Pulsar start up bonus 174%

[Perisher]

Direct copy paste from the brochure

Start-up Bonus = Regular Premium payment for 1st policy year x applicable
Start-up Bonus rate x Premium Payment Term
Illustrative Example:
Premium Payment Term 30 years
Monthly Regular Premium SGD 1,000
Applicable Start-up Bonus rate 4.8%
---------------------------------------------------------------------------------------------------------------------------------------------------------
If the Regular Premium is paid on a monthly basis, the Start-up Bonus
payable upon each Regular Premium payment = SGD 1,000 x 4.8% x 30 =
SGD 1,440
---------------------------------------------------------------------------------------------------------------------------------------------------------
Total Start-up Bonus payable = SGD 1,440 x 12 = SGD 17,280
For full details on the applicable Start-up Bonus rate, please refer to the
Pulsar product summary

SO you choose to ignore all the bad points and only focus on the bonus?
edit: so you only answered limster.

 

[Perisher]

In case you didn't see this, I will paste this reply again.
Here is Shiny Things' take on the matter... Not updated but I suppose, nothing has changed since the product lauched.

Good god, dude. Have a look at the fee list:

• Account Maintenance Fee: 4.0% per annum / 12 of account value of first 18 months premium
• Investment Maintenance Fee: 1.5% per annum / 12 of total account value
• Administrative Fee: SGD 10 / USD 8 per month
• Policy Maintenance Fee: 0.5% per annum / 12 x initial annual Regular Premium x No. of year(s) for which policy has been in force
• Insurance Charge: For Enhanced Death Benefit only.
• Early Encashment Charge (EEC): Account value of first 18 months premium x EEC%
• EEC%=100% for first year; the rest is with reference to number of years in remaining premium payment term years.
• Management Charge: According to the investment-linked policy sub-fund you choose. Details can be found in the Fund Summary.
• Switching Fee: None

So for the first two years or so, you're paying 5.5% on the account maintenance fees and investment maintenance fees. After that point, it drops to "just" 1.5%.

But then a Policy Maintenance fee starts to kick in, because you haven't charged enough already! By the time the policy reaches its 20th year, you're paying ten percent of every new dollar you put into the account in fees. That is an absolute disgrace.

And then on top of that the client's being directed into ridiculously high-cost funds (2% per annum is stupidly high).

And if you want to make a top-up investment, you get charged five percent on that extra money. Five percent brokerage! If I charged anyone five percent when I was working in a bank they'd have hung up the phone and never dealt with me again.

This is a bad product. This is convincing people that they're being smart and sensible investors by starting a regular savings plan, and then bending them over and screwing them.

 

[reinphd]

TS,

You're not the first and neither will be the last to post about ILP. The truth is, never ever it will be better than self investing etf because of all the charges incur unless for some godforsaken reason the fund has like some double digits growth. But logically and statistically speaking, a simple etf investing will beat this hands down. However, there will still be a market for this. It's good that many people ask you questions here so you can hone your skills and knowledge regarding this product, and we get to understand all the charges ILP imposes and newbies will learn as well. Just don't hope to sell your products here. Win win situation to both sides. You uncover more knowledge on it, we know how not good it is to buy ILP

Sent from Samsung SM-G900F using GAGT

 

[RuiRui88]

Actually l don't see l promote ILP here, if l want to promote, l won't mention about its disadvantage when compared to unit trust, and the advantage of unit trust compared to this ILP.

If people are buying shares, people may not have a look at ilp.
If people are buying shares, people may not have a look at unit trust.

So,at very first place, l compare the difference between ILP and unit trust. l did not ignore the charges, l listed down all the charges.

But there are still people buying or intend to buy Ilp. Just try to write what l know. l think people who are buying unit trust can try to compare.

As one can see, l open to feedback and suggestion, and l admit my mistake. Anyone view later not sure what the mistake l make, l mistaken about the minimum trading lot to invest in NYSE as 100 lot,so l use 100x 297.05= USD29705, so l thought one need $29705 to invest in Actavis, the top holding of Pictet Generic Fund. But, others are kind enough to pin point my mistake. And, they are kind to tell me l shouldn't delete my wrong statement, but l already delete,so l make the above statement again and add on the reason for edit in the original post.

To answer the question, the brochure is 144%, 174% is the limited time promotion, hope it clarify your doubts

 

[archcherub]

TS,

You're not the first and neither will be the last to post about ILP. The truth is, never ever it will be better than self investing etf because of all the charges incur unless for some godforsaken reason the fund has like some double digits growth. But logically and statistically speaking, a simple etf investing will beat this hands down. However, there will still be a market for this. It's good that many people ask you questions here so you can hone your skills and knowledge regarding this product, and we get to understand all the charges ILP imposes and newbies will learn as well. Just don't hope to sell your products here. Win win situation to both sides. You uncover more knowledge on it, we know how not good it is to buy ILP

Just in case people considering this don't get it.

 

[Perisher]

Actually, most importantly, what is so good about Pulsar VS DCA index ETF?

