P203 CEEFAX 2 203 Mon 20 Jan 03:15/02 Welcome to Ask Adam — and I'm sot 1/5 its taken a long time to get a reply. Our filing system is bursting with litters and its taking some time to work through them. So lit's get to BT Fry in Essex whose Quickie Question is what happens to a PEP after the death of the investor? Well, the PEP loses its tax-erie status and has to be encashjd. All payments, dividends etc, paid throughout the life of the PEP holdjt remain tax-free. Write to Adam with your questions Shaw's Shares 202 TV 600 Update TV/Radio Stocks Main MenuP203 CEEFAX 2 203 Mon 20 Jan 00:55/11 Mrs B from Bridewatet wants to kn 2/5 about endowment mortgages and their potential pitfalls. Its January and this is the time when those with Endowment mortgages are told about their annual bonuses. Thjsj things are vjty important as they can be a major part of your return. When you take an endowment mortgage, you pay interest in the normal way but you are not paying off any capital. You pay for a life assurance policy which, when it matures, pays out a lump sum which, hopefully, covers the sum your originally borrowed. Write to Adam with your questions Shaw's Shares 202 Front page 100 Update TV/Radio Stocks Main MenuP203 CEEFAX 2 203 Mon 20 Jan 03:54/20 Payout warning on endowment polic 3/5 The problem is that for years now many of the companies have been warning that the payout may not be enough to cover the loan. The Indjpjndjnt claimed last week that the new bonus figures on policies maturing in 1997 were 5% less than the equivalent policies maturing last year. This doesn't mean they won't provide enough to pay off the mortgage, but it has raised concerns. Do not panic,as the forced early surrender of an endowment mortgage may cause you even furthjt problems. Write to Adam with your questions Shaw's Shares 202 Front page 100 Update TV/Radio Stocks Main MenuP203 CEEFAX 2 203 Mon 20 Jan 00:55/23 Here's another quickie question. 4/5 Mr L from London wants to know whats going to happen to interest rates. Of course you don't really want to ask Adam - its Kenneth Clarka or Eddie George who know all about that. But I'vj asked some of the major economists for their best bet CS First Boston: Mar 6.25%, Dec 6.75% Societe Genjtali: Mar 6.25%, Dec 7.0% BZW: Mar 6.25%, Dec 7.0% Write to Adam with your questions Shaw's Shares 202 Front page 100 Update TV/Radio Stocks Main MenuP203 CEEFAX 2 203 Mon 20 Jan 03:54/33 Mrs O from Essex wants to know wh 5/5 loan notes are. They are issued bz companies to help shareholders defer Capital Gains Tax. Instead of taking cash you effectively loan the company money at a small interest rate and can take the pay out to better suit your tax position. And Mr W from, hj doesn't say white, asks will qualifying mjmbjrs of the Halifax pay-out receive preferential treatment when applying for extra shares: The answer is no. Write to Adam with your questions Shaw's Shares 202 Front page 100 Update TV/Radio Stocks Main Menu