Should I cash in my endowment and invest the money some other way?
10 June 2003, 09:03 PM
#1
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If this thread takes off I'll look into how much her endowments will be worth in 2014, v what she will have paid in.
Can't be assed now as I'm off to watch TV
David
[Edited by Shark - 10/6/2003 9:04:08 PM]
If this thread takes off I'll look into how much her endowments will be worth in 2014, v what she will have paid in.
Can't be assed now as I'm off to watch TV
David
[Edited by Shark - 10/6/2003 9:04:08 PM]
06 October 2003, 08:24 PM
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Thinking on the way home about how **** endowments have been reportedly doing and am I wasting my money paying into one. (strange what goes through your mind while hammering your motorbike round the M25 at 8pm 
)
I have one which I don't need anymore for paying the mortgage as I swapped a long time ago to repayment but kept it going as I didn't want to lose the money I had paid into it.
Have been paying something like £90 a month for 5 years so far.
What I want to know is should I cash this in and put the whole lot into a different style of investment? If so what type and why?
How much am I likely to lose out if I cash the endowment in? Are they as really bad as people say they are?
The money is purely being invested for a lump sum to be paid out in 25 years to myself.
Any serious advice much appreciated.
)I have one which I don't need anymore for paying the mortgage as I swapped a long time ago to repayment but kept it going as I didn't want to lose the money I had paid into it.
Have been paying something like £90 a month for 5 years so far.
What I want to know is should I cash this in and put the whole lot into a different style of investment? If so what type and why?
How much am I likely to lose out if I cash the endowment in? Are they as really bad as people say they are?
The money is purely being invested for a lump sum to be paid out in 25 years to myself.
Any serious advice much appreciated.
06 October 2003, 08:32 PM
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You should speak to a financial advisor about your specific situation. The cash-in value of the endowmwnt may be so low that you'd be throwing away much of what you've put in so far, especially if you're a relatively short time into it, whilst it may not be a bad investment as long as you're not counting on it to pay off your mortgage.
06 October 2003, 08:35 PM
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The decisions are yours, but I was in the same position last year. I cashed it in as it was worth about what I'd paid in, so I didn't lose too much financially. The same cash now goes into overpaying the mortgage to get that monkey off my back sooner. The more equity you create in your property/mortgage, the better position you're in for climbing the ladder or speculating/developing. Most index linked plans are a waste of time these days, I'm even seriously considering freezing my personal pension and using that cash on my own ideas. One final recommendation, make sure your repayment mortgage is a current account one (so long as your not a live to/beyond your means spendthrift) to further accelerate the repayments.
06 October 2003, 09:00 PM
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I advised my girlfriend when she moved in with me to keep her two endowments, ( ) but they total a mere £25pcm. So knowing **** all about finance and given they run out in 2014, I thought she should keep them.
Will be looking at this topic, but at £90pcm seems to me if you can get out now and get your money back, you would be better off - that’s just my common sense talking, as I said I know **** all about finance !
David
) but they total a mere £25pcm. So knowing **** all about finance and given they run out in 2014, I thought she should keep them.Will be looking at this topic, but at £90pcm seems to me if you can get out now and get your money back, you would be better off - that’s just my common sense talking, as I said I know **** all about finance !
David
06 October 2003, 09:11 PM
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off topic i know but this has been bugging me: how come if you save money, you have to pay tax on the interest you get paid, but if you burrow money there is no tax relief on the interest that you pay? Unfair, surely? And also means that it's always gonna be better to pay off debt than to save money.
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06 October 2003, 10:34 PM
#8
I've been paying £75pcm for the last 11 years but sold the flat on which it was bound 4 years ago. Its a "with profits" one and has a death benefit of £50K.
It currently is worth more than I have paid in, not all bonus's have been added (such as final term bonus etc) and for £75 pcm, might as well keep it going - pay for Ez's uni fees
Its not worthwhile cashing in fter this length of time.
Added benenfit is that I can save some money on my re-payment mortgage by making a part interest only with the endowment to cover the difference. Obviously there are certain caveats to that but 14 years is a long time as indeed is 25...
It currently is worth more than I have paid in, not all bonus's have been added (such as final term bonus etc) and for £75 pcm, might as well keep it going - pay for Ez's uni fees
Its not worthwhile cashing in fter this length of time.Added benenfit is that I can save some money on my re-payment mortgage by making a part interest only with the endowment to cover the difference. Obviously there are certain caveats to that but 14 years is a long time as indeed is 25...
06 October 2003, 11:25 PM
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Generally, IIRC, most of the endowments pay out a lot more if they reach term. Quite a few you can stop paying into, and just leave your existing money in them, which can be a better move than cashing it in (as long as you don't need the money right now.)
ISAs are obviously a tax friendly way to invest, if you're looking at up to £7k/year.
All IMHO, etc.
ISAs are obviously a tax friendly way to invest, if you're looking at up to £7k/year.
All IMHO, etc.
06 October 2003, 11:39 PM
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Not that I know **** all about investing but if it was me. I would stop the payments and make it paid up and leave it to mature if the endowment company allowed this. Take the Money saved and use it to make over payments on your mortgage that dont encur a penalty, once this is paid off take out a mortgage on a 2nd property to rent out and use this as part of ya Pension portfolio.
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