International Tep Investments
Recent coverage in the UK press of the ‘mis-selling’
of endowment policies, accompanied by reductions in projected levels
of yield, has resulted in life companies having to advise policyholders
of possible shortfalls in endowment policies taken out to repay
home loans. This has prompted many with-profit endowment mortgage
holders to cash them in now rather than hold onto them, which in
turn has led to an increased supply of endowment policies coming
onto the market.
There is, therefore, a greater range and choice of policies than
ever before. TEPs currently represent extremely good value for money
with exceptional variety in terms of price, life office and year
of maturity.
International Tep Investments & Brian Goldstein
Brian Goldstein, managing director of Policy Portfolio, explains:
“During the extended bull market, investments directly linked
to stock market performance often produced better returns than those
available from endowments. However, equity markets are by definition
unpredictable and are often extremely volatile. There are, therefore,
advantages in smoothing out the effects of volatility through the
judicious use of with-profits endowment policies as part of an overall
portfolio of investments.
International Tep Investments - Maturity Date
“Since the maturity date of a TEP is known in advance, they
are an ideal vehicle for building capital to meet financial needs
at a future fixed point in time. They are frequently used to service
requirements such as retirement, inheritance tax planning, 18th
or 21st birthdays, school or university fees, or just as general
savings. Investors can choose a policy that matures at the required
time and, in the case of retirement, school and higher education
funding, can select one or more that mature in subsequent years.
TEPs are,
therefore, particularly suitable for supplementing a personal pension
and are equally suited to forming part of the investment mix in
a small self-administered scheme or a self-invested personal pension
scheme.”
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