 

[RuiRui88]

TS,

You're not the first and neither will be the last to post about ILP. The truth is, never ever it will be better than self investing etf because of all the charges incur unless for some godforsaken reason the fund has like some double digits growth. But logically and statistically speaking, a simple etf investing will beat this hands down. However, there will still be a market for this. It's good that many people ask you questions here so you can hone your skills and knowledge regarding this product, and we get to understand all the charges ILP imposes and newbies will learn as well. Just don't hope to sell your products here. Win win situation to both sides. You uncover more knowledge on it, we know how not good it is to buy ILP

Sent from Samsung SM-G900F using GAGT

l appreciate your reply. Yup, that is what l think, give a different view and add in some value.

Self investing is after all the best. l do agree. l never try to persuade the investor here to buy into the product or give up the self investing.

You are true, there will still be market for this because of different needs.

 

[Perisher]

Why introduce a product here which is inferior instead of promoting DCA ETF? why give more inferior options? No point doing that.

I can introduce toto, just a few dollar can win millions. What's the point?

 

[havetheveryfun]

Actually, most importantly, what is so good about Pulsar VS DCA index ETF?

so far, the only reason he has given seems to be that it would be "hands-free" and automatic. but now there is posb invest-saver and OCBC blue chip program and POEMS share builder, so that argument is not that useful anymore ...

 

[RuiRui88]

Pulsar is one hell of a EXPENSIVE product.
If u breakdown the cost part by part and do ur math, the fees can easily add up to >5%/yr if u just invest the bare minimum of $250/mth.

ya..true...but 5.5% is not the total account value. 4% for 18 month and 1.5% for total account value. l counted it before step by step add on the bonus,and minus all the charges (1.5% of total account value, 4% of first 18 months, $120, 0.5%) if one can get 9% every year, after compounding every year, despite all the charges l mention above, one will get $187800 profit after 30 years, 209% over 30 years,around 7% each year.

Of course, there is no guaranteed of 9%, it can be higher or lower.
Again, if one can invest and able to invest in your own for 9%, do your own, do it yourself. The compounding effect will be higher.

 

[winedz]

ya..true...but 5.5% is not the total account value. 4% for 18 month and 1.5% for total account value. l counted it before step by step add on the bonus,and minus all the charges (1.5% of total account value, 4% of first 18 months, $120, 0.5%) if one can get 9% every year, after compounding every year, despite all the charges l mention above, one will get $187800 profit after 30 years, 209% over 30 years,around 7% each year.

Of course, there is no guaranteed of 9%, it can be higher or lower.
Again, if one can invest and able to invest in your own for 9%, do your own, do it yourself. The compounding effect will be higher.

So how much is the charges in the whole 30 years?
Have you calculated if let's say all the charges are cut to half, how much is the return?

 

[AhPek_Lion]

ya..true...but 5.5% is not the total account value. 4% for 18 month and 1.5% for total account value. l counted it before step by step add on the bonus,and minus all the charges (1.5% of total account value, 4% of first 18 months, $120, 0.5%) if one can get 9% every year, after compounding every year, despite all the charges l mention above, one will get $187800 profit after 30 years, 209% over 30 years,around 7% each year.

Of course, there is no guaranteed of 9%, it can be higher or lower.
Again, if one can invest and able to invest in your own for 9%, do your own, do it yourself. The compounding effect will be higher.

The killer for low premium is the admin fee of $120/yr. Assuming i invest the minimum of $3000/yr, admin fee would already comprise of 4% and on top of that the 1.5% of account value (which is compounding since the account value will only get higher). It already makes up 5.5% lost.

To make it even more complicated, there is an additional 4% charge for the first 18mths...meaning 9.5% lost for first 18mths. Do correct me if i am wrong.

The fees really scare me when the AXA agent introduced this plan to me. End of the day, i did not sign up cos it doesnt seem as straightforward and 30yrs is a long long long time

 

[RuiRui88]

So how much is the charges in the whole 30 years?
Have you calculated if let's say all the charges are cut to half, how much is the return?

Charges in the whole 30 years depend on the account value. Erm.. if for the above example, 9% performance compounded year to year over 30 years, we get 7% year to year in the end.We can say that roughly 2% goes for charges.

l never calculated where all the charges cut to half, how much is the return. Mind to share why you want to know the return for half charges? If want to calculate for unit trust, can calculate the return as well using the same method, minus all the charges before taking into consideration the yield.

No doubt that if one invest in share and get 9% every year for 30 years, the amount will be $350K.

That's is why if one master in shares, one may not interested in ILP.

 

[havetheveryfun]

Charges in the whole 30 years depend on the account value. Erm.. if for the above example, 9% performance compounded year to year over 30 years, we get 7% year to year in the end.We can say that roughly 2% goes for charges.

l never calculated where all the charges cut to half, how much is the return. Mind to share why you want to know the return for half charges? If want to calculate for unit trust, can calculate the return as well using the same method, minus all the charges before taking into consideration the yield.

No doubt that if one invest in share and get 9% every year for 30 years, the amount will be $350K.

That's is why if one master in shares, one may not interested in ILP.

if it is so difficult for an individual to get 9% returns yearly, why are you confident that this policy can achieve it ? are the fund managers geniuses ?

