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Endowment
smarty1972
Posts: 2 Newbie
Hi, I am just remortgaging at the end of a 5yr fixed term, part repayment part endowment.
I have found a good tracker and will switch to repayment only.
My wife and I have an endowment policy each and both pay 28.88 per month, the policy is 17 years old and is a 25 yr term which was supposed to achieve £50k (yeah right!). It is forecasted to achieve less than half that and are currently worth about £12k together.
Shall I cash them in and put the 2 x 28.88 per month as overpayments or keep the policies for the remaining 8 years and see what happens?
I know no one knows the answer but would appreciate some advice please
I have found a good tracker and will switch to repayment only.
My wife and I have an endowment policy each and both pay 28.88 per month, the policy is 17 years old and is a 25 yr term which was supposed to achieve £50k (yeah right!). It is forecasted to achieve less than half that and are currently worth about £12k together.
Shall I cash them in and put the 2 x 28.88 per month as overpayments or keep the policies for the remaining 8 years and see what happens?
I know no one knows the answer but would appreciate some advice please
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Comments
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ps. I would use the cash in value of about £12k against the mortgage to reduce the term (overpayments are allowed)0
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We need to know about the endowment. Give us the usual information (assumed you have read the endowment threads and thats why you are here
)? 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 -
OMG i was wondering how your endowment had performed.
Ive worked out that your endowment has earnt below 0.5% per annum over the last 17 years.
Why oh why oh why have you continued with this? Seriously, you could have been earning so much more as CASH IN BANK, with a little interest!
Sorry didn't mean to kick you while you are down. BUT, OMG.
It was forecast to earn around 7-8% per year, which based on long term bla bla bla, should have been easily achievable.
What on earth is wrong with these endowment?
Did you recieve any compensation for miselling? etcPlan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
It was forecast to earn around 7-8% per year, which based on long term bla bla bla, should have been easily achievable.
In most periods, 7-8% is achievable.What on earth is wrong with these endowment?
Labour Govt. Stockmarkets historically do badly during a Labour Government. This one has been no exception. We have one of the worst 10 year periods for investing in history. The tech stocks crash, followed by the recent recession hit the returns significantly. Many insurance companies have also closed their doors and are now investing for financial solvency rather than investment returns.
They are not excuses but they are some of the reasons.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 -
Post info on the policies
Providers
Guaranteed sum assured
Declared bonuses
Surrender value
Maturity date
Monthly premium
Maturity forecasts
Interest rate payable on mortgagesTrying to keep it simple...0
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