endowment with standard life help!

juliet4181

hi there just wanted some advice from anyone out there who knows more about these things than me. ive got an endowment which is 1/2 managed and 1/2 on the stock exchange. its due in april and will have a end of term bonus of 600 to 900 pounds. i need 22k to cover my morgage. its currently at 19800.

BIG Q do i cash in now and get the 19800 or wait. Standard life tell me it might go down or up! im just a bit worried with the state of the economy at the mo. WHAT DO I DO?? some advice needed please.

Meeper

Firstly, a "Managed" fund is invested in the markets, so if you have 50% in "Managed" and 50% on the stock exchange (I assume you mean invested in stocks and shares), then you actually have 100% in stocks and shares. Just to get that out of the way.

If you have a termninal bonus then you will have a "With Profits" fund. Did you mean "with profits" instead of "managed", perhaps?

How do you know what your terminal bonus will be in April? Terminal bonuses are not guaranteed and can be withdrawn at any time.

If it's currently £19,800 and you need £22,000 then you have some calculations to do. How much are you paying per month? Is your mortgage also due to end in April? Is the current value of £19,800 the unit value, or the surrender value? There will be a difference.

The value may go down as well as up on the invested part. With Profits investment doesn't go down, however depending on a number of factors there may be a market value reduction which acts opposite to the terminal bonus and reduces the surrender value at the end of the plan.

Questions:

Does your mortgage also end in April?
How much do you pay per month to the endowment?
Why haven't you done anything about it in the previous years when you have been warned that it probably wouldn't get to target?