Retirement plans

[curious_moo]

Generally affects all.

Always remember this: Buy Term (insurance) and invest the Rest!

And remember this - Don't buy:
- whole-life insurance
- endowment
- investment-linked policies
- annuities
- I would rate ElderShield in this category.

This might not be the best approach for all. For the average joe, i believe that we should have a mix of everything to balance out our risk. Not everyone is capable of getting xx% returns consistently.

You should have a proper mix of whole-life, endowment, personal stock/ETF investments and CPF. Just that the ratio can differ based on risk appetite and competency. Single extreme approach never works with with the common pple.

 

[mummynew]

This is my TM 24-year endowment maturing in a few months time. So far my experiences with endowments and WL policies are highly positive and so sort of have 'faith' despite keep hearing 'horror stories' of insurers 'cheat money' now and then.


https://imgur.com/a/Bk6GTGQ

 

[lifeafter41]

This is my TM 24-year endowment maturing in a few months time. So far my experiences with endowments and WL policies are highly positive and so sort of have 'faith' despite keep hearing 'horror stories' of insurers 'cheat money' now and then.


https://imgur.com/a/Bk6GTGQ

The policy of yesteryears payout is still decent.
My thoughts is current policies payout is just pathetic, I guess given the low interest environment.

 

[Mr. Wood]

Generally affects all.

Always remember this: Buy Term (insurance) and invest the Rest!

And remember this - Don't buy:
- whole-life insurance
- endowment
- investment-linked policies
- annuities
- I would rate ElderShield in this category.

generally agree, except endowments. personally i think is a relatively safe strategy for those wanting shorter term than CPF, some flexibility on liquidity or cannot stomach market volatility. eg for housing downpayment, child education.

but it does comes with its own risk, like is non guaranteed non risk free - risk dat the company and agent will run road. unlike SG gov (regardless of party) most likely will still be ard.

 

[nautilus]

This is my TM 24-year endowment maturing in a few months time. So far my experiences with endowments and WL policies are highly positive and so sort of have 'faith' despite keep hearing 'horror stories' of insurers 'cheat money' now and then.


https://imgur.com/a/Bk6GTGQ

Nothing is certain until it matures and you surrender the policy. Anything can happen between now and then.

 

[nautilus]

generally agree, except endowments. personally i think is a relatively safe strategy for those wanting shorter term than CPF, some flexibility on liquidity or cannot stomach market volatility. eg for housing downpayment, child education.

but it does comes with its own risk, like is non guaranteed non risk free - risk dat the company and agent will run road. unlike SG gov (regardless of party) most likely will still be ard.

I would rate endowments in the same league as ILPs. The concept is the same - you pay someone to pay someone else to pay perhaps someone else to invest for you. Best to cut down the middlemen and save the hefty commissions incurred along the way.

 

[junlove]

I would rate endowments in the same league as ILPs. The concept is the same - you pay someone to pay someone else to pay perhaps someone else to invest for you. Best to cut down the middlemen and save the hefty commissions incurred along the way.

Returns and breakeven can be very different.

To me they both crap

Endowment worse as breakeven typically longer, u will be surprised how much you lose if u cancel along the way, super illiquid. Meant to hold long long...

The non guaranteed portion is getting worse compared to yesteryears, yet the risk of losing money when u cancel early is so high....

 

[junlove]

This is my TM 24-year endowment maturing in a few months time. So far my experiences with endowments and WL policies are highly positive and so sort of have 'faith' despite keep hearing 'horror stories' of insurers 'cheat money' now and then.


https://imgur.com/a/Bk6GTGQ

your returns is like est 4% XIRR... imagine policies of today.. can be as low as 2-3%.
The real surrender value is so much lower when compared to the illustration table... even if it materializes... you see that the break-even is about midway for your case (furthermore, that is getting back capital only)

For endowment plans today.. the break-even period... shivers...

