Brian Goldstein, Managing Director of Policy Portfolio, says: "With the average mortgage repayments predicted to rise this year to 20.8 per cent of the average income in London and the south east(4), many parents will want to plan ahead to help their children meet some of the cost of joining the property ladder. One solution may be to invest in Traded Endowment Policies. The advantage of TEPs lies in their built in security: once given, bonuses allocated throughout the investment term cannot be taken away. They are guaranteed and in many cases these bonuses are greater than the amount paid for a TEP- so the initial investment cannot be lost."
The guaranteed minimum payout on all TEPs is of great advantage when planning for any future event, such as paying a deposit for a new home. The guarantee means that there is little danger of a fall in funds at the time the money is required. Coupled with this is their flexibility, allowing the investor to choose how much capital they wish to invest and the level of monthly premiums that best suit their circumstances.
For more information on investing in TEPs call Policy Portfolio on 0207 597 6700 or visit www.policyportfolio.co.uk
