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Should i cash in endowment

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

Comments

  • Hi, I'm in a similar dilemma. So any thoughts on this will be gratefully recieved.
    The problem with common sense is its not very common:rotfl:
    How do you climb Mount Everest? One step at a time
  • 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
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • yelf
    yelf Posts: 861 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    what investment fundsare they in?
  • dunstonh
    dunstonh Posts: 118,163 Forumite
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    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.
    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.
  • dunstonh wrote: »
    It will still be subject to investment returns.


    ... and losses.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
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