Aviva Mywealthplan

[pgem]

Hi,
Anyone has feedback about Aviva Mywealthplan? My agent is trying to sell me this plan, saying it's a very good endowment plan, capital guaranteed. Pay 5 years, maturity in 10 years.
Worth to put there or put FD better?

 

[Perisher]

Hi,
Anyone has feedback about Aviva Mywealthplan? My agent is trying to sell me this plan, saying it's a very good endowment plan, capital guaranteed. Pay 5 years, maturity in 10 years.
Worth to put there or put FD better?

Ask him the guaranteed EIR is how much first.

 

[JK1688]

FD rate so low now.

Sent from using GAGT

 

[akwl88]

If very good, why your agent dont want sell his house and and car all in the plan?

 

[limster]

I wonder if the guaranteed return is lower than SSB with a 10 year lock in period. I went to the website they said 'up to 2.35%' meaning it could be anywhere between 0%-2.35%.

True story - I have a relative who signed up for a 'capital guaranteed' policy and got 0% return on maturity - just got her capital back. (It wasn't Aviva, to be fair to them)

Like I said, if a salesman can sell a 10year lock-in policy with interest rate close to SSB and then make the client sign up for all the optional riders, he/she really deserves the commission.

Vested in Aviva for it's good dividends.

 

[I'mpossible]

got to look at the guaranteed portion first, if guaranteed > money put in, return is ok for you, then go for it

 

[MikeZhang]

Hi,
Anyone has feedback about Aviva Mywealthplan? My agent is trying to sell me this plan, saying it's a very good endowment plan, capital guaranteed. Pay 5 years, maturity in 10 years.
Worth to put there or put FD better?

If stretch to 25 years, the return is better. Guaranteed return will be 2.35%. If is pay 5 years and mature 10 years, the return is lower. You might wanna look at other plans.

 

[Perisher]

If stretch to 25 years, the return is better. Guaranteed return will be 2.35%. If is pay 5 years and mature 10 years, the return is lower. You might wanna look at other plans.

Agree with this. Then again, 2.35% not worth putting in for 25 years.
Interested to know any better 5 years premium, 10 years plan with guaranteed that has at least EIR 2%.

Otherwise, putting it in SCB esaver, OCBC 360 or BOC/UOB etc is way better.

 

[FP_IFA]

Agree with this. Then again, 2.35% not worth putting in for 25 years.
Interested to know any better 5 years premium, 10 years plan with guaranteed that has at least EIR 2%.

Otherwise, putting it in SCB esaver, OCBC 360 or BOC/UOB etc is way better.

I don't think it is that bad. Some people don't mind locking in that 2.35% for 25 years. No one know what would be the interest like in 10 years time not to mention 25 years.

 

[limster]

Aviva is basically borrowing money from you at 2.35% for the next 25 years.

If Aviva went onto the retail bond market to issue bonds, it would have to pay a lot more than 2.35%

Like that, my advice to Aspial and Oxley is to forget about retail bonds and start offering 'capital guaranteed savings plans' and give 2.5% interest Maybe Rickmers and Swiber would be interested too.

 

[bardsmanship]

I don't think it is that bad. Some people don't mind locking in that 2.35% for 25 years. No one know what would be the interest like in 10 years time not to mention 25 years.

For those closer to retirement age (40s or 50s), they can also consider putting the money in CPF-OA (2.5% return) or CPF-SA (4% return).

 

[Maeda_Toshiie]

I don't think it is that bad. Some people don't mind locking in that 2.35% for 25 years. No one know what would be the interest like in 10 years time not to mention 25 years.

That is a f**king long horizon for money being locked in. If I am going to put in money for 25 years, I expect better returns, not something that barely beats inflation. 25 years covers about 2 or more market cycles. You get more gains by simply investing on some low fee passive ETF.

 

[wahkao3]

I went to the website they said 'up to 2.35%' meaning it could be anywhere between 0%-2.35%.

even up to 99999% returns I also wont invest
i seen this trick before somewhere......

 

[Perisher]

I don't think it is that bad. Some people don't mind locking in that 2.35% for 25 years. No one know what would be the interest like in 10 years time not to mention 25 years.

25 years for 2.35%... I consider it quite bad. There are some stable corporate bonds that one can get into for the next 5-7 years that pays way higher. And I would rather wager there will be more of the same after that 5-7 years is up than to confirmed getting 2.35% for the rest of 25 years.
And like some above mentioned most people over 30s would be better off putting it in CPF to lock in for 25 years.

 

[akwl88]

25 years for 2.35%... I consider it quite bad. There are some stable corporate bonds that one can get into for the next 5-7 years that pays way higher. And I would rather wager there will be more of the same after that 5-7 years is up than to confirmed getting 2.35% for the rest of 25 years.
And like some above mentioned most people over 30s would be better off putting it in CPF to lock in for 25 years.

Cpf up to 6% interest!

Huat ah!

 

[FP_IFA]

25 years for 2.35%... I consider it quite bad. There are some stable corporate bonds that one can get into for the next 5-7 years that pays way higher. And I would rather wager there will be more of the same after that 5-7 years is up than to confirmed getting 2.35% for the rest of 25 years.
And like some above mentioned most people over 30s would be better off putting it in CPF to lock in for 25 years.

I believe that endowment plan has a guaranteed value and a non-guaranteed value so 2.35% is the minimum whereas it can go to 4%. Yes you can get a corporate bond but there are risk with bonds as we can see in the recent saga. Even if you diversify by buying a few bonds, a single bond default would erode the yield. The better alternatively is to get a bond unit trust or ETF.

CPF wise SA account would give better return provided you don't mind waiting till 65 to get the money.

 

[Perisher]

I believe that endowment plan has a guaranteed value and a non-guaranteed value so 2.35% is the minimum whereas it can go to 4%. Yes you can get a corporate bond but there are risk with bonds as we can see in the recent saga. Even if you diversify by buying a few bonds, a single bond default would erode the yield. The better alternatively is to get a bond unit trust or ETF.

CPF wise SA account would give better return provided you don't mind waiting till 65 to get the money.

Isn't that the same as waiting 25 years?
Besides, a guaranteed 4% or a guaranteed 2.35%?
There are many issues with insurance company too if you really wanna go that direction.