of cashing in my endowment policy as after 12years it is worth cash value presently £2000 less than what we have paid in, it is not going to meet its target amount either if we left it to run. I want to put the money into another investment account and have been passed details of the FTSE 100 kick out plan 7 - i am so unsure what to do??? Do we do this, do we do an ISA each or do we keep the endowment running.
Any advice would be greatly appreciated - especially on the FTSE plan as it does look quite appealing.
Thanks
I am thinking of cashing in my endowment policy as after 12years it is worth cash value presently £2000 less than what we have paid in, it is not going to meet its target amount either if we left it to run. I want to put the money into another investment account and have been passed details of the FTSE 100 kick out plan 7 - i am so unsure what to do??? Do we do this, do we do an ISA each or do we keep the endowment running.
Any advice would be greatly appreciated - especially on the FTSE plan as it does look quite appealing.
Thanks
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Comments
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especially on the FTSE plan as it does look quite appealing.
What are the terms?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If i understand it right then you are guaranteed to get your initial investment back. At the end of 2 years they take an average if the 5day closing level of the FTSE if higher than the inital index level the plan will get back your initial investment plus 13% of this investment(less basic tax reduction). You can keep your money in the plan for up to 5yrs the same appies each year but the % rises each year hopefully at 5yeas it should mature at 32.5% of your inital investment less the tax.
What are your thoughts on the endowment - i have just sent a letter into my endowment proveder to attempt a claim as a long shot really!0 -
so after 5 years the best you get is 5.8% pa, the worst is 0% - alternatively you could get 5.1% odd in a fixed 5 year bond, guaranteed - so you are gambling 5.1 to win 0.7 ??0
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You can get 5.15% on a five year fixed term deposit as gozomark says or you can get a fixed 7% p.a. 5 year structured product if you dont mind a bit of FTSE linking.
So the terms on this one dont look very good.What are your thoughts on the endowment - i have just sent a letter into my endowment proveder to attempt a claim as a long shot really!
Over 3/4 of endowments are now time barred from complaint. So, you have left it a bit late. Its not possible to comment without information on the endowment though.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yes - know we have left it late - but thought i would give it a try anyway. What info do you need to know about my endowment?0
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no need to thank me, my pleasure...0
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All the advice has been a huge help, thanks to both of you!
What are fixed bonds? And where do you apply for them?0 -
5 year fix seems sensible here. Why gamble it all (interest) on the stock market when in 5 years who knows what it'll do...Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
Do something amazing. GIVE BLOOD.0 -
fixed bonds are really just fixed rate savings accounts, and are available at just about every bank0
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Cheers - The bonds sound good. And am i right in thinking that these are better rates than ISA - just need to get everything straight in my head!!0
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