UK Traded Endowment

[danielcheng]

Hi James

Mdm Ng is our dear Mr Ng's mother, guess where and who she bought it from?

cheers
Daniel

[Dennis Ng]

Hi Dennis,

Today Sunday Time Pg 32 of the Invest Section, the reporter introduce about the TEP. Are your company still the only one in Singapore that sell this product? Because the report never mention how and where they able to invest TEP product, so I think the public may start calling insurance company in Singapore for enquiry.

James Tai

Hi James,
yes, Sunday Times cannot advertise or promote my company, so they did not provide info on where to get the product. Yes, my company TEP Pte Limited is the ONLY company in Singapore offering UK Traded Endowment.

Yes, I guess the public will start calling insurance companies in Singapore today.

To find out more information on UK Traded Endowment on a no obligation basis, just need to email to info@TradedEndowment.com or call us at 6883 2235 or visit www.TradedEndowment.com

[hope]

Just to share my personal experience. That's what I did when I read newspaper long time ago and saw TEP, I started calling the insurance company and they have no idea. Until I read Dennis's book Mastering your personal Finance that's how I found my way to TEP and the "road" to financial freedom

[mort]

Hi Dennis,

I would like to know how "liquid" is TEP? If there is a need for funds, can we re-sell the TEP? If yes, will we likely to suffer a loss since we did not hold it till maturity?

I understand that when we buy over the TEP, we will be the legal owner but the insured will still be the previous owner as stated in the policy. My question is what will happen if the insured passed away before the TEP matures? Will the policy cease and the payout made to us? Am I right to say that in this case, the "maturity" date is brought forward but our returns will be lower?

Thanks.

[Dennis Ng]

Hi Dennis,

I would like to know how "liquid" is TEP? If there is a need for funds, can we re-sell the TEP? If yes, will we likely to suffer a loss since we did not hold it till maturity?

I understand that when we buy over the TEP, we will be the legal owner but the insured will still be the previous owner as stated in the policy. My question is what will happen if the insured passed away before the TEP matures? Will the policy cease and the payout made to us? Am I right to say that in this case, the "maturity" date is brought forward but our returns will be lower?

Thanks.

Hi mort,
if you need money before maturity, you can likewise offer to re-sell your TEP (Traded Endowment Policy) in the Open Market....you can try to find someone to take over the policy or we (my company) can help you to do so.

The entire process of purchase of TEP takes time, similar to Property transaction, which can be 2 to 3 months, so you are likely to only get your money 2 to 3 months. You may or may not suffer a loss depending on the Cash Value of the policy and whether the company increase/reduce their bonus rates. We have investors who made money and investors who lost money when they sell TEP before maturity date.

If the insured passes away, the money will be paid to you as the New Owner, a simple as that....the money you get back when this happens may range between + 10% or about - 10% compared to what you would get back on Maturity Date.

There are alot of details pertaining to TEP (UK Traded Endowment Policy). If anyone wants to find out more about TEP on a no-obligation basis, just email your name and mobile number to info@tradedendowment.com and I'll get one of my staff to assist you.

[mort]

Thanks Dennis.

[Ms Tan]

Thank you Dennis for introducing UK Traded Endowment Policy. This has given us an opportunity to invest in Pounds with good ROI and 90% capital guarrantee.

I have decided to go for 2 TEPs with Upsides 7x more than downsides. However, I couldn't decide on the payment for the rest of the annual premiums to maturity for 8+ years term policies.

Is it better to pay the solicitor upfront for total 8 years annual premium to administer the yearly premium to the life company (without 3% discount and forgo opportunity cost on this lump sum) OR do my own remittance every year and subject to currency fluctuation?

Any prompt advice or sharing of your experience is much appreciated.

Best Regards,
Eileen

[Dennis Ng]

Thank you Dennis for introducing UK Traded Endowment Policy. This has given us an opportunity to invest in Pounds with good ROI and 90% capital guarrantee.

I have decided to go for 2 TEPs with Upsides 7x more than downsides. However, I couldn't decide on the payment for the rest of the annual premiums to maturity for 8+ years term policies.

Is it better to pay the solicitor upfront for total 8 years annual premium to administer the yearly premium to the life company (without 3% discount and forgo opportunity cost on this lump sum) OR do my own remittance every year and subject to currency fluctuation?

Any prompt advice or sharing of your experience is much appreciated.

Best Regards,
Eileen

it really depends on individual's preference. Many of our clients choose to lock in the current exchange rate and pay the premiums to solicitor upfront, for the solicitor to pay to insurer every year.

[Ms Tan]

it really depends on individual's preference. Many of our clients choose to lock in the current exchange rate and pay the premiums to solicitor upfront, for the solicitor to pay to insurer every year.

