PRUDENTIAL SAVINGS SAGA

[akwl88]

I'm on the same side as you bro.

There isn't healthy discussion at all as long as awkl is around. He only thinks everyone is as savvy as him.
For someone else it might take them 5/10/20 yrs to be savvy whereby an endowment would make better sense for them rather than their YOLO lifestyle.

But other than akwl, i'm pretty much ok with the rest in money mind.
Wan to make merry, go EDMW.

I am sorry for being an obstacle to your fat commissions by selling useless policies

 

[akwl88]

Ok i read through the latest pages

Seems like the agents are pushing the blame to "ignorant consumers"

But then they call themselves financial advisors

The irony

 

[Lewis.T]

Go save up few months la

Wah lao so simple still need me say

$200 also want to scam

Tsk tsk agent

You got do the calculations bro? tsk

Your second half of your SSB purchases from year 11-20 how to get full interest when the duration left for SSB is <10 years? Remember you need to roll the first 10 years of SSBs that already matured too, and then you will get lesser interest on that. Overall CAGR I'm expecting 1+% only, maybe 2 if you're lucky. This is a period over 20 years.

Plus I want potential higher growth with STI ETF, how to fit into the equation? If fit liao becomes non capital guaranteed? Because not everything is in SSB?

Can hold my hand and walk me through ma? Investment so troublesome I don't want lah. I thought you always say BTIR but comes to the education on how to do the investment for each individual do you do it? Or troll nia.

I'm a person with not so demanding needs, I just want a capital guarantee but I also want to enjoy the growth of ETF you harp on so much about. I got $200/mth and 20 years time horizon help me please

 

[akwl88]

You got do the calculations bro? tsk

Your second half of your SSB purchases from year 11-20 how to get full interest when the duration left for SSB is <10 years? Remember you need to roll the first 10 years of SSBs that already matured too, and then you will get lesser interest on that. Overall CAGR I'm expecting 1+% only, maybe 2 if you're lucky. This is a period over 20 years.

Plus I want potential higher growth with STI ETF, how to fit into the equation? If fit liao becomes non capital guaranteed? Because not everything is in SSB?

Can hold my hand and walk me through ma? Investment so troublesome I don't want lah. I thought you always say BTIR but comes to the education on how to do the investment for each individual do you do it? Or troll nia.

I'm a person with not so demanding needs, I just want a capital guarantee but I also want to enjoy the growth of ETF you harp on so much about. I got $200/mth and 20 years time horizon help me please

Save up few months then hoot - you dont understand???

Min $500 for ssb. Hold to 10 years 2% + currently

Monthly dca plans u hear before???

U trolling me ah?

Still call yourself a financial advisor when you are only telling consumers to buy your own products

Tsk tsk

 

[w1rbelw1nd]

Fair comment, I share your views. I believe I know which forummer you are talking about. I personally would ignore him and let his trolling speak for himself, don't need to stoop to his level.

There is a very gross amount of misunderstanding and agent bashing going on, which makes it even harder for genuine people who want clarifications.

This is a forum to gain financial literacy, if you want to bash agents they should be in edmw, I don't give two hoots about what they post there, but when misinformation and negative posts come here we need to take it seriously, lest we become another edmw where misinformation and spreading fear is the norm on hot topics like insurance.

 

[FrontierX]

Financial planning by agents almost end up in buying this policy A, buy this policy B. When there may be better alternatives/equal alternatives/less than better alternatives out there which the agent would never tell their clients. Granted sometimes may be just that the agent doesn't know about these other alternatives. How is that considered financial planning ?

what financial planning do they really do?

you don't have hospitalization insurance - get one. help you to calculate how much coverage you need based on your salary, number of family mmbers etc. you don't have life/term insurance - get one. help you to calculate how much coverage you need based on your salary etc. you don't have disability insurance - you need one in case you can't afford to work anymore. help you to calculate how much coverage you need based on the amount of years you estimate you can't work. oh you want to put aside some savings for your future. how much money can you afford to put aside a month? ok, offer you a plan for that sum of money. That's about all the "financial planning" agents mostly do.

That's definitely not financial planning to me, more like insurance planning.

this is called planning for their own FAT COMMS

 

[chuanz]

The behaviour of agents in this thread is one of the many reasons I dislike agents in general.

 

[Lewis.T]

Save up few months then hoot - you dont understand???

Min $500 for ssb. Hold to 10 years 2% + currently

Monthly dca plans u hear before???

U trolling me ah?

Still call yourself a financial advisor when you are only telling consumers to buy your own products

Tsk tsk

Ya clearly you don't know what you're talking about. Step up interest means the second half of your SSB purchases won't get the full interest.

Seeing as how the May 2017 issue gives me an interest of $593 on a $2500/year purchase, the CAGR works out to be ~2.152%

Extrapolating that information, the first 10 years no problem you can get 2.15% interest. What happens to the next 10 years where you need to roll the first 10 years of money but the interest isn't so high? This is the second half where compounding effect should matter the most because I have a bigger capital, but I do not have the full 10 years to receive the same step up interest of 2.15%.

All in all doing it this way will net you a 1+% CAGR.

Also I already gave SSB a better fighting chance here, by allowing myself a full $2.5k/year as a lump sum for this purpose.


So now, my question I've always been asking you is this. With the knowledge of SSB giving me 1+% CAGR on a regular lump sum of $2500 a year over the course of 20 years, I find that too little. I can sacrifice the 1+% interest for potentially higher returns, how do I execute trades that allow me to maintain my capital guarantee but give me potential higher returns of lets say 3%?

Edit: Take your time to figure out the answer, It should be difficult because I can't think how you could pull that off with SSB and ETF.

Edit 2: No excel, did 'paper napkin' math

I decided to help you out as well as show you the likely scenario.

