Aviva Myretirement

[Pandule]

haha to me its a forced savings for endowment plan.. i meant buying SSBs is definitely better but i dont know if i can have the discpline to keep buying every year* etc.

 

[Perisher]

haha to me its a forced savings for endowment plan.. i meant buying SSBs is definitely better but i dont know if i can have the discpline to keep buying every year* etc.

Surely you can spare a few minutes to buy every year, instead you wanna spare a few hours to meet your agents every year? Or you intend to buy and forget, never meeting your agent again?

Then you will never know what happen to those $$, the interest earn/didn't earn, when the premium increase, charges/fees, small changes in the details, even when agent quit etc... all you don't want to know?

Instead of keeping up with all that, just waste a few minutes a year to buy SSB?

Remember you said you wanna buy abit of everything just a few post ago?
Then now you think you don't have the discipline...
Contradicting...

Btw, you don't have to answer me, it's whatever you are comfortable with.
Everyone has their own life to manage.

 

[gensity]

Told you long ago, endowment is near pointless. But since you are so adamant about wasting $$ despite knowing it has not much purpose, go ahead.

if i save and buy SSB, is it better than myAvivaRetirement?

 

[Perisher]

if i save and buy SSB, is it better than myAvivaRetirement?

I would suggest you to read through all 6 pages and come to your own conclusion.

To me, SGS SSB beats this. Just the liquidity to do whatever you want with the $$ you got already wins this.

2.38% guaranteed in the first page I read which was in 2012 is lesser than 2.63% SGS SSB offered which is also guaranteed and by the government and you can take it out any month with the accrued interest.

If you wanna compare the non-guaranteed portion...
You can compound the interest yourself. Add in STI ETF and your returns should flow even better base on the average returns of STI ETF of 7-8%.

There will be others who either have vested interest or not, telling you otherwise though. Ultimately, you are your own judge.

I have 0 vested interest in SGS SSB or Aviva but that doesn't mean I won't give bad advice, it just means I'm neutral.

Having said that, if you have any question, do post here. Will answer you on the SGS SSB part as I'm not an FA. I take whatever FA says here and use it to compare to SGS SSB.

There will be others who can help answer you too.

 

[endlssorrow]

But if SSB u wan take out half way u also loose out lei

 

[Perisher]

But if SSB u wan take out half way u also loose out lei

Lose out? There is no penalty, full capital refund. Even accrued interest.

 

[endlssorrow]

I mean the return confirm will drop if u pull out?

 

[Perisher]

I mean the return confirm will drop if u pull out?

Isn't it still better than suffering a penalty from pulling out?

 

[endlssorrow]

Of coz to suffer with penalty from insurance product is like cutting my fresh from my body.

But say if no touch the monthly premium for next 18yr for myReitrment plant, is it better?

 

[Perisher]

Of coz to suffer with penalty from insurance product is like cutting my fresh from my body.

But say if no touch the monthly premium for next 18yr for myReitrment plant, is it better?

Huh? Can give an example?

 

[endlssorrow]

I mean if can pay that monthly $230 till age 50 for myRetirement plan, is it better than SSB?

 

[Perisher]

I mean if can pay that monthly $230 till age 50 for myRetirement plan, is it better than SSB?

I thought initally you were asking about half way take out?

Ok, anyway, no, the guaranteed portion is lesser than SSB, the not guaranteed portion can use to buy STI ETF and still get better returns than AVIVA's plan. Either way, Aviva is not gonna do better than SSB.

Before someone come in and say this is more automatic, it isn't unless one don't want to meet the agent forever until 50 years old.
The time taken to buy SSB+STI ETF is a few minutes vs meeting an agent for a few hours.

 

[endlssorrow]

U see
1st year save $2400 buy SSB, can get back capital plus interests in 11th year.
2nd year save another $2400, can get back both in 12th year right?

So every year I save and wan buy SSB, I can only take back in another x+1th year.

Like that if I reach age 48yr old, my next SSB payout will be in 58th yr right?

 

[Perisher]

U see
1st year save $2400 buy SSB, can get back capital plus interests in 11th year.
2nd year save another $2400, can get back both in 12th year right?

So every year I save and wan buy SSB, I can only take back in another x+1th year.

