SSB vs endowment vs what?

[thekang]

Endowments cannot be compared directly with investments.

Endowments are sold by insurance companies, and are meant to have an insurance component. The insurance component is supposed to be big, but some insurers choose to make the insurance component so small that it looks just like an investment product, so they can increase their top-line by selling these products. This is not illegal, but quite a grey area.

For participating policies (i.e. those with non-guaranteed benefit), the money is still invested in bonds and stocks (while deducting some fees). For pure investment, you should be able to reproduce this return easily, or at least buy into a unit trust that does this at lower expense.

Guaranteed benefits are harder to replicate, but a well-diversified bond fund should be able to give higher yield for low risk.

 

[havetheveryfun]

I don't think it's guaranteed :\

It is as long as you hold till maturity. 2% is believeable, any higher would be a red flag maybe

 

[akwl88]

It is as long as you hold till maturity. 2% is believeable, any higher would be a red flag maybe

As the bonus rates used for the benefits illustrated above are not guaranteed, the actual benefits payable will vary according to the future experience of the
Participating Fund.
* Based on the prevailing interest rate of 3% p.a. This rate is not guaranteed and is subject to change

Re-invest
Projected
Cash
Bonus1 at
3%* p.a.


i dont think its a guranteed endowment plan

 

[havetheveryfun]

As the bonus rates used for the benefits illustrated above are not guaranteed, the actual benefits payable will vary according to the future experience of the
Participating Fund.
* Based on the prevailing interest rate of 3% p.a. This rate is not guaranteed and is subject to change

Re-invest
Projected
Cash
Bonus1 at
3%* p.a.


i dont think its a guranteed endowment plan

i already said.. the one my parents bought is of a different name. I think what they mean by that rate not guaranteed in that particular plan is that - e.g. on 15 September if you sign up for the plan, the rate is 3%. But maybe if you sign up 3 months later on 14 December, the rate might be 2.4% and not 3% anymore. But the rate is guaranteed as long as you hold till maturity

2% and not guaranteed, who will want to buy ? put fixed deposit also better

 

[redchallenge]

sorry to hijack a bit, the interest calculator in SSB website, isit guaranteed or projected?

 

[akwl88]

sorry to hijack a bit, the interest calculator in SSB website, isit guaranteed or projected?

http://www.sgs.gov.sg/savingsbonds/About-SSB/Returns.aspx

 

[redchallenge]

http://www.sgs.gov.sg/savingsbonds/About-SSB/Returns.aspx

thanks mugiwara san

 

[Mecisteus]

i already said.. the one my parents bought is of a different name.

In other words, the plan is not available anymore. Then no point discussing.

If bought 10 years back, did you know that SGS Bonds yields were higher? 3-month TB was already near 2%.

 

[havetheveryfun]

In other words, the plan is not available anymore. Then no point discussing.

If bought 10 years back, did you know that SGS Bonds yields were higher? 3-month TB was already near 2%.

its still available.. my parents renewed it after their first one matured just few months ago. 2.6% guaranteed per annum for 5 years

of course, 2.6% is nothing to shout about, some might say just put it in CPF better if you are already 40-50 years old + (cos u just need to wait till 55 years, around 10-15 years to get back the $, similar to an endowment plan). but just wanted to point out such plans do still exist where you get capital guarantee plus guaranteed returns for endowment plans

 

[Mecisteus]

its still available.. my parents renewed it after their first one matured just few months ago. 2.6% guaranteed per annum for 5 years

of course, 2.6% is nothing to shout about, some might say just put it in CPF better if you are already 40-50 years old + (cos u just need to wait till 55 years, around 10-15 years to get back the $, similar to an endowment plan). but just wanted to point out such plans do still exist where you get capital guarantee plus guaranteed returns for endowment plans

2.6% guaranteed pa for cash is quite acceptable.

Why don't you SIC what is the plan name? If not, I strongly believe you must have mistaken.

 

[havetheveryfun]

2.6% guaranteed pa for cash is quite acceptable.

Why don't you SIC what is the plan name? If not, I strongly believe you must have mistaken.

i aleady SIC.. "Single Premium Rewards 4"..

 

[havetheveryfun]

2.6% guaranteed pa for cash is quite acceptable.

Why don't you SIC what is the plan name? If not, I strongly believe you must have mistaken.

hmm I went to read through the whole benefit illustration again and yep I m mistaken.. capital is guaranteed but the returns are not guaranteed, ranging from 1.5-3++ %

 

[Mecisteus]

i aleady SIC.. "Single Premium Rewards 4"..

Strange. This plan is not found in the website. Google search also cannot find.

 

[havetheveryfun]

Strange. This plan is not found in the website. Google search also cannot find.

its probably under the "Single Premium" Series..

https://giexchange-sg.greateasternlife.com/sg/en/promo/spspecial2/brochure.pdf

 

[Mecisteus]

hmm I went to read through the whole benefit illustration again and yep I m mistaken.. capital is guaranteed but the returns are not guaranteed, ranging from 1.5-3++ %

I have expected this.

Even a 20 year endowment cannot guarantee 2.6% pa.

 

[henrylbh]

its still available.. my parents renewed it after their first one matured just few months ago. 2.6% guaranteed per annum for 5 years

of course, 2.6% is nothing to shout about, some might say just put it in CPF better if you are already 40-50 years old + (cos u just need to wait till 55 years, around 10-15 years to get back the $, similar to an endowment plan). but just wanted to point out such plans do still exist where you get capital guarantee plus guaranteed returns for endowment plans

No way any 5 years plan would give a guaranteed return of 2% or close to it.

 

[Hyruga]

I just checked my endowment plan.

Invest $10000. Guaranteed $10150 after 5 years...

Non Guaranteed: if 2.6% investment return: $10450 (The interests is lower due to effects of deductions)

Investment return is based on market forces.

 

[Darkzi0n]

I just checked my endowment plan.

Invest $10000. Guaranteed $10150 after 5 years...

Non Guaranteed: if 2.6% investment return: $10450 (The interests is lower due to effects of deductions)

Investment return is based on market forces.

what...? 10450 including the non guaranteed return? effective interest is 0.88% per year? put in ocbc360 also get higher interest rate leh, somemore can withdraw anytime... u typo is it?

 

[havetheveryfun]

I just checked my endowment plan.

Invest $10000. Guaranteed $10150 after 5 years...

Non Guaranteed: if 2.6% investment return: $10450 (The interests is lower due to effects of deductions)

Investment return is based on market forces.

I think you have a similar plan as my parents. I think you missed out the yearly cashback value somewhere

 

[JK1688]

There's a plan now offering 1.88% guaranteed for 5yrs.

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