TISP plan from republic

Postby **Team Loco** » December 21st, 2008, 2:09 pm

Tax Incentive Savings Plan (TISP). anyone got one? is it anygood? pros and cons please

skylinechild · Postby **skylinechild** » December 21st, 2008, 2:55 pm

sorry..no info on this.....

Hammy Bolo · Postby **Hammy Bolo** » December 21st, 2008, 3:04 pm

Got this info for you from an agent who is responsible for the sale of this product from Republic Bank, hope it give some info that would help- there is a # to call also:

Excellent plan...competitive tax break and great saving for retirement with low monthly payments from $100. or any amt that suits your pocket. Choose up to 4 beneficiaries and set your own maturity date (50 yrs minimum - 70 maximum). Upon maturity you collect a TAX FREE lumpsum amt AND a pension that is dependent upon the amount invested over time with yearly compounded interest. Plan approved by BIR and has no fees once you keep it until maturity. If you cannot make regular payments...no hassle...the plan will continue to earn yrly interest and won't close on you. If you close B4 maturity then BIR charges u 25% of the balance as their fee but the bank wont charge once u keep it for at least 5 yrs. Great way to save long term and get more cash in hand from the reduced taxes. If u need more info call me ...
791-3831 - Marsha Khan, Marketing officer with Republic... can do projection and show u how much u can get upon maturity of plan.

E-mail: mbkhan@republictt.com

ronsin1 · Postby **ronsin1** » December 21st, 2008, 3:13 pm

the lump sum you will get is 25% of the cash value of the plan the other 75% must be put towards an annuity where you will draw a monthly pension

I would rather go with a deffered annuity so you get the option of have the entire cash value in a lumpsum or you can opt for a montly pension, there is one annuity right now that gives 10% interest per year

PM AGENT RORO for more info on the deffered annuity

Hammy Bolo · Postby **Hammy Bolo** » December 21st, 2008, 4:52 pm

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. The other 75% of the contribution is paid as an annuity. 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.

slick · Postby **slick** » December 21st, 2008, 7:44 pm

The part about tax breaks can't be right...didn't the PNM stop these tax breaks a few years ago?

ronsin1 · Postby **ronsin1** » December 21st, 2008, 7:46 pm

no they increased the tax break up to $25,000 for annuities and approved pension plans this year before it was something like $10,000

Hammy Bolo · Postby **Hammy Bolo** » June 26th, 2016, 2:57 pm

Just an update to the tax breaks...it has now been increased to 50K/annum including NIS pmts (effective 01/01/2016) but the mechanics of the plan remains the same. TAX FREE lumpsum payment upon maturity with the possibility of a guaranteed monthly stream to supplement the pension from your employers. Depending on the amount invested over time it's possible to receive ALL of your investment including interest accumulated as a one time Tax Free payment. So you get immediate tax relief (up to 25% of your approved annual contribution) PLUS attractive annual returns that is reinvested to boost your plan balance, choose comfortable payments, beneficiaries and maturity date with the option to make amendments at no additional cost. Any bank's Credit card can also be used to make your payments and gain additional bonus points or miles. An all inclusive exclusive pension plan from Republic Bank; Tax Incentive Savings Plan.
Contact Marsha Khan at 791-3831 (Marketing Officer RBL) or email me at mbkhan@republictt.com for more info.

konartis · Postby **konartis** » June 26th, 2016, 3:44 pm

I have this plan and received a end of year statement when I took it out in 2012, however I never received another one, only the statement for the TD1 form...am I supposed to get two statements for the specific year? One for the td1 form and another for the td4 if I choose not to file the td1 for the tax break at the beginning but decided to claim for the taxes at the end of the year?

Premchand1976 · Postby **Premchand1976** » June 27th, 2016, 4:55 am

ronsin1 wrote:the lump sum you will get is 25% of the cash value of the plan the other 75% must be put towards an annuity where you will draw a monthly pension

I would rather go with a deffered annuity so you get the option of have the entire cash value in a lumpsum or you can opt for a montly pension, there is one annuity right now that gives 10% interest per year

PM AGENT RORO for more info on the deffered annuity

Which company offers 10% interest on annuity presently? Pm info. Thanks

Hammy Bolo · Postby **Hammy Bolo** » June 27th, 2016, 6:27 am

konartis statements are posted out automatically via TTPOST annually around end Feb for tax relief purposes to the mailing address on file. This one statement can be used for both income tax returns or to approve TD1's. However if you didnt receive one you can visit any branch closest to you and request one. The last yr is free...prior to that there is a small fee.

konartis wrote:I have this plan and received a end of year statement when I took it out in 2012, however I never received another one, only the statement for the TD1 form...am I supposed to get two statements for the specific year? One for the td1 form and another for the td4 if I choose not to file the td1 for the tax break at the beginning but decided to claim for the taxes at the end of the year?

