Aviva - MyFlexiSaver

[spec116]

Im looking for endowment plan & saw Aviva ranked 2nd at www.askdrmoney.com
so i saw the MyFlexiSaver plan

http://www.aviva.com.sg/savings-and-investments/savings/MyFlexiSaver.html

Anybody applied this?
Any views?

Was thinking to apply this for saving
But hw do i know how much i need to pay per year for 10yrs?

Or gt any good saving products?
Thanks

 

[lusunshine]

Im looking for endowment plan & saw Aviva ranked 2nd at Home Page
so i saw the MyFlexiSaver plan

I'm just curious why you want to go with 2nd ranked choice instead of 1st ranked choice which is DIY?

 

[spec116]

I'm just curious why you want to go with 2nd ranked choice instead of 1st ranked choice which is DIY?

Cos duno hw to diy haha

 

[archcherub]

Cos duno hw to diy haha

DIY is really not tough.
just read up more, spend more time reading the STICKYS in this forum, get your CDP and brokerage account (either poems or standard chartered), buy when the prices are low enough...

saving up via stocks in the long term is waaaay better than any saving plans.

 

[Darkzi0n]

i went to the brochure and took a look... in its scenario 1, at its projected return of 4.75% (which is not guaranteed), the effective rate of return is just 2.541%.. a 10 year US bond which i personally think is safer n more 'guaranteed' has a yield of 2.6%

and even the cimb step up fixed deposit of 5 years has an effective return of 1.575%
but the problem with the step up is that it is jus a promotion n dunno how long it can last... n it cannot do periodic top up

 

[Motherliquor.P]

i went to the brochure and took a look... in its scenario 1, at its projected return of 4.75% (which is not guaranteed), the effective rate of return is just 1.986%.. a 10 year US bond which i personally think is safer n more 'guaranteed' has a yield of 2.6%

and even the cimb step up fixed deposit of 5 years has an effective return of 1.575%
but the problem with the step up is that it is jus a promotion n dunno how long it can last... n it cannot do periodic top up

How do we calculate the effective rate of return?

 

[Darkzi0n]

for the AVIVA one, use
5056(x^10) + 5056 (x^9) +...+ 5056(x^6) = 30920

where 5056 and 30920 is given by the scenario in the brochure.
and x is the rate of return.

solve for x by using logarithm on both side of the equation.

for cimb step up jus mutiple the interest rate for each half year period... anyway the return is also given in the terms and condition

 

[chopra]

i went to the brochure and took a look... in its scenario 1, at its projected return of 4.75% (which is not guaranteed), the effective rate of return is just 1.986%.. a 10 year US bond which i personally think is safer n more 'guaranteed' has a yield of 2.6%

and even the cimb step up fixed deposit of 5 years has an effective return of 1.575%
but the problem with the step up is that it is jus a promotion n dunno how long it can last... n it cannot do periodic top up

Alternatively,

SGS 20 or 30 years bond > 1.9%.

 

[chopra]

DIY is really not tough.
just read up more, spend more time reading the STICKYS in this forum,

the common misconception of buying savings/ilp/endowment/child endowment/critical illness rider/life/ plans from banks and insurance firms is that

the buyer does not need to read up. This is so wrong!


technically speaking, there's more things to read up as you are going through thicker layers of sales channel. PLUS, such products are usually structured - a hybrid between stocks and bonds, amongst other vanillas. It is more difficult to READ UP, than to say...buy a STI ETF which has a very neat breakdown of its underlyings.

My view.

 

[archcherub]

the common misconception of buying savings/ilp/endowment/child endowment/critical illness rider/life/ plans from banks and insurance firms is that

the buyer does not need to read up. This is so wrong!


technically speaking, there's more things to read up as you are going through thicker layers of sales channel. PLUS, such products are usually structured - a hybrid between stocks and bonds, amongst other vanillas. It is more difficult to READ UP, than to say...buy a STI ETF which has a very neat breakdown of its underlyings.

My view.

agreed. just that the amount of laziness in people is too damn high!

 

[DevilCurseYou]

the calculations on top did not adjust for the term insurance packaged with endowment. but even with adjustment, the return should be under 2.75% pa