Dissecting Benefit Illustration

[DevilCurseYou]

Reserved for summary

 

[DevilCurseYou]

The mods can perhaps help by moving some of the post from “Fundsupermart sells insurance with 50% commission rebate” over to here since we were off topic.

Actually a way to make a table self explaintory is to label n explain accordingly on the table itself

like for example

i still dont know how you derive future cummulative value at 5.25% though lol

it appears I was too frugal with explanation, rather than overly generous.

The second column is the annual premium the 31 years old female will pay, if they choose to go for term plan. The amount is in future value.
at age 31, the female will pay 1008 at 2013 dollar. at age 70, the female will pay 1008 at 2052 dollar

The third column is the annual premium the 31 years old female will pay, if they choose to go for whole life.

The fourth column, is the accumulated difference between term life and whole life, factoring in time value of money, with investment rate of 5.25%. At beginning of age 31, the difference in using term life, results in 1263.20 in investment account. The sum of 1263.2 is in 2013 value

At the beginning of age 32, the 1263.2 from last year is expected to grow by 5.25%, and another 1263.2 from paying the premium age 32.
1263.2*1.0525+1263.2=2592.72.
This 2592.72 is continued to be kept in investment account. The sum of 2592.72 is in 2014 value.

At the beginning of age 33, 2592.72 from age 32 is again expected to grow by 5.25%, and another 1263.2 from paying the premium at age 33.
2592.72*1.0525+1263.2=4021.28
The sum of 4021.28 is in 2015 value.

fast forward to the beginning of age 70, 107647.2 from age 69 is expected to grow by 5.25%, while 1008 is to be paid out of the investment account for premium of age 70.
107647.2*1.0525-1008=112290.68
The sum of 112290.68 is in 2052 value

Same applies for column 5 and 6, just using different investment rate.

STI also has a return of less than 5% over the past 20 years and a negative return for the past 6 years so using 8% return is really stretching. We are no longer in the 1990s where every year our GDP is growing double digits.

And no investment cost? And we all know investment has its up and down. First year going up by 5-10% and first year down by 5-10% has a significant different in future value.

Since you are an IFA, perhaps you can grace us with your knowledge. The questions you asked, can be applied to participating fund and investment-linked policy(ILP).

Is it reasonable to project ILP with 8% return?

NTUC Income participating fund has return of -11.1%/12.0%/5.9%/-0.88%/8.56% for the year of 2008/2009/2010/2011/2012
TM Life participating fund has return of -17.1%/20.05%/6.68%/-0.72% for year of 2008/2009/2010/2011.

Is it fair for them to project at 5.25% or even 4.75% when their geometric average is less than that?

Does first year going up by 5-10% and first year down by 5-10% indeed has a significant difference in future value for a long term monthly saving plan in unit trusts?

How come the benefit illustration does not project the looming financial crisis?

Being on the topic of investment return, perhaps 4% annual return is not as easy as sinkie and bleeze have claimed? The insurers appear to have problem hitting that. Having 4% fixed may just be a good deal.

Investment cost of purchasing STI ETF is:
+/- 1% sales charge
0.3% management fee
+/- 1% selling charge

Yes, the charges can be negative because there may be sellers(buyers) anxious to sell(buy) at below(above) market price. By negative, it will mean instant profit.

Aya, using sti is always a benchmark lah

You see last few days, everyday sti closes green, and just move higher, but broad market has been dying at low volume. This market has been brought up by either the 3 jardines, or the banks nia or else the telco/defensive stocks but not necessary a true reflection of stock investment.

The furthest you can make use of sti is as an benchmark only and assuming that investment in stocks is restricted to investing in the index etf only.

If I am to invest in an etf? I might as well buy ILP or WL? But when I am or anyone is referring to stock investment, we refer to buying stocks like olam, tee, yoma or even digiland lah

STI can serve more than just a benchmark. Buying STI ETF is a good choice for people who are lazy to perform research on the stocks. STI ETF offers good number and mix of companies for diversification, at low cost.

Unit trusts have higher investment charges compared to STI ETF. Unit trusts have
Up to 3% sales charges
1 to 3% management fee
and maybe selling charge
and maybe financial advisers fees
and maybe platform fees

Academic research has shown that fund managers on average, does not perform better than the market. If you can take the effort to pick out a good fund, why not take the effort to pick out a good stock?

