whole life = disability + TPD?

[Chennie]

True, I learn as I go. Storing every bit of new knowledge (^_^)

 

[chopra]

All whole life in the markets are sitting at 4.75% (best case scenario projection).

However, from what I've noticed of the return trend. They will generally return you the 4.75% UNLESS something horrible happens in the market and lasts for more than 5 - 6 years. The reason for this is dividend smoothing. Presently if the fund makes more than 4.75% (say 8%) they will return you 4.75% and keep the rest (this amount is compounded as well). This is so they can continue to return 4.75% even in bad years (where they make less or negative returns).

CPF SA will give you 4% compounding, however withdrawal is a problem. You must still leave the minimum sum inside CPF. Presently if I have 100k in CPF, I can only withdraw $5,000.

If I had a life policy instead, I might be able to surrender for the cash value which would have covered the premiums paid and given some excess cash on top of that.

These are important things to consider. Always find your break-even point with a life policy and find out how quickly it starts making you cash. During this period, it is an ASSET and you are basically getting protection for free. You do not need to pay until you die (unless you choose a plan that does this).

let me be more explicit.
show me the underlyings of 4.75% and I can do better.

 

[Chennie]

let me be more explicit.
show me the underlyings of 4.75% and I can do better.

Please explain how you can do better. As for the underlyings for 4.75% how it is achieved is explained on every company's website under the section that explains how the participating fund works.

 

[chopra]

Please explain how you can do better. As for the underlyings for 4.75% how it is achieved is explained on every company's website under the section that explains how the participating fund works.

are you able to provide link?

i cant seem to find it in AIA portal.
for instance, Term plus - i dont see it:
http://www.aia.com.sg/en/resources/...94f5f7968/AIA_id_life_secure_term_plus_sg.pdf

 

[Chennie]

are you able to provide link?

i cant seem to find it in AIA portal.
for instance, Term plus - i dont see it:
http://www.aia.com.sg/en/resources/...94f5f7968/AIA_id_life_secure_term_plus_sg.pdf

Participating Fund: Individuals | Funds Information | AIA's Participating Fund Commentaries

Also Term Plus is a non-participating product. It does not participate in the par fund's returns.

 

[chopra]

Participating Fund: Individuals | Funds Information | AIA's Participating Fund Commentaries

Also Term Plus is a non-participating product. It does not participate in the par fund's returns.

Thanks for the SIC.
This is AIA Vitality Insurance Premium Discount.
I really wonder if it's indeed a discount.

Top 5 Fixed Income Exposures/Issuer Rating/(Moody's/S&P)
Singapore Government Securities Aaa/AAA
Temasek Holdings Aaa/AAA
Singapore Power Group Aa3/AA-
DBS Group Holdings Ltd Aa1/AA-
United Overseas Bank Ltd Aa1/AA-


Top 5 Equity Holdings/% of Total Equities
Starhill Global REIT/4.80%
Mapletree Commercial Trust/3.66%
DBS Group Holdings Ltd/3.55%
Ascendas Real Estate Investment Trust/2.87%
Singtel/2.76%



The highlighted in RED can be DIY-ed

Thanks and have a nice evening ahead.

 

[Chennie]

Thanks for the SIC.
This is AIA Vitality Insurance Premium Discount.
I really wonder if it's indeed a discount.

Top 5 Fixed Income Exposures/Issuer Rating/(Moody's/S&P)
Singapore Government Securities Aaa/AAA
Temasek Holdings Aaa/AAA
Singapore Power Group Aa3/AA-
DBS Group Holdings Ltd Aa1/AA-
United Overseas Bank Ltd Aa1/AA-


Top 5 Equity Holdings/% of Total Equities
Starhill Global REIT/4.80%
Mapletree Commercial Trust/3.66%
DBS Group Holdings Ltd/3.55%
Ascendas Real Estate Investment Trust/2.87%
Singtel/2.76%



The highlighted in RED can be DIY-ed

Thanks and have a nice evening ahead.

The discount is on the premium paid and it does not pertain to any one single product.

