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Can I get some advice please :(

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Old 29-11-2019, 08:54 PM   #1
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[thread closed]

Thread closed thank you!

Last edited by arasso; 03-12-2019 at 09:58 PM..
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Old 29-11-2019, 09:16 PM   #2
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My agent recently scolded me for letting my money rot and asked me to sign up for this plan: https://www.axa.com.sg/savings-inves...erate#coverage

Brochure here
AXA Wealth Accelerate is a ILP

min $300 a month ! ... that's 10% of your monthly salary !

ask the agent what's the bid-offer spread of a typical fund

the catch is the big fat commission the agent is guaranteed to get from closing the deal

... stay far far away from this and the agent

if u have $300 a month to spare, topping up your CPF SA for guaranteed 4%pa would be better choice (among others) compared to an ILP

Last edited by oceanicmanta; 29-11-2019 at 09:26 PM..
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Old 29-11-2019, 09:16 PM   #3
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Cant help you much in term of investing.
but for insurance, i can tell you with confidence from personal experience that the single most important one is hospitalization coverage.
get coverage early when there is no exclusion and hold on to it.
Personal accident coverage next, followed by Term Insurance if you have dependents.
those CI, early CI, disability income etc are really optional stuff.
buy insurance from insurance co.
buy stocks from stock market.
deposit $ in banks.
no one should be going to the meat seller to buy seafood
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Old 29-11-2019, 09:35 PM   #4
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beware this type of agent only wants to leech from you and earn commission, doesn't care if you earn or lose money.
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Old 29-11-2019, 09:51 PM   #5
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1) Am I underutilising my money now? Should I continue waiting for an economic downturn like my dad said, or invest now to take advantage of compounding? If now, how should I portion my investments for a 10-year horizon?
It is always best to invest when the crash comes. The problem is that no one knows when the crash will come.

There are some who have been predicting a crash since 2017 or earlier. If they waited for the crash, they would have lost out on all the gains over the past few years.

Say the overall gain for the past 2 years were about 40% (I doubt, but assume...), even if the market crashed now by 20% and they bought at the bottom, they would have still lost out.

Will the market still rise so high from now until the next crash? I have no idea. But food for thought yah?

And when the downturn comes, will a new investor have the guts to throw in all his money? That can be tough too.

If you have similar concerns, some form of regular, automatic investing might work for you.
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Old 29-11-2019, 09:53 PM   #6
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1) Why don't you increase your monthly RSP?

2) Run away from the agent.

3) You should view insurance as an expense. In this way, you are only paying for pure insurance.

If you want cashback or premiums to be returned back, then obviously insurance companies must charge you in the form of insurance + savings and bake it into higher monthly premiums for you.

Paying telco bill is also another expense. You don't get back anything from the monthly bills. Isn't it?
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Old 29-11-2019, 10:19 PM   #7
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Luckily, I have hospitalisation insurance from AIA which is paid for by my dad's Medisave as of now. Term insurance was signed under this agent, but I find it really expensive at $100/mth with Multi-pay CI. It's the Aviva 1.1 million one.

How is your CI coverage like? Or do you think death + TPD coverage is enough?
Im paying ~2600/yr for a ILP for death, tpd, ci at 200K. 10yrs old policy. Now it has just break even, will be surrenderring it.
Other than that no other CI.
Your CI looks like a rider. Can drop it from your main policy.
Some CI pay out only at stage 3 of the illness. By that time, i thing is abit toi late already.
Althought early CI pay out much earlier like stage 1 or 2, the premium is too expensive.
You should get the most extensive coverage of hospital policy.
Im on the As Charged private hospital policy that is no longer available now due to govt new policy.
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Old 29-11-2019, 10:26 PM   #8
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How much would you recommend I increase my RSP to? I have been hesitating because Nikko am seems like at a high point now, but I guess that's the whole point of DCA

Thanks for the perspective on the insurance.
You can also consider ETFs like the Nikko Straits Trading REIT or go globally with IWDA.

How much to increase is entirely up to your risk tolerance and allocation that you are comfortable with.
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Old 30-11-2019, 12:52 AM   #9
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I'm with this agent because at least she recommended Term instead of Whole life, and she's an IFA. So far I've managed to fend off her ILP recommendations, and I honestly don't have many other choices lol, my friends in insurance are all AIA and also recommend me ILP.

I think as long as I know what I'm signing into, should be fine Plus she is quite proactive, if anything happens, at least she will follow up properly.
You DO NOT KNOW what you are signing into. An ILP come with many layers of fees and your insurance agent is not telling the whole picture.