Participating funds are unlikely to be suitable for young people like Sinkie, and may contain higher charges compared to STI ETF. Participating funds have about 60% in bonds, which go against the rule of thumb of 1% bond for every year in age. Ie, 30% bonds allocation for 30 years old. Excessive bonds allocation undermines return. TM Life participating life fund has expense ratio of 0.12% for 2011, appearing to be lower than STI ETF. However, they invested some of the money in other funds, and these other funds also have their investment charges. The expense ratio also does not include profit shared to shareholder, rather than policyholder. You also cannot buy participating fund without incurring extra charges like agent fees.

Hence, I am inclined to agree with iAdvisor assessment

Yes, funds from insurer are useless.

 

[hwmook]

The mods can perhaps help by moving some of the post from “Fundsupermart sells insurance with 50% commission rebate” over to here since we were off topic.



it appears I was too frugal with explanation, rather than overly generous.

The second column is the annual premium the 31 years old female will pay, if they choose to go for term plan. The amount is in future value.
at age 31, the female will pay 1008 at 2013 dollar. at age 70, the female will pay 1008 at 2052 dollar

The third column is the annual premium the 31 years old female will pay, if they choose to go for whole life.

The fourth column, is the accumulated difference between term life and whole life, factoring in time value of money, with investment rate of 5.25%. At beginning of age 31, the difference in using term life, results in 1263.20 in investment account. The sum of 1263.2 is in 2013 value

At the beginning of age 32, the 1263.2 from last year is expected to grow by 5.25%, and another 1263.2 from paying the premium age 32.
1263.2*1.0525+1263.2=2592.72.
This 2592.72 is continued to be kept in investment account. The sum of 2592.72 is in 2014 value.

At the beginning of age 33, 2592.72 from age 32 is again expected to grow by 5.25%, and another 1263.2 from paying the premium at age 33.
2592.72*1.0525+1263.2=4021.28
The sum of 4021.28 is in 2015 value.

fast forward to the beginning of age 70, 107647.2 from age 69 is expected to grow by 5.25%, while 1008 is to be paid out of the investment account for premium of age 70.
107647.2*1.0525-1008=112290.68
The sum of 112290.68 is in 2052 value

Same applies for column 5 and 6, just using different investment rate.




Since you are an IFA, perhaps you can grace us with your knowledge. The questions you asked, can be applied to participating fund and investment-linked policy(ILP).

Is it reasonable to project ILP with 8% return?

NTUC Income participating fund has return of -11.1%/12.0%/5.9%/-0.88%/8.56% for the year of 2008/2009/2010/2011/2012
TM Life participating fund has return of -17.1%/20.05%/6.68%/-0.72% for year of 2008/2009/2010/2011.

Is it fair for them to project at 5.25% or even 4.75% when their geometric average is less than that?

Does first year going up by 5-10% and first year down by 5-10% indeed has a significant difference in future value for a long term monthly saving plan in unit trusts?

How come the benefit illustration does not project the looming financial crisis?

Being on the topic of investment return, perhaps 4% annual return is not as easy as sinkie and bleeze have claimed? The insurers appear to have problem hitting that. Having 4% fixed may just be a good deal.

Investment cost of purchasing STI ETF is:
+/- 1% sales charge
0.3% management fee
+/- 1% selling charge

Yes, the charges can be negative because there may be sellers(buyers) anxious to sell(buy) at below(above) market price. By negative, it will mean instant profit.



STI can serve more than just a benchmark. Buying STI ETF is a good choice for people who are lazy to perform research on the stocks. STI ETF offers good number and mix of companies for diversification, at low cost.

Unit trusts have higher investment charges compared to STI ETF. Unit trusts have
Up to 3% sales charges
1 to 3% management fee
and maybe selling charge
and maybe financial advisers fees
and maybe platform fees

Academic research has shown that fund managers on average, does not perform better than the market. If you can take the effort to pick out a good fund, why not take the effort to pick out a good stock?

Participating funds are unlikely to be suitable for young people like Sinkie, and may contain higher charges compared to STI ETF. Participating funds have about 60% in bonds, which go against the rule of thumb of 1% bond for every year in age. Ie, 30% bonds allocation for 30 years old. Excessive bonds allocation undermines return. TM Life participating life fund has expense ratio of 0.12% for 2011, appearing to be lower than STI ETF. However, they invested some of the money in other funds, and these other funds also have their investment charges. The expense ratio also does not include profit shared to shareholder, rather than policyholder. You also cannot buy participating fund without incurring extra charges like agent fees.

