Anyone have any thoughts on AIA’s new Savest plan?

Hi Anon,

You are correct, it is a hybrid savings and investment plan.

Here's my stand: If you want to have guarantees, a saving plan or endowment plan is one way to do it. If you want to invest, you should not be constrained by the T&Cs of a policy.

I would not combine investment and savings in a single policy. I would save monies in a suitable policy for my guarantees, but invest on my own terms.

You are correct to say that this current market situation is a good time to start investing, however, I would probably do it on an investment/trading platform, or work with an advisor on that, without being tied down by a policy.

You need to know your needs and your objectives for doing so.

Endowment

The advantage of such a plan is there exists some form of guarantee in your capital - from the participating section of the plan.

More Details:

What is a Participating Fund?

Moreover, AIA has decent track records for its participating fund at a reasonable expense ratio.

Latest result from AIA Singapore: https://www.blog.pzl.sg/aia-singapore-participa...

However, the downside to it is whether you need short-term liquidity. This is because you cannot withdraw much money from this section of the plan in the short term.

Investment

On the other hand, half of your capital is invested through AIA investment-linked sub-funds. Accordingly, the returns are non-guaranteed and there exists a risk of loss.

More Details:

Types of Investment Risk that You should know

This is where it is fundamentally important to choose a reputable company to work with to grow your money over time.

Latest investment results from AIA Singapore: https://www.blog.pzl.sg/aia-singapore-investmen...

Having mentioned that, all these numbers are merely past performance and is not necessarily an indication of future performance.

So how?

With this in mind, the most important step is to go back to the basics by understanding your cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Thereafter, set a goal for your future. For instance, you may wish to plan for retirement. Then evaluate how this plan may be able to help you achieve your goal.

I share quality content on estate planning and financial planning here.