Please advise best option for my endowment

Physio

Thanks Edinvestor,

I have posted the figures required and I hope I can get the advice my thread asked for,

regards,


Physio

EdInvestor

Physio wrote: »

4% £36,400 (£10,600 shortfall)
5% £37,200 (£9,800 shortfall)
6% £38,100 (£8,900 shortfall)

Mortgage endowment promise,providing the investment return on our free mortgage reserves is sufficient, £5,400 maximum. (Not guarenteed)

Hi physio


Using the surrender value, if you cashed this in and invested it at a net return of 5% also paying in the premiums to maturity, you would have a final guaranteed return of 38,930.If you sold it at APMM's lowest figure the return would rise to 39,352.

What is the interest rate on your repayment mortgage?Is it higher than 5%? If so the return would be better. Post the rate and we can work it out.

lucadobe

New to this site so i apoligise if i have not done things correctly...could not see the way to posting a new thread so..we have endownment which was taken out in 1990 we kept it going when a few years ago we changed over to repayment. policy started 01/07/1990
policy ends 01/07/2015
basic guaranteed value £17,922.00
total previous bonuses £12,025.66
annual bonus £89.61
total guaranteed value £30,037.27
originally this was to pay off the mortgage of £36,500 with a healthy amount over..over the years we have paid into the mortgage to get it down we have £19,000 left. Our concerns are the annual statements bonus of each year £89.61 and RL stating they may pay a final bonus at the maturity and any final bonus is not guaranteed and depends on future profits ,it clearly states the 25yr endownments will not get as good deal as the 10yr one's and cannot help feeling they will pay us the bare amount necessary

Physio

EdInvestor wrote: »

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Hi physio


Using the surrender value, if you cashed this in and invested it at a net return of 5% also paying in the premiums to maturity, you would have a final guaranteed return of 38,930.If you sold it at APMM's lowest figure the return would rise to 39,352.

What is the interest rate on your repayment mortgage?Is it higher than 5%? If so the return would be better. Post the rate and we can work it out.

Thanks for you time EdInvestor,

our interest rate on the repayment is currently 4.99 until the end of July this year and the changes to the SVR, although we shall be re-negotiating with the company TMB for a further deal. We will be reluctant to look further afield because we have a true self cert mortgage and could not face all the hassel in the current eco climate.
Thanks agian,


Physio

Dick_here

lucadobe wrote: »

we have endownment which was taken out in 1990 we kept it going when a few years ago we changed over to repayment. policy started 01/07/1990
policy ends 01/07/2015
basic guaranteed value £17,922.00
total previous bonuses £12,025.66
annual bonus £89.61
total guaranteed value £30,037.27
Our concerns are the annual statements bonus of each year £89.61 and RL stating they may pay a final bonus at the maturity and any final bonus is not guaranteed and depends on future profits, cannot help feeling they will pay us the bare amount necessary

You will be paid at the correct value at the time of maturity. Do you really think an insurance compny wants to pay out at the bottom of the charts ?

Currently, you've paid in c£18k and your policy is worth at least £30k, plus probable Terminal Bonus, and you've had the life cover too.

As a finger in the air, I'd guess you'll get 50-60k on maturity. That ain't bad I reckon. But if you're unhappy, take the 30k+ now. It's your choice...

EdInvestor

lucadobe wrote: »

policy ends 01/07/2015
basic guaranteed value £17,922.00
total previous bonuses £12,025.66
annual bonus £89.61
total guaranteed value £30,037.27

Please post some additional info:

Surrender value
Maturity forecasts
Interest payable on your mortgage

so we can see if it's worth sticking with the policy.

EdInvestor

!!!!!!_here wrote: »

You will be paid at the correct value at the time of maturity. Do you really think an insurance compny wants to pay out at the bottom of the charts ?

Most With-profits funds are now closed to new business so performance charts are irrelevant.Indeed the OP is quite right in thinking that many companies are squeezing as much money as possible out of existing policies, largely because they overpaid in the past in order to "buy" peak position when the charts were important.

Dick_here

EdInvestor wrote: »

Most With-profits funds are now closed to new business so performance charts are irrelevant.Indeed the OP is quite right in thinking that many companies are squeezing as much money as possible out of existing policies, largely because they overpaid in the past in order to "buy" peak position when the charts were important.

So you think companies actively do try to pay out as little as possible ?

EdInvestor

!!!!!!_here wrote: »

So you think companies actively do try to pay out as little as possible ?

The financial services industry is in business to make money, you know.

Dick_here

EdInvestor wrote: »

The financial services industry is in business to make money, you know.

Thanks for clearing that one up, Ed

Are ISA providers charities then ?