Year 11 onwards I've already 'reinvested' the SSBs that matured along with their interest.

Interest earned column is total interest earned for the investment done in that year.

 

[windwaver]

Salesman job is to make a client happy, not to be ethical. If you want ethical and valuable advice, come find me instead.

, good, keep it up but it's not going to be easy. I've gone through that path and an honest sales person just ain't going to make it big.

I still prefer to make an honest living .

 

[windwaver]

Also yes, the projected maturity value, that should not be emphasize, the part where most people should know is the guaranteed maturity value. Agents should emphasize that instead of projected maturity value.

Hey bro, unfortunately that is how many plans were sold 15 to 20 years ago by agents that have turn multiple MDRTs by now.

There are a lot of problem with the industry itself. Sales people do not usually stay once the pipe has dried up but the nature of insurance defies that.

It's true that there are exceptions like my ex MDRT agent (20 years later) that is still giving speeches these days. People that don't know her will be impress with her knowledge but what they don't know is how irresponsible she treat her old customers.

That is the reality of sales and insurance shouldn't be that nature in the first place.

 

[darknite84]

I saw his policy screenshots, most of the policy value went towards the riders, actual policy for the endowment is a lot lesser, thus the return is also little. Only $70 a month is credited to the endowment, the rest is all riders for protection

The living benefit to be received at the end. Is vey mis leading

 

[Perisher]

I saw his policy screenshots, most of the policy value went towards the riders, actual policy for the endowment is a lot lesser, thus the return is also little. Only $70 a month is credited to the endowment, the rest is all riders for protection

The living benefit to be received at the end. Is vey mis leading

The riders and that wording all contribute to the person being misled. Not sure about what the agent said.

 

[oceanicmanta]

Ya clearly you don't know what you're talking about. Step up interest means the second half of your SSB purchases won't get the full interest.

Seeing as how the May 2017 issue gives me an interest of $593 on a $2500/year purchase, the CAGR works out to be ~2.152%

Extrapolating that information, the first 10 years no problem you can get 2.15% interest. What happens to the next 10 years where you need to roll the first 10 years of money but the interest isn't so high? This is the second half where compounding effect should matter the most because I have a bigger capital, but I do not have the full 10 years to receive the same step up interest of 2.15%.

All in all doing it this way will net you a 1+% CAGR.

Also I already gave SSB a better fighting chance here, by allowing myself a full $2.5k/year as a lump sum for this purpose.


So now, my question I've always been asking you is this. With the knowledge of SSB giving me 1+% CAGR on a regular lump sum of $2500 a year over the course of 20 years, I find that too little. I can sacrifice the 1+% interest for potentially higher returns, how do I execute trades that allow me to maintain my capital guarantee but give me potential higher returns of lets say 3%?

Edit: Take your time to figure out the answer, It should be difficult because I can't think how you could pull that off with SSB and ETF.

Edit 2: No excel, did 'paper napkin' math

I decided to help you out as well as show you the likely scenario.

Year 11 onwards I've already 'reinvested' the SSBs that matured along with their interest.

Interest earned column is total interest earned for the investment done in that year.

this is so incorrect
how can extrapolate like that & say SSB only give CAGR 1% over 20yrs ??!!
everyone knows the next 10yrs is an unknown, interest rate could spike, who knows
want to compare over 30yrs, then mayb use 30yr SGS bond

 

[Lewis.T]

this is so incorrect
how can extrapolate like that & say SSB only give CAGR 1% over 20yrs ??!!
everyone knows the next 10yrs is an unknown, interest rate could spike, who knows
want to compare over 30yrs, then mayb use 30yr SGS bond

I'm on mobile now harder to reply, but my specific question was asked a few pages back. You can read what my question was. Interest could also go lower, even if it goes higher you wouldnt reap as much because of the step up interest and a 20 year time frame as per the question.

Does your sgs bonds give me a capital guarantee as per my question?

 

[Lewis.T]

I'm a typical person. When market does well I want a share of it. When market plummets I want my capital to be guaranteed. I have 2.5k to invest for the next 20 years.

The answer he gave me was SSB, so I worked it out for him and it didn't make sense.

 

[oceanicmanta]

Does your sgs bonds give me a capital guarantee as per my question?

 

[Lewis.T]

Also regarding this finance exercise, I personally like SSB. I also like the STI ETF. I have nothing against the two.

However they are not the end all be all solutions for all needs/wants/risk/time horizon.

 

[Mecisteus]

Also regarding this finance exercise, I personally like SSB. I also like the STI ETF. I have nothing against the two.

However they are not the end all be all solutions for all needs/wants/risk/time horizon.

You have to defend the last statement because you are an adviser yourself. How irony can it be if you don't sell insurance products?

However most of us here who are neutral. We find that investment/savings products from insurance companies are just rubbish.

 

[Lewis.T]

You have to defend the last statement because you are an adviser yourself. How irony can it be if you don't sell insurance products?

However most of us here who are neutral. We find that investment/savings products from insurance companies are just rubbish.

And I'm not neutral? Pretty sure if you look through my post history I do recommend investing on their own if a person has the discipline and can take the risks.

In fact I don't recommend any specific plan here because that would constitute marketing. I'm not allowed to. I can only generalize like buy a term, buy a hospitalization plan etc.

On the other hand ETF and SSB advice is spammed all over as the one size fits all solution here.

Just so you know I don't earn anything discussing stuff or posting my findings here.

 

[Perisher]

I'm a typical person. When market does well I want a share of it. When market plummets I want my capital to be guaranteed. I have 2.5k to invest for the next 20 years.

The answer he gave me was SSB, so I worked it out for him and it didn't make sense.

You mean there is such a product?