AIA smart growth

[endlssorrow]

yearly payment of $3k for 12 years then let it accumulate to 24th year then can take out guarantee $46k. projected 3.75% is $18k and 5.25% is 35k.
exlcude projected, one will profit about $10k after left for 24yrs.

quite reasonable right? $36233 paid for 12yrs.

 

[Aerial86]

yearly payment of $3k for 12 years then let it accumulate to 24th year then can take out guarantee $46k. projected 3.75% is $18k and 5.25% is 35k.
exlcude projected, one will profit about $10k after left for 24yrs.

quite reasonable right? $36233 paid for 12yrs.

In my point of view I would not go into that.. 24yrs for 10k profit, not counting into inflation rate, I've already lost the opportunity cost and the liquidity of the $ where I can put it to better use..

And there are better instruments out there that I would use to generate better potential returns with $250/mth.. But of cause, for conservative people, it seems attractive..

 

[endlssorrow]

In my point of view I would not go into that.. 24yrs for 10k profit, not counting into inflation rate, I've already lost the opportunity cost and the liquidity of the $ where I can put it to better use..

And there are better instruments out there that I would use to generate better potential returns with $250/mth.. But of cause, for conservative people, it seems attractive..

i dont think $250 or $100 if go to POSB invest saver can profit $10k leh..what do u think?

 

[Darkzi0n]

10k is roughly 1.4% return p.a
18k is roughly 2.3x% return p.a

24 years is a long time to lock ur money for such a return.

10 years US bond is now 2.8%, 30 years is 3.9%...

i would rather top up my CPF, earn 4% and enjoy tax benefits... but thats jus me.

 

[endlssorrow]

if 10k divided 24yr I get $416 so called interests per year which is considered not bad liao.

buy yearly $3k, even if buy starhub dividend only $200 (ignore capital gain or lose)

 

[Darkzi0n]

if 10k divided 24yr I get $416 so called interests per year which is considered not bad liao.

buy yearly $3k, even if buy starhub dividend only $200 (ignore capital gain or lose)

u ignored the compounding effect for starhub. and the time value of money of getting the money every year vs getting it at the end of 24 years.

using CPF of 4% return.. ignoring the tax benefits, u would have make a risk free profit of 36k. but of cos the down side is u can onli withdraw them at the age of 55 (or higher) if u have more than enough to cover the min sum. (NOTE, im not familiar with CPF.. plz highlight if i made any mistakes)

also, the annualized returns of STI is 9.3% for the period btw 2002 and 2012. In addition there is still a 3% dividends.

 

[endlssorrow]

compounding effect got on impact for starhub? u mean
1st year $200
2nd year $200+$200?
and so on?

2. say I invest like this better: save enough for one lot first. now price is $4.2. so first year cant buy. gotta buy in 17th month. Then whatever the price of starhub up or down, I buy on xth month till I save up enough.
by 12th year, maybe I got 6-8lot which is much better?

 

[chopra]

10k is roughly 1.4% return p.a
18k is roughly 2.3x% return p.a

24 years is a long time to lock ur money for such a return.

10 years US bond is now 2.8%, 30 years is 3.9%...

i would rather top up my CPF, earn 4% and enjoy tax benefits... but thats jus me.

thank you for all the calculation.

 

[chopra]

using CPF of 4% return.. ignoring the tax benefits, u would have make a risk free profit of 36k. but of cos the down side is u can onli withdraw them at the age of 55 (or higher) if u have more than enough to cover the min sum. (NOTE, im not familiar with CPF.. plz highlight if i made any mistakes)

why not... pass the money to your papa mama and deposit in their cpf

 

[endlssorrow]

why not... pass the money to your papa mama and deposit in their cpf

u mean can deposit every month can put $250 also?
then when they above 55 then can take out?

