Darkzi0n
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So your this pic is STI ETF or STI + SSB?
You didn't label it as anything I just took the last figure as STI CAGR for those years as we were on the topic of STI.
At any rate,
He uses STI ETF as 9.2%
So like I said, if you use those past figures, then you will outperform the endowment in question. This is a no brainer.
However, if we apply this strategy today, with SSB being close to 2% and CAGR for ETF is 4-5% and a fee of about $75 inclusive of the insurance charge, does it still outperform the past 10 year average CAGR of 4-5% of insurer's funds? (Prudential is 5.2% for 2005-2014 for example, and the only 10 year record I have on hand at the moment). And yes, I know that what the insurer get is not what you will get, lets say 3+%?
All in all, I think they may be pretty similar, but at the same time, do take note that revosave is an anticipated endowment. The policy owner has given up additional growth for the ability to withdraw part of his savings if he chooses to. The projected from anticipated endowments are always lower than traditional endowments because of this feature, hence we are already using a 'bad' endowment for the comparison but still coming out rather similar compared to a DIY.
Remember also that for endowments, we would have declared the non guaranteed bonuses on a yearly basis and will form part of your new guaranteed amount. This is key because we will not be so affected if markets drop by 50% on the last year, as compared to DIY where your equities will tank hard.
STI + SSB. the figures are there for u to see, u can check by simply pressing a calculator which u didnt even bothered to do so. even without pressing a calculator, anyone with any remote sense of number can tell year end 1.84, year start 3.64 will not give u a -6.8% return. and i have included the reason y i did not get the same figure as the author which clearly imply it is STI + SSB.
for the 9.2% im jus going to take it u are too stupid to understand. im sure the rest of the ppl here get wat is going on.
and yes it is anticipated endowment, but the illustration shows the result where the funds are re-invested.