Brad Edwards Global Pension Plan Video

A short description about GlobalPensionPlan Program,
Thanks to Brad Edwards:

Additional comment of Brad Edwards: "Hello everyone! One of the things in the video may not make sense without the rest of the page, since I talk about a utility that I created called the "Global Pension Plan Loyalty Rewards Calculator". To view the "Global Pension Plan Loyalty Rewards Calculator" please visit my Web Site: www.TodaysPension.com but PLEASE remember, if you are interested in joining, use the following URL: www.GlobalPensionPlan.tk 30 June 2007 20:57"

Thanks Brad!!!

Please Visit our site for more information:
http://www.globalpensionplan.tk

GlobalPensionPlan. Membership Payments, a comment

Payments Methods.

Stella's Forum post is encouraging everyone to follow the many different payment option instructions closely to make sure everything gets processed in a timely manner. Also note that payments for memberships sent by any other means that e-Bullion, will have to be processed manually, which could take a couple of weeks. Make sure you give Stella enough time to do these all by hand before bombarding her with nervous e-mails.

The only problem with the new payment options is that this presents a serious "Catch 22" to new members wishing to use these options because apparently a new member registering at GPP is presented with just e-Bullion as a payment option, and the only way to find out about the OTHER payment option details (cheque, wire transfer and Western Union) is to read the forum, which you cannot do unless you are already a member...hence the Catch 22.

If you are wishing to join GPP and would like to choose one of the OTHER payment options (not e-Bullion) let me know so that I can send you the details you will need in order to proceed. Please send me an email to: admin@globalpensionplan.tk

Payments Sumary:

Exists 4 ways to pay registraton on GlobalPensionPlan Program. Membership fee, 30 EUR. pay unique, only one-time

1.- Bank wire transfer:

- wires in EUR only
- minimum amount 1000EUR
- add 10EUR on top of every wire you send to us to cover the fees our bank deducts
- use the exact Reference, in every wire, or else your wire will be delayed or even lost
-do not use any other reference or memo
- after you have sent the wire, please email to support@globalpensionplan.net the full details including the amount sent, the name of the origin account and the transaction number alongside with the new member info (username, password, name, email, referral code)

2.- Cheque:

- cheques in EUR only
- clearing cheque costs 1.5% or minimum EUR15. Please add the cost on the top of the payable amount
- after you have sent the cheque, please email to support@globalpensionplan.net the full details including the payable amount, the name of cheque book holder and the ordinary/cheque number alongside with the new member info (username, password, name, email, referral code)


3.- Western Union:

- add 1.5% or minimum 15EUR for the receival fees
- you need to pay for the actual Western Union fees
- after you have sent the payment, you need to send to support@globalpensionplan.net the exact details of the sender (name, address, phone, sent amount and MTCN - this is the number that WU will give you as a secret code) alongside with the new member info (username, password, name, email, referral code)


4.- E-bullion:

-Automatic process, transfer payments from you e-bullion account to GPP e-bullion account.


regards.-


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Please Visit our site:
http://www.globalpensionplan.tk

What is.... Endowment Policies Market (II)

Endowment Policies Market


APPMM: Association of Policy Market Makers. (UK)

The Association of Policy Market Makers (APMM) consists of member firms who buy and sell with-profits endowments and whole-of-life policies. Autorised and regulated by the Financial Services Autority, FSA, http://www.fsa.gov.uk/

The Association was founded in April 1992 to:

• Promote awareness and understanding of the TEP market;
  
• Ensure that the highest professional standards are maintained by members and that they adhere to the Association’s Practice Guidelines;

APMM and all its members are regulated under the Financial Services and Markets Act 2000 by the FSA. They all have well–established trading records and also carry Professional Indemnity Insurance.

Association members source and analyse appropriate policies, which are then offered for sale as investments. Apart from one auctioneer, the members are Market Makers – buying or selling on their own account or as agents for third parties on whose behalf they have authority to execise discretion.

Web site: http://www.apmm.org/about.asp


Why is there a Market? Who are the players?

Endowment Policies have traditionally been a very good long-term investment. However, only one third of all policies taken out reach maturity; policyholders cancel 30% in the first few years, 40% are surrendered or sold mid term, leaving 30% to reach maturity in their original ownership.

Policyholders who decide that they no longer want or can afford a policy have a number of options:

• Selling to a third party by obtaining a quote from an APMM member
  (which will be available within 2 working days.)
  Or
  
• Making the policy paid-up; these policies can also be sold through APMM members
  Or
  
• Borrowing against the policy
  Or
  
• Surrendering the policy to the originating Life Office
  
  

A Traded Endowment Policy (TEP) is an endowment policy purchased part way through its term from the original policyholder. It then becomes a pure investment in that no life cover is transferred to the new policyholder.

