Can someone please advise on my endowment ?

jamesd

It's likely to give a reasonable return above the mortgage interest rate so keeping it is probably better than using it to pay off some of the mortgage. You're likely to be best off if you were to switch the money to stocks and shares ISA investments, using unit trusts or OEICs until you've fully moved them into the ISA. Have a read of Ok then - How do I choose a S&S ISA to see if you think you'd be comfortable with doing your own S&S ISA investing - it's not so hard once you start doing it. Cash ISA would probably be worse than keeping it.

EdInvestor

Somerset wrote: »

Ed, if I assume 5.5% that gives a projected maturity of approx £ 47,200 but dunstonh said L&G didn't include terminal bonuses in their projection numbers so then this £ 47,200 could be way out ??

Dunstonh always says this but there's no eveidence he's correct. In this case there is only a small gap between the value at maturity @6% growth using the surrender value, which does contains accumulated TB, and the value at maturity using the projection - the gap would be about right to cover the cost of the life cover in the endowment.

Dunstonh will also claim there is always a surrender penalty and that isn't correct either.If there is one, it's likely pretty small these days as the market has almost recoved its losses from the last crash.

However if you want an objective check, try and get a quote from the TEP traders.They are best placed to know if there is any "hidden value" in the policy.