 

[henrylbh]

This is my TM 24-year endowment maturing in a few months time. So far my experiences with endowments and WL policies are highly positive and so sort of have 'faith' despite keep hearing 'horror stories' of insurers 'cheat money' now and then.


https://imgur.com/a/Bk6GTGQ

You experience based on matured policies or BI? Anyway, the declared bonus to date should give an idea, compared to BI.

 

[purpleberry]

Totally break even is around 8-10 years for endowment? For education it's a safer way especially if you are not investment savvy

 

[maple96]

Totally break even is around 8-10 years for endowment? For education it's a safer way especially if you are not investment savvy

I just checked my single premium endowment plan 15 years, now 10years,

Premium:19.7k
Current surrender value: 28,116
IRR: about 3.6% pa
On Maturity: expected IRR >4%pa

Just for sharing, u will not be able to get this anymore, the rest is secret

 

[xtwis7]

For single premium, it can be as fast as 3-5 years.

Totally break even is around 8-10 years for endowment? For education it's a safer way especially if you are not investment savvy

 

[junlove]

For single premium, it can be as fast as 3-5 years.

no mention of policy term cannot gauge.
typically even at 4% returns, you'll only break-even near mid term...

 

[junlove]

I just checked my single premium endowment plan 15 years, now 10years,

Premium:19.7k
Current surrender value: 28,116
IRR: about 3.6% pa
On Maturity: expected IRR >4%pa

Just for sharing, u will not be able to get this anymore, the rest is secret

yeah, nowadays difficult liao.
The underlying funds are still correlated to market(securities/assets), whose growth has deaccelerated liao...

 

[mummynew]

You experience based on matured policies or BI? Anyway, the declared bonus to date should give an idea, compared to BI.

I had two endowment policies matured years ago but I didn't keep the documents properly and so can't trace the XIRR (only can remember I was 'contented' with them).

As you said, the updated TM BI is with declared bonus.

I share another 20-year endowment from Income ($2421/year saving). Now into its 13th year. When matching the old BI against the updated BI, the numbers are still quite consistent. Even for the 6th yo Aviva's endowment that I bought for my nephew (Pay-5-Matures-at-12th), the numbers still are the same for the original BI vs the updated numbers.

https://imgur.com/a/WA1LOzl

So my point is whether the old endowment plans of above 10 years or above 20 years or the more recent one like the about 6 years old, insurers such as TM, Income, and Aviva, are honouring their BIs' numbers (I honestly don't think they just plucked numbers from the air to 'con' people into buying).

Maybe someone can share an endowment plan that is off from the original BI?

I am sharing this to perhaps encourage those who can't do investments confidently to consider simple endowments instead of putting money only in bank accounts. Negative information is usually more impactful than positive ones and I am sharing positive experiences.

 

[Nofear40]

Believe your X in the bottom illustration are meant to Y.

I will be planning to use my SRS for period between 55 & 65.
Had built about 100k in my SRS now. Hope to attain 150k to 200k at 55.

Thought only at 62?

 

[junlove]

i got no qualms that it can offer you returns, albeit how close to the BI depends on many conditions. it's a projection, the underlying funds are just correlated to the securities, can't run away one. i.e. if we see super growth in next decade, of coz BI will be exceeded, IF.

For those who doesn't invest, maybe. As mummynew mentioned, better than put in bank. the only "BUT" is, there is a break-even = it's not liquid. For those who are not disciplined to park aside monies, it can be a good thing too.

However, for those who invest, there are better options, as endowments are nether here nor there. I want protection, i go TERM ins. I want investment, i go invest (with wide spectrum of products depending on risk profile). I want savings with immediate liquidity, i put in bank. Endowment tries to do all but is bad at it.

 

[Sprinklesofrainbow]

Any good plans to share? Not the high risk investment type ones but more for guaranteed returns like endowment. Any comments on Prudential, Great Eastern and Manulife?

Can try Manulife for safe dividend paying. Plus now got extra bonus to start off your plan!

 

[boredboiboi]

Can try Manulife for safe dividend paying. Plus now got extra bonus to start off your plan!

What play are you referring to?

 

[Sprinklesofrainbow]

What play are you referring to?

Are u looking at retirement planning?