The market exists because investors believe that the Surrender Value offered by many Life Offices often does not represent the full value of a continuing contract.

Thus the Traded Endowment Market provides policyholders with an alternative to simply accepting the Surrender Value: selling the policy may achieve a better price than surrendering it. The TEP market also offers excellent investment opportunities.


Market Participants
There are two types of organisations to which policyholders can turn for help in disposing of with–profit endowment policies:

Market Makers: are companies who provide the bridge between policyholders and investors. They undertake detailed administrative checks on the policy and policyholder before completing the purchase. Investors therefore have an assurance that the policies they purchase from Market Makers carry good title. Market Makers arrange and pay for the legal assignment of policies from policyholders and their subsequent sale to investors.

Auctioneers: ‘Open outcry’ auctions are held by Foster & Cranfield weekly; these take place in London and a number of towns around the country. The auctioneer competes with Market Makers for policies to sell but, because of the nature of auctions and the buyers who attend them, the auctioneer can often sell policies that are not suitable for market making.

Summary of Selling Process

Policyholders wishing to dispose of a policy will either make direct contact with the APMM or Market Makers or the auction house directly, or use a financial adviser to do so on their behalf. Market Makers quote a price for buying the policy while the auction house recommends a reserve price to be set. When a policyholder has decided which route to follow and which offer to accept, contracts will be exchanged and the sale will proceed to completion.

Summary of Investment Process

Potential investors contact Market Makers either directly or through their financial adviser to discuss their requirements, such as how much they wish to invest over what period of time. Alternatively, they can contact the auction house to obtain information on forthcoming policy sales.

Market Agents

(Example).

APPMM members list:

- Foster & Cranfield (Auctioneers). http://www.foster-and-cranfield.co.uk/
- Surrenda-Link Ltd. http://www.surrendalink.co.uk/
- Absolute Assigned Policies Ltd. http://www.aap.co.uk
- PolicyPlus International Plc. http://www.policyplus.com/
- 1st Policy Company Limited. http://www.1stpolicy.co.uk/
- Neville James Ltd. http://www.neville-james.co.uk/


___________________________
Please Visit our site:
http://www.globalpensionplan.tk

What is 'an Endowment Policy' ? (I)

Endowment Policy

From Wikipedia, the free encyclopedia. GPL License

Source: http://en.wikipedia.org/wiki/Endowment_policy

An endowment policy is a life assurance contract designed to pay a lump sum after a specified term or on earlier death (some polcies also include critical illness as condition of payout).

Policies are typically traditional with-profits or unit-linked (including those with unitised with-profits funds).

Endowments can be cashed in early - known as surrendered - and will then be paid the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid in to it. During adverse investment conditions, the encashment value or surrender value may be reduced by a 'Market Value Adjuster' to allow for the need to cash in units at a time when investment conditions are not ideal. This means that the investor would receive the surrender value less the market value adjuster.

Traditional With Profits Endowments

There is an amount guaranteed to be paid out called the sum assured and this can be increased on the basis of investment performance through the addtion of periodic (for example annual) bonuses. Regular bonuses (sometimes referrred to as reversionary bonuses) are guaranteed at maturity and a further non-guaranteed bonus may be paid at the end known as a terminal bonus

Unit-linked endowment

Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. Units are encashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units.

Full endowments

A full endowment is a with-profits endowment where the basic sum assured is equal to the death benefit at start of policy and, asuming growth the final payout woulb be much higher than the sum assured

Low cost endowment (LCE)

A low cost endowment is a combination of: an endowment where an estimated future growth rate will meet a target amount and a decreasing life insurance element to ensure that the target amount will be paid out as a minimum if death occurs (or a critical illness is dianosed if included).

THe main purpose of a low cost endowment has been for [[endowment mortgage]s to pay off interest only mortgage at maturity or earlier death in favour of full endowmnet with the required premium would be much higher.

Traded endowments

Traded endowment policies (TEPs) or second hand endowment policies (SHEPs)are traditional with-profits endowments that have been sold to a new owner part way through their term. The TEP market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company. Investors will pay more than the surrender value because the policy has greater value if it is kept in force than if it is terminated early.

When a policy is sold, all beneficial rights on the policy are transferred to the new owner. The new owner takes on responsibility for future premium payments and collects the maturity value when the policy matures or the death benefit when the original life assured dies. Policyholders who sell their policies, no longer benefit from the life cover and should consider whether to take out alternative cover.