Hence, I am inclined to agree with iAdvisor assessment

Personal comment, the way you calculate is extremely confusing and not clear. I really don't know who teach you to do it this way.

 

[Silverback84]

what is thing?????????????????

 

[Sinkie]

Personal comment, the way you calculate is extremely confusing and not clear. I really don't know who teach you to do it this way.

not only calculation is confusing, but thread title also confusing

 

[Mecisteus]

Personal comment, the way you calculate is extremely confusing and not clear. I really don't know who teach you to do it this way.

you wont be able to understand, if you have never learn a module in finance before.

he is right. you cant simply sum up all $ across time. you need to factor in the value of money across time.

what he is trying to show is to compare the cash value of investment portion from BTITR method and the surrender value of your WL. see which one is higher in value. and in which year that is going to happen.

 

[Sinkie]

The mods can perhaps help by moving some of the post from “Fundsupermart sells insurance with 50% commission rebate” over to here since we were off topic.



it appears I was too frugal with explanation, rather than overly generous.

The second column is the annual premium the 31 years old female will pay, if they choose to go for term plan. The amount is in future value.
at age 31, the female will pay 1008 at 2013 dollar. at age 70, the female will pay 1008 at 2052 dollar

The third column is the annual premium the 31 years old female will pay, if they choose to go for whole life.

The fourth column, is the accumulated difference between term life and whole life, factoring in time value of money, with investment rate of 5.25%. At beginning of age 31, the difference in using term life, results in 1263.20 in investment account. The sum of 1263.2 is in 2013 value

At the beginning of age 32, the 1263.2 from last year is expected to grow by 5.25%, and another 1263.2 from paying the premium age 32.
1263.2*1.0525+1263.2=2592.72.
This 2592.72 is continued to be kept in investment account. The sum of 2592.72 is in 2014 value.

At the beginning of age 33, 2592.72 from age 32 is again expected to grow by 5.25%, and another 1263.2 from paying the premium at age 33.
2592.72*1.0525+1263.2=4021.28
The sum of 4021.28 is in 2015 value.

fast forward to the beginning of age 70, 107647.2 from age 69 is expected to grow by 5.25%, while 1008 is to be paid out of the investment account for premium of age 70.
107647.2*1.0525-1008=112290.68
The sum of 112290.68 is in 2052 value

Same applies for column 5 and 6, just using different investment rate.




Since you are an IFA, perhaps you can grace us with your knowledge. The questions you asked, can be applied to participating fund and investment-linked policy(ILP).

Is it reasonable to project ILP with 8% return?

NTUC Income participating fund has return of -11.1%/12.0%/5.9%/-0.88%/8.56% for the year of 2008/2009/2010/2011/2012
TM Life participating fund has return of -17.1%/20.05%/6.68%/-0.72% for year of 2008/2009/2010/2011.

Is it fair for them to project at 5.25% or even 4.75% when their geometric average is less than that?

Does first year going up by 5-10% and first year down by 5-10% indeed has a significant difference in future value for a long term monthly saving plan in unit trusts?

How come the benefit illustration does not project the looming financial crisis?

Being on the topic of investment return, perhaps 4% annual return is not as easy as sinkie and bleeze have claimed? The insurers appear to have problem hitting that. Having 4% fixed may just be a good deal.

Investment cost of purchasing STI ETF is:
+/- 1% sales charge
0.3% management fee
+/- 1% selling charge

Yes, the charges can be negative because there may be sellers(buyers) anxious to sell(buy) at below(above) market price. By negative, it will mean instant profit.



STI can serve more than just a benchmark. Buying STI ETF is a good choice for people who are lazy to perform research on the stocks. STI ETF offers good number and mix of companies for diversification, at low cost.

Unit trusts have higher investment charges compared to STI ETF. Unit trusts have
Up to 3% sales charges
1 to 3% management fee
and maybe selling charge
and maybe financial advisers fees
and maybe platform fees

Academic research has shown that fund managers on average, does not perform better than the market. If you can take the effort to pick out a good fund, why not take the effort to pick out a good stock?

Participating funds are unlikely to be suitable for young people like Sinkie, and may contain higher charges compared to STI ETF. Participating funds have about 60% in bonds, which go against the rule of thumb of 1% bond for every year in age. Ie, 30% bonds allocation for 30 years old. Excessive bonds allocation undermines return. TM Life participating life fund has expense ratio of 0.12% for 2011, appearing to be lower than STI ETF. However, they invested some of the money in other funds, and these other funds also have their investment charges. The expense ratio also does not include profit shared to shareholder, rather than policyholder. You also cannot buy participating fund without incurring extra charges like agent fees.

