Would somneone look at my endowment figures please?

EdInvestor

If you cashed in the endowment and used the money to reduce your mortgage loan, also using the endowment premiums to top up your monthly mortgage payment, the total return to maturity would be 18,930.This is a guaranteed return unlike the endowment.

You need to compare this figure with FP's forecast maturity value - use the returns @ around 5-6%.This assumes you don't need to replace the life cover, if you do then deduct that cost from the return.

djbd1973

dunstonh wrote: »

The std life and FP pensions have a range of funds. Being older plans, the range will be limited but you should be able to switch to a spread of funds to suit risk profile and give improved potential for future returns over a with profits fund or a bog standard balanced managed fund. You can ask both of them to send you a funds list and switching form.

You may find the fund choice is adequate to meet your needs. Or you may find it isnt (experienced investors wouldnt but inexperienced investors would)

I also have a Friends Provident endowment tied to the mortgage on my house but never considered changing the spread of funds. Its funny how you can focused on one way of doing things without considering the full options and looking outside the box. Thanks for the suggestion.

mae

EdInvestor wrote: »

If you cashed in the endowment and used the money to reduce your mortgage loan, also using the endowment premiums to top up your monthly mortgage payment, the total return to maturity would be 18,930.This is a guaranteed return unlike the endowment.

You need to compare this figure with FP's forecast maturity value - use the returns @ around 5-6%.This assumes you don't need to replace the life cover, if you do then deduct that cost from the return.

I've checked online and if it grows at 6% its estimating £17200.00. I would have to get some more life cover to cover the life cover I would lose but I will certainly give it some thought. Thankn you for taking the time to reply.

mae

dunstonh wrote: »

The std life and FP pensions have a range of funds. Being older plans, the range will be limited but you should be able to switch to a spread of funds to suit risk profile and give improved potential for future returns over a with profits fund or a bog standard balanced managed fund. You can ask both of them to send you a funds list and switching form.

You may find the fund choice is adequate to meet your needs. Or you may find it isnt (experienced investors wouldnt but inexperienced investors would)

Thanks.. Do you know if there is a basic guide anywhere on here that I can use to get me clued up on this sort of thing. I would like to know what I'm doing a little.
Thanks again

mae

Can anyone offer any other suggestions please?