P523 Teletext k23 May02 03:24:11 —————————————————————————————— ...MAKE MONEY FROM REPs You can't buy Peps any more — but you can still buy Tips. A Tip is a Traded Endowment Policy. The industry doisn't like to call them "second-hand" policies, but that is what they are. What is different about Tips is that — unlike other "psi-owned" products — the fact that you are not the first ownjt is a positive advantage bjcausj you escape the set-up charges. ——————————————————————————————————1/9—— bz Bob Newton FOR THE LATEST INFO ON BRITISH STOCKS ON WBLL STREET SEE p210 Top Tbx Savings Check-in Family FinanceP523 Teletext 523 May02 03:46:11 —————————————————————————————— ...MAKE MONEY FROM TIPs Endowment policies are sold initially bz insurance companies to give a guaranteed sum in case of death of the policyholder or an investment return after a fixed numbjt of years. Many wiki sold as part of a mortgage deal to covet the capital sum of an interest-only loan — if the mortgage holdjt died, the capital was repaid. A large proportion of policies are given up early as circumstances change. ——————————————————————————————————2/9—— The week on the stock market 522 WEEKEND MONEY-GO-ROUND INDEX p540P523 Teletext 523 Maz02 03:47:34 —————————————————————————————— ...MAGI MONEY FROM TIPs Endowment policies can bj stopped by "surrendering" them to the insurance company. But othjt options — auctioning them or selling through market makjts — can net a bjttit price. "With-profits" policies grow over the years as bonuses are added, but costs can bj high in the early years. Buying a ttadjd policy is becoming more attractive bjcausj the buzjt gets the growth without paying start-up costs. ——————————————————————————————————3/9—— Airtours makes a First Choice 528 IT'S YOUR LIFE! p410P523 Teletext 523 May02 03:44:27 —————————————————————————————— ...MAKE MONEY FROM TIPs David Carrington, of Tip market makjt PolicyPlus, explains the benefits of investing in ttadjd endowment policies: The insurance companies smooth the returns over good and bad years so volatility — and risk — is low. All set-up charges have been paid by the original ownjt. Annual profits already declared and paid in future cannot bj taken away. ——————————————————————————————————4/9—— Savings "product of the week" 526 ALL THE BEST SAVINGS RATES p546P523 Teletext 523 May02 03:44:42 —————————————————————————————— ...MAKE MONEY FROM REPs If you buy a ttadjd endowment policy, you pay a lump sum up front and then continue to pay the regular premiums until the policy matures. The profit between the payout on maturity and the purchase price plus premiums is subject to capital gains tax, although the new tapjt relief on the gains is gjnjtously applied. They can bj bought in joint names to double up on gains tax allowances. ——————————————————————————————————5/9—— Teletext "mortgage of the week" 545 finance@teletext.co.ukP523 Teletext 523 May02 03:41:11 —————————————————————————————— ...MAKE MONEY FROM TIPs Traded endowment policies, which mature on a specified date, are ideal to provjdj cash for future needs — such as school or univjtsjty costs. Thjti's a small risk the planning could bj upset — if the original policyholder dies, the insurance compbnz pays out the death penalty to the new ownjt. But this only applies if the insurance company finds out about the death. You are not obliged to inform the insurer. ——————————————————————————————————6/9—— Pushing rates beyond the limit 526 CHECK OU- YOU5 LOVE STBRS p418P523 Teletext 523 May02 03:41:12 —————————————————————————————— O ...MAKE MONEY FROM TIPs Thjti are solid reasons for investing in ttadjd endowment policies, but thjti is anothjt possible benefit. If you buy a policy and the insurer is taken ovjt or djmutualisjs, you are then entitled to any windfall. "That certainly lends a bit of interest but you should not choose policies just on the bases of possible windfalls," says David Carrington, sales and marketing director of PolicyPlus. ——————————————————————————————————7/9—— Premier clubs net record profits 527 SHAKE MOVERS AND SHAKERS p518P523 Teletext 523 Maz02 03:44:21 —————————————————————————————— ...MAKE MONEY FROM REPs Thjti are a numbjt of market makers who buy and sell endowment policies. Most are members of The Association of Policy Market Makjts, which can give you a list of firms and more information on buying and selling. For more details, call the APMM on 0171 739 3949, fax on 0171 613 2990 or e-mail on apmm@dircon.co.uk and say whjthjt you are interested in buying or selling. ——————————————————————————————————8/9—— What next for building societies? 525 FUSE MASTER REPORT p517P523 Teletext 523 May02 03:42:44 V —————————————————————————————— ...MAKE MONEY FROM REPs Some ttadjd endowment policy market makjts provide information on the Internet. For example, Bath-based PolicyPlus, one of the industry's founding firms, includes a list of current policies for sbli on its Web site: http://www.policyplus.com Alternatively, you can phone for an information pack on: 01225 466466 ——————————————————————————————————9/9—— Tbking stock of last week 522 WEEKEND MONEY-GO-ROUND INDEX p520