Should i cash in endowment

chrisclay

Hi
My wife and i have two endowments linked to our mortage 1 against a £20.000 moratage and the other against a £53,000 mortage both are failing to acheive there target figures the smaller of them is a unit linked endowment current vaue of arounf £13,000 with the finish date being 2014 ,but i have just been made redundant so i checked the amount paid in this year against the increased value of the fund and found that around half of the money i have paid in this year has gone on admin charges and unit prices falling ,so would i be wise to cash in and put the proceeds away untill my my current fixed rate ends then paying of a lump sum and then diverting the endowment payments to reduce the capital.
I have been told by the endowment company (hsbc) that if i just stop paying the endowment i will still be charged admin and the unit value could go down and my fund value would then reduce

any advice would be appreciated

hellsbells45

Hi, I'm in a similar dilemma. So any thoughts on this will be gratefully recieved.

Gorgeous_George

I would take the money (and did so in 2008 - just 18 months before maturity). dunstonh will be along soon to ask if there is a mortgage promise.

You have evidence of current performance and eternal hope that the future will be bright. Do you watch Deal or No Deal? I'd deal.

But I am not a financial adviser.

GG

yelf

what investment fundsare they in?

dunstonh

ound that around half of the money i have paid in this year has gone on admin charges and unit prices falling

What on earth are you invested in? The last 12-18 months have seen almost recording breaking returns across the sectors.

I have been told by the endowment company (hsbc) that if i just stop paying the endowment i will still be charged admin and the unit value could go down and my fund value would then reduce

That is incorrect. You will continue to be charged the annual management charge. However, its impossible for that charge to erode the fund as its a percentage of the fund value (typically around 0.5%-1.5% p.a.). It will still be subject to investment returns.

Gorgeous_George

dunstonh wrote: »

It will still be subject to investment returns.

... and losses.

GG