Tax Exempt Savings Plans [TESPs]

Porcupine

I do recall a mention here of a chap who read an article on the BBC website about how a particular friendly society was in decline but noted that it owned an HQ in London worth millions of pounds. Joined up, and then a few months later they decided to close the society and distribute the assets between the (few) members.

However, that's a high risk game. Because you're locked in at £25/month and, if they don't convert, you're committed to paying this for years. And, if they do close down, you don't know what the assests/policyholder split is going to be. So probably to be taken as a punt similar to other high risk investments.

patientperson

Porcupine wrote: »

I do recall a mention here of a chap who read an article on the BBC website about how 'Sons of Temperance FS' was in decline but noted that it owned an HQ in London worth millions of pounds. Joined up, and then a few months later they decided to close the society and distribute the assets between the (few) members.

However, that's a high risk game. Because you're locked in at £25/month and, if they don't convert, you're committed to paying this for years. And, if they do close down, you don't know what the assests/policyholder split is going to be. So probably to be taken as a punt similar to other high risk investments.

Yes that story is quite true but regret that as a new member to MSE I am not permitted to include your link in the quote hence the 'Sons of Temerance FS' appears instead. The approx £700 windfall (enhancment of policies) from that particular FS was most welcome. Although this thread is about TESP (£25 pm / £270pa) I can advise that other products are marketed by some FS and in my case I was a member of that particular FS through other products.

innovate

Porcupine wrote: »

.....a particular friendly society was in decline

That article goes back to 2007....which was very much at the back end of the carpetbagging period already

jimjames

Porcupine wrote: »

However, that's a high risk game. Because you're locked in at £25/month and, if they don't convert, you're committed to paying this for years. And, if they do close down, you don't know what the assests/policyholder split is going to be. So probably to be taken as a punt similar to other high risk investments.

That's not strictly true. Although the plans are setup for a fixed period you can cancel and stop paying in before then. However you are likely to get back (a lot) less than you paid in.

I do completely agree it is a high risk game - although the risk is that you have a poor return and they never convert - rather than any risk of actually losing money as you would in many other high risk investments.

planteria

innovate wrote: »

As an aside, please stop trying to PM me, planteria. You have tried 7 times now.

Twice, but don't let the facts get in the way of your story. I was just offering to buy you a pint:beer:

planteria

thanks dunston and jem...re. the tax implications.

planteria

patientperson wrote: »

After joining most Building Societies (City of Derry still eludes me) I turned my attention in 2000 to Friendly Societies and some Assurance companies which are of course mutual. I can fully understand that these societies are not for everyone and whether they will produce any windfall is speculative. As a member of most of the remaining friendly societies of any substance I can comment on the 2 societies that planteria has connections with. Each and every member of both societies can introduce a new member where it is upto the 'new' member to decide whether any of the available products are suitable for them. It is not upto any existing member to do any selling whatsoever. If the introduced person decides to proceed with a product both parties will receive £25 worth of vouchers after a set period. From the above you can see that every member is a possible introducer. From my perspective the investment in the small TESP is a vehicle to obtain membership, pure and simple. The amount involved is not substantial and in my view it is upto each individual to decide on their own portfolio and not be subjected to criticism for their choice.

a fair message.

a couple of points though...

Sheffield Mutual give referral vouchers, whereas Kingston Unity actually pay a small percentage of contributions, from what i have been told, so i dont think either jem or pp are right in that respect. it may be that the system there has recently changed.

secondly, though i agree that there should not be the nature of criticism that there sometimes seems to be here, i also think that if someone reveals information re. their investments then they are opening themselves up for their decisions to be criticised. constructive criticism of a portfolio could be extremely beneficial to a criticisee, of course;) there have been a series of comments from others about what my 'strategy' is....i have nothing to hide and will give a summary here sometime soon so that folks can make some informed criticism. if that helps me, or any other reader, great.

planteria

jimjames wrote: »

.......although the risk is that you have a poor return and they never convert - rather than any risk of actually losing money as you would in many other high risk investments.

agreed. just putting aside a regular amount can be useful. Regular Savers have been useful to me over the years, even if the rates paid haven't been fantastic. £5/month is hardly missed and currently is covered by the £5s that arrive in the same accounts on the same day, courtesy of Halifax Rewards. without those little DDs, i wouldn't qualify for the 'Rewards' that (largely) cover them.

planteria

patientperson wrote: »

The approx £700 windfall (enhancment of policies) from that particular FS was most welcome.

were all members given the same windfall value from Sons of Temperance pp? i am sure i was told c£1300:think:

patientperson

planteria wrote: »

were all members given the same windfall value from Sons of Temperance pp? i am sure i was told c£1300:think:

Some members may have received more .. it was a calculation of policies held + contributions made. I remain satisfied.