Hence, I am inclined to agree with iAdvisor assessment

Thanks for the clarification, now I understand, you are trying to "beat the inflation" each year by using a compounding 5.25% of returns consistently each year to calculate and also base on at beginning of age 31 rather than end of age 31, no wonder I cannot get your number when I'm doing my own calculation

And also I quote you another;

Buying STI ETF is a good choice for people who are lazy to perform research on the stocks. STI ETF offers good number and mix of companies for diversification, at low cost.

Please refer to previous thread, i have already say, if buying sti etf is your only exposure to Singapore stocks, then "buy term and invest the rest" is not a suitable strategy because with careful investment in specific stocks/industry, your return can yield more than 10%> annualized return of etf.

If that's the only way, I rather buy wl or even ilp

 

[simpledom]

Academic talk / Paper talk is simple.

1) 5.25% returns is assuming symmetric returns, year in year out. Markets move in cycles, so the values are arbitrary

2) Anyone can say that they can choose to invest in STI ETF, have low charges, fees, etc. However, that is only 1 part of the investing science, the other part is discipline, investing psychology, etc. There is also paralysis by analysis, which I see some instances in real life as well.

3) On hindsight, everyone can say that fund managers don't outperform the index. How many of us, with research, are able to consistently outperform the index, or even keep up with the STI returns over the long run ?

4) A lot of talk has been about laziness, etc. But doing market research on investing in even a few STI stocks, can take an extensive amount of time, which I would say, most working adults have limited amounts of. Therefore, its always a balance between outsourcing and DIY.

5) WL, ILP, Buy Term Invest the Rest, there are 101 strategies that work, each having their own pros and cons. One man's meat is another man's poison, is an apt description.

 

[Sinkie]

Academic talk / Paper talk is simple.

1) 5.25% returns is assuming symmetric returns, year in year out. Markets move in cycles, so the values are arbitrary

2) Anyone can say that they can choose to invest in STI ETF, have low charges, fees, etc. However, that is only 1 part of the investing science, the other part is discipline, investing psychology, etc. There is also paralysis by analysis, which I see some instances in real life as well.

3) On hindsight, everyone can say that fund managers don't outperform the index. How many of us, with research, are able to consistently outperform the index, or even keep up with the STI returns over the long run ?

4) A lot of talk has been about laziness, etc. But doing market research on investing in even a few STI stocks, can take an extensive amount of time, which I would say, most working adults have limited amounts of. Therefore, its always a balance between outsourcing and DIY.

5) WL, ILP, Buy Term Invest the Rest, there are 101 strategies that work, each having their own pros and cons. One man's meat is another man's poison, is an apt description.

That's why a fund manager always place alot of weightage on the bluechips in their portfolio so that they are always near or surpass her return.

Investing is about timing and opportunity. Like you mentioned about market moving in cycles, so we buy and hold when the market is near the bottom or after a big and drastic correction and sell when it reaches near the top.

We do not need to buy at the bottom or sell at the highest or even monitor it everyday. A typical market cycle is usually have a duration of 10 years. So we look to buy only 1-2 years and sell 1-2 years. The rest of the 5 years is typically zuobo collecting dividend and work to raise your capital again.

The worst thing to happen is continuing to feed and pay your unit trust or wholelife plan for that small return every year while missing out at the market bottom

 

[DevilCurseYou]

Personal comment, the way you calculate is extremely confusing and not clear. I really don't know who teach you to do it this way.

Please demonstrate the unconfusing and clear way to calculate, using the method taught by whoever that everyone should be learning.

thread title also confusing

Dissecting means to analyse in detail.
Benefit Illustration is the technical term for the document provided by insurer, showing the benefit you get at each time. Discussion on the assumptions behind benefits illustration is welcomed. In the process of analyzing, there is a comparison of whole life against term life, to determine the relative value of each plan.

Please refer to previous thread, i have already say, if buying sti etf is your only exposure to Singapore stocks, then "buy term and invest the rest" is not a suitable strategy because with careful investment in specific stocks/industry, your return can yield more than 10%> annualized return of etf.

If that's the only way, I rather buy wl or even ilp

Sorry, I do not understand your claims. Are you claiming:

1. self managed investment is superior to sti etf?
2. active management(unit trust/participating fund) is superior to sti etf?