As for the point about DIY, actually ALL of it could be DIYed if you want to closely follow and manage the ratio. As I said, it is a time cost that most people cannot afford. Also those only show the top 5, they do not include the rest that is required to exactly mimic the movements of the fund.

DIY is very possible, but whether you have the time and understanding required to do it, is the key (^_^)

 

[chopra]

The discount is on the premium paid and it does not pertain to any one single product.

As for the point about DIY, actually ALL of it could be DIYed if you want to closely follow and manage the ratio. As I said, it is a time cost that most people cannot afford. Also those only show the top 5, they do not include the rest that is required to exactly mimic the movements of the fund.

DIY is very possible, but whether you have the time and understanding required to do it, is the key (^_^)

I do have time to press a few buttons on my computer to regularly buy Singtel at its current price.

I do not have time to scrutinise what the insurance agent does with my AIA Vitality Insurance Premium Discount fund, if i were to park money with it. For every $1k investible fund with them, $27.6 is used to buy Singtel as of the prospectus given.

I wonder
1. at what price is singtel bought?
2. at what brokerage fee
3. if number of shares are rounded down or up
bla bla bla

I'm not sure if you get my point here, so let me be explicit -- there's MORE homework to do, than DIY. You need to know what the insurance agent, insurance agent manager, actuarist, fund manager are doing behind the screen VIS-A-VIS DIY where i just need to know the brokerage fee.

Hope you get my point.

 

[Chennie]

I do have time to press a few buttons on my computer to regularly buy Singtel at its current price.

I do not have time to scrutinise what the insurance agent does with my AIA Vitality Insurance Premium Discount fund, if i were to park money with it. For every $1k investible fund with them, $27.6 is used to buy Singtel as of the prospectus given.

I wonder
1. at what price is singtel bought?
2. at what brokerage fee
3. if number of shares are rounded down or up
bla bla bla

I'm not sure if you get my point here, so let me be explicit -- there's MORE homework to do, than DIY. You need to know what the insurance agent, insurance agent manager, actuarist, fund manager are doing behind the screen VIS-A-VIS DIY where i just need to know the brokerage fee.

Hope you get my point.

Um, there is no Vitality Premium Discount fund, the Vitality Premium Discount is a feature you can take up when you buy a policy, it reduces the premium paid on that policy. It is not a fund. The link I showed you goes to our par fund.

Yes, I understand that you have the time to press a few buttons to buy Singtel. However, simply buying one share does not create a diversified investment portfolio. Furthermore, learning how to make good returns on your investments does take time.

If it were so simple to make a return of doing what you described, then by emulating your strategy, everyone would be a winner. If it is possible for you to do this, then I beg you to share it with the public that needs it the most.

With respect to what the people are doing behind the screen, I think that it is not quite as complex as what you've described. Let me cite a very simple example:

If a plate of chicken rice costs $2.20 does it matter if one vendor pays a cost of $0.60 to make that rice, versus one that pays $1.00?

What you are eventually looking at is the benefit received per dollar you put in (or in the case of chicken rice, the taste of the rice). Creating a diversified portfolio and having a sound investment strategy, does not only involve the brokerage fee, there is more at work than that.

Of course, this is simply what I believe in.

 

[chopra]

I had mentioned STI ETF.
Your concept is miserably wrong through and through.

I read your chicken rice first para 3 times and I can't relate to my costing para. ok I'm stupid.

You are new in hwz. Hear more, read more, before you share your insights with hwzners and more importantly your clients.You lack of the full picture and you are causing harm. There are tons of easy ways to diversify.

Cheers.

 

[Chennie]

I had mentioned STI ETF.
Your concept is miserably wrong through and through.

I read your chicken rice first para 3 times and I can't relate to my costing para. ok I'm stupid.

You are new in hwz. Hear more, read more, before you share your insights with hwzners and more importantly your clients.You lack of the full picture and you are causing harm. There are tons of easy ways to diversify.

Cheers.

It's okay if you think that way, everyone is entitled to their own opinion. I look forward to hearing from you as well on future topics (^_^)