Jargon Buster
Or to put it simply ... some of the terms explained in plain English:
Bond
Our Bond aims to achieve long-term capital growth by investing your money in the Foresters Friendly Society With Profits Fund.
Lump Sum Contribution
You can invest a one off amount into your Bond ranging from £1,000 to £50,000. No additional contributions can be made.
Tax
Your Bond has the potential to grow your savings free of immediate liability for basic rate Income Tax and Capital Gains Tax. Higher rate taxpayers may be liable to tax when they cash-in their Bond. You should bear in mind that the favourable tax treatment of Bonds might change.
With Profits Fund
A fund that invests in a balanced mix of investments such as property and stock market investments. In good years, we may hold back some of the return and use it to top up bonuses in years when the fund performs less well. This is called "smoothing".
Annual bonuses may be declared annually and possibly a final bonus may be added at the end of the plan. Bonuses are not guaranteed and will depend on the future performance of the With Profits Fund and how we decide to distribute any profit.
