Endownment -what To Do Please Help!!!!

EdInvestor

dunstonh wrote:

Sorry, I was referring to Moncs who posted later in the thread.

Ah so, sorry No real comparison between Moncs's situation and that of Angeleyes as far as I can see.

Moncs_2

dunstonh wrote:

Nothing has really changed in that time as far as the investment goes. The projections being issued presently use lower projection percentages than those issued a few years ago. The projection does not reflect what you are going to get. It reflects what you could get if it grows at that rate.

With unit linked endowments, the projection method is relatively accurate if that percentage rate is used. It only starts getting inaccurate if the endowment charges included an increased allocation in later years. In which case, the projection would give a lower value than what you would really get.

With profit endowment projections are extremely unreliable. They do not take into account the current and potential of the with profits fund and do not include any terminal bonuses which have acrrued. They also suffer the same problem where there are increased allocation rates.

Remember that there are usually a range of investment funds available with better endowments which you could use for future redirections of premiums or consider switching your existing fund into. Because you have already paid the charges on the endowment, using the other investment funds could make it cheaper than investing in an ISA (and with no tax liability).

I plan to call Royal & Sun Alliance on monday and go through some questions that the IFA I visited advised me to ask. I am still very much in two minds as to if I should surrender or keep the policy. Having already paid in £9,000 and having almost £2,000 added in bonuses, I feel I can't afford to lose roughly £5,000 and take the surrender value of £6262.

Oh, why can't life be easy