SSB vs endowment vs what?

[Hyruga]

Singapore saving bonds, it seems only has a 1.79% AAR after 10 years.

But I tot 10 years endowment has interest rate of 2.2% or higher. Isn't it better to go for endowment? Somemore, endowment gives a little insurance coverage.

So is endowment better than SSB?

 

[akwl88]

Endowment got non guranteed values which will decrease over the 10 yrs

Kindly sic your 2.2% endowment plan

 

[Hyruga]

Endowment got non guranteed values which will decrease over the 10 yrs

Kindly sic your 2.2% endowment plan

Have what. You go great eastern.

 

[akwl88]

Have what. You go great eastern.

Sic la bro

GE only got one plan meh?

 

[orange_sky]

I know a 50 year endowment that pays 4% guarantee!

Sent from lala using GAGT

 

[havetheveryfun]

I know a 50 year endowment that pays 4% guarantee!

Sent from lala using GAGT

CPF Special account ?

 

[Mecisteus]

You cannot use SSB as a comparison with a regular premium endowment plan.

1 is a lumpsum instrument and the other is a monthly recurring payment plan.

 

[Hyruga]

No lei. Some endowment allow one lump sum payment and hold for 10 years.

 

[akwl88]

No lei. Some endowment allow one lump sum payment and hold for 10 years.

bro, waiting for u to sic the plan

 

[Mecisteus]

No lei. Some endowment allow one lump sum payment and hold for 10 years.

So you need to be clear in your thread.

Are you looking at the single premium endowment or regular premium endowment?

If the former, then it is fair to compare the returns from SSB.

SSB is a guaranteed return instrument. No lockout of capital. The single premium endowment has a lower guaranteed return, small pathetic coverage and lockout of capital.

I think it is very clear which one is the winner.

 

[akwl88]

So you need to be clear in your thread.

Are you looking at the single premium endowment or regular premium endowment?

If the former, then it is fair to compare the returns from SSB.

SSB is a guaranteed return instrument. No lockout of capital. The single premium endowment has a lower guaranteed return, small pathetic coverage and lockout of capital.

I think it is very clear which one is the winner.

Plus one month liquidity too without loss hehe

 

[blueG77]

Endowment, participates in the insurance par funds. It's roughly a 70:30 bond to stocks ratio. By comparing pure ssb (100% bonds) and an endowment is not really a good comparison of the yields

 

[Hyruga]

bro, waiting for u to sic the plan

All endowment plans (10 years or more) give interest rates of 2% or more but it's not guaranteed. There is a full lock-in period too.

 

[Perisher]

All endowment plans (10 years or more) give interest rates of 2% or more but it's not guaranteed. There is a full lock-in period too.

That's misleading ... There are endowment plans that lose $$ over 10 years or more too.

https://www.google.com.sg/webhp?sou...1&espv=2&ie=UTF-8#q=endowment+that+lost+money

One must hold to maturity to get something back and it may not be 2% or more.

 

[unhinged_loon]

All endowment plans (10 years or more) give interest rates of 2% or more but it's not guaranteed. There is a full lock-in period too.

I highlighted the key part.

For ANY insurance policy, the fine print is important. What is the guaranteed sum and what is the guaranteed minimum yield? Is the principal guaranteed?

The SG government is unlikely to default on its obligations in the foreseeable future.

 

[henrylbh]

Singapore saving bonds, it seems only has a 1.79% AAR after 10 years.

But I tot 10 years endowment has interest rate of 2.2% or higher. Isn't it better to go for endowment? Somemore, endowment gives a little insurance coverage.

As for ETF, let's just say I am a bit risk adverse at the moment.

So is endowment better than SSB?

You can only use a 10yrs single premium policy to compare with SSB.

SSB gives guaranteed return at end of 10 years while return for SPP is never guaranteed.

If you surrender your policy during the period for whatever reason, it will be painful compared to liquidating your SSB.

One is guaranteed by government and the other with limited guaranteed by?

Forget about the little insurance coverage which is very very unlikely to be of any use.

 

[havetheveryfun]

Have what. You go great eastern.

Sic la bro

GE only got one plan meh?

Hes right actually. I don't know the plan name, but my parents bought it not too long ago. Hold for 5 years and get back around 2.6% guaranteed. As long as you hold it for 5 years (or whatever amount of years you agree to, but minimum is 5 years). Only if you withdraw before the 5 years then you don't get back your full capital.

I guess very few people know about it because agents find it too troublesome for the little commission they are going to get from it (there was so much paperwork for the agent to do).

At first I also thought the same like some posters here, but as my parents were above 60 years old, the agent had to ask a closed family member to sit in to ensure that their money was not being cheated (see how troublesome it is for the agents). I was pretty surprised that such a plan existed and read carefully all the papers (you know some endowment have non-guaranteed and guaranteed amounts where the guaranteed amounts are much less than your capital put in, but for this, the capital amount is guaranteed as long as you hold it to maturity)

I try to look for the plan name tomorrow

 

[JK1688]

So many products in the market now giving guaranteed amount higher than premium paid now.

However the tenure varies from 10-20 years. Of cos, the longer the tenure, the higher the return.

Sent from using GAGT

 

[havetheveryfun]

Hes right actually. I don't know the plan name, but my parents bought it not too long ago. Hold for 5 years and get back around 2.6% guaranteed. As long as you hold it for 5 years (or whatever amount of years you agree to, but minimum is 5 years). Only if you withdraw before the 5 years then you don't get back your full capital.

I guess very few people know about it because agents find it too troublesome for the little commission they are going to get from it (there was so much paperwork for the agent to do).

At first I also thought the same like some posters here, but as my parents were above 60 years old, the agent had to ask a closed family member to sit in to ensure that their money was not being cheated (see how troublesome it is for the agents). I was pretty surprised that such a plan existed and read carefully all the papers (you know some endowment have non-guaranteed and guaranteed amounts where the guaranteed amounts are much less than your capital put in, but for this, the capital amount is guaranteed as long as you hold it to maturity)

I try to look for the plan name tomorrow

The plan name is "Single Premium Rewards 4"

Cant't really find anything online about it except this similar one: https://giexchange-sg.greateasternlife.com/sg/en/promo/spspecial2/brochure.pdf

When they say the bonus rates are not guaranteed at the bottom, they mean that when you purchase the fund, that bonus rate may not be that 2-3%, but whatever % it is at that point of time - but the returns are guaranteed at that % if you keep it to maturity

 

[akwl88]

The plan name is "Single Premium Rewards 4"

Cant't really find anything online about it except this similar one: https://giexchange-sg.greateasternlife.com/sg/en/promo/spspecial2/brochure.pdf

When they say the bonus rates are not guaranteed at the bottom, they mean that when you purchase the fund, that bonus rate may not be that 2-3%, but whatever % it is at that point of time - but the returns are guaranteed at that % if you keep it to maturity

So pay 50k, after 5 yrs can get back guranteed 55309?

Thats ard 2%