ANNUITY FUND
We are happy to announce the launch of our Annuity Fund, a new Lon-Ist financial product designed to offer investors a steady stream of income for life.
Providing you have attained the age of 55 years, you can start your annuity fund with Lon-Ist.
Current rates are 8% standard plus a bonus rate of 3% paid at the end of 12 months. (Rates are confirmed on contract.)
Standard rate is guaranteed for the life of the holder.
Bonus rates may change subject to any additional profits the fund makes. The bonus rate of 3% is derived from what we feel we would have achieved in 2008.
Payments are paid on the last day of the following month when funds have landed. Clients are required to deal with whatever tax they may need to pay locally.
All deposits into our fund need to follow the rules for money transfers and will be detailed in our accounts for the protection of other investors.
Additional benefits can be added to your annuity, which will be detailed clearly.
To cite one example, the annuity contract can include life cover for which the annual premium will be taken directly from your account. Or a widow’s pension can be added by executing a life policy that will allow the fund to return your selected benefits to your spouse.
If you travel abroad, you can draw your monthly income wherever you are by using an ATM card. This service is free from us, but you might suffer a small charge for other banks.
Our regulations are based on the international standard for controlling money transfers. All monies must come from a bank account that is registered to the individual buying the annuity or, in the case of a company purchase, must be covered by formal letters from the company as well as the beneficiary.
All payments will be registered to the individual who accepts responsibility for all tax liabilities thereon.
Payments can only be made to the individual owning the annuity; but in some cases we can transfer monies to a third party, subject to formal instruction and acceptance.
In the case of death, all benefits will cease and any over payments will be claimed from the estate.
If life cover is applied to this agreement, the life office giving cover should be notified at once in the case of death. Upon notification, Lon-Ist will pay all premiums and forward a receipt on the renewal date.
Widow’s benefits will be paid out from life cover settlements. A new stream of income could interfere with regular incomes, but we will make every effort to avoid this situation.
Bonus rates will be published two months before they are applied, but will only be paid at the end of the twelve month period.
Payment can be taken monthly, quarterly, bi-annually, or annually. All payments will be in arrears. On application the rates will vary slightly for each.
There is no joint life based annuity nor any method for company plans. All annuities are taken as sole life with additional benefits via life cover.
Company annuities for senior members can be taken, but each individual plan will be administered as a separate contract although from the same contributor.
Contributions
You can contribute into these annuities in 3 currencies, USDs, GBPs and Euros
All payments will be made in the currency you open your account in. You can switch currencies if you wish, but it may change the annuity rate.
There is no extra charge for withdrawal via ATM cards.
Fund Investments
The Lon-Ist annuity fund is based on a property portfolio dedicated to buying property for rent. We will restrict the portfolio to residential property for the time being, and will retain deposits equal to five years’ liabilities under our annuities.
We intend to hold each property and not offer it for sale, except where the sale price is over current values.
Our properties are placed around the world, not restricted to specific countries or regions. Potential purchases are judged by the financial benefit to the fund in view of the local housing market. Lon-Ist intends to ensure a good income to fund beneficiaries by offering good quality housing to renters.
Taxation of the fund is the responsibility of Lon-Ist, whilst the beneficiary is required to deal with his or her own tax situation.
The contract can not be used for any form of collateral nor be transferred to another person. It is strictly for the benefit of the owner.
The contract is non-regulated, therefore is free from additional costs.
Once contracts are signed and monies paid over, Lon-Ist will give no other returns than what has been specified as part of the agreed and signed contract.
Upon Death
On the death of the contract holder, all funding will cease and any over payments should be returned. The month in which death occurs will be considered the last month for payment, which will be paid on the following month to the estate of the deceased. The cash bonus will be calculated to the date of death and paid directly to the estate.
|
