endowment

perangusta

I've just had an update on an endowment that ends in 2013. I've paid £842.76 in this year and all it's added to the 'investment' is £64.55! I would have been better off putting it in a building society. Would I be better off cashing it in for the £13, 667 and paying that off as a lump sum on my mortgage? Or selling it through one of the companies that buy them.

dunstonh

I've paid £842.76 in this year and all it's added to the 'investment' is £64.55!

Your point being?

I would have been better off putting it in a building society.

Not the same thing though is it. 2002-2006 we had bumper growth years that smashed cash returns with 15-20% p.a. being achieved whilst cash was paying 3%. late 2007/ early 2008 saw a negative return so you didnt make much.

With investments you average out the ups and the downs and over the long term you expect investments to beat cash although there will be short term periods when it doesnt.

Would I be better off cashing it in for the £13, 667 and paying that off as a lump sum on my mortgage?

Maybe, maybe not. Tell us about your endowment as we cannot possibly comment without the facts.

perangusta

Took the endowment out 05/1990 £70.23 per month, target amount should be £34,000 This doesn't sound a lot now but it was then on the price of the house we had then.

martinman3

To allow dunstonh to answer your question will require more info

Company name and policy type
Date started
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

perangusta

martinman3 wrote: »

To allow dunstonh to answer your question will require more info

Company name and policy type
Date started
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Canada Life Lifestyle/homebuyer plan
1/05/1990
34,000
Can't find the word BONUS anywhere
Surrender value on Friday last was £13,667.19
monthly premium £70.33
Maturity date 30/04/2013
maturity forcast between £18,800 and £24,400 depending on growth
I may have got some of this wrong, I can only read off the paperwork that I have here

perangusta

I think it's called a multiple investment plan!

dunstonh

Is it unit linked? if so what fund(s) is it in.

what are the projection rates being used in the examples?

EdInvestor

...and the other thing needed is the interest rate payable on your mortgage.

perangusta

dunstonh wrote: »

Is it unit linked? if so what fund(s) is it in.

what are the projection rates being used in the examples?

I think it is, It states number of units as 743.15; units of what I don't know, but the unit price on 1 may 08 is 18.299. It says Multiple investment account, does not specify what however. It started out as Albany Multiple investment fund, and was bought out by Canada Life. The Policy Document does not tell us much, it was sold to us as part of the mortgage when buying the house from an estate agent, when mortgages were at 14%!

perangusta

Thje last letter eceived had a projected shortfall at 4% of £18.000, at 6% £15,300 & 8% £12.300

perangusta

Mortgage interest rate , we're on a tracker till October, have 8 years left on mortgage