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Which instruments are you using to save for your future?
OptionResults
Stock12 Votes - [17.91%]
Unit Trust16 Votes - [23.88%]
Fixed Deposit7 Votes - [10.45%]
Insurance (endowment)8 Votes - [11.94%]
Savings Account10 Votes - [14.93%]
Foreign Currencies6 Votes - [8.96%]
Alternative Investments5 Votes - [7.46%]
Others3 Votes - [4.48%]
Add your own option:
This is a multiple choice poll.

Poll Which instruments are you using to save for your future?
blueZ
Posted 2009-08-20 10:27 PM
Member

Posts: 10



Share your portfolio!
moneymanager
Posted 2009-08-29 11:47 PM
Member

Posts: 21



I voted for "Others" I used ETF extensively as I prefer it over the others.
mrbonez
Posted 2009-08-30 1:58 AM
Member

Posts: 47



30% Life insurance

60% Unit Trust (Globally diversifed ex Japan and Europe) using dollar cost averaging.

10% Alternative Investments. Hope to increase this higher though, but no $$$

Son Of Light
Posted 2009-09-17 9:25 PM
Veteran

Posts: 172

Location: Yishun

Anything is better then an Endowment Insurance plan.
WRooney
Posted 2009-09-23 9:41 AM
Member

Posts: 8



Noticed that some of you put in foreign currencies. I feel that it is a very manipulated market, even compared to the stock market. But that may be my misconception... any insights to share?
Hailstorm
Posted 2009-10-04 9:47 PM
Member

Posts: 19



Quote: Son Of Light - 2009-09-17 9:25 PM

Anything is better then an Endowment Insurance plan.


Highly flawed statement. Endowment Insurance plans does have its merits in a financial portfolio. Please do not mislead with such over-generalisation.
Son Of Light
Posted 2009-10-05 11:36 PM
Veteran

Posts: 172

Location: Yishun

The only way an Endowment Insurance plan will work is for it to pay less then 5% commission first year and less then 3% comission every year after.
If not, a fixed D could give you simlar returns without locking your money for 20+ years.
Or get an ILP, which will give higher coverage, better returns and have no lock in period.
Hailstorm
Posted 2009-10-07 3:57 PM
Member

Posts: 19



Fixed D is more commonly used as an instrument for short term planning and the key advantages is liquidity and you generally trade off with low rates locked in. If align rolling FDs to same period as endowment plans, FD returns are almost certainly lower than endowment's total returns + coverage.

ILP coverage is not necessarily high. If high, the cost of insurance could also be similar to the cost factored in endowment plans. ILP values can fluctuate up and down and largely dependant on funds chosen, rebalancing, switching as well as markets at the time of withdrawal. --> essentially returns are not assured (other than maybe buy into a guaranteed fund but trade off upside potential). However, agreeable that over longer term (which is hard to time and determine), it should generate better returns than endowment plans.

Endowments are generally a "in between". Need to lock in $ for longer term, but there is a better returns than FD however with less liquidity. It is not as exciting as ILP and there is much less control in hands of buyer but control is double edged sword. Endowments broadly offer greater certainty in returns relative to ILP, although ILP definitely offers more upside, if one can accept the downsides as well.
Son Of Light
Posted 2009-10-09 5:35 AM
Veteran

Posts: 172

Location: Yishun

Well, fixed D do not pays agents 40% commission in the first year. XD
Due to high commission pay out in the first three years, a endowment plan's returns will usually end up only marginally higher then a Fix D, provided that no policy loan has been taken, or cash coupons, if exists, has not been used.

Insurance, in the end, is for protection, not investment.

As for ILP, it's main purpose is also protection, investing is just the gravy on top.
We live in a very fast and dymatic world today, in order to be safe, we need our money to be as liquid as possible.
Hailstorm
Posted 2009-10-11 1:23 PM
Member

Posts: 19



agree that FD does not pay high comms and it should not. But to compare FD returns to sellers and 40% comm is fundamentally flawed if you do not factor that FDs are generally SP and 40% or more type of comms are more RP in nature. Ticket size is much smaller and actually quantum in $ can be v different.

Not forgetting, how much work / knowledge or guidelines to comply to sell a FDs? Is it bought or is it sold? how much work to even design a FD? how much regulation or penalty or even risk of mis-selling? How much understanding is needed for the consumer? Is fixed D not an "investment" actually? Are the returns generation for FD transparent to customers and the profit that the banks cream off apparant? How much disclosures in FD?

Comms payment is a function of lots of consideration and not just a simple % in itself.

As for usage of various products for needs, well to each their own belief system to achieve their own goals
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