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Things you should read before buying an endowment plan

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Old 27-01-2018, 10:56 PM   #901
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Experts,

My hb bought a Manulife ReadyBuilder endowment plan.

He's thinking about it over the free look period.

I'm wondering if its worthwhile too.

Pay $30k per year for 5 years.

Projected returns about $211k by 15th year.

Any Thoughts?

Thank you.
Google the meaning of projected
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Old 27-01-2018, 11:04 PM   #902
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$150,000 investment for a return of $211,000

Believe the CAGR is around 2-3%

And, the projected returns you mentioned should be the non-guaranteed portion at 4.75% ?

Yes, roughly....
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Old 27-01-2018, 11:39 PM   #903
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Experts,

My hb bought a Manulife ReadyBuilder endowment plan.

He's thinking about it over the free look period.

I'm wondering if its worthwhile too.

Pay $30k per year for 5 years.

Projected returns about $211k by 15th year.

Any Thoughts?

Thank you.
I went to generate a BI for it,

Pay around $29,991 for 5 years, amounting to roughly $149,956.
By 15th year, the guaranteed return value is at around $158,145.
3.25% Non-Guaranteed at $175,469,
4.75% Non-Guaranteed at $204,855.

This plan is meant to hold out till very long period without need of touching those monies.
Even if not touching them, you should look for one that provide a high Guaranteed return at the very least.

Not a good plan if you are looking at short/Mid-term horizon.
Many other endowment plans / investment channels out there if you are looking to park money for that time horizon.
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Last edited by mSnooze; 27-01-2018 at 11:44 PM..
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Old 27-01-2018, 11:50 PM   #904
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I went to generate a BI for it,

Pay around $29,991 for 5 years, amounting to roughly $149,956.
By 15th year, the guaranteed return value is at around $158,145.
3.25% Non-Guaranteed at $175,469,
4.75% Non-Guaranteed at $204,855.

This plan is meant to hold out till very long period without need of touching those monies.
Even if not touching them, you should look for one that provide a high Guaranteed return at the very least.

Not a good plan if you are looking at short/Mid-term horizon.
Many other endowment plans / investment channels out there if you are looking to park money for that time horizon.
Q1) What is considered high guaranteed returns? Which company/plans will offer high guaranteed returns?

Q2) What endowment plans will have good returns since you said there are others (or investment channels) ?
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Old 28-01-2018, 12:07 AM   #905
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Q1) What is considered high guaranteed returns? Which company/plans will offer high guaranteed returns?

Q2) What endowment plans will have good returns since you said there are others (or investment channels) ?


See what you want, then I can recommend.

but best is BTIR.
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Old 28-01-2018, 12:08 AM   #906
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See what you want, then I can recommend.

but best is BTIR.
BTIR = invest.

Since when does investment gives high guaranteed returns? I would be very interested if you have something good to share.
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Old 28-01-2018, 12:11 AM   #907
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BTIR = invest.

Since when does investment gives high guaranteed returns? I would be very interested if you have something good to share.
Since when I said BTIR gives high guaranteed returns?
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Old 28-01-2018, 08:45 AM   #908
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Yes, roughly....
Not worth it...Furthermore your money is locked in the policy for 10 years
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Old 28-01-2018, 11:31 AM   #909
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I was also telling my hb. Pass the $30k per year to me to invest STI ETF and ABF ETF using Shining's 110 ratio, might get better returns!!

But then again its not guaranteed returns. Haha.

However Blue chips (STI) and Singapore Bonds should be relatively stable for the long term!!

Last edited by cheery; 28-01-2018 at 11:39 AM..
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Old 28-01-2018, 11:49 AM   #910
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I was also telling my hb. Pass the $30k per year to me to invest STI ETF and ABF ETF using Shining's 110 ratio, might get better returns!!

But then again its not guaranteed returns. Haha.

However Blue chips (STI) and Singapore Bonds should be relatively stable for the long term!!
u can build your own endowment with SSB and ETF.
For example, u can diy a 10 year endowment by building a portfolio with 80% SSB and 20% ETF.

The 80% SSB will ensure ur principal are protected while the 20% ETF will help u generate extra returns.

this is essentially the structure of a typical endowment that insurers offer.
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Old 28-01-2018, 12:29 PM   #911
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u can build your own endowment with SSB and ETF.
For example, u can diy a 10 year endowment by building a portfolio with 80% SSB and 20% ETF.

The 80% SSB will ensure ur principal are protected while the 20% ETF will help u generate extra returns.

this is essentially the structure of a typical endowment that insurers offer.
Sorry, offhand can't remember what's SSB? Is it Singapore Savings Bond?

Btw, there are perks given :

$1,200 cashback

$2,000 discount off first year premium.

8.88% p.a FD for 3 months (CNY Promo) based on the premium paid

$1,500 (HB can't remember what's that for)


With the above perks, is it still worthwhile?

Last edited by cheery; 28-01-2018 at 01:25 PM..
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Old 28-01-2018, 02:11 PM   #912
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Sorry, offhand can't remember what's SSB? Is it Singapore Savings Bond?

Btw, there are perks given :

$1,200 cashback

$2,000 discount off first year premium.

8.88% p.a FD for 3 months (CNY Promo) based on the premium paid

$1,500 (HB can't remember what's that for)


With the above perks, is it still worthwhile?
The Manulife endowment offering all these perks ?

Fixed Deposit ?
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Last edited by mrclubbie; 28-01-2018 at 02:13 PM..
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Old 28-01-2018, 04:10 PM   #913
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The Manulife endowment offering all theseuj perks ?

Fixed Deposit ?
Yesh.


The DBS RM he met indicated these perks.
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Old 28-01-2018, 04:13 PM   #914
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cheery, don't be too focused in STI or local stocks. Go international.
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Old 28-01-2018, 04:19 PM   #915
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cheery, don't be too focused in STI or local stocks. Go international.
Hehe.
I know.

Read the Shining's thread previously.

Yet to buy his book.

Will do so soon.

Since I'm gonna start my own investing journey soon!
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