Anonymous
What are your thoughts on having traded endowment policy as a low-risk asset in a diversified portfolio?
Thoughts on having traded endowment policy as a low-risk asset in a diversified portfolio?
3
Discussion (3)
Learn how to style your text
Elijah Lee
16 Apr 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Reply
Save
Pang Zhe Liang
16 Apr 2020
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
It depends on your needs and whether the term to maturity and effective rate of return is reasonable. If yes, then it is a possible solution.
The only thing to note is the insurer's ability to pay the higher non-guaranteed rate of return over time.
More Details:
I share quality content on estate planning and financial planning here.
Reply
Save
I think it can be a useful and might yield better in a shorter period than buying an endowment from ...
Read 1 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
Related Articles
Related Posts
Related Posts
As a capital guaranteed instrument, it is really quite a safe asset class that is not tightly correlated to equity markets. You will have to work through the maths, paying attention to the reversionary and terminal bonuses, to get a sense of your i.r.r. in the worst case and best case scenario (just in case the endowment matures in a weak economy and terminal bonuses are not awarded).