Academic talk / Paper talk is simple.

1) 5.25% returns is assuming symmetric returns, year in year out. Markets move in cycles, so the values are arbitrary

Is 5.25% still reasonable considering the fact that some insurers are downgrading their bonus? Or the fact that it might be reviewed to 4.75%.

According to Life Insurance Association, 5.25% is the maximum best estimate. Insurers have unanimously used that as the higher projection. Ie, if LIA allow them to use higher estimate, insurers appear to gladly oblige to present the higher rate in their Benefit Illustration, when their performance might not be there.

2) Anyone can say that they can choose to invest in STI ETF, have low charges, fees, etc. However, that is only 1 part of the investing science, the other part is discipline, investing psychology, etc. There is also paralysis by analysis, which I see some instances in real life as well.

How does buying whole life/ILP, compared to a fixed plan in STI ETF, help in discipline, investing psychology or paralysis by analysis?

3) On hindsight, everyone can say that fund managers don't outperform the index. How many of us, with research, are able to consistently outperform the index, or even keep up with the STI returns over the long run ?

Are you going to claim on foresight, fund manager outperform the index on average?
Please do not present a false dilemma. People need not choose between active fund and self manage. There is also the option of passive fund(STI ETF). STI ETF keep up close to STI returns after expenses.

4) A lot of talk has been about laziness, etc. But doing market research on investing in even a few STI stocks, can take an extensive amount of time, which I would say, most working adults have limited amounts of. Therefore, its always a balance between outsourcing and DIY.

Please specify the tasks to be outsourced, and perhaps in order of importance. I appreciate if you estimate the time saved, as well as the money spent outsourcing

5) WL, ILP, Buy Term Invest the Rest, there are 101 strategies that work, each having their own pros and cons. One man's meat is another man's poison, is an apt description.

The 3 strategies work, but which is more efficient? Please state the advantages of WL or ILP over BTIR. Does such advantages indeed exist?

I see that FP_IFA has liked your post, so I assume he thinks your post is comprehensive enough? There are still some questions that was unanswered by you or him....

Investing is about timing and opportunity. Like you mentioned about market moving in cycles, so we buy and hold when the market is near the bottom or after a big and drastic correction and sell when it reaches near the top.

We do not need to buy at the bottom or sell at the highest or even monitor it everyday. A typical market cycle is usually have a duration of 10 years. So we look to buy only 1-2 years and sell 1-2 years. The rest of the 5 years is typically zuobo collecting dividend and work to raise your capital again.

The worst thing to happen is continuing to feed and pay your unit trust or wholelife plan for that small return every year while missing out at the market bottom

Timing the market is an elusive quality, for me and perhaps many others. What is the call now?
We should be in (cash/equity) because the market will be (lower/higher) after (a specific time)

 

[Sinkie]

Please demonstrate the unconfusing and clear way to calculate, using the method taught by whoever that everyone should be learning.


Dissecting means to analyse in detail.
Benefit Illustration is the technical term for the document provided by insurer, showing the benefit you get at each time. Discussion on the assumptions behind benefits illustration is welcomed. In the process of analyzing, there is a comparison of whole life against term life, to determine the relative value of each plan.


Sorry, I do not understand your claims. Are you claiming:

1. self managed investment is superior to sti etf?
2. active management(unit trust/participating fund) is superior to sti etf?

bro, a benefit illulstration will show the total amount of premium paid across the time line and also the 5%/9% return + distribution cost + surrender value + guarantee/non gaurantee death benefit as well iirc.

but what you are showing in your example is just 'premium paid' for the 2 policy (which u refer as benefit illulstration) + the 3 ccumulative future values too (your dissection and analysis), that is why when i come into this thread, i was expecting to see a benefit illustration and also the dissection of the distribution cost/surrender value/death benefit in term of the premium paid.

Sorry, I do not understand your claims. Are you claiming:

1. self managed investment is superior to sti etf?
2. active management(unit trust/participating fund) is superior to sti etf?

well, for me, a self-managed investment will be superior to sti etf, provided anyone is bother and is willing to learn about investment and getting your hand dirty. and also i personally group unit trust/participating fund together with sti etf even though i understand both are different products/instrument too.

