Aviva Myretirement

[audiovideo]

kinda similar to whole life insurance leh

just that the focus is on when you start to receive monthly "income" after retirement .... for whole life is surrender and receive one lump sum

wah like that they "hold on" to your $$ for as long as you want the "monthly payout" to be ..e.g 10 years from 65 onwards

is it right to interpret this way?

their example said for a $2000 monthly pay out over 10 years the guaranteed capital is $240000, out of $132k premium, but there is extra $390k non guarantee payout... wonder how is that distributed

 

[FP_IFA]

kinda similar to whole life insurance leh

just that the focus is on when you start to receive monthly "income" after retirement .... for whole life is surrender and receive one lump sum

wah like that they "hold on" to your $$ for as long as you want the "monthly payout" to be ..e.g 10 years from 65 onwards

is it right to interpret this way?

their example said for a $2000 monthly pay out over 10 years the guaranteed capital is $240000, out of $132k premium, but there is extra $390k non guarantee payout... wonder how is that distributed

It is not similar to a whole life plan. For one there is hardly any insurance cover at all (101% on premium paid). And two, all application will be accepted meaning there is no medical underwriting needed.

The way it works is something like your CPF Life scheme where you put $131k by age 55 and received ~$1k every month at age 65 onwards. Except that this plan only payout for 10 years and then give you another one lump sum at the end of the 10 years.

The non-guaranteed return of the full payout is over 4%, while guaranteed is 1.5 to 2.0% depending on your entry and set retirement age.

It is suppose to add as a top up to your CPF Life because $1k per month is not sustainable for us in the 20 years time. Gone are the days when we can depend purely on CPF for retirement...

 

[audiovideo]

so what's the advantage of using $131k cash to get this plan as compared to putting this amount in bonds?

 

[FP_IFA]

so what's the advantage of using $131k cash to get this plan as compared to putting this amount in bonds?

The $131k figure is talking about CPF life (Minimum sum amount). I am not saying myretirement needs $131k.

The plan is designed to provide monthly payout after your retirement. Bonds are not designed that way.

Pros of MyRetirement
- Monthly payout after preset retirement for 10 years.
- Capital Guaranteed + certain guaranteed return.
- One lump sum at the end of 10 years after retirement.
- Only risk is Aviva goes down but you still have Singapore Policy Owners' Protection Scheme as backup.

Cons of MyRetirement
- Liquidity issue meaning you have to stick to the planned payout schedule of the plan.
- Max return will not go over 5%.

Pros of Bonds
- Higher return of over 5% possible.
- More liquid as you can sell anytime you want.
- Capital is guaranteed unless issuer goes down of which it would probably means entire capital is gone.

Cons of Bonds
- 2 risks exist primarily interest rate and issuer. Interest rate going up will pressure bond prices downwards. Issuer bankrupting is something that would be devastating as well (minibond best example).
- Need diversifications to smoothen out the risk.

Bonds generally will have higher return unless you are going for those super rated bond like Singapore government bonds. Lower rated bonds commonly has return of over 5%.

I would not say which is better. It is really personal perferences here. Some like more control over their money and has risk appetite would go for high return bonds, stocks, forex etc. Some prefer low risk and generally predictable numbers would go for endowment, retirement or annuity plans.

If you want to put that money in bonds, it is very important to spread it over a number of different bonds. Also selection of bonds is very important. Don't just look at return.

 

[jack1983]

Actually MyRetirement is better compare to saving money in the bank, because they are both offering capital guarantee. However, MyRetirement offer better guarantee return and potential even more with their non-guarantee return, while bank offer more flexibility as you can withdraw anytime.