She will follow up properly until she doesn't. Don't be naive, they are all trying to earn your money, that's all. They are not trying to help you, you need to help yourself.
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Old 30-11-2019, 12:58 AM   #10
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I'm with this agent because at least she recommended Term instead of Whole life, and she's an IFA. So far I've managed to fend off her ILP recommendations, and I honestly don't have many other choices lol, my friends in insurance are all AIA and also recommend me ILP.

I think as long as I know what I'm signing into, should be fine Plus she is quite proactive, if anything happens, at least she will follow up properly.
sounds like u alrdy signed?
is it still within cooling period? u can terminate it....
dun be stupid to sign a ILP...such plans only benefits the agent, not you
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Old 30-11-2019, 01:00 AM   #11
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How much would you recommend I increase my RSP to? I have been hesitating because Nikko am seems like at a high point now, but I guess that's the whole point of DCA

Thanks for the perspective on the insurance.

I understand CI is for covering your lost income when you are sick - it's just that an extra $60-70/month feels so expensive when considering that it's money I'm not getting back + the coverage of $200,000 is not that high either. Doesn't help that the industry is so opaque that I can't find much information what people my age pay on average for Term Death + TPD + CI coverage. The people around me all are getting Whole life, which is
Buying whole life insurance simply mean you loan a big sum of money to these insurance coy and in return they give your some insurance coverage as interest. Why would you want to do that when you could have invested the money yourself and use the returns to pay for the insurance yourself?
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Old 30-11-2019, 02:40 AM   #12
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The agent you mentioned is mostly just an insurance salesperson who sell products originated from the insurance company, he/she may not have the knowledge to recommend or sell investment products to clients without a certification.

I quote this from the MAS Financial Act (CAP.110):

"Any representative of a financial adviser who provides any financial
advisory service concerning securities (excluding collective investment
schemes) shall pass Module 5 and Module 6. With effect from 1 January 2012,
in the case where the representative provides any financial advisory service
concerning securities (excluding collective investment schemes) that are
Specified Investment Products, such representative is also required to pass
Module 6A."

Do ask for the certification of your agent for the above mentioned modules.


For more information, go and read this document from MAS for more info https://www.mas.gov.sg/regulation/ac...l-advisers-act

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Old 30-11-2019, 03:29 AM   #13
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Depends on your risk appetite, now you are probably not so sure. Maybe can leave whatever you have in Ssb and FD alone; only when you decided what you want, then can consider reallocate. The dbs account 50% as emergency fund and 50% as warchest. For me, assuming my portfolio is 100k. I plan to have 20k sti etf 20k iwda 10k on 2 different reits, 10k on 2 different blue chip, 10k warchest ,30k bonds. So even if sti etf kaboom drop by 10k, I will only loose 10% of my portfolio on paper; I won't panick and sell , making it a real lost. Quite hard to be zhunzhun. Just try to stay as close as planned. Your portfolio allocation depends on your risk appetite. Identify your risk appetite over time, decide and diversify your portfolio .Then every year just reaccess and rebalance. Anyway don't ganchiong too much to invest. At your age, better to focus on earning more $$$. Dca and invest slowly. It's different for everyone. If you speak to some, especially entrepreneurs, getting 3-7k passive income out of a 100k portfolio is totally waste of time. It's natural for agent to talk like champion, it's their job to do so. But if you want can challenge them , ask them to reveal their portfolio and how much they are getting out from it.

Last edited by pylpoh; 30-11-2019 at 03:42 AM..
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Old 30-11-2019, 03:33 AM   #14
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do not invest in the ILP, the funds can have bad performance and you will be tied down.

i would suggest investing into roboadvisors, start very small so u gain a better understanding of how it works. you can still partially follow ir dad's advice by keeping part of ur funds in liquid deposits
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Old 30-11-2019, 07:36 AM   #15
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I know many ppl had said alrdy but pls dun buy the insurance, no matter how good it may seem to u.

Usually i wun recommand this but u mentioned u have no cpf contribution. U should contribute a bit into medisave. If your medisave dun have enough to give the annual premiums such as medishield life and careshield life (age 40), u may get into serious trouble wor.

Your $3k monthly income is counted as salary by dbs multiplier?

To follow your dad's advice, dun touch your ssb. Anyway, it has the highest yield among those u r having. If market really crash, u can sell ssb to buy shares. Earning >2% then shouldnt be too difficult. U may keep $500 per bond if u using it for dbs multiplier bonus.

When the fd matures, invest the amount elsewhere. Even put in your dbs multiplier is much better.

Monitor your posb IS to see if dca is good or suitable for u. If u get more than ssb, then keep it up or contribute more. Otherwise, just take it as a regular saving lor.

Last edited by wutawa; 30-11-2019 at 08:26 AM..
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