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Things you should read before buying an endowment plan

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Old 22-06-2016, 08:08 PM   #601
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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.
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Old 22-06-2016, 08:24 PM   #602
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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.
So you're saying it's a good comparison to make because although it is an anticipated endowment, I choose to reinvest the funds although they will still perform worse than a traditional endowment.

Moreover, with the CAGR figures such as his 9.2% on ETF and 2.4% on SSB weighted, we still barely won over an anticipated endowment.
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Old 22-06-2016, 09:09 PM   #603
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http://www.straitstimes.com/forum/le...regular-review

My 10-year endowment policy recently matured and the return received is lower than the total premium paid over the 10-year period. This is partly because there were charges for investment fund management and insurance mortality, as well as an administrative fee.

Monday's report is timely, as it serves to remind regulators that the interest-rate environment has changed and there is a need to regularly review projected returns, to prevent more retail investors from being lured with false expectations.

this is partly you do not know about the product itself before you get it, or maybe you didnt know there's some other products that gives guaranteed returns more than premium paid. and/or probably you were misled i dont know. previously i've shown you a screen shot of a policy.

For that plan i showed you, it is a guaranteed returns of more than the premiums paid, means CONFIRM + CHOP GET BACK MORE THAN WHAT YOU PAID. (YES GUARANTEED MEANS ITS CONFIRM YOU WILL GET THE AMOUNT SHOWN AND WHATEVER FEES THERE IS HAVE ALREADY BEEN FACTORED IN.) this is call guaranteed. in short, whatever guaranteed amount is shown there is what you will get. black and white no hidden things. this is different from non-guaranteed. get it?

cause from your previous reply to my post you seem that you don't exactly know what is guaranteed and non-guaranteed in policy terms.

not trying to target you, but i hope i clarify to you what does guaranteed means.
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Old 22-06-2016, 09:50 PM   #604
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Thread closed for review.

Edit: Thread reopened.

Discuss the points of the policies instead of shooting each other. Remember there is the ignore option.
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Last edited by Perisher; 27-06-2016 at 01:22 PM..
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Old 27-06-2016, 03:16 PM   #605
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Ah. Thread unlocked.
Thanks mod.
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Old 27-06-2016, 06:14 PM   #606
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Perisher, no sticky of thread ?
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Old 27-06-2016, 06:15 PM   #607
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I agree the thread title abit too negative and extreme to be sticky.

I don't mind if he change to something like
"Things you should read before buying an endowment plan" then sticky.
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Old 27-06-2016, 06:53 PM   #608
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Just stop all the arguments. There will be no end.

Post more real life numbers for everyone to see. Let the numbers speak for itself.
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Old 27-06-2016, 07:04 PM   #609
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Yes working on it.

But the information on the first post is enough to overload a man on the street already
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Old 27-06-2016, 08:46 PM   #610
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any one sold off their endowment policies before?
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Old 27-06-2016, 08:48 PM   #611
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any one sold off their endowment policies before?
Yes, me. Surrender counted?
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Old 27-06-2016, 09:28 PM   #612
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I agree the thread title abit too negative and extreme to be sticky.

I don't mind if he change to something like
"Things you should read before buying an endowment plan" then sticky.
Yes, I agree with you on the thread title.
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Old 27-06-2016, 09:29 PM   #613
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Yes, me. Surrender counted?
No la. I asking about selling to other companies. Not surrendering. Haha
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Old 04-07-2016, 09:55 PM   #614
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http://investmentmoats.com/uncategor...tment+Moats%29
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Old 04-07-2016, 10:13 PM   #615
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Yup, been through this, started this thread.

I took it as a $6k lesson in why you should not buy endowment/Ilp.

If I successfully pass this knowledge to enough people, and hopefully my future generations, then this 6k is werf it
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