The TEP market deals exclusively with Traditional With Profits policies. The easiest way of determining whether an endowmwent policy is in this category is to check to see whether a it mentions units, indicating it is a Unitised With Profits or Unit Linked policy, if bonuses are in sterling and there is no mention of units then it is probably a traditional With Profits. The other types of policies - “Unit Linked” and “Unitised With Profits” have a performance factor which is dependent directly on current investment market conditions. These are not tradable as the guarantees on the policy are much lower and there is no gap between the surrender value and the market value.

UK Endowment policyholders who wish to sell their policies can access the market through the main trade body http://www.apmm.org.

Modified endowments (U.S.)

Modified endowments were created in the Technical Corrections Act of 1988 (H.R 4333, S. 2238) in response to single-premium life (endowments) being used as tax shelters. They are contracts with fewer than 7-level annual premiums, and are subject to more stringent tax regulations (tax code 7702, 7702A). They are also subject to IRA-like annuity rules (such as penalties for pre-death proceeds before age 59½). If a life insurance policy is changed and then fits the seven-pay rules, it may then be redefined as a modified endowment

______________________

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http://www.globalpensionplan.tk

How The 'Reverse Pension Plan' Works

How The Reverse Pension Plan' Works


The Concept.

Reverse pensions are a novel
project devised by venture capitalists
– in cooperation with a pension company
and an investment bank.


The project works in five steps
as the venture capitalists:


1.-Start a multilevel plan to
recruit individual members.

2.-Set up a pension policy in
the name of each member.

3.-Finance the pension policy
using a loan for 60% of its face value.

4.-Sell the policy at a discount
for 80% of its face value.

5.-Repay the loan and keep 20%
of the face value as profit.


The Financial Institutions.


1. Pension companies


Pension companies find customers
who take a single-premium pension
policy which pays them a lump sum when
they reach retirement age. The younger
they are, the lower the premium –
averaging €41,000 for eligible people
(aged less than 67).

To generate the lump sum, and
its own profit, they invest the premium at
compound interest over the life of
the policy.



2.Investment banks


Investment banks take deposits from
their account holders and pay them
interest.
To generate this
interest, and a profit margin, they
skillfully invest the account holders’
money in higher-yielding investments.



3.Venture capitalists


Venture capitalists borrow money
from investment banks and invest it in
highly profitable projects.


These projects repay the loan and generate
a large profit for themselves.

Reverse pension plans are an innovative
and highly profitable project initiated
and run by venture capitalists.




The Mechanics of Reverse Pension Plans


This example is worked through for
a single member – using typical
values for the pension, referral
commissions, admin costs and lump-sum
payout.

The actual profit will depend
on the figures used by a
given scheme and their target membership.

The venture capitalists set up a
network-marketing operation to find
a target number of eligible volunteers
– called Plan Members.

When they’ve got them, they use
the individual Member’s personal
details to apply for a €200,000 pension
on behalf of each of them.

At the same time, they go to an
investment bank and raise a
mortgage/loan of 60% of the value of
these pensions – €120,000, each.

They use the loan to pay for the
average €41,000 premium on the
policy and give the Member a gift of
$55,000 in return for transfer of
the loan to them.

This leaves them with €24,000 to
cover cost of the network-marketing
operation – referral commissions and
administration

By using the loan to finance the
program, they now own a pension
policy with a value on maturity of €200,000.

Finally, they sell the policy to
a bank at a discount for, say,
$160,000, repay the £120,000 loan
and realise €40,000 profit.


It’s a brilliant scheme
and benefits everyone:

The Members get €55,000 for
allowing their identity to be used – and
a €2,000 referral bonus for each
new Member they make the effort to
sponsor.

The pension company makes its
normal profit on several thousand new
customers – and can sell future
business to them.

The investment bank makes its
usual profit on the multi-million loan
and gets valuable pensions at a 20% discount.

The venture capitalists generate
20% profit on each plan by
recruiting the member, borrowing
money to open pensions for them and
selling the pensions at a discount.

Variability in Profit

1.Age distribution of the eligible
Members

The actual profit depends on how
closely the age distribution of eligible
members matches that used to calculate
the average pension premium given in
the example – €41,000.

Weighting towards older people
raises the average premium and lowers
the profit and vice versa.

It might be speculated that there
are two possible biases:

Older people feel more pressure to
take a pension and appreciate this
opportunity.

Younger people are less suspicious
of the Internet and will take a
gamble on making money.

It is anticipated that the second
bias will be stronger than the first
– resulting in a higher profit.

In fact an analysis of the first
40,000 to join has shown that the
average age is much lower than
anticipated. This has resulted in the
benefits being increased to €110,000
for those that are under 28 at the
time of execution of the Policy

Conclusion

Reverse pension plans are innovative
and, like any High Yield Income Plan, very risky.

However, the large lump sum return
would seem easily to justify the
small joining fee (only 30 EUR, one-time).

[END]


------------------------
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http://www.globalpensionplan.tk