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Casual Articles - Your Mortgage Endowment - Cash In Or Continue?
Getting good rankings on the most important search engines is about having your pages well optimized. Search engines analyse many different elements of web pages when they determine the ranking of a page. It's important that you utilize good on site optimization as well as good off site optimization.1. On-site optimization factors.One of the keys to ensuring search engines can index your site is to make sure that your web pages have enough text. It is often said that a picture
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's
I'm definitely not talking about my hair with its grey strands and reddish black color... this is about salons, spas, and day spas in particular. Every salon no matter what services or products it provides needs to have a sustainable way to keep customers coming thru their doors and returning for more. Day spas are an evolution of what is currently being provided in out of the way places with hills and fields of grass for miles.The niche market for day spas are those who don't have 3 o
If you have one or more of these plans, what SHOULD you do?
Indeed, what CAN you do could be one of your main questions.
The reality is that the annual returns on 'unitised' with profits investments have been falling for the last 9 years.
NOTE: There are other types of endowment policies including Full Cost Guaranteed, Traditional With Profits and Unit-Linked plans. This article does NOT apply to these plans.
The way in which the unitised with profits plans work is that when your monthly premium is received by the insurance company, a percentage pays for charges and the remainder is split between paying for the life assurance/critical illness insurance and the actual investment.
The investment portion is split between:
- shares
- property
- bonds
- cash
With profits funds were designed to 'smooth out' the returns of the stockmarket. In years of good returns the insurance company would retain a portion of the profit and pay an annual bonus to your plan.
In years of poor returns the theory is that they would dip into their reserves and pay an annual bonus. Once these bonuses have been paid they cannot be removed.
If the insurance company you have your plan with is not financially strong, it's likely that they will be investing a higher proportion of your money in fixed interest (bonds) and cash, restricting potential future growth. Over the last 10 years many companies have been increasingly moving the money in their with profits funds towards bonds and cash.
So if the returns on your plan have been falling every year, and more of the money has moved OUT of shares, you don't have to be a genius to work out that future prospects may not be great.
If the company you are with is financially strong, you'll be ok, surely?
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's
Are you looking for new ways to market your website in the next year? Internet marketing is constantly in a state of change. Here are some of the ways you can change your marketing techniques in the next year to appeal to your visitors in a new way.1. Spend more time focusing on quality content and less on flashy advertising - Internet users are becoming more and more banner blind. Anything that resembles an ad is now becoming invisible to the user. Focus on informing inter
NOTE: There are other types of endowment policies including Full Cost Guaranteed, Traditional With Profits and Unit-Linked plans. This article does NOT apply to these plans.
The way in which the unitised with profits plans work is that when your monthly premium is received by the insurance company, a percentage pays for charges and the remainder is split between paying for the life assurance/critical illness insurance and the actual investment.
The investment portion is split between:
- shares
- property
- bonds
- cash
With profits funds were designed to 'smooth out' the returns of the stockmarket. In years of good returns the insurance company would retain a portion of the profit and pay an annual bonus to your plan.
In years of poor returns the theory is that they would dip into their reserves and pay an annual bonus. Once these bonuses have been paid they cannot be removed.
If the insurance company you have your plan with is not financially strong, it's likely that they will be investing a higher proportion of your money in fixed interest (bonds) and cash, restricting potential future growth. Over the last 10 years many companies have been increasingly moving the money in their with profits funds towards bonds and cash.
So if the returns on your plan have been falling every year, and more of the money has moved OUT of shares, you don't have to be a genius to work out that future prospects may not be great.
If the company you are with is financially strong, you'll be ok, surely?
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's
If you've been wanting to buy a business, but are holding back because you're freaked out about the idea of putting together a business plan, then this article should help put your mind at ease.Years ago, I used to actually meet with people wanting to buy a business before they put together a business plan. And I found out after a couple of years that people are afraid of three things -- death, taxes and business plans.This is no joke. It's a lot like public speaking -- most p
- shares
- property
- bonds
- cash
With profits funds were designed to 'smooth out' the returns of the stockmarket. In years of good returns the insurance company would retain a portion of the profit and pay an annual bonus to your plan.
In years of poor returns the theory is that they would dip into their reserves and pay an annual bonus. Once these bonuses have been paid they cannot be removed.
If the insurance company you have your plan with is not financially strong, it's likely that they will be investing a higher proportion of your money in fixed interest (bonds) and cash, restricting potential future growth. Over the last 10 years many companies have been increasingly moving the money in their with profits funds towards bonds and cash.
So if the returns on your plan have been falling every year, and more of the money has moved OUT of shares, you don't have to be a genius to work out that future prospects may not be great.
If the company you are with is financially strong, you'll be ok, surely?
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's
Targeted web site traffic is essential to making sales through your website and converting website visitors to buyers. The purpose of targeted web site traffic is not just to bring traffic to your website, but to bring qualified website visitors, meaning visitors that are interested in what you have to offer and are ready to buy. All the website traffic in the world doesn't make one little bit of difference unless those website visitors buy your products or services, o
So if the returns on your plan have been falling every year, and more of the money has moved OUT of shares, you don't have to be a genius to work out that future prospects may not be great.
If the company you are with is financially strong, you'll be ok, surely?
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's
REASON #3 - They try to sell what is already sold.Selling a solution for a problem that the customer has called you for should be the easiest thing to do. After all, the customer wouldn't have called you if they didn't want it done.You can assume then that the only reason they would change their mind is something the tech said or did. What is it they are saying to screw it up? These techs feel they are 'educating' customers when they explain a problem. What they are really doing
Maybe not.
Norwich Union is a strong with profits office and they have 43% of the money in their with profits fund invested in shares. Even so, the company predict that only one in ten of their 750,000 endowment policyholders will receive the original target sum at the end of the policy term.
The fund actually returned 10.7% in 2006. Even so, the company has REDUCED payouts on many plans that matured in 2006. They will be further reduced in 2007 by many companies.
Let's look at some actual payouts for a male aged 29, investing ?50 pm over 25 years.
In 1988, Norwich Union paid out ?100,247. Not bad for a total investment of ?15,000.
By 2006 this figure had fallen to ?45,338. In 2007 the figure is ?42,133.
If you are with a financially weak provider, such as Scottish mutual and NPI, the situation could be even worse.
The Future
So what options do you have?
Whilst there is no simple answer, as every situation is different, you can:
- continue with the plan and receive the proceeds when it matures
- stop investing into the plan and receive the proceeds when it matures (and perhaps invest the money elsewhere or pay down your mortgage)
- cash in/surrender the plan and invest/pay down
There are pros and cons to all these (such as the loss of life cover) so you really do need to do your research before you take any action.
The Financial Tips Bottom Line
If you do have an endowment plan, please don't make the mistake of buying your head in the sand and ignoring the facts. For example, if you're paying ?100 pm into a plan with 8 years to run, you'll be handing the insurance company ?9,600.
Find out what the best option is for YOU, and have the peace of mind that you've made the right decision.
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