Should i cash in endowment ?

harvey1964

Bit of advise needed. Took out endowment in 01/12/1992 to run for 25 years with Clerical Medical.
It is only 34.75 per month which i have paid since dec 92 and would have another 10 years to pay this amount each month.
The last letter i got says the projected final amount is
4% each yr 6% 8%
14.900 17,900 21,200
The target amount is £25,000 although we have paid off the mortgage of £25,000 through money left to my husband from his family.
The last statment says
sum assured 8275
new regular bonus 69.00
Total reg bonus 2833.30
Does anyone know what this means
I have paid so far 6255 and if i pay to theend will have paid another 4170
should i cash in or hang on to it ?
if you need any further info please ask ?

Gorgeous_George

My guess is that you should cash it in (EdInvestor) and keep it running (DunstonH) depending on the mortgage guarantee thingy.

Best wait for the experts.



GG

silvercar

Gorgeous_George wrote: »

My guess is that you should cash it in (EdInvestor) and keep it running (DunstonH)

:rotfl: :rotfl: :rotfl:

EdInvestor

Harvey

Please post the surrender value of the policy (ring up and ask).

harvey1964

EdInvestor wrote: »

Harvey

EdInvestor wrote: »

Please post the surrender value of the policy (ring up and ask).

will do. heading away for a few days so will post on24/10/07

thanks
Rang this morning the surrender value for the policy in post 1 is £7027

harvey1964

harvey1964 wrote: »

will do. heading away for a few days so will post on24/10/07

thanks

Rang this morning the surrender value for the policy in post 1 is £7027

trying to bump this one ? any advise ? surrender value as above .................................

harvey1964

Anyone
Bit of advise needed. Took out endowment in 01/12/1992 to run for 25 years with Clerical Medical.
It is only 34.75 per month which i have paid since dec 92 and would have another 10 years to pay this amount each month.
The last letter i got says the projected final amount is
4% each yr 6% 8%
14.900 17,900 21,200
The target amount is £25,000 although we have paid off the mortgage of £25,000 through money left to my husband from his family.
The last statment says
sum assured 8275
new regular bonus 69.00
Total reg bonus 2833.30
Does anyone know what this means
I have paid so far 6255 and if i pay to theend will have paid another 4170
should i cash in or hang on to it ?
Surrender Value £7027

EdInvestor

harvey1964 wrote: »

4% each yr 6% 8%
14.900 17,900 21,200
should i cash in or hang on to it ?

If you surrendered it and put the money in a savings account @ a net 5% also paying in the premiums, you would receive 16,871 at maturity, guaranteed return.The CM With profits fund will probably produce a return at around 4.5- 5% so you would get around 16k, but you might get more and the policy includes free life cover.

If you want a more modern investment with lower charges, tax free and a higher likely return, you'd be better to cash it in and invest in a tax free ISA via a discount broker such as https://www.h-l.co.uk.You could also see if a trader would give you more for it at https://www.apmm.org.

Retired_I.F.A.

If you surrendered it and put the money in a savings account @ a net 5% also paying in the premiums, you would receive 16,871 at maturity, guaranteed return.

Gaurenteed my !!!. 5% may well be the rate available today but it's neither gaurenteed or fixed.

The CM With profits fund will probably produce a return at around 4.5- 5%
so you would get around 16k,

load of rubbish. Unless Ed Investor's real name is Dr Who and she has a tardis. Future returns with any investment or deposit cannot be forcast with any probability. Historically over a long period maturing endowments have produced far better returns than deposit base investments. Maturing with profit endowment policies today despite all the problems of recent years still outperform deposits and the returns in the future may well bounce back to the equivelent of an annual yield of 13% or more only time will tell.

and the policy includes free life cover.

More rubbish as nothing in this world is truly free There is an element of the premium which pays for the cost of the life cover, what your paying for it now you'll never replace at the same cost simply because your older now. Being a qualifying policy, meaning one that's proceeds on death or maturity are paid without any liability to income tax also means that life cover element has to remain in place.

If you want a more modern investment with lower charges, tax free and a higher likely return, you'd be better to cash it in and invest in a tax free ISA via a discount broker such as www.h-l.co.uk.You

Now she's talking real crap. Charges in any endowment are mainly in the first couple of years as it is from those premiums that renumeration for the sales rep is accounted for be he/she employed by the company or otherwise. Those charges are now history and although the fund itself is not going to grow tax free like an ISA the charges are in reality pretty much the same.
Isa's may not be around in the future neither. Last time I checked they were only gaurenteed to be in existance up to 2009

could also see if a trader would give you more for it at www.apmm.org.


At last she gets there with a real alternative but then stops wassup ED has the tardis run out of petrol?

You see the bottom line is the surrender value can be beaten by selling on the policy to someone else. Now thats not a bad idea if you need the cash or you cant maintain the premiums however if neither are true i'd suggest you go make an appointment with an I.F.A. to look into selling the policy and placing the proceeds into a pension plan as a single premium. It would get tax relief at up to 40% and the whole lot can be invested into a tax exempt fund/s providing for your retirement. An IFA can broker the sv around and get the best price for it check you have room to pay into a pesion recommend fund or funds suitable to your attitude to risk. and provide ongoing advice and because of the tax relief his commission or fee will still leave you with a far greater sum invested than currently and it's going to grow tax free with a real purpose and need.

(well virtuallyall tax free I'll leave others to explain that bit. Maybe the resident barstool expert Ed can)