financial consultancythames clyde

Saving an affordable amount of disposable income on a monthly or quarterly basis, will bring benefits to the saver – essentially by accumulating money to provide for anticipated capital requirements in the future, not easily met from income at that time.

These capital requirements may be, for example:– Meeting anticipated Uni fees for children.– Paying off mortgage borrowing early.– Setting up a Trust for children or grandchildren.– Augmenting current pension arrangements.– Or just putting aside some spare income to fund for a

‘not as sunny/rainy day’.

The very reason we save money, is that none of us are 100% certain as to what may confront us/our family around the corner – it’s just natural to do this.

Ergo, none of us are 100% certain as to when we will need to draw on our savings.So, the logical savings environment would allow us full access to our savings at a drop of a hat, as well as having access to areas of investment that should perform better than a bank deposit account, during saving.

THIS KIND OF FLEXIBILITY SHOULD BE A GIVEN, BUT UNFORTUNATELY IN MANY CASES, IT IS NOT.You may intend to accumulate capital over the medium to long term, however due to unforseen circumstances you may want to stop saving for a while due to being between contracts, or maybe your partner has been made temporarily redundant.

‘FRONT-LOADED’ OR ‘STRUCTURED’ SAVINGS CONTRACTS SERIOUSLY LIMIT YOUR FLEXIBILITY.Instead of being persuaded by a clever salesman to ‘sign up’ for a 10, 15 or even a 20 year contract – which effectively ties you to a stuctured vehicle, requiring commitment when you are not even certain if you can maintain that commitment – why not take a step back & consider some alternatives?

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regular savingsbuyer beware!

(AVOIDING THE CLEVER SALESMAN & HIS OWN AGENDA)

REGULAR MONTHLY SAVINGS VEHICLES: A COMPARISON

Open-Ended’ No fixed contribution & no fixed savings period.versusFront loaded’ / ‘Stuctured’ Contracted fixed savings period + ‘initial’ period.

OPEN-ENDED ARRANGEMENTAs the name suggests, an ‘open-ended’ arrangement for regular monthly savings possesses the flexibility to meet any future financial circumstance of the saver, without seriously impacting on the value of their savings. Investment growth is 7% p.a.

Example above does not include 8% bonus to contributions given by ThamesClyde.

FRONT LOADED / STRUCTURED ARRANGEMENT (15 YEAR FIXED CONTRACT).As the name suggests, a ‘structured’ arrangement can reward ‘savings discipline’ whereby capital risk is avoided as there is no recourse to contributions made within the ‘initial’ period. All well intended, but as the figures below reveal what happens to your hard earned in the first couple of years ? Investment growth is 7% p.a.

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€ 500 pm. after 2 years after 5 years after 15 years

Total contributed. € 12,000 € 30,000 € 90,000

Savings Value. € 11,850 € 32,500 € 133,300

Surrender Value. € 11,850 € 32,500 € 133,300

€ 500 pm. after 2 years after 5 years after 15 years

Total contributed. € 12,000 € 30,000 € 90,000

Savings Value. € 12,600 € 33,600 € 142,750

Surrender Value. € 4,550 € 25,700 € 142,750

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FLEXIBILITY DOES NOT ALWAYS MEAN YOU HAVE TO PAY FOR IT.”“JONATHAN BOLGER, DIRECTOR.

OPEN-ENDED ARRANGEMENT – COMBINED WITH THAMES CLYDE NO COMMISSION POLICY.

As above, investment growth is 7% p.a.Each & every contribution is enhanced by 8%.

OPEN-ENDED REGULAR SAVINGS VEHICLE – MAIN FEATURES & BENEFITS.

FLEXIBILITY DOES NOT ALWAYS MEAN YOU HAVE TO PAY FOR IT’.Thames Clyde do not charge commissions to Clients.That means that 99.5% of your monthly contribution is invested from day one.We only recommend open-ended savings, we do not recommend structured savings.Therefore, there is no ‘front-loaded initial period’. Your savings are invested & get to work for you immediately.

This is particularly relevent to international individuals who are on short-term contracts, and who wish to put aside some disposable income – without being tied to a long term savings commitment, flexibility of contribution level being key.

MAIN FEATURES & BENEFITS TO THE SAVER. Stop, start, increase or decrease your regular contributions at any time. No penalty for stopping/decreasing. No fixed term. No ‘initial’ period. Choose from 375 professionally managed investment funds. Free switching between funds. Penalty-Free withdrawals at any time. Ad-hoc amounts from € 1,500 can be added. An international life assurance account, therefore the usual

tax advantages apply.

• Important • Not so important, but good.

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€ 500 pm. after 2 years after 5 years after 15 years

Total contributed. € 12,000 € 30,000 € 90,000

Savings Value. € 12,800 € 35,000 € 144,000

Surrender Value. € 12,800 € 35,000 € 144,000

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benoordenhoutseweg 23, 2596 ba, the hague, nl t +31 70 262 9172 m +31 6 229 229 03facebook.com/thamesclyde www.thamesclyde.com info@thamesclyde.com

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