Comments on: Endowments and Saving Plans

By: Drizzt

Drizzt — Sat, 14 Jan 2012 03:03:03 +0000

this is probably the most ironic advice because if you are financially savvy, why would you pay so much distribution cost and gain so little where alternatives are readily available? if you are financially savvy, you shouldn’t have a problem forcing yourself to save.

By: Jomel Ng

Jomel Ng — Fri, 13 Jan 2012 06:45:45 +0000

Hi Drizzt

An endowment plan can be beneficial if you invest it in small amounts e.g. $100 per month. No matter how financial-savvy you are, there is no harm in setting aside a small amount for the purpose of diversification. The returns may not be attractive, but the upside is that the risks are very low too. An endowment plan is advised to form up to 10% of your investment portfolio. Let it be a mini retirement nest. I Purchase an endowment plan for myself too in view of my objective for a stable retirement nest.

Golden rule: make sure you are well-covered for critical illnesses and death protection before committing to an endowment plan. Protection should come first before savings.

Regards
Jomel Ng
Financial Planner

By: Drizzt

Drizzt — Mon, 12 Dec 2011 14:59:50 +0000

hi cranky, may i know what was your original objective when you decide to purchase this prulink assurance, for insurance, investment or for both?

By: cranky

cranky — Mon, 05 Dec 2011 09:29:26 +0000

hi,

Can I seek ur advise please.

I have serviced my prulink assurance acct policy for about 7 years now. It is a investment linked policy. Mthly premium S$120.

I have heard much negativity abt IPL in general, what is ur take?

thk u for ur advice

By: Venkat@life insurance and you

Venkat@life insurance and you — Fri, 16 Apr 2010 10:30:43 +0000

All personal financial planning begins with life insurance. Thanks for the blog post.

By: Drizzt

Drizzt — Mon, 19 Nov 2007 15:36:44 +0000

no worries there. i would think the cash back feature builds into the cost of the premium as well. you might want to consider comparing one that doesn’t have that.

then again, for me, i don’t think you are one that doesn’t have the ability to save on your own.

look around for the best bang for buck if its savings.

regards.

By: bengbros

bengbros — Sun, 18 Nov 2007 15:34:19 +0000

Hi Drizzt,

Many thanks for going thru the tedious process of evaluating the saving plan.

Yes, you are right. We have to take a holistic approach towards insurance/finance planning. I was too drawn towards the saving plan by the agent whom drafted a partially true “beautiful” saving plan to me that had taken my attention. My initial thought is to get a short term saving plan with high returns to fund my future needs. This plan is kinda long.

I will evaluating my own portfolio soon, to fix my missing piece of jigsaw puzzle. Nonetheless, A well structured Saving/endownment plan will be one of my consideration in future.

Once again, thanks for enlightening me and many others.

Cheers.