Endowment worry

whizzing

We have an endowment which is due to Mature in exactly two years. We have had it for 23 years. It is showing a big shortfall, however we did take steps a good few years ago to deal with this situation. The result of this is we have closed the gap somewhat although not entirely. What concerns me is the value of the endowment has gone up and down by £000's in recent years. (I have been monitoring it from information provided a couple of times a year.). What happens if it's value falls dramatically just before it matures.
I know you can sell endowments but don't know how or if this is a good idea. Is there anything else I can do? Does the endowment company move the money into more secure investments as the maturity date approaches like pensions? I would love any advice or suggestion where I could go for advice!!

dunstonh

What happens if it's value falls dramatically just before it matures.

the value goes down. You can always reduce the risk of the investments to avoid/reduce that.

I know you can sell endowments but don't know how or if this is a good idea.

Is it a type you can sell (with profits)? How would the sale value compare to the current value? Is there any mortgage endowment promise value?

Does the endowment company move the money into more secure investments as the maturity date approaches like pensions?

No. Pensions only do that if you select a basic type that does it or if you use a servicing IFA

whizzing

Thanks for your answer. How to you reduce the risk of the investments? I understand in principle i think - e.g transfer from stocks and shares to bonds or cash but how do you do in practically - do you just phone up the company.

I don't know if it is a "with profits", but info from company says."you may be tempted to cash in your endowment. Never do this without phoning our helpline." Should I do this and just ask them the questions I posted on here?

dunstonh

How to you reduce the risk of the investments? I understand in principle i think - e.g transfer from stocks and shares to bonds or cash but how do you do in practically

unit linked endowments offer a fund range. These funds will cover the risk scale. Including possibly a cash fund, bond fund etc.

Should I do this and just ask them the questions I posted on here?

They wont offer you help. Its not within their remit to go advice. Ask them for a funds list and switch form. They will either send this or tell you they only have one fund.