Value of Endowment plummets

barryd999

Just had a look at the statements.  Dont tell me a lot, just that its a Legal and General Flexible mortgage plan ISA option so I guess its an ISA.  If I try and call them on Monday what do I need to find out?  Redemption costs, terminal bonus etc?  I think ill probably be just leaving it be but its probably wise to try and find out as much as possible what the options are.

dunstonh

 If I try and call them on Monday what do I need to find out?  Redemption costs, terminal bonus etc? 

Its an ISA from L&G.  So, there wont be a terminal bonus.

Most of these were 100% equity funds.   So, you should be looking to de-risk as you get closer to maturity.

DiggerUK

Is this what you've got?
https://www.legalandgeneral.com/library/investments/key-features/FMISA_Key_Features.pdf
It looks like a bog standard S&S ISA, I cant see anything about it that mentions penalties..._
"HOW CAN I TAKE MONEY OUT? (page 6)

• You have two options: – cash in part of your plan – cash in all of your plan.

• You can take money out of your plan at any time.

•If you take money out of your plan, you'll have less chance of meeting your target mortgage amount.

Old_Lifer

Thank you Digger,  an interesting read.      In this particular case,  the bit about   'there is no option to invest in any other fund'   is especially interesting,   so the OP would have to move the money out of the ISA    I  assume(?)

barryd999

I Reckon thats it Digger. So what to do with it. It looks like its sprung back from a big drop to £28k from £39k back up to £32k in the most recent statement. I guess I could wait and see if it goes up further in next months statement (they dont usually send them out each month but have started to recently).  Its just a guessing game as far as I am concerned.

eskbanker

barryd999 said:

Its just a guessing game as far as I am everyone is concerned.

Fixed that for you!

badger09

Old_Lifer said:

Thank you Digger,  an interesting read.      In this particular case,  the bit about   'there is no option to invest in any other fund'   is especially interesting,   so the OP would have to move the money out of the ISA    I  assume(?)

If OP's investment is inside an ISA wrapper, why do you assume he 'would have to move the money outside of the ISA'?
Granted, he may not be able to remain invested in the same fund when the endowment matures, but he might not want to. However, he should be able to transfer as cash to another S&S ISA provider if he wants to remain invested, or to a cash ISA provider if he doesn't.

I'm sure dunstonh will correct me if I'm misunderstanding the product.

LHW99

OP you can check your and your wife's current state pension entitlement at

https://www.gov.uk/check-state-pension

Once you have done the identity stuff and can log in, make sure you read down, because the headline number is what you could get if you carry on paying in - you needtheonethat tells you what you have now. If that is less, it could be worth buying some added years with your endowment / ISA money for one or both of you. If you come back here with the information, there are people who could tell you the best way to do that. If doing it online is too difficult, you can phone the future pension centre - there is a link on the webpage above.

Old_Lifer

I am not familiar with the product  which is why my thoughts are only an assumption and I have  stressed this with this by adding a question mark.  It seems to be a life fund with no option to switch into cash  so I am not sure how he would transfer it.    Its not an endowment by the way.

badger09

Old_Lifer said:

I am not familiar with the product  which is why my thoughts are only an assumption and I have  stressed this with this by adding a question mark.  It seems to be a life fund with no option to switch into cash  so I am not sure how he would transfer it.    Its not an endowment by the way.

Apologies, I used the same (incorrect) terminology as OP. However, I have looked at the product and my comments above still stand. Happy to be corrected though.