 

[NiteX2]

yearly payment of $3k for 12 years then let it accumulate to 24th year then can take out guarantee $46k. projected 3.75% is $18k and 5.25% is 35k.
exlcude projected, one will profit about $10k after left for 24yrs.

quite reasonable right? $36233 paid for 12yrs.

I believe you are using the old projection. Current projection is based on 3.25% and 4.75%. It is still a good plan. Last I checked, the yield is slightly over 4% based on 4.75% projection over 24 years.

Regarding the CPF top up to your parents, it is a viable option if your parents' have already met the minimum sum for their accounts. It is a bit complex and I suggest that you read up more before going via this option.

 

[chopra]

u mean can deposit every month can put $250 also?
then when they above 55 then can take out?

there is a cpf formula that involves housing, sa/ra/ma; they need to meet minimum criteria to draw out. use the cpf minimum sum calculator to get an indicative number.

gl.

 

[chiokcc]

I thought the attractiveness for Smart Growth is more on the critical illness rider?

 

[infusionist]

Hi all,

Just to declare, i'm an AIA rep, but i will be unbiased to discuss this topic with everyone here.

1. AIA smartgrowth has death and TPD benefit from day 1. So even if you only save 3k for the first year and touch wood something happens to you, the 46k payout goes to you.

2. Critical premium wavier rider- pays for all your premiums if you are struck with any form on 29 CI. This literally pays for you, when your commitment is to recover from CI, where the expenses can be really high.

3. Returns ain't very fantastic tbh, but at least your guaranteed return on maturity is more than what you put in, compared to alot or similar plans in the market.On top of the projected 3.75 - 4.25 interest, it still makes decent returns compared to leaving it in the bank. Your commitment is only for 12 years premium, thereafter your money can be used elsewhere for other investments or savings. This is a "safe" option for risk adverse people who wants to get better returns in the long run and having a form of protection at the same time. Beating inflation may not be easy, but if your objective is such to get a "safe" form of returns with no worries, it'll be the best option.

The question you would need to ask yourself is what kind of risk can you take. the basic: "no risk, no return. high risk, high return or high losses"

Darkzi0n did stress valid points in STI and US bonds giving good returns over a stretch of time. This gives you another alternative to invest your money. US Bonds has currency risks while STI will go through cycles of economic boom and recession. not for the faint hearted.

A really good option you may want to consider is splitting them. Doing saviings and also investing. Diversify your risk and also try to get better returns while having to know you have something if the worst happens.

As for the CPF funds, lol...they change the rules whenever they like. Increasing their yearly limits and now they drip you dry..becoming a Children Provident Fund already when if other than buying a house, only your children will be able to use it in the future.

The returns of 4% and 2.5% are fairly stable, but its always good to leave your options open for other form of investment returns. Etc., for year 2013, US funds and Japan Funds gave around 15-20% returns this year. That'll take 4- 7 years for a normal CPF funds to build in 1 year. However, these kind of returns don't happen all the time so its good to know when is enough and exit it once you make some good returns. Again, this ain't for the faint hearted as well.

Hope this helps to give you a clearer idea of what you're looking for.

 

[chopra]

aia agent, pls provide the underlying of this product. pls substiante "alot" in point 3.

how about comparing this product with SGD bond? your view?

what's wrong with cpf funds? if you breech the minimum, u can take out extra.

why you talk about us and japan funds when you had already mentioned abt currency risk.

 

[tiny]

How is this compared against Tokio Marine Retirement Nest policy?

 

[infusionist]

aia agent, pls provide the underlying of this product. pls substiante "alot" in point 3.

how about comparing this product with SGD bond? your view?

what's wrong with cpf funds? if you breech the minimum, u can take out extra.

why you talk about us and japan funds when you had already mentioned abt currency risk.

Chopra, no offence, you can do your own market research and compare similiar plans for yourself for point 3. There are only that many insurance companies in the market to compare on.

SGD bonds are good safe investment mechanisms too. endlsssorrow is looking to save regularly and not lumpsum.

