Tax Exempt Savings Plans [TESPs]

planteria

is that confusing:question:

innovate

planteria wrote: »

is that confusing:question:

It might be to you, and your own posts certainly don't do much towards providing transparent and unambiguous information. The posts questioning your motivation for starting this thread, incl. the now deleted ones, make perfect sense to anyone who has done only a basic amount of research into what you are punting.

You still have never answered one question I have asked several times: what is the benefit of TESPs over and above S&S ISAs and/or SIPPs to those people who you would like to act on your recommendation and sign up to an umpteen year TESP [presumably using your referral link]?

Please don't say it is the potential windfall from a possible conversion - - as per your own report, you never made much from "bagging", so presumably you wouldn't suggest anyone else would?

planteria

innovate wrote: »

It might be to you

it's not.

people only know that i am an Introducer for KUFS because you told them, thickett :T

twist it all you like, but 'i never made as much as £7k from bagging'. so what?

planteria

patientperson wrote: »

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.

patientperson is right innovate. sorry if you struggle with it.

planteria

patientperson wrote: »

From my perspective the investment in the small TESP is a vehicle to obtain membership, pure and simple.

spoken like a true 'bagger' haha....you might be interested in this thread: https://forums.moneysavingexpert.com/discussion/737775

MCGONIS

Hello.

I have not read through all the posts of this thread, its the title that caught my eye.

I have had one for these policies. Below is a copy of what I posted on another thread in April 2011 which was about a Friendly Society plan....

"Hello. I took out one of these 10 year plans with the UK Civil Service Friendly Society, which merged with Homeowners Friendly which became Engage Mutual. I have been paying £20 a month for 8 years. In this time I have accrued £102.02 in bonus. The previous two years there has been no bonus declared. It has two more years to go. By the time it matures I will have paid £2400. So in these two years I would need to get about £300 in bonus just to break even. I doubt that I will. Even with the terminal bonus that may be added.

I would have been better putting £20 a month in a bank savings account. Least then I would get back what I had paid in! I don't see the point in these savings plans. Steer clear is my advice. Hope that helps someone considering them in the future. "

Now I can tell you that last year I received a cheque for £2512.

I was glad I did gain some money - but £112 over the ten years is pretty different to the examples they still give in their advertisements.

I would still NEVER open another one of these and cannot see why they still are on the market.

Not sure if that helps someone. Bye for now.

planteria

sorry that hasn't worked out well for you mcgonis. glad you got your original investment, plus a little bit more, by the end of the your investment period. i know Engage Mutual have been active in CTF/JISA investments, as I've noticed friends have them. not sure what sort of returns they are producing nowadays.

jimjames

Planteria, despite lots of opportunities and requests you have yet to explain why anyone in your position would take out a TESP.

If you are a basic rate taxpayer that has maxed their S&S ISA then investing monthly into an investment trust share plan or unit trust would not have any additional tax to pay and at £25 per month you'd be below the CGT limits.

You would also be able to start and stop when you want and increase payments should you wish as well as having far lower charges.

So what exactly does a TESP offer unless it is a scheme only designed to trap those unaware that its tax status is irrelevant to the majority of people who also don't realise the inflexibility until it is too late.

A bit like the post from Mcgonnis above.

planteria

i don't agree that i necessarily Need To explain it. but, i was aware of Friendly Societies, had looked at TESPs in the past, was looking to create some more DDs to qualify for bonuses and incentives from banks, and decided to use TESPs.

as per what patientperson says, it is up to the individual. if the performance of the With Profits funds is poor, then my decision will be a poor one. if the With Profits funds do well, i will be happy, regardless of the wrapper....but i take the comments re. the wrapper status on board. i am open to discuss it, but i'm not here to justify the existence of Friendly Societies or TESPs, people can invest in them, or they can invest somewhere else, or both, or neither....it is up to them.

innovate

planteria, I think I might have asked this question before but I don't seem to be able to locate an answer from you: what are the benefits if someone puts their money into a TESP, instead of putting it into an S&S ISA or into a SIPP?