molko

Just a quick one guys, just looking for some informal advice as to what to do with two endowments/long term savings plan - not sure whether to cash them in or let them ride.

They are both with AXA : Intially i paid £15 pm for the 1st year, £18 pm for the 2nd, £21 pm for the 3rd.....up to £30 for 5th and the following 10 years.

Endowment 1 is due to mature in 06/2013 & endowment 2 in due to mature in 06/2017.

The cash in values are £2927 (endowment 1) & £1106 (endowment 2).

If both grow at 8% then come maturity they will be worth £5530 (endowment 1) & £6130 (endowment 2).

If both grow at 4% then come maturity they will be worth £4660 (endowment 1) & £4860 (endowment 2).

I've no idea what they are growing at.

I've worked out I have so far paid in £3270 into endowment 1 and £1830 into endowment 2

Just wondering if its worth still paying in the £60pm (£30 each) or should i just cut and run ?

Any advice or whatever will be appreciated....

Thanks

Oh I should say the endowments/savings plan are not tied to anything, i just thought at the time they would be a decent investment...

P1-Brad

IMHO, if you don't need the life assurance associated with an endowment then I'd cash them in. Part of your premium is paying for life insurance which if not needed represents a waste that could be 'invested' for a return.

Jimpreza

Dont cash them in now mate there'll probably be penalties. You only get the benefit of the compound interest if you see the endowment out till the end.

molko

Thanks, I never thought about the life assurance side of things, which is covered elsewhere anyway.

I don't know if endowment was the right turn of phrase really, i just pay in £60pm and hoped to get back more that i put in.

Thanks

molko

When i phoned up yesterday they never mentioned penalties, they just told me the value of what they were worth if i cashed in today (or rather yesterday )

I'll get back on to them and see what the deal is with penalty charges, thanks for the pointer.

David Lock

I sold one years ago and it was auctioned. Got more than I would have than by simply cashing it in.

Does the auction market still exist and any recommendations for a decent company as I have a policy which I may cash in? d

EddScott

At the lowest growth rate will you get back more than you paid in?

You need to think about the loss of life assurance if you cancel the plans - what is the sum assured on both plans?. What funds are they in?

Perhaps you could look at paying the same amount of money into a stand alone life assurance policy and the rest into an ISA?

vindaloo

If they are endowments, then it may be possible to trade them for a better sum than if you just redeem them. The buyer will keep them running to maturity and collect the final pay-off.

Have a look around and get some figures/quotes.

J.

molko

I suppose its what the definition of 'endowment' is, to me its a savings plan that pays of a mortgage after x many years.

The two plans I have are just savings with a guaranteed cash sum, compound bonuses, future bonuses, assumed growth rates etc...

Thanks