 

[Kenny23]

not to mention bonds r usually 250k a pop..meaning 250k invested in 1 single company...if the company goes under, your bond holdings will be screwed..those paying 5% or more r unsecured bonds..which means u wouldnt be in the priority to be paid first which is what a lot of pple think would be e case right...so its more suitable for pple with more fundings that can spread across different bonds & different asset classes..hence most bonds r usually AI & Sophisticated products...which means e client needs to declare an networth of 2m or earn 300k a year..

well a product like myretirement is more suitable for non savvy individuals who dont know how to invest their $$

so really depends on your investment knowledge n your ability to take risk...imagine a conservative auntie holding onto a bond say a company like ferrochina..she would be more concern about recovering from that heart attack rather than worry about her retirement..if u know wat i mean

 

[kim388]

I got the quote from my FA.

Pls note that the first 10 years the return is almost at lost if you want to terminate early. Just like most of the life insurrance plan.

And the premium is not cheap, at least $500 monthly.

This plan is for long term and you have to prepare not to withdraw it(even you need cash) for at least 15 years.

 

[jack1983]

Yes you're right. It should be part of your retirement plan, not all. You should also have saving in the bank because it's more flexible and liquid, and you should also invest in other tools like stock or unit trust because potentially they offer better return.

 

[royleemy]

Not a bad plan I must say. The younger my clients, the more the return. Can be as high as 500%. But the initial years if surrender is equal to loosing all la. so really got to commit to it

 

[Shiny Things]

Not a bad plan I must say. The younger my clients, the more the return. Can be as high as 500%. But the initial years if surrender is equal to loosing all la. so really got to commit to it

What are you smoking to get a 500% return out of this thing? The maximum return listed on Avivia's website is 2.38% p.a. over 48 years, and that's a bloody terrible return - even 30-yr SGS are yielding 2.7%.

In fact, this is just a flat-out terrible product. It's worse than Singapore government bonds in every possible way; it seems designed to gouge fees and early-termination charges out of naive, trusting investors who don't know better; and whoever at Aviva came up with this trash needs to take a good hard look at themselves.

 

[royleemy]

What are you smoking to get a 500% return out of this thing? The maximum return listed on Avivia's website is 2.38% p.a. over 48 years, and that's a bloody terrible return - even 30-yr SGS are yielding 2.7%.

In fact, this is just a flat-out terrible product. It's worse than Singapore government bonds in every possible way; it seems designed to gouge fees and early-termination charges out of naive, trusting investors who don't know better; and whoever at Aviva came up with this trash needs to take a good hard look at themselves.

erm, the 500% return i am talking about is actually printed on the quotation itself serving as the policy doc... not smoking.. =)

 

[Shiny Things]

erm, the 500% return i am talking about is actually printed on the quotation itself serving as the policy doc... not smoking.. =)

Then someone's math is wrong, and I don't think it's mine. 2.38% compound interest (the maximum interest - but anyway, I think this is simple interest, not compound) over 48 years (the maximum tenor) is a 209% return.

I'd love to see the quote sheet.

Update Here's a question: why are insurance companies allowed to advertise "up to 500% return!" anyway? If I opened a hedge fund and advertised it with "up to 500% return! (if you consent to a 48-year lockup)", the MAS would be on my ass in five seconds and rightly so.

 

[royleemy]

Then someone's math is wrong, and I don't think it's mine. 2.38% compound interest (the maximum interest - but anyway, I think this is simple interest, not compound) over 48 years (the maximum tenor) is a 209% return.

I'd love to see the quote sheet.

Update Here's a question: why are insurance companies allowed to advertise "up to 500% return!" anyway? If I opened a hedge fund and advertised it with "up to 500% return! (if you consent to a 48-year lockup)", the MAS would be on my ass in five seconds and rightly so.

bro,

relax... its all marketing, and they are playing by the rules. they did not advertise about the 500% return. only when ppl churn out the quotation they can see. i think people got smarter and designed better plans along the way. on the surface it might look like these insurance companies are out to eat our $$, but come to think of it, it might not be a bad product for the mass market who have no idea how to invest after all.

 

[FP_IFA]

2.38% is the guaranteed part. There is a non-guaranteed portion as well that could push the return to over 4%. I heard another company is coming up with a plan targetting retirement as well. This should heat up the competition.