 

[RuiRui88]

The killer for low premium is the admin fee of $120/yr. Assuming i invest the minimum of $3000/yr, admin fee would already comprise of 4% and on top of that the 1.5% of account value (which is compounding since the account value will only get higher). It already makes up 5.5% lost.

To make it even more complicated, there is an additional 4% charge for the first 18mths...meaning 9.5% lost for first 18mths. Do correct me if i am wrong.

The fees really scare me when the AXA agent introduced this plan to me. End of the day, i did not sign up cos it doesnt seem as straightforward and 30yrs is a long long long time

Is not 9.5%.

let's say after 5 years your premium is $15,000. It grow to $20,000 value. The charges for the fifth year will be the sum of
1) 4% of your first 18 months
First 18 months premium is $4500, this amount grow to $6000 after 5 years, then your charges for fifth year under this category will be $6000*0.04
2) 1.5% of your account value
20000*0.015
3) $120 yearly admin fee

l did not count in bonus yet as l don't want confuse to you.

Hope it clarify your doubts

 

[RuiRui88]

if it is so difficult for an individual to get 9% returns yearly, why are you confident that this policy can achieve it ? are the fund managers geniuses ?

Nope, l did not say l am confident.

There are 77 funds inside, which the highest performance since inception is 27.10% and the lowest performance is -25.30%, l don't want to be bias in my calculation so l take the average performance of all the 77 funds. That's why l get the 9%. If l take 1 year average would be 14%, but l don't want to use 14% in my calculation.

Of course, this is not guaranteed at all.
Most importantly, past performance does not indicate the future performance, this apply to all investment tool

 

[limster]

Is not 9.5%.

let's say after 5 years your premium is $15,000. It grow to $20,000 value. The charges for the fifth year will be the sum of
1) 4% of your first 18 months
First 18 months premium is $4500, this amount grow to $6000 after 5 years, then your charges for fifth year under this category will be $6000*0.04
2) 1.5% of your account value
20000*0.015
3) $120 yearly admin fee

l did not count in bonus yet as l don't want confuse to you.

Hope it clarify your doubts

Maybe this product will become a case study in some MBA or marketing class as a negative demonstration for marketing of financial product. I read the product information get headache already.

Have 4 different charges to confuse customers.
Account Maintenance Fee
Investment Maintenance Fee
Administrative Fee
Policy Maintenance Fee

Customer see so many fees, immediately think its very expensive (which is true).

 

[RuiRui88]

Actually, most importantly, what is so good about Pulsar VS DCA index ETF?

l try to answer your question. Feel free to correct me if l am wrong . Erm..is your DCA index ETF refer to STI ETF??

For my own opinion, pulsar should compare with unit trust with similar charges.

Instead of comparing pulsar with STI ETF, l think is better to compare it with AXA Fortress Fund A, which is a single ILP. AXA Fortress Fund A invest in companies listed in main board of SGX. Its annual compounded return is 13.44% since launch.

 

[RuiRui88]

Maybe this product will become a case study in some MBA or marketing class as a negative demonstration for marketing of financial product. I read the product information get headache already.

Have 4 different charges to confuse customers.
Account Maintenance Fee
Investment Maintenance Fee
Administrative Fee
Policy Maintenance Fee

Customer see so many fees, immediately think its very expensive (which is true).

haha.. is true... is a bit confusing...l myself also very confuse about the charges at first..
But l must understand on behalf of my client, it took me a long time and do at least 7 to 8 excel spreadsheet to the final outcome
Sometime l spend half day to do the excel spread sheet,turn out l seem like doing wrong..is quite frustrating too..but l carry on to do the new one...
For me, l must think on behalf of my client...

Actually, l am very interested in the finance industry and really hope to add value in it. For term plan,whole life,ci,endowment plan,l also try to calculate many things on behalf of my client..the figures inside maybe some the financial planner also don't understand...l won't say l understand all too but l am exploring...haha

For insurance thread, l think Sg_life insurance had do a very good job...so, l did not start a new thread in insurance anymore

l am so happy that u give a smiley face to me. Thanks! l appreciate it.

 

[Perisher]

l try to answer your question. Feel free to correct me if l am wrong . Erm..is your DCA index ETF refer to STI ETF??

For my own opinion, pulsar should compare with unit trust with similar charges.

Instead of comparing pulsar with STI ETF, l think is better to compare it with AXA Fortress Fund A, which is a single ILP. AXA Fortress Fund A invest in companies listed in main board of SGX. Its annual compounded return is 13.44% since launch.

Basically, this is inferior to dca index ETF, it can be sti etf or S&p 500 etf etc...

The 9% average returns is cleanly returns only? Minus all the charges already?
DCA ETF average that amount every year including events like GFC, the average is still that.
Why leave it up to luck by picking among your 77 funds which can even produce -25% in a worst case scenario?

Since ILP n Unit trust is such bad product compare to DCA ETF, why bother?

Most ILP are crap, don't buy unit trust. Bad products are bad products.
Investment and insurance shouldn't mix.