Tax Exempt Savings Plans [TESPs]

planteria

patientperson wrote: »

Not to my knowledge.

nor mine. again, it will suit some people, and not others, but a return on money not-yet-invested as compensation for committing to invest over period of years seems a good idea to me. on one hand it is frustrating that the £25/m cap is so low, but on the other the relatively low cap means that it isn't going to be a huge amount for people to commit too either.

planteria

innovate wrote: »

Thank you for confirming that you are an introducer for a niche product(s) whose benefit to anybody over and above mainstream products you have been completely unable to explain. Selling in this manner is one of the most despicable things I can think of anyone would do because you would clearly quite happily pocket other people's money (if only indirectly) for an inferior, and mostly inappropriate product. As has been pointed out, no financial professional would ever recommend any TESPs.

i wasn't plugging, of course. i started this thread to discuss TESPs without any plugs included, as has been made clear. odd that you needed to change the tone, but there you go.

i'm not a financial professional, i am a private investor who does his own research. but it is not true to say "no financial professional would ever recommend and TESPs", as some are doing so. but yes, niche products, relatively small beer, but quite neat little investments that can be committed to for the long-term on account of the low value payments required, in my opinion.

and back to pp, are Regular Savings Plans (outside TESPs) paying out bonuses on money not-yet-invested, or just TESPs? i'm happy with my little TESP selection, but i might look into performance of some of the friendly societies and go larger on an RSP if there is scope to get a return this way.

jimjames

planteria wrote: »

are there other investments available where we can earn bonuses on money not yet invested? do you have non-TESP investments with Friendly Societies that pay out in this way, pp?

Can you please provide some calculations that show the effect of this? Ideally for one that has just matured that can be compared to the equivalent fund investment.

It's all well to say you get a bonus but if that is completely outweighed by the poor performance or high charges it is irrelevant. What is important is the Total Return over the term - how it is comprised doesn't matter and moving numbers between elements just seems like a way to confuse investors.

Pay 2% extra in charges to get 1% extra bonus doesn't sound like MoneySaving to me

planteria

i don't have any jim..but, for example, 4% uplift on a policy's sum assured. not massive growth. but if, for example, a policy is over 20 years, then earning 4% in the first year for money that will not be invested until the 20th year is an interesting idea, i think.

im not pushing this idea. i just think it is interesting. and am open to someone explaining why it is not a good concept, or that it isn't the way i read it, as it 'seems too good to be true' in a way.

bottom line, like you say, is how the fund performs. at £25/m total, which i have covered by bank bonuses, i am not too worried as long as there is some growth. if i were to commit to invest larger, regular sums into a Friendly Society, ie. outside of a TESP, i would want to be confident that my money was going to be well managed, regardless of how the bonuses were calculated.

patientperson

planteria wrote: »

and back to pp, are Regular Savings Plans (outside TESPs) paying out bonuses on money not-yet-invested, or just TESPs? i'm happy with my little TESP selection, but i might look into performance of some of the friendly societies and go larger on an RSP if there is scope to get a return this way.

Not to my knowledge.

patientperson

planteria wrote: »

Druids are a different animal for sure..
25% guaranteed uplift at the end of the policy? :lovethoug

I have looked again the Druids Sheffield website for this 25% bonus. In the interest of clarity I have copied their download available for their Table 20.

The product is still available but it is certainly not a gold rush. When I started my TESP plans over 4 years ago I selected the Table 20. However the amount that one can save in Table 20 is very low. One could not invest all £25 pm in this Table. There is a maximum amount of £4 per 4 weeks (hence maximum £52 pa / £4.33 pm)

http://www.druidsfriendly.com/downloads/T20.pdf

For anybody interested please look at pages 2 and 3.

By multiplication one can see that the return for £52 pa over 10 years (Total investment £520) is the assured amount £650 + 25% bonus of £162.50 giving a grand total of £812.50.

Regrdless of charges .. to my way of thinking this is a very good return.

Planteria .. suggest you look at your certificate to see which Table number you are invested in.

planteria

patientperson wrote: »

Not to my knowledge.

i havent really checked out RSPs carefully, pp, but i was under the impression that TESPs were effectively RSPs in a tax-free wrapper.

planteria

patientperson wrote: »

I have looked again the Druids Sheffield website for this 25% bonus. In the interest of clarity I have copied their download available for their Table 20....

i have 4 children leaping all over me at the moment pp, so concentrating isn't as easy as i'd like, but i don't find this to be very clear. just a 25%ROI over 10 years would be nothing special, but if guaranteed has a certain appeal..but what i thought you had meant was that the fund would have annual bonuses, as usual, with a nailed-on 25% in year 10. that would be interesting..

patientperson

planteria wrote: »

i havent really checked out RSPs carefully, pp, but i was under the impression that TESPs were effectively RSPs in a tax-free wrapper.

Agreed planteria .. wthin the limits £25 pm / £270 pa (Why not £300 pa is a mystery).

patientperson

planteria wrote: »

i have 4 children leaping all over me at the moment pp, so concentrating isn't as easy as i'd like, but i don't find this to be very clear. just a 25%ROI over 10 years would be nothing special, but if guaranteed has a certain appeal..but what i thought you had meant was that the fund would have annual bonuses, as usual, with a nailed-on 25% in year 10. that would be interesting..

Yes, kids can make it difficult to concentrate the mind. I suggest you reread my post #243 on 26-10-2013 and if you have the inclination also look at Table 20 link provided.

The main point being an assured sum of £650 + £162.50 bonus.

By multiplication one can see that the return for £52 pa over 10 years (Total investment £520) is the assured amount £650 + 25% bonus of £162.50 giving a grand total of £812.50.