Aviva again

[akwl88]

Not really. An endowment plan means you get the returns of the insurer's in-house fund; typically 2-4% with a floor at zero. This plan gives you 1.77% and that's it.

It's pretty much impossible to do worse than this plan. You're basically just making a cheap loan to the insurance company. Don't do that.

Hi ST, how did you get 1.77%?

 

[Earnasyougrow]

Not really. An endowment plan means you get the returns of the insurer's in-house fund; typically 2-4% with a floor at zero. This plan gives you 1.77% and that's it.

It's pretty much impossible to do worse than this plan. You're basically just making a cheap loan to the insurance company. Don't do that.

Hi ST,

If I have already paid my endownment for $200/mth over 5yrs. Do u advise to cut my loss or continue to hold?

 

[newjersey]

find your breakeven point and cash out. In your policy's Benefits-Illustration, it would be reflected in the table.

don't buy endowment & ILPs... I used to be an insurance sales fella.

for the sake of longstanding friendships, I do not sell the above 2 items, as I know that our mandatory insurance training are excellent academies for learning the various insurances related to protection, not investments.

follow the westerner's concept, buy term, hospitalisation insurance & invest the rest.

if you like a no-brainer buy&forget way to investing, check out HWZ's Shiny Thing's thread.

if you like it all concise, buy Shiny Thing's ebook, it's bespoke for the SG retail investors' audience.

Stay away from fellas like, adam khoo, etc, crap, as they earn their ultra profit-returns through u signing up with their courses.

Shiny Thing's ebook costs only half-a-steak dinner @ Aston or less than 1 movie ticket in the cinemas... It's as good as it gets, for the newbie investor with no finance education in their tertiary education.

All the things I learnt, are mostly attributed to Shiny Thing's sharing, which I detailed down, as much as I could.

 

[thekang]

ST is right, I got 1.78%. Excel formula IRR(18 years of $2.8k, 6 years of $0, 10 years of -$7.2k). Although I suspect it is 5 years of $0 instead based on the MyRetirement product specs. There is also some non-guaranteed bonus from the par fund, which will increase the return by quite a bit.

However, agree that the BTIR approach is best, although it is already a sunk cost for OP.

For your existing policy, you will need to share your current surrender value to be able to calculate whether it is worth surrendering now. Most likely it is not, in which case you just lan lan suck thumb and continue payment (1.78% guaranteed is still okay for a 'poor' investment)

 

[Pandule]

I think there's still a lump sum payment at the end.

So must factor that in.

 

[Earnasyougrow]

ST is right, I got 1.78%. Excel formula IRR(18 years of $2.8k, 6 years of $0, 10 years of -$7.2k). Although I suspect it is 5 years of $0 instead based on the MyRetirement product specs. There is also some non-guaranteed bonus from the par fund, which will increase the return by quite a bit.

However, agree that the BTIR approach is best, although it is already a sunk cost for OP.

For your existing policy, you will need to share your current surrender value to be able to calculate whether it is worth surrendering now. Most likely it is not, in which case you just lan lan suck thumb and continue payment (1.78% guaranteed is still okay for a 'poor' investment)

Hi,

Mine is Prusave 6th series

Paid to date: $14400
Surrender value: $8000

Does it mean that as long as my surrender value equal to what i paid, I can surrender this plan?

 

[thekang]

Hi,

Mine is Prusave 6th series

Paid to date: $14400
Surrender value: $8000

Does it mean that as long as my surrender value equal to what i paid, I can surrender this plan?

No, you have to take into account time value of money (the interest you would have earned on your premiums if you didn't pay the insurance company).

Anyway, you have already purchased the policy (this is the concept of sunk cost). You should be comparing your two current options: take the surrender value ($8k now), or hold to maturity? This is something you can easily calculate and compare. (Third option is to surrender some time later, but you don't have enough info on what surrender value you will get in the future.)

 

[MikeZhang]

I think there's still a lump sum payment at the end.

So must factor that in.

That is the non-guaranteed portion. They pay 1 lump sum.

 

[MikeZhang]

Hi,

Mine is Prusave 6th series

Paid to date: $14400
Surrender value: $8000

Does it mean that as long as my surrender value equal to what i paid, I can surrender this plan?

Depend on why u get the plan for.

 

[endlssorrow]

assuming $208.60 monthly, i cant possible buy SSB monthly, i have to save & accumulate like at least 3 month to get a $500 SSB monthly worth meh？

Not really. An endowment plan means you get the returns of the insurer's in-house fund; typically 2-4% with a floor at zero. This plan gives you 1.77% and that's it.

It's pretty much impossible to do worse than this plan. You're basically just making a cheap loan to the insurance company. Don't do that.

 

[Pandule]

Use POSB invest saver buy A35 then.

assuming $208.60 monthly, i cant possible buy SSB monthly, i have to save & accumulate like at least 3 month to get a $500 SSB monthly worth meh？

 

[endlssorrow]

Use POSB invest saver buy A35 then.

no one is sure POSB invest can run more than 10 years lei...
if POSB invest stop at 5th year how?

 

[Pandule]

Lol! But then again no one is sure insurance company will be around in 5 years time also mah if that's the case.

A35/SSBs. Or maybe just continue your own endowment plan?

no one is sure POSB invest can run more than 10 years lei...
if POSB invest stop at 5th year how?

 

[endlssorrow]

But think got min cover by MAS right

Lol! But then again no one is sure insurance company will be around in 5 years time also mah if that's the case.

A35/SSBs. Or maybe just continue your own endowment plan?

 

[endlssorrow]

What formula to calculate the return ?? In excel