 

[audiovideo]

aviva example says someone age 35 put 100+k within 10yrs then start retirement monthly payout at 65 .....

that is this person's $$ is park for 20yrs with aviva .. then slowly "withdraw" for the next 10yrs

 

[t_chenhong]

Pls get your facts right. Firstly your 30-yrs SGS is upfront of a lump sum??

Myretirement does'nt need you to its 8years(LP) or RP

Not a good comparsion.

I agree that early withdrawal has its penalty.

But can u withdraw ur bond investment before maturity?? or what's the risk when you trade your bonds in open market?

I believe every product has its pro and cons it such a irresponible behaviour for such comments.

What are you smoking to get a 500% return out of this thing? The maximum return listed on Avivia's website is 2.38% p.a. over 48 years, and that's a bloody terrible return - even 30-yr SGS are yielding 2.7%.

In fact, this is just a flat-out terrible product. It's worse than Singapore government bonds in every possible way; it seems designed to gouge fees and early-termination charges out of naive, trusting investors who don't know better; and whoever at Aviva came up with this trash needs to take a good hard look at themselves.

 

[Shiny Things]

Because there are no stupid questions, only stupid people - here are some sensible answers.

Pls get your facts right. Firstly your 30-yrs SGS is upfront of a lump sum??

You can buy bonds in small clips. You don't need to save up for eight years and then chuck it in all at once.

But can u withdraw ur bond investment before maturity?? or what's the risk when you trade your bonds in open market?

With bonds, the risk is that the price goes down if you need to sell before maturity; with an insurance policy, there are massive early withdrawal penalties. And I'd bet good money that your extortionate early withdrawal penalties will more often than not be bigger than any possible capital loss on the bonds.

I believe every product has its pro and cons it such a irresponible behaviour for such comments.

That's "irresponsible", and you're sounding awfully defensive. I know you're paid to sell this stuff, but you still need to admit when you're in the wrong.

 

[heng_alvin]

Not a bad plan I must say. The younger my clients, the more the return. Can be as high as 500%. But the initial years if surrender is equal to loosing all la. so really got to commit to it

500%??? Oh come on,based on what u said that? From real historical returns of policyholders that had this plan?

 

[t_chenhong]

What are you smoking to get a 500% return out of this thing? The maximum return listed on Avivia's website is 2.38% p.a. over 48 years, and that's a bloody terrible return - even 30-yr SGS are yielding 2.7%.

In fact, this is just a flat-out terrible product. It's worse than Singapore government bonds in every possible way; it seems designed to gouge fees and early-termination charges out of naive, trusting investors who don't know better; and whoever at Aviva came up with this trash needs to take a good hard look at themselves.

Because there are no stupid questions, only stupid people - here are some sensible answers.



You can buy bonds in small clips. You don't need to save up for eight years and then chuck it in all at once.



With bonds, the risk is that the price goes down if you need to sell before maturity; with an insurance policy, there are massive early withdrawal penalties. And I'd bet good money that your extortionate early withdrawal penalties will more often than not be bigger than any possible capital loss on the bonds.



That's "irresponsible", and you're sounding awfully defensive. I know you're paid to sell this stuff, but you still need to admit when you're in the wrong.

I am just questioning based on your answer. your answers are all in the absolute.
Have you trade bonds before. I bet you know, just by reading text books. Its not as easy as you think. Unless you are selling bonds millions of dollars in value, not sure if anyone will be entertaining you.
How small is your bits? 30 yrs bonds..Well...meaning yield has been factored in. I will not argue with you futher. its not a good comparsion.

Of course if you can find lobang like this.. do PM me or share in the forum.

Bonds is good.. But no normal singaporean will ever get a 30years SGS bonds.

Btw, I bet you havent seen this benefit illustrations. The early withdrawal is not as bad as you think. It depends the year and stuff. I reply because i deem some info as misleading.

No hard feelings.

Cheers

 

[royleemy]

500%??? Oh come on,based on what u said that? From real historical returns of policyholders that had this plan?

Please refer to Aviva's website. Its all there. =)