Hi,

Just thought of sharing with the rest.

My wife gave birth to my 1st child recently and I am already thinking for her future.

As I am not a person discipline enough to save at my own will, I have recently bought a saving plan for her after going through the options available in the market.

What I like about the plan is the short commitment of only 6 years, as compared to those edu/insinvestment plan of 20 years or more.

Though the premium is different, it is the feeling of committed to something for years that turn me off. Offcourse this is not applicable when I signed the marriage cert with my wife. Haha.

I am free to do what I want with the extra money after 6 year, what i deem best at that moment.

here is how the plan look like.

If you put in 10K each year for 6 years (Total saving 60K)
Calculation based on life assured whom is healthy 30 years old.
It is a 30 years plan, but these is what you will get if you decided to surrender the plan early.

This is what you will get. Guaranteed.
At 18 years: Min 88088, Max 115036
At 20 years: Min 94537, Max 127988
At 30 years: Min 132188, Max 216187

Normally you will get something in between.

You have the option of withdrawing your income and cash dividend out at the end of 1st year without surrendering your policy.
This plan is covered by PIDM as well.

Cheers.

Strongly agree with you.

We should always have a mixture in our portfolio, some with high return with high risk, some with low risk and reasonable return.
With the amount I saved and quoted in the calculation, it is definitely not enough for her furture/education.

But nevertheless, we have to start somewhere, start early, and according to our affordability.

That is why I think 6 years is reasonable, after that I can commit into other plan or do other investments with my extra money.

Agree with what you said. But again whether a plan is good or not does not fall purely on its return alone. Furthermore we can't guaranteed that the current FD rate will remain the same for the next 10-20 years. It may go down or up.

A good plan is when it meets our requirement/needs. There are certain people whom actually bought certain plan not because of its return, but because it is able to meet that person's needs.

One man's food may be another man's poison.

But off course if everyone is good in investment like our bros and seniors here, by all mean, invest!!! as the returns will be much much higher than these saving plans. Having say that, not many are gifted like our seniors or gurus here, otherwise everyone will be successful.

Just my 1 cent opinion. Cheers and happy investing/saving.