Thank you, Dennis! I'll draw out the money from my prior investment link policy (stop investing but continue the assurance portion), to cover TEP upfront premiums.

In this manner, I can keep my opportunity fund intact and lock in current exchange rate

Best regards,
Eileen

[Dennis Ng]

Hi Dennis,

Today Sunday Time Pg 32 of the Invest Section, the reporter introduce about the TEP. Are your company still the only one in Singapore that sell this product? Because the report never mention how and where they able to invest TEP product, so I think the public may start calling insurance company in Singapore for enquiry.

James Tai

Hi JamesTai,
TEP Pte Limited currently remains the only company that offers UK Traded Endowment in Singapore.

If people call up Singapore insurance companies, they would probably know next to nothing about UK Endowment. Most insurance agents are not even aware of the existence of UK Endowment in Singapore.

[wintrade]

Hi Dennis,

Today Sunday Time Pg 32 of the Invest Section, the reporter introduce about the TEP. Are your company still the only one in Singapore that sell this product? Because the report never mention how and where they able to invest TEP product, so I think the public may start calling insurance company in Singapore for enquiry.

James Tai

Hi JamesTai,
TEP Pte Limited currently remains the only company that offers UK Traded Endowment in Singapore.

If people call up Singapore insurance companies, they would probably know next to nothing about UK Endowment. Most insurance agents are not even aware of the existence of UK Endowment in Singapore.

Dennis,

any relation or implication of this news on TEP?

FSA bans Traded Life Policy Investments for retail investors
http://www.reuters.com/article/2011/11/ ... RS20111128

FSA warns against 'toxic' traded life policy investments
http://www.fsa.gov.uk/pages/Library/Com ... /102.shtml

[Dennis Ng]

Hi Dennis,

Today Sunday Time Pg 32 of the Invest Section, the reporter introduce about the TEP. Are your company still the only one in Singapore that sell this product? Because the report never mention how and where they able to invest TEP product, so I think the public may start calling insurance company in Singapore for enquiry.

James Tai

Hi JamesTai,
TEP Pte Limited currently remains the only company that offers UK Traded Endowment in Singapore.

If people call up Singapore insurance companies, they would probably know next to nothing about UK Endowment. Most insurance agents are not even aware of the existence of UK Endowment in Singapore.

Dennis,

any relation or implication of this news on TEP?

FSA bans Traded Life Policy Investments for retail investors
http://www.reuters.com/article/2011/11/ ... RS20111128

FSA warns against 'toxic' traded life policy investments
http://www.fsa.gov.uk/pages/Library/Com ... /102.shtml

Hi wintrade,
totally unrelated.

Traded Life is Traded Life Insurance polices, which has lots of risk.

Traded Endowment is Traded Endowment Policies, and is given 90% Capital Guarantee under UK Financial Services Compensation Scheme.

You didn't even check the name. haha.

[Dennis Ng]

Traded Life Policies are traded Life Insurance, which are from U.S., not UK. There are many scams on Traded Life Policies, and one can easily find this out by searching Traded Life Policies scam in the internet.

It has Nothing to do with UK Traded Endowment at all.

UK Traded Endowment are Endowment policies sold by UK Insurers (from UK) with Fixed Maturity dates and is regulated by UK Financial Services Authority and enjoy 90% Capital Guarantee protection of its cash value under the UK Financial Services Compensation Scheme.

It really pays to have financial knowledge so that one would NOT confuse 2 totally Unrelated Products.

Cheers!

Dennis Ng

Mon Nov 28, 2011 11:46am EST


By Myles Neligan and Huw Jones

LONDON Nov 28 (Reuters) - Britain's finance watchdog is to ban retail sales of Traded Life Policy Investments (TLPIs), a form of bet on the lifespan of U.S. policyholders known as "death bonds," because they are too complex and risky for private investors.

"TLPIs are toxic products which pose significant risks for retail investors," Margaret Cole, managing director of Britain's Financial Services Authority, said in a statement on Monday.

"The failure of these products in the past has led to significant consumer detriment. Ultimately we aim to ban TLPIs from being marketed to UK retail investors."

Death bonds are offered by specialist investment funds that build up portfolios of second-hand U.S. life insurance policies and claim payouts when the original owners die, taking advantage of U.S. laws that allow policyholders to sell life contracts early.

Returns fall short of projections if the original policyholders live longer than expected.

Death bonds were at the centre of an investment scandal in Britain three years ago when finance firm Keydata Investment Services, which sold the instruments to about 30,000 retail investors, was fast-tracked into administration by the FSA amid concerns over how it marketed its products.

