ETF, STI > Savings plans

[ngolig]

Recently I came across an offered a savings plans by my insurance agent friend that give a annual interest rate of 2.7% over 5years(normally they ask for 20-25years)

There are many ways in fighting inflation in Singapore. Normal people will put their money in opening a savings plans premium from insurance company which you will need to wait for it to be mature... Alternatively there is investment which requires some readings and understand which means higher returns. For starter like me, should I put my money in Savings plans or invest in Exchange-traded fund(ETF), STRAIT TIME INDEX(STI) ????

 

[lohsenglte]

STI ETF may give more percentage in terms of dividend and have much more flexibility, but as it's still in equities market, there's much higher risk. Therefore, you need to monitor the stock market frequently.
You can stand to gain on not only dividend payout, you do also get through the rise in the stock price too, but the inverse is true.

I think the 2.7% over 5 years is the Great Eastern insurance endowment plan, which holds near zero risk, since the risk of Great Eatern defaulting in the short term is unlikely. To see them default would mean OCBC is already in deep trouble, probably other banks (and other industries too).

 

[makav31i]

STI ETF may give more percentage in terms of dividend and have much more flexibility, but as it's still in equities market, there's much higher risk. Therefore, you need to monitor the stock market frequently.
You can stand to gain on not only dividend payout, you do also get through the rise in the stock price too, but the inverse is true.

I think the 2.7% over 5 years is the Great Eastern insurance endowment plan, which holds near zero risk, since the risk of Great Eatern defaulting in the short term is unlikely. To see them default would mean OCBC is already in deep trouble, probably other banks (and other industries too).

You don't need to monitor stock market frequently just because you invest in index funds...Only insurance agent will scare people that so that they will invest through the agent...

Rather than buying an Endowment Plan which pays 2.7% over 5 years, might as well buy SSB which is guaranteed by the Singapore Government...

If TS wants to start investing in STI ETF, POSB Invest Saver is one such simple option with low amount of minimum $100/month...Fees is 0.82%...can read more about it in this thread...

https://forums.hardwarezone.com.sg/stocks-shares-indices-92/posb-invest-saver-4309151-179.html

 

[makav31i]

Recently I came across an offered a savings plans by my insurance agent friend that give a annual interest rate of 2.7% over 5years(normally they ask for 20-25years)

There are many ways in fighting inflation in Singapore. Normal people will put their money in opening a savings plans premium from insurance company which you will need to wait for it to be mature... Alternatively there is investment which requires some readings and understand which means higher returns. For starter like me, should I put my money in Savings plans or invest in Exchange-traded fund(ETF), STRAIT TIME INDEX(STI) ????

Go read up on POSB Invest Saver to invest in STI ETF... Until you can invest more than $610/month, just stick with POSB Invest Saver...

 

[Kyzers0ze]

STI ETF is the way to go man

 

[crimsontactics]

Not really.

Risk is higher in STI ETF, that's why I pays more.

Sent from . using GAGT

 

[soulblader_89]

Recently I came across an offered a savings plans by my insurance agent friend that give a annual interest rate of 2.7% over 5years(normally they ask for 20-25years)

There are many ways in fighting inflation in Singapore. Normal people will put their money in opening a savings plans premium from insurance company which you will need to wait for it to be mature... Alternatively there is investment which requires some readings and understand which means higher returns. For starter like me, should I put my money in Savings plans or invest in Exchange-traded fund(ETF), STRAIT TIME INDEX(STI) ????

Singapore inflation rate is ard 2-3% per year

that take it as 3% I think I anything above 2.5% like SSD or GE endowment plan is good enough, anything above 4-5% per year is very good, anything above 8% may or may not be a scam.

If you read the Shining thing ebook

you should start investing STI ETF

 

[Maeda_Toshiie]

STI ETF may give more percentage in terms of dividend and have much more flexibility, but as it's still in equities market, there's much higher risk. Therefore, you need to monitor the stock market frequently.
You can stand to gain on not only dividend payout, you do also get through the rise in the stock price too, but the inverse is true.

I think the 2.7% over 5 years is the Great Eastern insurance endowment plan, which holds near zero risk, since the risk of Great Eatern defaulting in the short term is unlikely. To see them default would mean OCBC is already in deep trouble, probably other banks (and other industries too).

If you are buying passive index ETFs and constantly monitoring the market, you are doing it completely wrong. The point of buying passive index ETFs to let it grow over time while ignoring the gyrations of the market from active traders. The portfolio is for retirement, not for you to get itchy fingered and fret all over, when you ought to be working on your career and living life with your family and friends.

Oh and the STI is not the end all and be all for local investors.

 

[crimsontactics]

If you are buying passive index ETFs and constantly monitoring the market, you are doing it completely wrong. The point of buying passive index ETFs to let it grow over time while ignoring the gyrations of the market from active traders. The portfolio is for retirement, not for you to get itchy fingered and fret all over, when you ought to be working on your career and living life with your family and friends.

Oh and the STI is not the end all and be all for local investors.

You can do active investing with STI ETF as well.

No right no wrong.

End of the day, as long as you make the most money, you are right.

Sent from . using GAGT

 

[Cheyne]

Sorry where to find shinythings ebook?

 

[kehyi4]

Sorry where to find shinythings ebook?

Rich by Retirement: How Singaporeans Can Invest Smart and Retire Wealthy
by Joshua Giersch (aka Shiny Things)

https://gumroad.com/l/FxsMU

https://www.amazon.com/Rich-Retirement-Singaporeans-Invest-Wealthy-ebook/dp/B01JXW17ZM