Tax Exempt Savings Plans [TESPs]

planteria

in theory, a sum assured that starts out below the amount to be invested could grow substantially, of course. but i do like the idea of the whole investment being Sum Assured right from the start.

planteria

i have a meeting with HIFS next week pp.
also, i want to find out more about DSFS.

planteria

pp...yes, of my TESPs, Kingston Unity and Sheffield Mutual had Sum Assureds (or is that Sums Assured) of above the value to be contributed, right from the outset. Druids Sheffield and Healthy Investment were below the value to be contributed. it will be interesting to see which of them performs best over the term.

i started this thread to put my TESPs in some context, and would be interested in your thoughts:

https://forums.moneysavingexpert.com/discussion/4698817

on the mutual side of things, along with being a member of most building societies, i have the following:

• Royal London Mini Stocks & Shares (Ins.) ISA
• NFU Mutual SHP
• Teachers Assurance 'Managed' SHP
• Wesleyan 'Pensions Managed Fund' SHP
• LV Mutual Investment Bond
• Druids Sheffield TESP
• Healthy Investment TESP
• Kingston Unity TESP
• Sheffield Mutual TESP

i suspect there will be further consolidation with Building Societies, Friendly Societies and other mutuals.

patientperson

planteria wrote: »

pp...yes, of my TESPs, Kingston Unity and Sheffield Mutual had Sum Assureds (or is that Sums Assured) of above the value to be contributed, right from the outset. Druids Sheffield and Healthy Investment were below the value to be contributed. it will be interesting to see which of them performs best over the term.

i started this thread to put my TESPs in some context, and would be interested in your thoughts:

https://forums.moneysavingexpert.com/discussion/4698817

on the mutual side of things, along with being a member of most building societies, i have the following:

• Royal London Mini Stocks & Shares (Ins.) ISA
• NFU Mutual SHP
• Teachers Assurance 'Managed' SHP
• Wesleyan 'Pensions Managed Fund' SHP
• LV Mutual Investment Bond
• Druids Sheffield TESP
• Healthy Investment TESP
• Kingston Unity TESP
• Sheffield Mutual TESP

i suspect there will be further consolidation with Building Societies, Friendly Societies and other mutuals.

The main investment portfolio looks impressive but my own share holding has been reduced in recent times. With the FTSE again about 6600 it is at the top end so investment advice on shares is better left to someone who has more knowledge than myself.

Back to the mutuals I am in safer territory for comment.

On TESP in particular I must add a caution regarding projected maturity values. Just as Building Societies have various Issues of the same account to effect a reduction in interest rates then the Friendly Societies use Tables in the same way which can be upward or downward. This can mean that a TESP that I may have taken out over 4 to 5 years ago may have a better projected gain than the same TESP offered now but using a different Table. Hope this is clear .. certainly no chairs involved.

Agree with all your other mutual providers in respect of membership. The SHP is under the spotlight lately with dismal annuity rates on offer but provided your combined pot is less than £18,300 (I think that is the figure) then you can take it all as a single payment without annuity purchase. Perhaps you could look at MGM assurance, Reliance Mutual if they were to offer any suitable products.

planteria

patientperson wrote: »

On TESP in particular I must add a caution regarding projected maturity values. Just as Building Societies have various Issues of the same account to effect a reduction in interest rates then the Friendly Societies use Tables in the same way which can be upward or downward. This can mean that a TESP that I may have taken out over 4 to 5 years ago may have a better projected gain than the same TESP offered now but using a different Table. Hope this is clear .. certainly no chairs involved..

no need for caution imo pp. on the basis of bonuses being paid on sums assured, i kind of wish i'd committed to 25 year terms;)...when my current TESPs pay out i will consider my options, look to retain an investment with Kingston Unity and Sheffield Mutual (as it stands, i would just roll TESP funds into bonds), for sure, and probably just do 1 new £25/m TESP for 10+ years.

planteria

patientperson wrote: »

Agree with all your other mutual providers in respect of membership. The SHP is under the spotlight lately with dismal annuity rates on offer but provided your combined pot is less than £18,300 (I think that is the figure) then you can take it all as a single payment without annuity purchase. Perhaps you could look at MGM assurance, Reliance Mutual if they were to offer any suitable products.

I have a few thousand in the Wesleyan. my NFU and Teachers SHPs are very small. i will add some to these over time if i can do so without paying a fee. otherwise, i'll probably just leave them alone.

patientperson

planteria wrote: »

I have a few thousand in the Wesleyan. my NFU and Teachers SHPs are very small. i will add some to these over time if i can do so without paying a fee. otherwise, i'll probably just leave them alone.

Yes, and why not .. they are still in positive territory and confer membership I trust. There was an issue some time ago with Teacher's concerning mutual membership but alas being unhelpful I cannot at present recall exactly what the issue was. Teachers' no longer promote SHP.

patientperson

planteria wrote: »

no need for caution imo pp. on the basis of bonuses being paid on sums assured, i kind of wish i'd committed to 25 year terms;)...when my current TESPs pay out i will consider my options, look to retain an investment with Kingston Unity and Sheffield Mutual (as it stands, i would just roll TESP funds into bonds), for sure, and probably just do 1 new £25/m TESP for 10+ years.

25 years is a long time but all comes back to your age when policy is taken out. Not sure at the end of year 10 whether an option is given to roll it on for another period but more likely you would need to start a new policy as your age at that point will produce a different amount of life insurance.

planteria

you are correct, pp, they don't. membership of Teachers is slightly complicated...i have been told that i am not a 'full member', but I have been invited to vote at the AGM.

i am a member of NFU Mutual and Wesleyan via my SHPs.

meanwhile, my TESP contributions to Kingston, Sheffield and The Druids continue to be covered by, and generate, Halifax Rewards :kisses3:

planteria

patientperson wrote: »

25 years is a long time but all comes back to your age when policy is taken out. Not sure at the end of year 10 whether an option is given to roll it on for another period but more likely you would need to start a new policy as your age at that point will produce a different amount of life insurance.

didn't realise you had sent a further reply pp, sorry. yes, i will check at the time, i have 8+ years;), but i believe that a TESP matures and cannot be rolled over. at this stage I would expect that i would want to continue to be a member.

Kingston Unity and Sheffield Mutual have Investment Bonds which currently have a £1,000 minimum. i will only be investing £600 over the 10 years, so we'll see how they do . Healthy Investment's Investment Bond has a minimum of £500, and i will be investing £1200 over the 10 years, so clearly would be able to roll that TESP into their Bond, assuming terms are still the same. I could top up KUFS and/or SMFS funds with proceeds of my HI TESP:) Druids do not currently offer an Investment Bond, so again, i could reallocate TESP funds from there.