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Surrendering Unit-linked Endowment

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I took out an endowment in 1994 with Allied Dunbar to cover a mortgage of 23k (!) I no longer own the property but am still paying about 50quid a month into the policy (up from 36quid when I started it). It matures in 2019 - at last check I'd get out roughly what I have paid in if I cash it in, is it best to do this & put the money into something else? please help! I understand there is no market for selling unit-linked endowments..

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I took out my ISA last week just before the market fell 96 points.

Of course it could go back up, who really knows. IMO it will fall at some point in the near future, there is just too much back news around at the moment, there is every likelihood that it could go back up before 2019. I have two endowments and I am in a similar position to you in that instance. I have kept them going.

Afraid you will just have to make up your own mind.

Good Luck (to both of us :) )

Edited by FTBagain

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Cheers, I just don't want to be paying in 50 quid for the next 14 years and be worse off than putting it under the bed.

I surrendered mine recently - due to mature in 2012. Projections showed I would have been a lot better off if I had put the money in a building society.

The people that run these funds are tossers. They only made money in the past because of high inflation. They have no skills or expertise - other than parting fools from their money.

I cashed it in - and have increased its value by 10% in the last 6 months - without someone else taking a huge chunk out of it in payment for their 'management expertise'.

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Know what you mean. I pulled my ISA because the short term is looking increasing iffy and I need to money as a deposit. My endowments are useful because I can still use them against a house purchase. Like yours they have been running for a few years. What I intend to do is split my morgage, part repyment, part IO. That way I can play the tunes between monthly cost and risk. Fixed rate for as long as possible (10 years with to co-op).

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I surrendered mine recently - due to mature in 2012. Projections showed I would have been a lot better off if I had put the money in a building society.

The people that run these funds are tossers. They only made money in the past because of high inflation. They have no skills or expertise - other than parting fools from their money.

I cashed it in - and have increased its value by 10% in the last 6 months - without someone else taking a huge chunk out of it in payment for their 'management expertise'.

Are there any penalties for cashing it in early?

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Guest horace

I think it was Woody Allan who said something like this

"An investment manager is someone who invests your money until it is all gone"

horace.

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I surrendered mine too last week! It was £50 per month, had it since 1998 and due to mature in 2023. I've always been very pro endowments, especially as all those around me have pulled faces when hearing I've got one for years, all because they didn't understand how it worked and had been scared by tales of unrealised promises of 15% minimum in the 80s.

The last straw for me was when I had the yearly statement through with a letter about how 2004 was a good year and then the bonus added of £4.34! I would be £1,500 better off at present having stashed cash under the matress each month and although it could have recovered, I'm not taking the chance.

If you cash it in you may spit feathers later, but if you're sensible (as I'd like to think I am) you'll invest the money somewhere else and do better.....gold anyone? ;-)

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Guest tenant super

I took out an endowment in 1994 with Allied Dunbar to cover a mortgage of 23k (!) I no longer own the property but am still paying about 50quid a month into the policy (up from 36quid when I started it). It matures in 2019 - at last check I'd get out roughly what I have paid in if I cash it in, is it best to do this & put the money into something else? please help! I understand there is no market for selling unit-linked endowments..

Included in this is a life assurance premium which I doubt you need anymore. You have an alternative option which is to make the plan paid up. You can enquire as to the validity of cancelling your premium, and cancelling any life cover (otherwise the plan enchasing units to continue paying for this) and just keep the units invested if you are hopeful of future growth. Don't forget the insurer will allow you to switch your investment into alternative units as well if you want a punt on another sector.

Selling unit-linked policies, not sure about that market. Mostly the market is for With profits where the trader will take a gamble on their being a terminal bonus.

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Are there any penalties for cashing it in early?

Only the fact you will miss the terminal bonus. I convinced myself there won't be one. They have been dropping year after year for some time now.

Tossers the lot of them.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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