PRUDENTIAL SAVINGS SAGA

[akwl88]

better than SSB already. I think if you take 5 years SSB return minus off the protection value for 100 K, the figure is either close to zero or negative.

And also this plan return depending on age also.
Younger definitely return better coz lower protection fee.

ssb is not an investment nor insurance protection product

 

[Perisher]

I will prove to you why SSB + term is very easy to beat by my calculations here. All hard figures:

First diagram :
20 years SSB return with compound interest of 2.3% with and without deducitons of 99 per annum to account for term.

Second diagram, compound interest at 2.3% to show the calculator result is somewhat similar to what I get from excel:

Start at year 1, yearly addition of 2800 for 19 years.

Third diagram, to show the effective interest rate after account for deductions, i try to estimate the interest rate needed to generate similar end result for 2800 yearly addition, 2.3% compound with deduction.
Effective interest rate was found out to be around 1.98 to 2% only.

I'm not sure why your figures doesn't match lewis's 1.5-1.6%?

So EIR for SSB as a 20 year policy with the 2.3% is 1.98-2% without accounting for term?

 

[akwl88]

But that policy is an endowment, and according to you,

Endowments are useless
http://forums.hardwarezone.com.sg/107455675-post578.html
SSB wins endowments hands down
http://forums.hardwarezone.com.sg/107441004-post564.html
Insurance agents, and by affiliation, endowments are scams
http://forums.hardwarezone.com.sg/107436132-post519.html
Endowments are a useless product
http://forums.hardwarezone.com.sg/107406569-post443.html

etc etc.

Why so inconsistent?

but your endowment plans really is useless

consistent with what i am saying

and you are selling useless products which give you commissions when there are better alternative which you dont receive commissions

 

[Perisher]

better than SSB already. I think if you take 5 years SSB return minus off the protection value for 100 K, the figure is either close to zero or negative.

And also this plan return depending on age also.
Younger definitely return better coz lower protection fee.

It will win from year 1-4. Only year 5 it will lose provided one get a term plan?

 

[Mancunian2]

better than SSB already. I think if you take 5 years SSB return minus off the protection value for 100 K, the figure is either close to zero or negative.

And also this plan return depending on age also.
Younger definitely return better coz lower protection fee.

death benefit is $5k or $100k over the single premium?

 

[OngHuatHuat]

ssb is not an investment nor insurance protection product

Say that only if you can get protection for free.

 

[soneat]

Need approvals for such stickies. Requested for insurance before but rejected.

I see....cause there's just so much bouncing to and fro, I think both camps must be exhausted. Readers (like myself) also bit exhausted.

 

[Perisher]

I see....cause there's just so much bouncing to and fro, I think both camps must be exhausted. Readers (like myself) also bit exhausted.

It's just drilling down to the nitty gritty. Can skip majority of it. I skipped reading a lot of it.

 

[OngHuatHuat]

I'm not sure why your figures doesn't match lewis's 1.5-1.6%?

So EIR for SSB as a 20 year policy with the 2.3% is 1.98-2% without accounting for term?

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Confirm not the same, reason is because that one is single premium endowment.

Yearly addition is different from single premium model.

For single premium model, if you hold it for 20 years, the figure will differ a lot for a small change in compound interest.

Yes, 2.3 % SSB after account for expenses in term(50 K protection with CI, 32 years old start age, 20 years leveled fee) = 1.98% to 2% with protection value.

You can see the difference in percentage is pretty big, cannot say negligible.

If SSB were to beat endowment, interest rate needs to be raised till 4+ %, but the problem is endowment invest in long term bonds as well, so if interest rate rises, most likely endowment return will rise together.

It is very difficult for liquid product to beat illiquid product because they already lower the return rate for additional liquidity.
You want to beat endowment, use another illiquid product like CPF life. This one confirm can beat.

 

[OngHuatHuat]

I don't understand the logic of beating endowment using Ssb.
If you choose other financial product, I think Can win endowment quite easily. It is pretty hard to use liquid product to beat illiquid product.

The best is cpf special after account for additional tax benefits. For example, 7 k yearly addition, they gave you tax rebate of 11.5 % on that 7k, so effectively you are using 6195 to achieve compounding effect of 4 + % of 7 k. This is one of the best and low risk product.

 

[w1rbelw1nd]

Idk why we are using ssb returns against a 20 year endowment. Or ssb returns against a 5 year endowment.

