Tax Exempt Savings Plans [TESPs]

planteria

25 years is a long time to commit to making a regular payment, even if very small. but 25 years is also a long time for bonuses to compound, and importantly, for the compounding to be on money that you haven't even got to part with for upto 25 years.:dance:

planteria

& i will be late 40s when my TESPs mature pp.:eek:

patientperson

planteria wrote: »

& i will be late 40s when my TESPs mature pp.:eek:

Well you are still young enough to take (2 times a further 10 years) at the end of your 40s provided you are happy with the maturing balances. It will be interesting to see which Friendly Societies in general are still in business when your existing policies mature.

jimjames

planteria wrote: »

25 years is a long time to commit to making a regular payment, even if very small.:

And that is exactly the reason why they seem to be so bad to me let alone all the other issues with charges and performance. Why tie into something for that length of time when other more flexible options are available.

planteria

the returns from KUFS and SMFS are fairly consistent jimjames, and i'm more than happy to commit to investing such convenient amounts on the basis that the sum assured is growing even though i haven't even invested the funds yet:T

and we shall see pp. i would have committed to longer, in hindsight, but i will consider all options in 8 years time.

patientperson

This is a Daily Telegraph (June 2013) perspective on Friendly Societies which throws up some interesting returns and even more important there is an IFA showing enthusiasm for TESPs.

There was an attempt by Friendly Societies to increase their existing TESP levels but that seems to have fallen on deaf ears at the Treasury.


http://www.telegraph.co.uk/finance/personalfinance/investing/10095587/Isa-allowance-used-up-Heres-another-way-to-save-tax-free.html

planteria

i'd like to see a TESP limit increase pp:A

the charges are not a problem for me, on the basis of continuing with the policy as planned at the outset. a sum assured above the amount to be invested over the time period agreed is a one-way bet, and earning bonuses on money not yet invested, in return for agreeing to stay the course, is a great deal imo.

on one hand i wish the sums involved could be higher. on the other, a long-term commitment is obviously much easier when the monthly payments are so small.

as far as i understand Druids Sheffield pay bonuses exactly as Kingston Unity and Sheffield Mutual do. i have seen that comment in the article queried, and corrected, previously.

dunstonh

patientperson wrote: »

This is a Daily Telegraph (June 2013) perspective on Friendly Societies which throws up some interesting returns and even more important there is an IFA showing enthusiasm for TESPs.

There was an attempt by Friendly Societies to increase their existing TESP levels but that seems to have fallen on deaf ears at the Treasury.


http://www.telegraph.co.uk/finance/personalfinance/investing/10095587/Isa-allowance-used-up-Heres-another-way-to-save-tax-free.html

I would like him to justify the heavy costs vs a fund in an S&S ISA. Or why the cost of life assurance is worthwhile when the amount it would pay is so low or why the use of a fund that is generally regarded as obsolete is suitable.

You will always get stragglers who continue to recommend things past their sell by date.

planteria

the title of the piece is Isa allowance used up? Here's another way to save tax-free though Dunston:)

the costs only matter if you cash in really early. as i said in my previous post "...a sum assured above the amount to be invested over the time period agreed is a one-way bet, and earning bonuses on money not yet invested, in return for agreeing to stay the course, is a great deal imo."

innovate

I'd like to see those who paid £11,520 into their ISA this year flocking to a place where they can relieve themselves of another £25 a month. It's unlikely to be a crowd, lol. They'd much more likely whack a few extra ngrand into their pension, or an unwrapped investment, and use their spare £25s on food and booze.

They didn't get to having more than the annual ISA limit available for investing by playing about with outdated £25/mth schemes.