Opinion on savings plan? - Seedly


Endowment Policies


Asked by Anonymous

Asked on 16 Apr 2019

Opinion on savings plan?

Currently I have shield plan and life insurance and invest 35% on investments. 70% are cash earning 1-2% I was offered a AIA smart growth plan. Are there any other insurance plan from other compariable to this? Pro and cons of this plan?


Answers (1)

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I have done comparison before. Effectively locking the liquidity for 20-25 years, and getting 2.43% of growth seems very inefficient to me.

Why not consider putting into your CPF SA for 4% returns to hit FRS, (since if you are about 25 years old, by 55 you can get your excess amount on top of FRS, out), tax relief of up to $7,000 for cash topup, or even topup your medisave to BHS (which also has tax relief)?

If you require the money to be in cold, hard cash, you may even consider some universal life like Save3 TIQ which has a 6 years lock in period, at 3% interest, and can look for better deals after that? I would expect interest rate for banks to increase anyway for such a long time.

For even for citibank maxi-gain account (which you may require $75,0000) but earns 70% of Sibor + 1.2%.

Do review why you want to save so long, and earn a paltry interest in this case... (even DBS multiplier seems to have 2.2% which is so much flexible than the savings plan imho).