Endownment! what to do with it
Oct 18th 2005, 3:37 pm
#1
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Thread Starter
Joined: Mar 2005
Posts: 38
Endownment! what to do with it
Anyone out there in same positon?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
Oct 18th 2005, 4:30 pm
#2
I am not the Messiah!
Joined: Aug 2004
Location: Cairns
Posts: 1,273
Re: Endownment! what to do with it
Originally Posted by cul8rm8e
Anyone out there in same positon?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
I did ask for a statement of how much I would get now but as we moved (and I did update the address details) they have not got back to me. So thanks for reminding me too! I will get on to them this week and see what its worth.
Its been running since 1993 and a friend said the other day that they were advised to never give up on them. Even though they are performing cr@p at the moment...........anything can happen. I suppose as I dont really miss the money then I could just let it carry on.
I will have to think on this one, unless there any financial advisors out there with any good advice!
R.
Oct 18th 2005, 4:53 pm
#3
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Joined: Jul 2005
Location: sheffield
Posts: 2,808
Re: Endownment! what to do with it
Originally Posted by cul8rm8e
Anyone out there in same positon?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
Ok, I have a 25 year endownment policy which has been running now for 13 years, I am in two minds as to whether i should surrender or not it if all goes well with the move
My policy holder has advised me that i can continue payments as long as they are being made from a UK bank account this wouldnt be a problem (wont accept an Au account)
If i were to keep payments going from UK for the full term and use it as a savings, what would be the implications at the end of its term regarding TAX
I would like to keep this going and put this towards Mortgage
Anyone out there been in the same position?
it's only £36.00 a month so we're just going to keep paying and hope for the best
those companies don't pay much more than the surrender value
Oct 18th 2005, 4:58 pm
#4
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Endownment! what to do with it
Originally Posted by Carruss
I am in a similar position, deciding whether to cash it in now or not. I went to a couple of those companies that offer to buy the endowment off of you and they were'nt interested. This makes me think its sh*te so may just cash it in anyway.
I did ask for a statement of how much I would get now but as we moved (and I did update the address details) they have not got back to me. So thanks for reminding me too! I will get on to them this week and see what its worth.
Its been running since 1993 and a friend said the other day that they were advised to never give up on them. Even though they are performing cr@p at the moment...........anything can happen. I suppose as I dont really miss the money then I could just let it carry on.
I will have to think on this one, unless there any financial advisors out there with any good advice!
R.
I did ask for a statement of how much I would get now but as we moved (and I did update the address details) they have not got back to me. So thanks for reminding me too! I will get on to them this week and see what its worth.
Its been running since 1993 and a friend said the other day that they were advised to never give up on them. Even though they are performing cr@p at the moment...........anything can happen. I suppose as I dont really miss the money then I could just let it carry on.
I will have to think on this one, unless there any financial advisors out there with any good advice!
R.
It does become a tax burden if you move to Oz, as the ATO will tax it on its growth, and I think (correct me if I'm wrong anybody) as a capital gains tax event when it matures. I took financial advice with mine and it didn't take very long to realise that it was going to loose money in the long run. I think that I would have needed a massive growth in the 20% region to have made any kind of real profit, so I sold it on.
That's not advice, just what happened to me.
S
Oct 18th 2005, 5:49 pm
#5
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Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Endownment! what to do with it
Originally Posted by Swerv-o
I went through this last year with my pathetically underperforming mortgage endowment policy. It was costing far too much to maintain, and I got an illustration from the company, and just about got back what I had paid in, so nothing lost.
It does become a tax burden if you move to Oz, as the ATO will tax it on its growth, and I think (correct me if I'm wrong anybody) as a capital gains tax event when it matures. I took financial advice with mine and it didn't take very long to realise that it was going to loose money in the long run. I think that I would have needed a massive growth in the 20% region to have made any kind of real profit, so I sold it on.
That's not advice, just what happened to me.
S
It does become a tax burden if you move to Oz, as the ATO will tax it on its growth, and I think (correct me if I'm wrong anybody) as a capital gains tax event when it matures. I took financial advice with mine and it didn't take very long to realise that it was going to loose money in the long run. I think that I would have needed a massive growth in the 20% region to have made any kind of real profit, so I sold it on.
That's not advice, just what happened to me.
S
Take proper advice
G
Oct 18th 2005, 5:50 pm
#6
Where I want to be
Joined: Jan 2005
Location: In my own head
Posts: 3,220
Re: Endownment! what to do with it
Hi
We also have endowments, 2 of them, 1 has been running since 86, the other 89. We have explored both options and are going to cash them in because we feel it is the better option.
If we leave them going we have top make sure that there is enough money in a uk bank account each month to pay for them. We also get stung for tax when they mature.
If we take them with us, as they are pretty near the end (it will be 5 and 8 years away from maturity) we won't be losing that much because they have been performing quite badly really. Then we have the extra buffer in case hubby doesn't get a job as quick as he would like to.
They have served us well I suppose in that our repayment mortgage here is quite a small amount, but then our loan amount is quite small too.
If you feel you need some proper financial advice, from a financial advisor, you can find some on the net and most will give you the first appointment free.
Shirley
We also have endowments, 2 of them, 1 has been running since 86, the other 89. We have explored both options and are going to cash them in because we feel it is the better option.
If we leave them going we have top make sure that there is enough money in a uk bank account each month to pay for them. We also get stung for tax when they mature.
If we take them with us, as they are pretty near the end (it will be 5 and 8 years away from maturity) we won't be losing that much because they have been performing quite badly really. Then we have the extra buffer in case hubby doesn't get a job as quick as he would like to.
They have served us well I suppose in that our repayment mortgage here is quite a small amount, but then our loan amount is quite small too.
If you feel you need some proper financial advice, from a financial advisor, you can find some on the net and most will give you the first appointment free.
Shirley
Oct 18th 2005, 6:02 pm
#7
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Joined: Aug 2005
Location: was Bradford then poole dorset then Sydney,Forster, Kanwal,Gosford,and now Erina
Posts: 788
Re: Endownment! what to do with it
Originally Posted by Swerv-o
I went through this last year with my pathetically underperforming mortgage endowment policy. It was costing far too much to maintain, and I got an illustration from the company, and just about got back what I had paid in, so nothing lost.
It does become a tax burden if you move to Oz, as the ATO will tax it on its growth, and I think (correct me if I'm wrong anybody) as a capital gains tax event when it matures. I took financial advice with mine and it didn't take very long to realise that it was going to loose money in the long run. I think that I would have needed a massive growth in the 20% region to have made any kind of real profit, so I sold it on.
That's not advice, just what happened to me.
S
It does become a tax burden if you move to Oz, as the ATO will tax it on its growth, and I think (correct me if I'm wrong anybody) as a capital gains tax event when it matures. I took financial advice with mine and it didn't take very long to realise that it was going to loose money in the long run. I think that I would have needed a massive growth in the 20% region to have made any kind of real profit, so I sold it on.
That's not advice, just what happened to me.
S
