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Endowments
paulcan38
Posts: 4 Newbie
Hi, I was once told that endowments make most of their bonus in the last 6 months or just before maturity - am I correct?
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Comments
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Well, I can only say what happened with my endowment. The terminal bonus was approximately 27% of the maturity value and there was about a £600 shortfall.0
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No truth in that I'm afraid.
A long time ago, the terminal bonus on with profits plans only ever showed at maturity and not as a current running balance. So, you would often see the annual bonuses being added thinking that was the value but then upon maturity they would "appear" to suddenly increase due to the addition of a terminal bonus. Nowadays, terminal bonuses are more visual in that you can see what you have accrued to date. So, unless your provider and plan is of the old conventional type with profits, its unlikely to show a jump.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 -
Checked with Clerical Medical - final year bonus to be 1%. I am allowed to cash in now (7 months early) and probably loose £150 bonus YET I will save nearly £700 in 7 months mortgage payments if I quit now. No brainer unless markets suddenly go throught the roof.0
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