TISP plan from republic

Trinislacker · Postby **Trinislacker** » July 28th, 2016, 2:25 pm

speedwerk wrote:The main purpose of an Annuity is to provide income in retirement in the form of a Pension, banks cannot pay a pension and that is why the client will get the lumpsum. However what happens after that lumpsum is exhausted? due to bad spending or a medical emergency? advising a client to take a lumpsum defeats the true purpose of retirement planning.

Lumpsum is only 25% pal.

I would take that over full retirement. GHL currently paying out at 0.0067 percent per month @ age 50 which means I would have to live till 63 just to break even with my lumpsum. Not including any tax I most likely would have to pay.

link · Postby **link** » August 19th, 2016, 7:37 am

Hammy Bolo wrote:Actually the lumpsum u receive is 25% of the contribution and ALL the interest generated over time...in most instances the interest is 2x the amount invested so u have 3x more money upon maturity. [b]The other 75% of the contribution is paid as an annuity. [/b] By law however, depending on the amount u invest u can get back 100% on your contribution and 100% of the interest earned in that one time tax free lump sum payment. But we give the investor that option...some opt for lumpsum payment with the annuity...some opt for just the full payment. It really depends on what your long term goals are and how best u want to maintain your lifestyle and level of living with the pension from your employers. At least this way you have the best of both worlds...a lumpsum payment that u can do with what u wish and still have the comfort of getting a guaranteed mthly pension to supplement that from your employers.

can u say how this annuity is calculated ? say u amass 100k in total monies on the tisp & 25% (25k) is lumpsum, how is the remaining 75k portioned out as monthly annuity pymnts to you ? Is there a specific formula that's used ?
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tks info

dredman1 · Postby **dredman1** » August 15th, 2018, 8:37 am

pugboy · Postby **pugboy** » August 15th, 2018, 8:47 am

Hmm I have a tisp too
This not sounding good

dredman1 · Postby **dredman1** » August 15th, 2018, 8:50 am

I know gov't looking to get tax where ever possible.

It seems that those who took out a TISP plan prior to the "new directive" are affected as well.

Can that be done? Doesn't the original document that was signed when the plan was taken out stipulate specifically what terms are applicable for payment at maturity?

Or does it say "according to the law then in effect" or something along those lines?

pugboy · Postby **pugboy** » August 15th, 2018, 8:57 am

Tisp is a very popular plan
Expect some noise on this

Slartibartfast · Postby **Slartibartfast** » August 15th, 2018, 12:07 pm

dredman1 wrote:I know gov't looking to get tax where ever possible.

It seems that those who took out a TISP plan prior to the "new directive" are affected as well.

Can that be done? Doesn't the original document that was signed when the plan was taken out stipulate specifically what terms are applicable for payment at maturity?

Or does it say "according to the law then in effect" or something along those lines?

Probably has a clause that says terms and conditions may change without notification or something. If that is the case maybe a lawyer can comment on the legality of a clause like that because basically you will be agreeing to anything the bank decides to do.

dredman1 · Postby **dredman1** » August 16th, 2018, 11:17 am

Slartibartfast wrote:Probably has a clause that says terms and conditions may change without notification or something.

That's what I'm thinking, which would make the plan unattractive. However, it seems to be very popular, so maybe it doesn't. (Or maybe most trinis don't care to read).

Very important to read all fine print and ask questions, and to get any assurances and promises in writing, especially when it comes to investing your money.

redmanjp · Postby **redmanjp** » August 17th, 2018, 10:23 pm

Wait u getting less than all your contributions? :shock:

Postby **nervewrecker** » August 18th, 2018, 7:32 am

Well time to further decrease the amount I paying.

Makes more sense to invest the same $$$ in business. 20 years from now that $$$ I put in will have lost a lot of purchasing power.
Say I putting in contributions amounting to 150k when I retire. 10 years ago 150k could have bought me a new vehicle in the firm. Right now 150k can barely get me anything. 20 years from now 150k might get me a base model roro equivalent to what the tiida is today.

F0(k dem