Stoney

Whats everybody who has endowment mortgages done with their endowments, any tips on 'auctioning' them or have you just cashed them in for the measley current value.


Stoney

Sindy

Hi Stoney

We have the same problem. Over the last 3 years we have seen the value of our Endowment drop by almost 50%. We cannot face the idea of cashing it in for whatever measley sum it is worth at the moment. Our current thinking is to do one of two things, either;

1 Continue to pay the Endowment for the next five years. Hopefully by that time it will have recovered at least some of its value.

or

2 Make the fund paid up, stop paying any additional funds into it but hold off cashing it in for approx 5 years, or more.

Like you I would appreciate any other input on this subject as it a mojor concern for us.

Regards

Bill (Sindy's Husband)

HowardB

I would be interested in the replies. I am looking to sell mine as opposed to cashing it in.

Stoney

Hi Bill,
I'm not sure about the Ozzie tax situation on funds taken in after your initial arrival, they may be taxed when you try to transfer them after 5 years.

Thanks

Stoney

Sindy

Good point Stoney. I must confess we had not thought of that angle. Looks like we have a bit more researching to do. Thanks for the warning.

Bill

booboo1

We asked this question at the migrate show. The answer was
that the endowment would be considered as an overseas investment. You would therefore be taxed on it.

If your policy is a "with profits" I believe you will be taxed on the amount of money it increases by each year (as if it was part of your income for that tax year) whist you recide in Oz.

If you don't declare it until after it matures you may be liable for tax on the whole amount again as if it was additional income for that tax year.

NOTE: TAX RATE 47% FOR INCOME OVER $60,000 P.A. !!!!!!!!

You may want to get expert advice, trouble is everyone seems to want to charge you a lot of money for their service.

We're going to take the money before going to Oz.!!!

Cheers Nick (BooBoo,s Hubby)

terryg

You could try selling it

http://www.google.co.uk/search?q=sel...UK%7CcountryGB

All the best

Terry

HeatherS

We looked at ours the other night ~ nearly cried seeing how little they are worth after all these years. Would have made more money in a savings account. Oh well, live & learn.......

We think we'll just cash them in, got enough to think about as it is. Might see about selling them tho'

Heather

HazelG

we're just hoping that once this war is over the value of our endowment may start to recover a bit
enquired about selling it but no-one was interested - bad investment at the moment!
I suppose we'll just hang on for as long as we can in the hope that the value will rise before we go
lets face it - it can't go down much further, Can it????????!

Hazel

scoobydooathome

Hey Guys,

I know how it feels, we had a endowment policy but got rid 18 months ago after sniffing a rat in the works, we had the policy for 11 years and managed to get back only just what we put in it ...

We were pleased to get OUT and break even,

I think something is brewing in the U.K. folks and all us pommies going to OZ will be out the way when it hits the fan,

Best of luck to the endowment crew, get out what you can NOW,

Cheers,

HeatherS

That's how we feel Scoob, think I'll trust my instincts & cash them in ASAP

Heather

Terry

Has anyone thought of claiming for mis-selling, we are going through this route at the moment after being offered a measly sum for surrender. Not looked at selling yet but I belive that will be the best option in the end. I belive when you get to aus. you need to declare the policy as an investment and then you get taxed on the amount it goes up.

Terry

Watt Dabney

Hi

We did this. We showed ours to our bank manager when we asked for his help to open a NZ bank a/c. He said it was the worst piece of financial advise he had ever seen! He helped us draft a letter of complaint, and we managed to get back what we had paid in by way of compensation. The policy was with Abbey Life and the complaint was delt with swiftly.

Paula

andie

we cashed ours in, did lose on them, but we decided the money will benefit us more in oz, while we are settling , rather than keep paying into the endowment policy. brissy here we come.

etlniwd

I would recommend most people to at least consider claiming compensation for being missold the endowment in the first place.

I went down this route because I was very ovbiously missold mine by an advisor who told me that it was guaranteed to pay off the mortgage capital (I even had that in writing). I came very very close to getting all my money back plus compensation. Unfortunately, in my case, the advisor had gone out of business so I could not claim (even though the policy was with an insurance company who definately was still in business).

The whole thing stinks. I was forced to cash mine in at a huge loss because nobody would buy them. Sun Alliance have just been found guilty and the tide seems to be turning in favour of the customer albeit very slowly.

Certainly don't keep paying into them. They are the worst rip off investment ever devised (value plummets during a bear market but just about keeps its head above water in a bull market).

As for being taxed in Australia. I'm not a tax advisor but how will the ATS know you have them ? Seriously, how will they ?