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Cashing in Endowment vs Shares?
Graham_Devon
Posts: 58,560 Forumite
My mum has an endowment she wanted to cash in, but they are trying their hardest to push her towards shares.
This is Norwich Union. Could anyone just give me a real quick and easy answer as to whether she would be better off taking the money (£2,300) or taking shares. I understand shares, but they will not talk to me and are just confusing my mum. I'm not sure if they are trying to charge her a fee for cashing them in either or talking about fee's on the shares, but it sounds like they are certainly trying to push her into shares.
Would this simply be converting the £2300 into shares (either with profit or standard) or would something completely different be involved? She has no idea about shares.
Better to take the money and be firm?
(To be honest, I don't understand endowments).
Ta in advance.
This is Norwich Union. Could anyone just give me a real quick and easy answer as to whether she would be better off taking the money (£2,300) or taking shares. I understand shares, but they will not talk to me and are just confusing my mum. I'm not sure if they are trying to charge her a fee for cashing them in either or talking about fee's on the shares, but it sounds like they are certainly trying to push her into shares.
Would this simply be converting the £2300 into shares (either with profit or standard) or would something completely different be involved? She has no idea about shares.
Better to take the money and be firm?
(To be honest, I don't understand endowments).
Ta in advance.
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Comments
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My mum has an endowment she wanted to cash in, but they are trying their hardest to push her towards shares.
NU have no advisers and will not make any recommendation. Endowments do not offer shares as an option on surrender.I'm not sure if they are trying to charge her a fee for cashing them in
There will almost certainly be a charge for surrendering. Plus, if it is a mortgage endowment, the loss of the mortgage promise value (only paid on maturity when needed) and no orphan asset special bonus next year once they decide the details. Plus a reduction in the basic sum assured to reflect early surrender.Better to take the money and be firm?
Better to perhaps find out the real details as shares are not an option. The only product I can think of that NU have that would give the option of shares or cash is a self select PEP that held the NU shares when they demutualised. A very different beast to endowments.
I think you need to get more info.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.0 -
Thankyou. I'm just going on what mum says and they wont talk to me!
Makes it difficult. Will try to get her to ask the right questions.
I should probably have added, she has no mortgage now, just moved and paid it off and bought new house in cash.0 -
They cannot talk to you unless your mum gives permission. Once she does that, they will tell you everything you need to know (although they will not give advice on best option and will not offer opinion as that falls outside their remit).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.0
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How long has she had this endowment? It seems to have a very low surrender value (2,300).Trying to keep it simple...
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EdInvestor wrote: »How long has she had this endowment? It seems to have a very low surrender value (2,300).
I should think 10 years, need to get more info from her and will come back when I have.0
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