If you’re planning to be saving for the rest of your working life – which you should be – then it makes a lot more sense to pick a duration which fits with your expected life plan than it is to keep starting, and finishing, a shorter term plan on a regular basis. There are two primary reasons for this:
- Bonuses – the longer your plan duration is, the higher bonuses you will receive
- Costs – the longer your plan duration is, the lower the costs are on an annual basis
This is simply because Investors Trust, and every other company, would much rather have you as a customer for as long as possible, and therefore incentivises you to pick a longer duration, just like any other product or service, such as phone contracts or even rental agreements, in some cases.
Remember to pick the duration which suits your financial plan best – bonuses are great, a proper financial plan which optimises your finances is even better. Create your own plan, stick to it, and take any bonuses which come your way. Don’t go chasing bonuses just for the sake of it!