Allied Dunbar Endowment

bob999_2

Wondered if anyone can help?

I took out a Home Owner Plan in August 2000, paying £115.55 per month to pay a mortgage of £45,000 over 20 years, maturing when im 50. it is 100% managed fund.

However im recieving the significant risk letters and dont want to pay in amounts to get a small return.

Also last year i swapped over my mortgage to a standard repayment so its no longer needed for my mortgage.

Should i keep it or scrap it.
Any one know a good place to sell it to better than say cash in figure with Allied
Thanks

EdInvestor

Hi Bob

Endowment charges are front end loaded, so you've just come to the beginning of the period where the policy might start making money unfortunately.

You won't be able to sell it as it's not in With profits.

What is its value now? Are you allowed to switch the money into alternative funds other than the Managed fund?

bob999_2

Cheers
Oh well, might just leave it then, but ask about swapping funds.

They tell me fund is worth £5217.15, paid in about £6990, front loaded as you say.
they are going to send me a surrender value, which i understand is fund less charges applicable

dunstonh

Certainly ask about switching funds. I got a slapped wrist last from board moderater time i suggested that the bog standard managed funds were rubbish and boring so I will not repeat that again. It may be taken as advice. However, it is not advice, it is my opinion. The advice comes in what you choose in their place and I will not cross that line

Virtually all endowments took the charges out in the early years. This usually meant upto 24 months before it would obtain a value. So all endowments in the early years would show a shortfall, even if it was the best endowment in the country.