Pruflexicash and cashbacks

[SolarPanel]

I have an endowment, PruFlexiCash, for 3+ years. A mistake to buy it that time since now I am not quite sure whether will I lose money as the non-guaranteed portion at maturity printed on the BI is around 50% of total premiums paid.

Currently inside there is ~2k of cashback, I am thinking is it feasible to leave it inside or withdraw it yearly to invest somewhere.

 

[SG_Alibaba]

If you cancel sure lugi...

 

[SolarPanel]

If you cancel sure lugi...

Yes, feels like stuck with the plan. But I am unsure if should leave the cashback in the plan or to invest the amount somewhere. But having said that, I also abit no clue what to invest in. I am concerned with a possible worse case scenario where at maturity I end up having an amount that is only slightly higher than my premiums paid. Pointless if so since need to be stuck with the plan for so long.

 

[JuniorLion]

If you withdraw the cashbacks, then you are left with a meagte 0.8%-1.6% XIRR on your investments.

PruFlexiCash kind of sucks if your goal is to save up - it is not meant as a savings plan.

 

[Shion]

If you withdraw the cashbacks, then you are left with a meagte 0.8%-1.6% XIRR on your investments.

PruFlexiCash kind of sucks if your goal is to save up - it is not meant as a savings plan.

Problem is many agents sell this as savings plan.

 

[Mecisteus]

If you withdraw the cashbacks, then you are left with a meagte 0.8%-1.6% XIRR on your investments.

PruFlexiCash kind of sucks if your goal is to save up - it is not meant as a savings plan.

Where did you get the numbers?

If he surrenders now, he will lose money. I think around 50%.

I surredered my prucash on the 6th year. Better to cut loss early than later.

 

[JuniorLion]

Where did you get the numbers?

If he surrenders now, he will lose money. I think around 50%.

I surredered my prucash on the 6th year. Better to cut loss early than later.

If withdraw cashbacks yearly and hold till maturity.

 

[Wishdom]

I have the same **** ass plan and am at my fifth year. I won't surrender but I withdraw all my cashback every year.

I bought it when I was 20,young and foolish.

Sent from Ilovennp using GAGT

 

[Mecisteus]

I have the same **** ass plan and am at my fifth year. I won't surrender but I withdraw all my cashback every year.

I bought it when I was 20,young and foolish.

Sent from Ilovennp using GAGT

You are just withdrawing from the premiums paid upfront.

On maturity, the balance is not much.

It's like a plan whereby you give me $150 monthly for 25 years. I promise to give you $1,500 annually starting from end of 3rd year.

This is a brilliant plan for the borrower.

 

[Mecisteus]

If withdraw cashbacks yearly and hold till maturity.

I see you mean the returns on maturity.

The returns is pathetic if you accept this.

 

[Wishdom]

You are just withdrawing from the premiums paid upfront.

On maturity, the balance is not much.

It's like a plan whereby you give me $150 monthly for 25 years. I promise to give you $1,500 annually starting from end of 3rd year.

This is a brilliant plan for the borrower.

Yes, I do realise that... My options now (apart from surrendering) are to either '' lend'' less or to ''lend'' more.

Having realise that it is a **** ass plan (have I mentioned that I really regret this policy?).. I have decided to go with the former and minimise my stake in the policy.

Sent from Ilovennp using GAGT

 

[JuniorLion]

I see you mean the returns on maturity.

The returns is pathetic if you accept this.

PruFlexiCash is one of the worse plans out there. But it seems that a lot of people had bought this plan.

 

[Lewis.T]

Just take into consideration the cashback part is the bulk of the interest and is liquid. ~3% at the moment. I wouldn't take it out unless I am positive I'll make a better investment elsewhere comparable to 3% and liquid.

This is assuming you don't want to surrender the policy.

 

[Shion]

PruFlexiCash is one of the worse plans out there. But it seems that a lot of people had bought this plan.

Not sure for now but previously Pru agents were selling this plan very actively.

 

[SBC]

Prudential was giving out free IPad mini about 5 years plus ago.

Many must had fallen trap to it. Haha

 

[SolarPanel]

In conclusion, I should leave the cashbacks as it is ?

 

[mSnooze]

I will withdraw, guaranteed amount is low even at maturity, and spending power of money now is more important.

 

[SolarPanel]

Just take into consideration the cashback part is the bulk of the interest and is liquid. ~3% at the moment. I wouldn't take it out unless I am positive I'll make a better investment elsewhere comparable to 3% and liquid.

This is assuming you don't want to surrender the policy.

Is the 3% compounded/accumulated?

1st year cashback $1000, interest 2.5%, interest $25
2nd year cashback $1000, interest 1.5%, interest $15
Accumulated cashback @ 2nd year $2000 + accumulated interest @ 2nd year $40

OR

1st year cashback $1000, interest 2.5%, interest $25
2nd year cashback $1000, total cashback $2000
interest @ 1.5%, adjusted interest @ 2nd year $30

 

[SolarPanel]

I will withdraw, guaranteed amount is low even at maturity, and spending power of money now is more important.

Hi, in what areas would you spend the cashback? But that would also mean at maturity i may get back lesser even after adding back all the cashbacks i withdrew over the years? Is my assumption valid?

 

[Lewis.T]

Is the 3% compounded/accumulated?

1st year cashback $1000, interest 2.5%, interest $25
2nd year cashback $1000, interest 1.5%, interest $15
Accumulated cashback @ 2nd year $2000 + accumulated interest @ 2nd year $40

OR

1st year cashback $1000, interest 2.5%, interest $25
2nd year cashback $1000, total cashback $2000
interest @ 1.5%, adjusted interest @ 2nd year $30

Accumulated and compounded