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?

1
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (4)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
    • Jonathan Chia Guangrong
      Jonathan Chia Guangrong, Fund Manager at JCG Fund

      Top Contributor (Jan)

      329 Answers, 469 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.

      Comments (0)
      3
      0
      Share this
    • Jim Ng
      Jim Ng, Wealth Manager at Aviva Financial Advisers
      47 Answers, 115 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/

      Comments (0)
      2
      0
      Share this
    Gabriel Lee
    Gabriel Lee
    366 Answers, 558 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

    Sign Up or Log In here
    Sign in now to unlock 2 more answers to this question!
    Sign In with Facebook

Download Seedly’s free

Expense Tracking App
Download on the App StoreGet it on Google Play
  • Sync all your banks in one place
    Sync all your banks in one place
  • Quickly add transactions and view reports
    Quickly add transactions and view reports
  • Community Q&A and blog integration
    Community Q&A and blog integration