Timing the market is an elusive quality, for me and perhaps many others. What is the call now?
We should be in (cash/equity) because the market will be (lower/higher) after (a specific time)

this is the strait time index weekly chart

well, im waiting for sti 2600 to really look into accumulating bluechips again.

chill bro, no hard feeling and nothing personal, i am not pin-pointing anything cheers

 

[DevilCurseYou]

bro, a benefit illulstration will show the total amount of premium paid across the time line and also the 5%/9% return + distribution cost + surrender value + guarantee/non gaurantee death benefit as well iirc.

but what you are showing in your example is just 'premium paid' for the 2 policy (which u refer as benefit illulstration) + the 3 ccumulative future values too (your dissection and analysis), that is why when i come into this thread, i was expecting to see a benefit illustration and also the dissection of the distribution cost/surrender value/death benefit in term of the premium paid.

Sorry that I failed your expectation. I considered those as introduction of benefit illustration or at most basic analysis. I am hoping for a more rigorous discussion. If you are looking for introduction, there are already quite some resources that you can google.

well, im waiting for sti 2600 to really look into accumulating bluechips again.

So are calling that we should be cash, and wait for sti to drop to 2600? How long are you giving STI to 2600 points? So we can know by a fixed time, if you are correct or wrong.

and implicitly, you mean that those that remain in equity are silly? by your call, you mean that the market is not going to go higher?

I am just illustrating the difficultly of timing the market...

 

[Sinkie]

Sorry that I failed your expectation. I considered those as introduction of benefit illustration or at most basic analysis. I am hoping for a more rigorous discussion. If you are looking for introduction, there are already quite some resources that you can google.


So are calling that we should be cash, and wait for sti to drop to 2600? How long are you giving STI to 2600 points? So we can know by a fixed time, if you are correct or wrong.

and implicitly, you mean that those that remain in equity are silly? by your call, you mean that the market is not going to go higher?

I am just illustrating the difficultly of timing the market...

yeah i know, but the problem with investor are, they want to be vested everyday, they have no patience to wait, they want to make their money work harder, and they will be finding for the instrument to put into everyday and alot of new investor think if i buy defensive stock today, i become defensive irregardless of the market sentiment and risk.

there will be retailer who are vested now in equity because they bought a few years ago and can wait for higher price to sell, but what about those who are not, and wants to get vested? do you really think sti will breakout after 4000 and go 6000? if you missed the buying spree 2-3 years ago, why not just wait? this is the point im trying to bring forward

of course when market is high, there are still counters that will continue to move higher, but not all of them, if you want to remain vested during this period when the market is high, please do throughout analysis (which is not easy for anyone to just pick up) and invested in selectivly good counters (ie blue chips) but if you have no idea, not learned, not trained to do such analysis, then wait for market correction, buy the blue chips and reits at battled price (like olam at 1.35) and just hold out and collect dividend.

imo, there are period to buy share, there are period to wait, there are period to sell shares, it is about timing and most importantly patience.

when i refer to timing, i am not saying 1 week later, or 1 month later or in a fixed period lah, timing in market comes and go, it could be today, it could be tomorrow or could be 10 years later, but it is not EVERYDAY because nobody will know the EXACT date, but when it comes, make sure you are still alive.

it is not that you buy a defensive share today, then u are making your money working harder.

seriously, did i step on your tail? if i did, i apologise.

peace.

there will be no end to such discussion lah bro, we are here to discuss and help the newbie, and not to win and decide who is cleverer or who can make their money harder, there is no prize at the end of the day lahhh..

 

[ochazuke]

Thanks for the clarification, now I understand, you are trying to "beat the inflation" each year by using a compounding 5.25% of returns consistently each year to calculate and also base on at beginning of age 31 rather than end of age 31, no wonder I cannot get your number when I'm doing my own calculation

And also I quote you another;



Please refer to previous thread, i have already say, if buying sti etf is your only exposure to Singapore stocks, then "buy term and invest the rest" is not a suitable strategy because with careful investment in specific stocks/industry, your return can yield more than 10%> annualized return of etf.

If that's the only way, I rather buy wl or even ilp

I would be grateful if you can share with the rest of us which stocks or industry can yield more than 10% annualized returns? Your insight is much appreciated.

 

[Sinkie]

I would be grateful if you can share with the rest of us which stocks or industry can yield more than 10% annualized returns? Your insight is much appreciated.

well, head over to the sub-stock forum then. stock investment is not for the lazy investors. you need to spend time to learn the how, read n interpret news and understand the companies.

but if you want and need to rely on other, then etf, unit trust or even funds are for you lah