my rubbish endownment

dunstonh

As you are still waiting for an answer I thought that you should know that the growth in the endowment for the last year was, excluding last years premiums,
i.e. 9475.68 - (66.88 x 12 ) - 8200.83 = 472.29 which is 5.76% growth

Its actually higher than that because you havent included the basic sum assured. However, it could also be lower because the difference could be due to a reduction in the surrender penalty as it has gone past a certain anniversary.

If you could find an account paying this or higher fixed for 12 months then it may be a good idea.

5.76% net and factor in the cost of replacement life cover means that there probably isnt a savings account that pays a high enough rate.

The OP needs to find out how the surrender penalty is charged and when it chances. The with profits fund is likely to be quite naff but surrender penalty changes may mean its worth holding onto until such time there is no penalty or it reduces to have very little impact.

dunstonh

orchard endowments spam these forums fairly frequently and any company that does that should be avoided at all costs.

shaunybot

Hi Catherine. The growth rates you quote are projections of what the endowment plan could be worth if the stock market continues to perform well and grow at the quoted amount. And so you will need to think about the risk you are prepared to take. I think it is always a good idea to take independent financial advice before making a decision.

EdInvestor

gitch01 wrote: »

so should i keep my endownment going until next year or should i cash it in and put the £9200 into a high interest account.. I could also put the money that i pay monthly (£66.88) to the endowment into the high interest account as well i suppose.

Unless you would need to get replacement life cover, I would cash it in.Any chance of getting part of it in ISAs? That would help.

EdInvestor

catherinebeddau wrote: »

Should we continue paying to the end of term or surrender the plan?

You need to post the list of figures as above for a view.

dunstonh

orchardendowments wrote: »

Orchard Endowments are increasingly considered by leading market makers and customers to be reputable and trustworthy. We have always made every effort to give our visitors fair and helpful endowment information. Despite working alongside leading market makers, we remain a small business and our reputation is of the greatest importance to us. We would appreciate it if you would refrain from making negative, not to mention completely untrue statements about Orchard Endowments. We would also like to point out that after a brief search of moneysavingexpert with regard to "spamming," we believe there to be around three seperate passing references to Orchard Endowments, from several different usernames. Orchard Endowments hopes that this rather odd, ill informed and dismissive remark from the 'independant financial advisor' will not tarnish their image in any way.

Reporting these spammers again.

This is the third login in two days they have used. At least this one isnt linking to its website like the other posts did. The fact that someone now using the username orchardendowments (new sign up) less than 24 hours after the other posters spammed the forum just confirms the self advertising spam that went before. For reference, there were 6 posts made on different threads yesterday which were virtually copy and pasted and each contained links to this company. One of the posters had also made posts going back over a year and every one contained a spam and similar message promoting this company. The board admin have now removed those posts as they were in breach of board rules.

This company should be avoided. If they use these forums for unscrupulous marketing then do you really want to deal with them?

mike1967

I have an endowment ending 06/2015,
it is no longer used to cover a mortgage, so really just a 'savings pot'
I pay £ 93.19 a month
It's meant to yield 'in excess of' £ 60K (this is what I was told in 1990!!)
It's currently worth £ 23,254.94 as a surrender value.
It was originally a Laurentian Life policy now Lincoln (I've not been impressed with them over the years!!)
My dilemma is do I keep paying the £ 93.19 which will cost a total of £ 7,827.96 until the end of the term and hope that my surrender value gets as high as possible. OR do I cash the money in and pay it into my repayment mortgage (this is at 87K with 17 years left - although I am reducing this by over payments)
What is 23K off my mortgage now likely to save me in interest... with additional over-payments of £ 93.19 a month easily to find.
I've been looking at this for a few years now. The endowment did perform better last year..but is it going to perform better over the next 7 years ?
I'm resigned to the fact that it isn't going to get me 60K !!

EdInvestor

Post some more info:

Maturity forecasts
Interest rate payable on mortgage

I assume this is a unit-linked policy.

mike1967

i can't recall seeing a forecast for some time - i know it wasn't good!

i think i'm paying 5.75% on the mortgage... it's tracked by the B of E base rate

dunstonh

i can't recall seeing a forecast for some time - i know it wasn't good!

They are not forecasts, they are example projections. A forecast is something that is likely to happen. A projection uses defined rates which may or may not reflect the true potential of the investments. A fund that has a history of returning 10% a year every year still has to use the defined rates which can understate the potential. Equally, a zombie fund with zero bonus can use the same rates which can overstate the potential. Some with profits plans dont include the terminal bonus accrued to date in the projections as well and as the bulk of the return is likely to be there then that is going to reflect badly in the projections. And finally, some project from the surrender value rather than the current value. This has led to the projections showing lower values that the guaranteed minimum maturity which is of course not possible.

So, the projection information is important but it shouldnt be used as the only thing when making a decision. You also need to consider the quirks that exist in producing the projections.