The FSA's warning on Monday is the first of its kind as it implements a new, more pro-active policy of intervening in financial products.

The aim, the FSA's Cole has said, is to head off another of the mis-selling scandals that have cost banks some 15 billion pounds ($23.2 billion) in compensation over the past two decades.

Cole told Reuters in August she would issue product warnings if she feels investors are at risk.

An FSA spokeswoman said the authority will consult on new rules to ban the marketing of death bonds to retail investors.

The authority is also holding talks with the European Securities and Markets Authority (ESMA) about a ban on the sale of the products to retail customers, the spokeswoman said.

Bruno Geiringer, insurance partner at law firm Pinsent Masons, said the FSA's move shows it is ready to intervene and regulate at product level.

The FSA move chimes with a far tougher approach to consumer protection anticipated in the European Union, with the bloc's financial services chief Michel Barnier due to propose a slew of measures to protect consumers better in structured products, complex mutual funds and insurance products, partly to apply lessons from the financial crisis.

[GCONG]

Since the investment and payout is in British pound, would like to seek some advise on following.
- how do we assess the currency exchange risk ?
- is the long term prospect for pound stable (at least) ?

Thanks for advise.

nobody has crystal ball and can predict exchange rates in 5 years' time.

As what I learned from Jim Rogers, is to have a historical perspective. After doing some homework, I realise that currently sterling pounds is trading at lowest level against S$ in the last 20 to 30 years.

There'll be Olympic in London in year 2012, thus, the next few years for UK should be better, not worse, and thus, in my opinion, the likelihood of sterling pounds going lower is very low, and of it going higher is higher.

Personally, recently I added my investment into UK Traded Endowment to take advantage of the current low exchange rate.

How to mitigate risks? I do so by putting my "eggs" (money) in different baskets. I invested about 11% of my money into UK Traded Endowment, so anything adverse happens, only affects a portion of my entire wealth (overall portfolio). The Rich invest on a Portfolio basis, this is something I learn from the Rich.


Even if sterling pounds drops, there is still a buffer, since the annual returns of 5% to 8% of UK Endowment can withstand some loss in exchange rate before you would really be losing money.

Assuming annual returns of 5%, and a 5 years UK Traded Endowment, means I have a buffer of 25% adverse movement of sterling pounds against S$ before I lose money. It is sufficient buffer for me. (Just my personal opinion).

Everyone heard the news recently. Britain is the only nation to reject a tighter fiscal alliance in the bloc aimed at ending Europe's worst financial crisis in generations, while 26 other EU members approved changes to the bloc treaty.
Deputy Prime Minister Nick Clegg warned 'there is a danger that the UK will be isolated and marginalised within the European Union'.
Will this translate to a danger on the strength of sterling pounds in future, and thus my investment in UK traded endowment?

[archonmage]

Since the investment and payout is in British pound, would like to seek some advise on following.
- how do we assess the currency exchange risk ?
- is the long term prospect for pound stable (at least) ?

Thanks for advise.

nobody has crystal ball and can predict exchange rates in 5 years' time.

As what I learned from Jim Rogers, is to have a historical perspective. After doing some homework, I realise that currently sterling pounds is trading at lowest level against S$ in the last 20 to 30 years.

There'll be Olympic in London in year 2012, thus, the next few years for UK should be better, not worse, and thus, in my opinion, the likelihood of sterling pounds going lower is very low, and of it going higher is higher.

Personally, recently I added my investment into UK Traded Endowment to take advantage of the current low exchange rate.

How to mitigate risks? I do so by putting my "eggs" (money) in different baskets. I invested about 11% of my money into UK Traded Endowment, so anything adverse happens, only affects a portion of my entire wealth (overall portfolio). The Rich invest on a Portfolio basis, this is something I learn from the Rich.


Even if sterling pounds drops, there is still a buffer, since the annual returns of 5% to 8% of UK Endowment can withstand some loss in exchange rate before you would really be losing money.

Assuming annual returns of 5%, and a 5 years UK Traded Endowment, means I have a buffer of 25% adverse movement of sterling pounds against S$ before I lose money. It is sufficient buffer for me. (Just my personal opinion).

Everyone heard the news recently. Britain is the only nation to reject a tighter fiscal alliance in the bloc aimed at ending Europe's worst financial crisis in generations, while 26 other EU members approved changes to the bloc treaty.
Deputy Prime Minister Nick Clegg warned 'there is a danger that the UK will be isolated and marginalised within the European Union'.
Will this translate to a danger on the strength of sterling pounds in future, and thus my investment in UK traded endowment?

Good luck to you if your UK traded endowment constitutes major portion in your portfolio. If it is 10-20%, at least, you won't be affected that much.