Hammy Bolo · Postby **Hammy Bolo** » June 27th, 2016, 6:32 am

not sure abt any company offering such high interest rate in this economy now and if they are I'll be happy to find out too...but be guided by the fact that high returns carries high risks. The Tisp is a deferred annuity tho but the option to have all in lump sum is guided by the present tax laws.

Premchand1976 wrote:
ronsin1 wrote:the lump sum you will get is 25% of the cash value of the plan the other 75% must be put towards an annuity where you will draw a monthly pension

I would rather go with a deffered annuity so you get the option of have the entire cash value in a lumpsum or you can opt for a montly pension, there is one annuity right now that gives 10% interest per year

PM AGENT RORO for more info on the deffered annuity

Which company offers 10% interest on annuity presently? Pm info. Thanks

2WNBoost · Postby **2WNBoost** » June 27th, 2016, 7:15 am

Hammy Bolo wrote:not sure abt any company offering such high interest rate in this economy now and if they are I'll be happy to find out too...but be guided by the fact that high returns carries high risks. The Tisp is a deferred annuity tho but the option to have all in lump sum is guided by the present tax laws.

Premchand1976 wrote:
ronsin1 wrote:the lump sum you will get is 25% of the cash value of the plan the other 75% must be put towards an annuity where you will draw a monthly pension

I would rather go with a deffered annuity so you get the option of have the entire cash value in a lumpsum or you can opt for a montly pension, there is one annuity right now that gives 10% interest per year

PM AGENT RORO for more info on the deffered annuity

Which company offers 10% interest on annuity presently? Pm info. Thanks

Sounds like a CLICO type of offer.
Hurry take all your money over there /s

Premchand1976 · Postby **Premchand1976** » June 27th, 2016, 7:25 am

Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

Kenjo · Postby **Kenjo** » June 27th, 2016, 1:51 pm

I think a lot of people Realise that in emergencies they prefer to give back the 25% and settle for their 75% . It boils down to it just being a savings more than anything else . Anyway the tax that was initially ' saved ' is given back

Premchand1976 · Postby **Premchand1976** » June 27th, 2016, 5:41 pm

Yup they are all tax " deferred " products

Dizzy28 · Postby **Dizzy28** » June 28th, 2016, 11:30 am

Premchand1976 wrote:Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

The lump sum option is helpful if a large unforseen expense comes up. I know ppl also use it to fund kids education etc.

Premchand1976 · Postby **Premchand1976** » June 28th, 2016, 11:48 am

Yes.....did it for a couple clients to fund UWI

Trinislacker · Postby **Trinislacker** » July 7th, 2016, 5:00 pm

On the topic of Annuity. Let's say my annuity reaches maturity date, would there be any conflict with having an annuity pension and continuing to work?

Hammy Bolo · Postby **Hammy Bolo** » July 7th, 2016, 7:22 pm

Not necessarily so Premchand1976. Republic's plans (Finance Act) operates differently from the Insurance Co (Insurance Act). Our plans offer 25% contribution and 100% interest as a lumpsum payout...TAX FREE. The 75% of contribution goes to the annuity ONLY IF the quotes we get back gives the plan holder a monthly payment of $500.00 and over. If it comes in under then the ENTIRE PLAN BALANCE is paid out...no taxes...no penalities...no charges. Only if you choose to surrender your plan before maturity then the 25% tax is levied by BIR.

Premchand1976 wrote:Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

Hammy Bolo · Postby **Hammy Bolo** » July 7th, 2016, 7:25 pm

Nope...your plan can mature as early as age 50 and you can enjoy the benefits of the plan then and still be employed.

Trinislacker wrote:On the topic of Annuity. Let's say my annuity reaches maturity date, would there be any conflict with having an annuity pension and continuing to work?

Hammy Bolo · Postby **Hammy Bolo** » July 7th, 2016, 7:32 pm

I agree with the interest rates...this economy cannot afford high rates at this time but I have to disagree with your take on the lumpsum payments tho. RBL's plan is registered at BIR and we have been able to give annuitants 100% of their plan value upon maturity depending on their final balance TAX FREE. No fees attached and definitely no 25% penality. Anyone on this thread can feel free to contact me on 791-3831 (leave a v/m if I dont immediately answer) or email me at mbkhan@republictt.com

Premchand1976 wrote:Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

dredman1 · Postby **dredman1** » July 7th, 2016, 9:14 pm

Hammy Bolo wrote:Not necessarily so Premchand1976. Republic's plans (Finance Act) operates differently from the Insurance Co (Insurance Act). Our plans offer 25% contribution and 100% interest as a lumpsum payout...TAX FREE. The 75% of contribution goes to the annuity ONLY IF the quotes we get back gives the plan holder a monthly payment of $500.00 and over. If it comes in under then the ENTIRE PLAN BALANCE is paid out...no taxes...no penalities...no charges. Only if you choose to surrender your plan before maturity then the 25% tax is levied by BIR.

