10 - 15 year savings plans

hom

Hi

I used to sell endowments (which had a life insurance element to them during the term of the plan) which lasted between 10 and 25 years.

I currently have a 10 yr Friendly Society plan for £25 pcm over 10 yrs. This matures in 2 years.

I wish to set up a few more, so that I have one mature every year, commencing in 10 years.

Do these "short term" savings/endowment policies exist anymore? And has anyone got any suggestions of where I could find them, or which are the best?

Thanks in advance.

patientperson

hom wrote: »

Hi

I used to sell endowments (which had a life insurance element to them during the term of the plan) which lasted between 10 and 25 years.

I currently have a 10 yr Friendly Society plan for £25 pcm over 10 yrs. This matures in 2 years.

I wish to set up a few more, so that I have one mature every year, commencing in 10 years.

Do these "short term" savings/endowment policies exist anymore? And has anyone got any suggestions of where I could find them, or which are the best?

Thanks in advance.

A starting point for you is a link to Association of Financial Mutuals. http://www.ownedbyyou.org/members

Here you may search for members that offer the product you talk about. However, what you suggest about having multiple plans maturing each year is not possible as one is only permitted to contribute £25 pm over all plans. It is possible to have more than one plan provided the £25 pm figure is not breached.

bigadaj

They are generally considered to be outdated and offering poor value now, similar to endowments. Might be better to look at stocks and shares isas, though many have a minimum monthly figure of £50, or potentially investment trusts.

jimjames

There are lots around but not really recommended on a money saving site. Any particular reason why you want to invest in something inflexible, high costs and with low returns when you have far more options in something like an ISA?

dunstonh

Do these "short term" savings/endowment policies exist anymore?

No. They went obsolete around 1990-1995. Stocks & shares ISAs have taken their place (as PEPs did previous to these).

There are a few stragglers still left in the DIY market but they an awful waste of money.

atush

try an investment trust savings plan.

ShootForTheMoon

I have several 10 year plans with a mutual society through work.
I started when I first joined the profession, and open one every six months. My partner also has a couple, which she pays by direct debit too.

I can't offer any advice on other companies/options, sorry! I believe the mutual society that I am with only offers products to Police officers, staff and their families. Worth enquiring though, they are very helpful!!

The plans are making around 6% based on the previous three years since I opened them - not bad considering it takes literally no effort on my part - the payments are taken straight from my salary.

I now have 8 plans over four years, which will eventually pay out a minimum of £32,000 starting paying out in 2020 - I hope at a time when I will have a relatively new mortgage and the money will be very useful. :beer:

BUT... I am now becoming more aware of my finances and more interested - I now want to be more hands-on, so I expect I won't be going down this route any more, as other posters have said, there are other options available which would require more attention from me - I feel this is something I would enjoy now!!

dunstonh

I can't offer any advice on other companies/options, sorry! I believe the mutual society that I am with only offers products to Police officers, staff and their families. Worth enquiring though, they are very helpful!!

The police mutual one is dire. its a disgrace they are still offering it. It has an initial charge, annual charge and exit charge. The reduction in yield due to charges over 10 years is 2.45% p.a. That is more than an advice product would cost. The reduction in yield due to charges over 5 years is actually something you dont see often.... if the fund returns 4.65% p.a. gross you get -3.7%. I havent seen minus figures in a reduction in yield illustration since the early 90s.

It is things like these which made these products obsolete from around the mid 90s and why they stopped being retailed via advice channels at that time. Nowadays you only tend to see them offered by Unions (who get the commission) and trade providers. Disgraceful really that bodies that the employees tend to trust are ripping them off so much.

atush

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jimjames

ShootForTheMoon wrote: »

I can't offer any advice on other companies/options, sorry! I believe the mutual society that I am with only offers products to Police officers, staff and their families. Worth enquiring though, they are very helpful!!

The plans are making around 6% based on the previous three years since I opened them - not bad considering it takes literally no effort on my part - the payments are taken straight from my salary.

I guess saving something is better than saving nothing but no effort vs a little effort and a far better return would seem a small price to pay.

I'm sure they are very helpful - anyone taking their plans is paying a lot for the privilege so they are bound to do all they can to facilitate that happening!

ShootForTheMoon

Thanks for the input guys... Yeah, I definitely think that moving forward I will look to handle my own investments.

At the time it worked for me as a way of "hiding the money from myself" whilst still young and naïve - so nothing to cry over, I can say for certain that I wouldn't have saved half the amount I now have off my own back - and it's created a habit - I won't beat myself up if it wasn't the best choice at 21 years old...

In the last six months though, my attitude has changed completely - now feeling both more confident and more interested in my personal finances, so hoping to trust my own discipline in future with a S&S ISA or regular saver... I've not decided which yet!!