Like that if I reach age 48yr old, my next SSB payout will be in 58th yr right?

I have near 0 interest in these type of plans(sadly, more often than not, they are not worth the effort/time to understand...) but since you wanna scrutinize, kindly fill me in the following information if possible.

As far as I understand the Aviva plan you need to put in within 10 years all the premium fully paid up. Does the guaranteed interest start the minute you pay the premium? That is to say if one starts at 20 and pay premium until 30 and redraw at 50. Does the 2.38% guaranteed starts at age 20?
What are the conditions to get the 2.38%?

After that I would do my part on the SSB portion and throw in STI ETF too. Fair?

 

[endlssorrow]

Not sure is it within 10years, but we take below quote which is similar to mine.

I have near 0 interest in these type of plans(sadly, more often than not, they are not worth the effort/time to understand...) but since you wanna scrutinize, kindly fill me in the following information if possible.

As far as I understand the Aviva plan you need to put in within 10 years all the premium fully paid up. Does the guaranteed interest start the minute you pay the premium? That is to say if one starts at 20 and pay premium until 30 and redraw at 50. Does the 2.38% guaranteed starts at age 20?
What are the conditions to get the 2.38%?

After that I would do my part on the SSB portion and throw in STI ETF too. Fair?

Policy term: 38
Premium term: 23
Guaranteed monthly: $850 from age 61 to 70
Yearly gotta paid: $2930

thus total paid: $67390
Return for 10yr is: $10200

so-called profit is :$34610
exclude bonus.

 

[endlssorrow]

not sure how u get 2.38% leh... if i base on above quote from similar guy.

how should i calculate the return?
($34610/$67390)/23 =$0.02%???

 

[Perisher]

not sure how u get 2.38% leh... if i base on above quote from similar guy.

how should i calculate the return?
($34610/$67390)/23 =$0.02%???

2.38% was mentioned a few times in the first few pages and also on their official website here
http://www.aviva.com.sg/retirement/for-individuals/my-retirement.html

if you click ctrl+f and type 2.38, you will find that part
it says the following
Guaranteed returns of up to 2.38% per annum5.

The 5 refers to this.
5.Guaranteed returns of up to 2.38% per annum is only upon policy maturity. This is based on an entry age of 17 Age Next Birthday (ANB) with eight years limited premium payment term where customer will receive monthly Guaranteed Retirement Income of S$1,000, based on 75 (ANB) as selected Retirement Age.

 

[Perisher]

not sure how u get 2.38% leh... if i base on above quote from similar guy.

how should i calculate the return?
($34610/$67390)/23 =$0.02%???

Returns should be calculated as a absolute
(total sum received/total premium paid)/years as you have shown above.

Your total returns should be $102000 instead, you missed out a zero which got me confused.

X scenario
$850*12*10=$102000
$102000-$67390=$34610 profit guaranteed I assumed.
($34610/$67390)*100=51.36%/23years=2.23% a year(this is simple interest)

Y scenario
So the aviva plan gives out 2.23% a year for 10 year? Wrong.
Remember you paid for 23 years+wait for 10 years to get the gain so total = 33years to get that $34610 guaranteed.
In other words
51.36%/33years=1.56% a year(this is simple interest)

But the above isn't the full picture either because need to know when is the full capital of $67390 returned? At the start of the 10 year cycle or at the end? If it's at the end, the Y scenario is the guaranteed % you get.
If it's at the start it becomes a little more complicated.

Anyway, since you don't understand the plan fully and I can't be bothered with the low rate of return and super long term locked up of $$, we can't continue.

Suffice to say, this product still won't beat you buying SGS SSB+STI ETF.

 

[endlssorrow]

Thanks for your inputs and time to really write

 

[hoodyap]

Perisher, fully agreed with you on the SGS SSB+STI ETF and thanks for your past contribution.
Following is the yearly Dividend Yield of STI ETF.

2016 - 3.78%
2015 - 3.43%
2014 - 3.11%
2013 - 3.00%
2011 - 2.83%
2010 - 2.12%
2009 - 3.18%
2008 - 4.24%
2007 - 35.34%
2006 - 13.80%
2005 - 11.66%
2004 - 20.49%
2003 - 18.37%
2002 - 8.83%

Which I don’t see why invest in those Insurance Endowment Plan.