Endowment Complaint upheld but...... help

absolutebounder

Sorry EDINVESTOR
Still confused
"That's right - but information from anyone here (the site has NO IDEA who anyone posting here actually is, because it doesn't check) needs to be dealt with on the basis that you then go on the Do Your Own Research".

Are they not doing research here?

"So many people prefer to come to BBs and see what they can find out for themselves."

Oh I see they are doing their research here

"Of course: that's why I try not to be vague, but ask inquirers to post the actual figures in detail."

And you are an expert on statistics with a degree in economic trends, knowledge of taxation plus having a full understanding of Qualifying life assurance policies?

"There is also the matter of trust: many people just don't trust what they are told by financial advisors these days, as they have been burnt too often in the past."

So as they dont trust advisers they come here and get told a load of rubbish from complete amateurs instead. No wonder people are poor.

danh73

Don't surrender your policy if it started before 1991. This is not advise, but terminal bonuses are rising for older policies now the later and poorer low cost element has been split from the main fund.

FP should give you a cheque, but keep the policy till maturity, hopefully it should do pretty well.

nomorec

dont know if this will help but we have a mortgage endowment with the pru i wrote to them about being missold we recieved £1242 back and still kept paying our premiums as like you we could afford to pay a lump sum, don't know why they want you to surrender the policy if you are happy to keep paying the premiums, ask for the money and tell them you want to keep the policy going till it matures

absolutebounder

danh73 wrote: »

Don't surrender your policy if it started before 1991. This is not advise,

No, this is definitely not advise (the word is advice really) It is an instruction.

Dithering_Dad

absolutebounder wrote: »

Sorry EDINVESTOR
Still confused
"That's right - but information from anyone here (the site has NO IDEA who anyone posting here actually is, because it doesn't check) needs to be dealt with on the basis that you then go on the Do Your Own Research".

Are they not doing research here?

"So many people prefer to come to BBs and see what they can find out for themselves."

Oh I see they are doing their research here

"Of course: that's why I try not to be vague, but ask inquirers to post the actual figures in detail."

And you are an expert on statistics with a degree in economic trends, knowledge of taxation plus having a full understanding of Qualifying life assurance policies?

"There is also the matter of trust: many people just don't trust what they are told by financial advisors these days, as they have been burnt too often in the past."

So as they dont trust advisers they come here and get told a load of rubbish from complete amateurs instead. No wonder people are poor.

I wouldn't concern yourself what this moron has to say. After he had a rant at me I checked out his other posts and he seems to go from one thread to the next trying to cause arguments (hence his signature, which should read "Don't argue with me cos I'm not worth it").

jamesd

sarahe, one option is to take the full payment from them and invest that in a stocks and shares ISA. That gets you the chance of investing in more transparent funds and a good chance of doing better than the endowment will do, since you can place more of the money in equities than they can. Keeping the endowment is lower risk but will probably deliver a lower final value. The stocks and shares ISA route with a good range of investments should do better than paying off the mortgage, and you get to clearly see and react to the stock market variation that the endowment tends to conceal.

Mr_helpful

Investing in a stocks and shares ISA may well give better gains but at higher risk. The stock market still hasnt recovered since the highs 6 yrs ago and could fall as well as plummet over the next few yrs especially if America goes tits up. Nothing wrong with ISA's as long as you accept and understand risk.

MUSTBEFUNNY_2

Pretty sure I was listening to a radio 4 Prog the other day in which Friends Provident endowment holders were weeping and wailing about the poor performance of their endowments.....think they'd made about 50p in bonuses this year.

Pretty sure they were also front page News in the Sunday Times Money section (11th March) as one of worst performing endowments in UK. The article said that Friends Provident Endowment holders would have been better of putting their money "under a mattress", that is, it's actually costing you money to keep hold of this policy. Hope this helps....:rolleyes:


I'm NOT a Financial Advisor

EdInvestor

Mr_helpful wrote: »

Investing in a stocks and shares ISA may well give better gains but at higher risk.

Higher risk than what?When the OP took out the endowment, the policy would haven been invested around 75% in shares.

Now it's more like 30 or 40%.That's why it's not performing.

Most people in this position should choose between the following:

1.Cash in the endowment and use the lump sum to reduce the mortgage, increasing the monthly mortgage payment by the amount of the endoement premium.This is the no risk solution, which will provide a return equivalent to the mortgage interest rate ( ie 6% vs 4%).

2. Cash in the endowment and reinvest the money in a tax-free ISA through a discount broker choosing high performance funds with low charges which are not subject to tax. This is the higher risk route, which will hopefully produce a return in the 7-10% range vs 4%.

The endowment is the worst of both worlds: high risk and low return.

absolutebounder

"Higher risk than what?"

ISA's can fall as well as plummet.
They can be in some very high risk equities or on the other hand not so high risk. I have a lower risk PEP which halved in value as the FTSE did the same
Now Name me a traditional with profits fund that can do that. Some endowments may have been up to 75% in equities but the rises and falls are smoothed out as one would not want to take a great risk with a house if it was your only one. An Isa is absolutely fine if it is spare money and you can be flexible when you cash it in. What happens if there is a stockmarket crash just when your mortgage term is up?