facebookI heard a lot people bash endowment plans. Can I seek an opinion in what scenario does endowment plans help? From what I know. It helps with people with definite goals e.g. retirement, education etc? - Seedly

Anonymous

07 Jun 2019

Insurance

I heard a lot people bash endowment plans. Can I seek an opinion in what scenario does endowment plans help? From what I know. It helps with people with definite goals e.g. retirement, education etc?

Interested to know more about how endowments can help one in retirement planning

Discussion (15)

What are your thoughts?

Learn how to style your text

Tan Siak Lim

17 Jan 2022

CFP. Director, Financial Advisory Group at Financial Alliance

It's really and risk / return preference. Also consideration on lock in. Some people consider lock in as a good force saving feature, some don't. One man's meat is another poison. Use this to decide if endowment is suitable for you.

Well, it depends on one's needs. If a person has a very low risk appetite, likes to have "forced" savings and prefers a form of guaranteed returns, endowments would be suitable.

Other than that, personally I don't really like endowments due to the long lock up period, medicore returns, and lost opportunity cost if I were to channel the funds towards my own portfolio instead.

View 2 replies

Jason Sing

05 Dec 2018

School Of Hard Knocks And Life at School Of Hard Knocks And Life

Endowment plans are like savings plan that can help towards your retirement goals. However, you need to commit to a number of years and you may even get back lesser money compared to what you have put in if you withdraw earlier. I would personally prefer Singapore Saving Bond where you can withdraw anytime without any penalties.

Jay Liu

21 Sep 2018

Accounting and Finance at ACCA

It's best for people that can't save on their own. If you can mange your own money and have investing knowledge, I think its better for you to DIY. End of the day you'll learn when you lose cash. And then apply past lessons to future lessons.

Kenichi Xi

21 Sep 2018

nᴉʍ oʇ dǝnᴉʇsǝd 不能说的秘密 at Tag Team with Gabriel Tham

Most are already covered by the 6 answers here.

In Endowment, the money you take back might be l...

Write your thoughts