03 Oct 2020
Not sure how much cash you have, but at least 86k in starting capital is quite good.
Questions for you to think about
do you need to set aside money for future education?
do you see yourself needing to set aside money for getting married, and buying a home, in a certain time frame?
These are the two most important questions you need to think about, although you might not have an answer.
Personally, I am not so in favour of endowments (because the commissions paid to agents eat a large chunk of the returns), and you will have to hold it to maturity to avoid large loss for the surrender value. If you need to take the money out from the endowment to cover expenses mentioned in my two questions in less than 10 years, then I am quite sure endowment isn't the right product.
If you have to take on an education loan to continue further education, then i think it would be smarter to keep in high interest bearing bank accounts to maintain the liquidity, because it would be quite foolish to pay interest on debt, while money is stuck in an endowment, and you have to figure whether you are net paying interest or gaining.
Lim Chun Long Jimmy
03 Oct 2020
Co-founder at PolicyWoke (Traded Endowment Policies)
Assuming you have confirmed your decision to set aside some funds on endowment policies for 10-year holding period, one option would be traded endowment policies (TEPs) for up to 4.6% projected Internal Rate of Return. TEPs are endowment policies which were given up by original policyholders and are then available for resale. However, you have to speak with a financial advisor if TEPs is suitable for you.
Disclaimer: I run my own business trading TEPs.
Ang Pei San
02 Oct 2020
Personal Wealth Manager at AIA Singapore
have you managed to look into the other aspects of your financial planning? It works hand...
Read 3 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts