facebookOCBC asked me to take up a 10 year savings endowment plan and purchase funds from Lion Bank Asian Fund or Lion Bank Core Funds. Should I take this up, or invest in STI ETF + Bluechips + SSB and REITs? - Seedly

Anonymous

07 Jun 2019

General Investing

OCBC asked me to take up a 10 year savings endowment plan and purchase funds from Lion Bank Asian Fund or Lion Bank Core Funds. Should I take this up, or invest in STI ETF + Bluechips + SSB and REITs?

I have savings of 2 years of my current salary and my only debts are a car loan and my HDB loan (less than a year left to pay). I have no investments.

Discussion (8)

What are your thoughts?

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You can test the banking staff by asking just one question " how much are you getting for each successful plan purchased ? ". Haha

Learn to invest on your own. Why take the chance of having your funds locked up in an endowment that offers uninspiring returns? Not to mention costly funds that won't lead to something decent? Buying into a few reits and ssb may potentially offer something on par if not better, returns wise, with the option to liquidate without much costs. Do examine the reits to see if they fit what you are looking for before buying into them. Hope this helps

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Jim Ng

20 Dec 2018

Marketing Strategist at https://www.bestseo.sg

  1. I dislike endowment plans because of the commitment until the end of the policy term. If I were you, I will do away with the endowment plan. Regardless of how much savings you may have parked in the bank, you can't predict yourself being out of job. You can't predict when you'll need the emergency funds to be automatically taken out. So I don't to the lock my money aside in endowment plans.
  2. Mutual funds is one good way to diversify your portfolio. For Lion Bank Asian Fund and Lion Bank Core Funds, they have 2% one-time sales charge and 0.6% annual management fee. Why bother going through these fund companies when you can go directly through SGX? You can invest in blue-chip stocks or ETFs through the stock trading companies at just a one time 0.25% floor rate. That way, you get to save and diversify your portfolio too.
  3. Since you've no investments and are still new, I suggest you read up more on investments here: https://blog.seedly.sg/investment-product-short-medium-long-term/

Ultimately, it depends on your time horizon, your risk appetite, and your budget before you can determine what you should invest in. 👍🏼Cheers, all the best for your investing journey

Low cost index fund investing (into STI ETF) makes a lot more sense by keeping fees to a minimal. Those cost savings add up over long periods of time too. SSBs are a great way to get some fixed income exposure.

If you don't have much time (or interest!), it doesn't make sense to become an active investor and start looking at blue-chips or REITs as its quite a big learning curve.

I highly recommend reading the Millionaire Teacher (can get a copy at NLB) which talks a lot more about the entire process.

Lim Chun Long Jimmy

12 Nov 2018

Co-founder at PolicyWoke (Traded Endowment Policies)

Personally, I think that you will be better off investing on your own. In addition to STI "ETF + blu...

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