CPF funds if you breach the minimum is not a problem. Now CPF Life takes over and gives you monthly payouts. You still will not get the bulk of your benefits after saving for nearly your entire working career. Alot of Singaporeans that I know have not hit their minimum sums - purchase of housing, children education loan etc. The limit is raised every year. Our salary doesn't raise by the same amount yearly unfortunately.

The US and Japan Funds are Singapore denominated which are hedged against currency risk of their own currencies.

 

[chopra]

Chopra, no offence, you can do your own market research and compare similiar plans for yourself for point 3. There are only that many insurance companies in the market to compare on.

SGD bonds are good safe investment mechanisms too. endlsssorrow is looking to save regularly and not lumpsum.

CPF funds if you breach the minimum is not a problem. Now CPF Life takes over and gives you monthly payouts. You still will not get the bulk of your benefits after saving for nearly your entire working career. Alot of Singaporeans that I know have not hit their minimum sums - purchase of housing, children education loan etc. The limit is raised every year. Our salary doesn't raise by the same amount yearly unfortunately.

The US and Japan Funds are Singapore denominated which are hedged against currency risk of their own currencies.

no offence taken. merry xmas to you.

first para - noted that you are not willing to share. usual tactic of making insuree sign blank cheques.

sec para - ts can bid sgs BoNds or contribute to cpf with 3k/year

third para - that's partially because they sink in too much money to life/ilp and get penalised for heavy commission. u get it?

fourth para - do you know the cost of these (long/perpetual dated) bond currency hedge?

 

[infusionist]

no offence taken. merry xmas to you.

first para - noted that you are not willing to share. usual tactic of making insuree sign blank cheques.

sec para - ts can bid sgs BoNds or contribute to cpf with 3k/year

third para - that's partially because they sink in too much money to life/ilp and get penalised for heavy commission. u get it?

fourth para - do you know the cost of these (long/perpetual dated) bond currency hedge?

Merry Christmas

first para- i'm asking you to compare yourself, information is freely available on the net these days e.g. this forum. i didn't say i was not willing to share. u must have met really bad experiences with some agents to judge me so quickly. Anyone can compare and sell products with research, but not everyone can find the best solution for a given situation. In insurance, no 2 products are ever the same.

sec para - yeap he can. cpf lock up till age 65. sgs bid has minimum amount required for bid.

third para - hahaha...no...cpf can't buy ilp/life plans. only investment plans with minimal life protection. Only certain funds can be bought with CPF too and not the full range from the companies. Even so, comms is not a penalty. Jobs who don't have basic or salary are comms based. etc. Real estate,stockbrokers, car sales, contractors. Pay and respect for the service of the consultants work, advice and profession. Commission payout in the insurance industry is implemented by their respective companies. We can't ask for more or less than what we are given that the company pays.

fourth para- I am addressing bond funds. there are alot of these funds in that you can find in Fundsupermart.com | Global and the have different set of fees.

You do address cost alot in your replies. I believe you are very cost sensitive. But in this world, good things are not cheap, cheap things are not good.

 

[silveryear]

Same policy from

Please google on AIA Critical Year Policy...it create chaos. Casecome in also no use. Bought the policy in 1990 n the projection as well as the agent assurance that such policy required ones to pay a fixed premium for certain years (in my case 12 yrs) n then the policy will continues without any payment. !2 yrs later, AIA claimed policyholders got to continue paying after 12 years as the economy return is bad! Gee! if the return is good, will AIA reduced my 12 yrs policy? Thousands were unhappy but later they proposed option to replace such policies. Bought from NTUC Income (education policy) with same amount of premium paid as AIA, After 18 yrs, I received $19k whereas got $6K from AIA less than my total premium paid.
Pui! Curse ant AIA agent who call me from that time on! Is all over in the news but useless CASE can't do anything. Google n interesting details lik letters to independent consultant seem to end up in interesting PO Boxes!