facebookWhat's your view of a person who have endowment plan as a backup n invest freely n more daring afterward knowing the back up is there - Seedly

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Anonymous

20 Apr 2022

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General Investing

What's your view of a person who have endowment plan as a backup n invest freely n more daring afterward knowing the back up is there

Discussion (8)

What are your thoughts?

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You can consider using signature product as alternative to endownment plan.
Comparions as below:

Endownment plan (E): Low return. Breakeven year 10 Years above. Must stay throughout the saving period (Normally pay 5 years, then wait for 5/10/15 years before you can take out). Maturity benefit only at the end of the period. Lack of flexibility to use the return.

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Signature product (S): Higher return. Breakeven year 8 Years. Any time can terminate. Monthly income & capital appreciation on the account. If terminate half way, surrender benefit pro rated according to the number of years stayed with this product. Flexible to use the return.

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The yield can be 8% to 13% if leverage. So I would suggest don't need to put too much to this product. Just to diversify the retirement basket of eggs. $70k to $100k is sufficient.

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I like this feature: - If no urgency of using the money, it can leave as legacy somemore, generating income for next generation or use the capital for their house.

While probably not the best option as a "backup plan", the idea behind the strategy is good. Endowment plans are lower risk in general that promises a minimum pot of gold at a certain point in the future. Having a minimum "guaranteed" amount especially at a point where you are certain you need money, would give one slightly more freedom in terms of going for slightly higher risk assets in the main core portfolio.

If you want to have experience with cryptocurrencies, you can consider investing with Anchor protoco...

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