Asked by Huang Yixuan

Talked to a FA recently who said that an endowment plan is basic for saving, do you guys agree and should I take one up?

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    • Jonathan Chia Guangrong
      Jonathan Chia Guangrong, Fund Manager at JCG Fund
      257 Answers, 367 Upvotes
      Answered on 06 Oct 2018

      What is your purpose for signing into an endowment plan in the first place? Saving up for a big ticket item down the road? Retirement? Or just a form of "forced" savings?

      Personally, I won't recommend getting into endowments or any retail wealth management products out there, including ILPs/unit trusts/mutual funds. They cost too much to put in and you get paltry returns in the end.

      As alternatives to endowment plans, considering buying into Singapore Savings Bonds, or leaving a standing instruction to "force transfer" a sum of money each month into an account giving higher interest, such as POSB's SAYE, CIMB's FastSaver, or Citibank's Maxi Gain. You can also buy into a bond ETF through POSB's Invest Saver programme each month at minimally S$100.

      Hope this helps.

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    • Jim Ng
      Jim Ng, Wealth Manager at Aviva Financial Advisers

      Top Contributor (Nov)

      43 Answers, 90 Upvotes
      Answered on 28 Oct 2018

      Compare between SSB and Endowment Plans here, then think critically for yourself, before making a decision.

      An article I wrote myself to educate Singaporeans about SSB vs Endowment Plans:

      https://savesmartsingapore.com/2018/10/27/the-difference-between-singapore-savings-bonds-vs-endowment-plans-that-every-adult-should-know/

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    Gabriel Lee
    Gabriel Lee

    Top Contributor (Nov)

    353 Answers, 532 Upvotes
    05 Oct 2018

    You can consider investing in Singapore Savings Bond which might give better returns, also it's safe and flexible since you can withdraw anytime

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