Endowment plans ??? anything reliable ? ?

Hi Megadisc,

What is your definition of reliable? If you are talking about upholding of the contact, insurers will have to uphold the guaranteed portion of the plan.

The return from the non-guaranteed portion of the plan is of course unknown at the point of getting on board. As bonuses are declared and credited, they become guaranteed and cannot be taken away. So eventually what you'll be receiving becomes guaranteed anyway.

Reliable meaning?

If u want capital guaranteed, endownment plan probably the only one.

But your $$$ will be locked. The min. Duration i know of is 5 years.

To samtex

Just buy, it will pay out dividend to you monthly. with a fixed Dpu. Current dividend yield ~7% p.a.

But of course, with such big dividend yield dont expect fantastic captial appreciation for long term. It has a few variant, the am is the 7%, amg 5%. Treat it as a high interest saving account. Bond fund is relatively less volatile.​​​

But for retirement, is better to construct a balanced portfolio consist of bond & equities, if you still have a long way to retirement. To provide growth & build cashflow.