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Let me try again with this. Advice please?
Honkycat
Posts: 499 Forumite
I tried to get advice on whether to sell this or not in another thread, but it got hijacked. Could someone who knows about these things please have a look at this specific case and give me some advice. Thanks very much.
Friends Provident Low-Cost Endowment.
Start: 3/4/1989
Matures: 3/4/2014
Monthly payment: 21.31
Target amount: 15,500
Declared Bonuses: 2,623
Min Guaranteed Cash Sum: 8,002 (last year's was 7996)
Current surrender value: 7056
Guestimates:
@4%: 10,000
@5.5%: 10800
@8%: 12300
Friends Provident Low-Cost Endowment.
Start: 3/4/1989
Matures: 3/4/2014
Monthly payment: 21.31
Target amount: 15,500
Declared Bonuses: 2,623
Min Guaranteed Cash Sum: 8,002 (last year's was 7996)
Current surrender value: 7056
Guestimates:
@4%: 10,000
@5.5%: 10800
@8%: 12300
0
Comments
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Can anyone advise me?0
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I tried to get advice on whether to sell this or not in another thread, but it got hijacked. Could someone who knows about these things please have a look at this specific case and give me some advice. Thanks very much.
Friends Provident Low-Cost Endowment.
Start: 3/4/1989
Matures: 3/4/2014
Monthly payment: 21.31
Target amount: 15,500
Declared Bonuses: 2,623
Min Guaranteed Cash Sum: 8,002 (last year's was 7996)
Current surrender value: 7056
Guestimates:
@4%: 10,000
@5.5%: 10800
@8%: 12300
if im reading right you will recieve 15.500 in about 5.5 years, so if you carry on paying 21.31 a month you will have paid below 1500 pound and gained another 7000, if it was me i would hang on.
People will buy this off you and you can understand why they will, as they can make a lot of money from people who are desperate to cash in.
If you can HANG ON.
hope this helps if im right.
confusedI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks,
The 15500 was the target amount. It's not going anywhere near that. I keep getting red alert letters... it's probably closer to the 10000? It's hard to say.0 -
Take the £7,056 and invest in ISAs at 6.5% together with the monthly premiums and you will return £12,281 by April 2014 - risk free. You would need to replace the life cover for more accurate assessment on a like-for-like basis.
(I know you'll need two ISAs and the rates are not guaranteed for the term of the investment).
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Thanks very much.0
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