 

[Perisher]

Idk why we are using ssb returns against a 20 year endowment. Or ssb returns against a 5 year endowment.

To see which is more suitable for savings/wealth accumulation over the long term for a conservative person?

 

[Perisher]

I don't understand the logic of beating endowment using Ssb.
If you choose other financial product, I think Can win endowment quite easily. It is pretty hard to use liquid product to beat illiquid product.

The best is cpf special after account for additional tax benefits. For example, 7 k yearly addition, they gave you tax rebate of 11.5 % on that 7k, so effectively you are using 6195 to achieve compounding effect of 4 + % of 7 k. This is one of the best and low risk product.

CPF is locked. There is no way to unlocked the sum accumulated in it. Liquidity is the big issue.

 

[Perisher]

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Confirm not the same, reason is because that one is single premium endowment.

Yearly addition is different from single premium model.

For single premium model, if you hold it for 20 years, the figure will differ a lot for a small change in compound interest.

Yes, 2.3 % SSB after account for expenses in term(50 K protection with CI, 32 years old start age, 20 years leveled fee) = 1.98% to 2% with protection value.

You can see the difference in percentage is pretty big, cannot say negligible.

If SSB were to beat endowment, interest rate needs to be raised till 4+ %, but the problem is endowment invest in long term bonds as well, so if interest rate rises, most likely endowment return will rise together.

It is very difficult for liquid product to beat illiquid product because they already lower the return rate for additional liquidity.
You want to beat endowment, use another illiquid product like CPF life. This one confirm can beat.

A bit confused here. So the EIR is 1.98-2% with or without term?
You quote my words which is talking about SSB EIR without term but your post is talking about with term?

 

[OngHuatHuat]

CPF is locked. There is no way to unlocked the sum accumulated in it. Liquidity is the big issue.

That's why it is able to give the highest possible return with lowest risk(risk here = decrease in asset value + fraud).

Anyway, CPF special is another argument again.

Best for one to have is not to stick with one financial instrument.

 

[OngHuatHuat]

A bit confused here. So the EIR is 1.98-2% with or without term?
You quote my words which is talking about SSB EIR without term but your post is talking about with term?

1.98% is compounding rate of 2.3 % - cost to purchase 50 K term with CI.

I just want to say this again. SSB return is very low. It cannot even beat my DBS multiplier or BOC smart savers.

 

[Perisher]

1.98% is compounding rate of 2.3 % - cost to purchase 50 K term with CI.

I just want to say this again. SSB return is very low. It cannot even beat my DBS multiplier or BOC smart savers.

Those 2 got limit though I agree those bank savings interest these days are better if conditions are met.

Disagree with buying term to match endowment.

CPF doesn't have term, neither does DBS or BOC. Though even added in, it still can beat endowment?

 

[Perisher]

On another note, still waiting for stats showing 20 years endowment returns of various companies after year 2000. Whether the majority of those policies beat the 2% mark.
And if they do, why is the 23 year policy not showing that as per TS's fb post.

 

[OngHuatHuat]

Cpf special + term confirm best combo, but you say you don't want coz money is locked. Cpf special interest rate is very high, even if you Take out 0.2-0.3 % to purchase term, the return still very good.

Ssb + combo is the lousiest, even lower than endowment. Even if you don't add term, over a sufficient period of time, Ssb still cannotwin most endowment(hold to maturity).

I need to know the reason why you disagree? Coz you always have a free of charge term available somewhere?
My point is if you have endowment, you will be able to reduce term coverage for protection.

And this thread is about endowment. You need to keep this in mind. You are finding a product that can beat endowment, not finding an endowment to beat Ssb.

Those 2 got limit though I agree those bank savings interest these days are better if conditions are met.

Disagree with buying term to match endowment.

CPF doesn't have term, neither does DBS or BOC. Though even added in, it still can beat endowment?

 

[OngHuatHuat]

The one is without fancy riders.

The one inside TS picture is with the fancy riders.
You try add so many riders to your term, your premium will also increase a lot due to higher chance of claiming. Not sure why you keep repeating this.

I will just say this again if the radio repeats. Now I know the trick here.

On another note, still waiting for stats showing 20 years endowment returns of various companies after year 2000. Whether the majority of those policies beat the 2% mark.
And if they do, why is the 23 year policy not showing that as per TS's fb post.