PRUDENTIAL SAVINGS SAGA

[koja6049]

Because it's a varying return policy. Can't expect a policy that has big upside to also guaranteed a minimum 3% in a low interest rate environment.

cannot even guarantee 2% aka ssb?

 

[Lewis.T]

Only your 2nd point make sense. 1 and 4 are just not legit points.
3rd point is reasonable.

They all shouldn't make sense. I'm using an argumentative fallacy here for an example because they keep being used.

 

[Lewis.T]

Sorry need to be owl here

Image removed look at yyhwin's repost.

 

[Lewis.T]

I think to simplify the process, we can use this table for illustration

Credits to mrclubbie

Take note CAGR is badly affected because of loss compounding, Year 1 is a bad year for all insurers.




Pru's brochure

2015 0.2%
2016 8.3%

Par fund is above 4.75% for the past 10 years. Not sure about 20.

 

[OngHuatHuat]

I make the image easier to read for you.

I am still waiting for last year bonus declaration before I continue commenting on my thread. Without data and actual bonus added, quarreling is a waste of time.

 

[OngHuatHuat]

I think to simplify the process, we can use this table for illustration

Credits to mrclubbie

Take note CAGR is badly affected because of loss compounding, Year 1 is a bad year for all insurers.




Pru's brochure

2015 0.2%
2016 8.3%

Par fund is above 4.75% for the past 10 years. Not sure about 20.

They used this for limited pay whole life as well?

 

[akwl88]

saving product become investment product

gg max

 

[Perisher]

I think to simplify the process, we can use this table for illustration

Credits to mrclubbie

Take note CAGR is badly affected because of loss compounding, Year 1 is a bad year for all insurers.




Pru's brochure

2015 0.2%
2016 8.3%

Par fund is above 4.75% for the past 10 years. Not sure about 20.

Erm, are those the average for all endowment plans or all endowment plans pay out as above?

Why no 20 year stats? It's simple stats.

 

[Lewis.T]

They used this for limited pay whole life as well?

Same par fund yes.

 

[Lewis.T]

Erm, are those the average for all endowment plans or all endowment plans pay out as above?

Why no 20 year stats? It's simple stats.

I wish there was, I don't have the info.

Which image are you referring to? Both are par fund performance.

 

[akwl88]

Erm, are those the average for all endowment plans or all endowment plans pay out as above?

Why no 20 year stats? It's simple stats.

he using the par-fund returns figures

 

[OngHuatHuat]

Erm, are those the average for all endowment plans or all endowment plans pay out as above?

Why no 20 year stats? It's simple stats.

I think you are looking at the wrong image. 20 years data here.

Do take note for SSB to be comparable with endowment, you have to combine it with term.

 

[Perisher]

I need stats for absolute returns for past 20 years. Failing which, the par fund figures can minus 1% off all returns?

 

[OngHuatHuat]

Estimated return for 10 years SSB, let say 2.7 %, cost of purchasing term? anyone calculated before for the equivalent coverage?

 

[akwl88]

wrong basis of comparison

the issue is so simple - saving products with capital guaranteed, liquidity and returns

now all bringing in payouts, par fund performance etc

face palm

 

[Perisher]

I think you are looking at the wrong image. 20 years data here.

Do take note for SSB to be comparable with endowment, you have to combine it with term.

The term part, I'm not sure about that. Endowment ain't sold as a protection policy, it's just a bonus. Main function is savings/wealth accumulation?
Are we gonna add that in just so SSB can provide a bonus too? That's missing the main objective no?

Anyway, the image above is a tad blurred. Not sure if that is the average or absolute return of all endowment policies?
Like I mentioned before, I wanna know the absolute returns stats(not par fund performance) of all endowment policies. Is it more than 70% of all endowment policies returns above 2% over 20 year?

Failing which, can we deduct par fund performance fees and get a stats of how many endowment policies can perform above 2% over 20 years?

Failing which, can we get stats from specific companies' all endowment policies stats that performed above 2% over 20 years?

 

[OngHuatHuat]

I try use this set to generate return data for SSB + term
20 years

 

[OngHuatHuat]

The term part, I'm not sure about that. Endowment ain't sold as a protection policy, it's just a bonus. Main function is savings/wealth accumulation?
Are we gonna add that in just so SSB can provide a bonus too? That's missing the main objective no?

Anyway, the image above is a tad blurred. Not sure if that is the average or absolute return of all endowment policies?
Like I mentioned before, I wanna know the absolute returns stats(not par fund performance) of all endowment policies. Is it more than 70% of all endowment policies returns above 2% over 20 year?

Failing which, can we deduct par fund performance fees and get a stats of how many endowment policies can perform above 2% over 20 years?

Failing which, can we get stats from specific companies' all endowment policies stats that performed above 2% over 20 years?

Nope...what you are seeing is the actual yield already. In that table.
Means people already surrendered that policy.
I think it is fair enough for that agent to produce only prudential products return since he is prudential agent himself. I will just use that set of data to do a comparison. Perhaps just take lower of the 2 actual yield to compare.

Like what I said, you cannot simply compare SSB without term with endowment. You want to have equivalent comparison, you do it with term.

 

[Perisher]

Nope...what you are seeing is the actual yield already. In that table.
Means people already surrendered that policy.
I think it is fair enough for that agent to produce only prudential products return since he is prudential agent himself. I will just use that set of data to do a comparison. Perhaps just take lower of the 2 actual yield to compare.

So is that averaged or is that all endowment policies return? meaning everyone who get a 20 year policy get that returns?

 

[OngHuatHuat]

http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx

SSB this month bond. Average 2.32% per year.
I will use this figure and project it over 20 years(I think that interest rate if for 10 years, but that isn't 20 years SSB available).