Premchand1976 wrote:Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

I have a registered annuity with an insurance company, and they indicate that at retirement/maturity the maximim lumpsum I can receive is 25% of my accumulated fund value (i.e. 25% of premiums and 25% of interest) as premchand indicated. I've seen the TISP literature which states that the maximum lumpsum is 25% of contributions or premiums paid PLUS 100% of interest accumulated. The latter suggests more is available as a lumpsum with TISP. Is this because the 2 institutions operate under different Acts (Finance vs. Insurance Act) that this is possible? Or is it just different interpretations of the same thing?

Premchand1976 · Postby **Premchand1976** » July 7th, 2016, 9:47 pm

I will check from my end on this payment option as I too am learning here. Our plan also states the company can pay off the full pension accumulation at maturity if THEY choose to and it's dependent on the accumulated value. With regards to 100% of the interest being paid I'm sure we all share similar benefits, just need to get clarification my benefits dept. as I see no reason a person won't receive all their interest accumulated and the capital amount remains to be paid 25% upfront and a monthly pension thereafter.

dredman1 · Postby **dredman1** » July 7th, 2016, 10:09 pm

Thanks. I know of the stipulation that the annuity can be commuted if the monthly amount ends up being less than $500 - I believe that's standard across the entire pension market based on a stipulation by BIR.

It's that 25% lump sum payout that seems confusing to me.

Hammy Bolo · Postby **Hammy Bolo** » July 7th, 2016, 10:22 pm

dredman1 you're correct...the TISP pays out a bigger lumpsum upon maturity so that you can start to properly manage your lifestyle changes upon retirement. The difference lies in the Trust Deed that governs our plans tho and not a particular Act. The Act comes into play with the annuity/pension part of the plan. The Finance Act states that if the annuity/pension the annuitant is to receive is less than $500/mth...then the FULL VALUE of the plan (100% contribution plus 100% interest) is paid to the plan holder. I have had countless customers who've received the full balance paid to them upon maturity of their TISP with no penalties or BIR fees because the quotations from the insurance co for their pension (from the remaining 75% of the contribution) came in under $500/mth. Its different with an insurance bought annuity due to the smaller portion paid out and the larger value held back for pension purposes. You're basically stuck with that company for life...

dredman1 wrote:
Hammy Bolo wrote:Not necessarily so Premchand1976. Republic's plans (Finance Act) operates differently from the Insurance Co (Insurance Act). Our plans offer 25% contribution and 100% interest as a lumpsum payout...TAX FREE. The 75% of contribution goes to the annuity ONLY IF the quotes we get back gives the plan holder a monthly payment of $500.00 and over. If it comes in under then the ENTIRE PLAN BALANCE is paid out...no taxes...no penalities...no charges. Only if you choose to surrender your plan before maturity then the 25% tax is levied by BIR.

Premchand1976 wrote:Being an agent I know fully well no company offers anything more than 4% presently, including the company I represent. With regards to a lumpsum payout, only way you can get this from any government registered pension type product would be to surrender the policy before maturity date. This way you are penalised 25% off the accumulated fund and get the remaining 75% as a lumpsum payment. A lot of clients seem to prefer this option in recent times.

I have a registered annuity with an insurance company, and they indicate that at retirement/maturity the maximim lumpsum I can receive is 25% of my accumulated fund value (i.e. 25% of premiums and 25% of interest) as premchand indicated. I've seen the TISP literature which states that the maximum lumpsum is 25% of contributions or premiums paid PLUS 100% of interest accumulated. The latter suggests more is available as a lumpsum with TISP. Is this because the 2 institutions operate under different Acts (Finance vs. Insurance Act) that this is possible? Or is it just different interpretations of the same thing?

dredman1 · Postby **dredman1** » July 7th, 2016, 11:57 pm

^^^ Tks for clarifying

Kronik · Postby **Kronik** » July 20th, 2016, 10:23 am

Hmm, interesting. Republic one looks interesting, think I may go with this eventually

Hammy Bolo · Postby **Hammy Bolo** » July 20th, 2016, 8:31 pm

Kronik wrote:Hmm, interesting. Republic one looks interesting, think I may go with this eventually

You can Contact Marsha Khan at 791-3831 (Marketing Officer RBL)- she supplied all the facts provided here.

speedwerk · Postby **speedwerk** » July 20th, 2016, 9:45 pm

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.