endowments

ptf

Hi, I have 2 x endowment policies,one is a fifteen year one which has about 2 years left and another was a 25 year policy,one was for a mortgage and the other was a savings type. both are not linked to anything now.iam considering cashing the 25 year one as it is performing rubbish.I got a early cash in value in January 09 and it was worth around £5k and I pay £34 a month, I got another cash in value in August and it had gone down in value more than I had paid in over the last 8 months, still have not done anything. any thoughts

Cannon_Fodder

2008 and into mid-2009 was a bad time on the stock markets. Late 2009 had a partial bounce back.

Maybe ask for a 2010 update on the cash-in value? If it has moved positively, it might help you see there is light at the end of the tunnel.

If it hasn't, then it probably is a poor fund/provider, and you might be sensible to find another home for the money.

8 months x £34 = £272. A £270 fluctuation on a fund aiming to pay out thousands isn't so bad, in isolation, as the funds fluctuate a lot even during good years. It could just be bad timing of when you are asking for updates. i.e. note the dip around July 2009, before strong recovery by September...