P542 Teletext 541 Oct30 21:03:18       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Endowment policies have had a bad press with stories of homeowners saddled with badly-performing funds which fail to pay off the building society loan. But that is just one side of the endowment story. There is a rapidly growing market for buying second-hand policies - Traded Endowment Policies. Seen as a relatively safe investment, Teletext has been looking at the pros and cons of buying these policies. ——————————————————————————————————1 01— by Nick Hudson LOANS/MORTGAGES, SEE PAGE 618 Advice Property Savings City
P542 Teletext 543 Oct30 21:03:39       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Beale Dobie & Co, a leading market maker in traded endowment policies, cites a number of reasons why endowments make good investments: Regular fixed monthly premiums Ability to plan ahead with lump sums Pension booster and growing market for investment trust endowments Purchaser knows exact maturity date. ——————————————————————————————————2/11— Beale Dobie 01621 851133 ANY PURPOSE LOANS - SEE PAGE 627 OR CALL 'JLMSLOW FREE ON 0800 269315 Advice Property Savings City
P542 Teletext 545 Oct30 21:00:01       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Buying a second-hand endowment policy generally requires a capital outlay and certainty that monthly premiums can be met for the length of the policy. Graham Bates, of independent financial adviser Bates Investment Services, believes they are a relatively safe investment for the longer term. "They are a good way to plan for school fees or funding your daughter's wedding day," he says. ——————————————————————————————————3/11— Check out the top borrowing deals 547 SWITCH TO p628 AND YOU COULD SAVE ON YOUR MORTGAGE Advice Property Savings City
P542 Teletext 543 Oct30 21:00:23       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Investors can buy endowment policies with anything from five to 20 years to run to maturity. Policies with shorter times to run are more expensive. Graham Bates says part of the beauty of buying such a policy now from a mutual life assurer is the possibility of bagging a windfall if the firm is taken over or opts for a stock market float. Buyers can put policies in trust or in joint n—lds to limit capital gains tax. ——————————————————————————————————4/11— Latest savings rates 546 LOANS/MORTGAGES, SEE PAGE 618 Advice Property Savings City
P542 Teletext 541 Oct30 21:04:45       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? But investors need to be sure why they are buying a policy and be aware of the pitfalls, says IFA Graham Bates of Bates Investment Services, including: Inflexibility: purchasers must not miss paying a monthly premium Exact maturity value is not known. Terminal bonuses make up a big part of funds but vary with share values Could lose out if forced to sell. ——————————————————————————————————5 08— Money news 541 Holiday £ 548 INTERESTING SAVINGS p546 Advice Property Savings City
P542 Teletext 543 Oct30 21:05:07       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Doing your homework is of the utmost importance when buying a second-hand policy, believes IFA Graham Bates. "You must make sure you are buying a policy from a good life insurance company with a track record in paying appropriate terminal bonuses," he says. "It's no good plumping for a policy from a tin pot organisation with no track record in bonuses to its name." ——————————————————————————————————6/11— Latest savings rates 546 LOANS/MORTGAGES, SEE PAGE 618 Advice Property Savings City
P542 Teletext 545 Oct30 21:05:29       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? A spokesman for the National Association Of Pension Funds warns of the dangers of opting for an endowment policy instead of a pension plan. "There are a number of tax advantages with a pension which you don't get with a traded endowment policy which is subject to capital gains tax." TEP market maker Beale Dobie also advises investors to buy a policy to boost pensions and not as a substitute. ——————————————————————————————————7/11— Check out the top borrowing deals 547 WIN A CAMCORDER p465 Advice Property Savings City
P542 Teletext 545 Oct30 21:05:51       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Surrendering an endownment policy to the life company instead of selling it on the open market means an average loss of £1,478 to policyholders, Beale Dobie calculates. It also adds that: 30% of endowments are cancelled in the first three years 40% are surrendered 30% reach maturity — the average sold policy has a £10,000 surrender value. ——————————————————————————————————8/11— Property plus 544 Mortgage rates 545 POPULAR SHARE CHECK p519 Advice Property Savings City
P542 Teletext 545 Oct30 21:02:13       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Most endowments are taken out to repay a mortgage - no surprise therefore that most are sold because of a change in mortgage circumstances. People sell for a number of other reasons: Divorce To clear debts To fund a business start-up/expansion Redundancy ——————————————————————————————————9/11— Latest savings rates 546 INTERESTING SAVINGS p546 Advice Property Savings City
P542 Teletext 545 Oct30 21:02:35       ——————————————————————————    ENDOWMENTS - A NICE LITTLE EARNER? Other endowment policy traders include: AAP 0800 000896 Foster & Cranfield 0171 608 1941 Neville James 01243 520000 Policy Portfolio 0181 343 4567 Policy Plus 01225 466466 Shepherds 01277 218888 ——————————————————————————————————10/11 Tourist rates 548 Premium Bonds 549 finance@teletext.co.uk Advice Property Savings City
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