I want to ask if saving in Hong Leong Cash Builder or Manulife Unit Trust is better? Sorry, newbie here

Generally all saving plans are more or less the same.

Either you get the returns earlier or later. At the end of the day, the returns would be more or less the same.

But off course each plan has its own good and bad points/ features. It is whether which one suits you better/your needs.

Not everyone buy these saving plans for the returns. Someone actually bought this cash builder plan because it was able to meet his needs. Even if another plan with a higher return comes around, he will still stick to cash builder. That because one of the features in cash builder met his needs/situation.

So...buy based on your needs and requirements, not necessarily the returns. Offcourse the return is a main criteria for many.

Happy hunting.

I am looking at the HLA Cash Builder projected 30 years table for 100K. It is indeed very confusing. Whats up with the 100,190. What is the 190 for??

I read some of the comment that says u will lose if u take out early.

Year 1: Income 17,150
Year 2: Income 35,243
Year 3: Income 54,221
Year 4: Income 74,470
Year 5: Income 95,716
Year 6: Income 118,130

The above is the guaranteed income based on compounding interest from the table.

According to the agent, you can withdraw the interest earned every year but not the capital but that is not advisable as the interest will be added to the capital and compound for next year.

How they even get the calculation of the compouding interest, i cant calculate get the 35243 & so on....

and assuming if u only withdraw at the end of 6 yrs, shouldnt u be able to get 600K including the 118130 and including the cash dividend of min 4.5%. shouldnt u be able to get all of this if those figures are guaranteed.

according to the agent, if u take out by 6 years, ull get back your full capital but the returns wont be so high. Preferably take out after 10 years. i mean how can it be low or high if we follow according to the table.

another thing is he said it would be better to put the plan under a younger person like a child or baby because the younger u r the higher the return, what does that mean? higher by how much?? and why is it lidat.

someone please enlighten me as im really confused. the stupid table never even put how much % is the guaranteed income, only put the average ROI as 9.44%.

OK...you are one honest agent for item 3...cos the HLA agent that approached me telling me that eg I invest 6k each year for 6 yrs and each year i will be guaranteed 1k income..which means ...after 6 yrs, i invested rm6k x6yrs=rm36k and HLA give rm1k X6=rm6k and some other company profit..lets say rm1k...so..when i surrender right after 6th year of maturity..my guarantee return is rm36k+6k+1k=rm43k.
Somehow i managed to dig out a printed proposal and find out total surrender value on 7th year is only rm38k only!!.Please correct me if i am being misinformed again.
I hate it when someone trying to cheat me

i think what you just said is correct . . . savings/endowment plan is for long term
there is no such thing as surrender after six year you still profit

Savings is for long term, and together with the compounded returns, our savings will grow.

But it is not growing at a linear scale, more of exponentially.

An example to illustrate what i mean.

Say u save 100K, and at the end of 30 years ur saving is 400K.

If ur saving grow linearly, at 5th year ur saving should be 100K + 300K/30 x 5 = 100K + 50K = 150K

But in reality, at 5th year, our saving may only be 105K or 110K, it is during the final 5 years that our money grow exponentially, maybe from 220K to 300K (that's the power of compounding and time). Not sure whether im able to explain it clearly to u.

So, same apply for all these saving plans, since the plan is for 30 years, that's ur return if u keep it till the maturity date. But if u terminate or surrender early, then ur return will be much lower than what is projected (because money don't grow linearly)

Hope u understand what i am trying to tell here.

Sorry r i dont really understand. According to the agent that is guaranteed income ma, you can withdraw the interest every year but not the capital. The agent oso said that at the end of 6 year can get back full capital but dont earn that much. I was like huh?? that what is the guaranteed income for... Bluff wan.

If the saving plan is 30 years, means or the plan purpose is for one to save for 30 years.

Any saving plan is not designed or structured for early withdraw one.
There is always a column show how much you can get back if early withdrawal, look at it, it is just a simple table that you can see all, including how much you can get, and get back.
Don't need to listen too much what agent said.

Thats the thing. the table is compounded interest all the way up to 30 years. Thats why it looks so lucrative.

If I am your agent and you are my client, and you will tell me that you want to withdraw at the 6th year, I will recommend you not to buy at all.
This saving plan is mend to see it's effect in a long run, long term planning. 30 years, or 35 years.

If you want to withdraw in the 6th year, maybe you can choose other investment, unit trust, share market or short term bond.

Unless you are prepared to commit the money, to pay the premium from year 1 to year 6, and to keep it for 30 years, then you will see the power.

The problem is some agents are twisting the fact and lure you into their lie. I do not blame HLA but there is some misconduct by their agents. I have met the agents twice with my friends...so there is no misunderstanding and I still hold his handwritten writing of how he discuss the plan to me (telling me i get rm43k at surrender at maturity of 6 years). I also have his name card with me. Surrender at maturity of 6 years definitely wont give u rm43k( with annual deposit of rm6k) Look at the attachment. The agent refuse to print out the proposal to me but somehow I have my ways to get it. When he refuse to print the proposal..my doubts set in. I always watchful and doubt when someone told me it is p&c , cant be printed out, be quick to sign up ..left few units only, a lot waiting for it , earn 100% in 1 year, how i left my usd10k job for trading etc etc. When I want to buy a rm3.99 maggi mee..i have the right to read the product instruction how to cook it , the ingredient etc on its plastic wrapping..and this one...is rm6k product..i cant even read it first before i made my decision? what logic is that? Just a basic logic but many are ignorant.
To agents out there...do your sales in sincere manner as clients nowadays are not bodoh. Easy to get information nowadays unlike the old days. However I like the HLA plan as just having pay for 6 years and let the plan run itself is wonderful. 6 years very fast past. Oh yes, please dont pm me for meet up to discuss the plan....thank you for respecting me.
Below is the link to see the proposal which I manage to get.
http://s8.postimage.org/h9656q8cl/IMG_2423.jpg
HLA cash builder proposal

No doubt there will be few bad apples among all the agents. Not only in HLAZ, but others as well.

Since it is a 30 years plan, the guaranteed income is for 30 years of saving. If u surrender earlier than that, u will not get the guaranteed income as promised. What you will get back, will depends on the year u surrender. It is in a column on the right side of the table in the proposal stating surrender value for ur plan.

The amount in the surrender value will also depends whether u have withdrawn ur yearly guaranteed income or not prior to u surrendering the proposal. if yes, ur surrender value will be much lower.

Say if u surrender at 6th year, yes, u can get back ur capital, BUT that's include the money (guaranteed income) that u have withdrawn yearly prior to that. U actually make less than putting into FD for that 6 years. But if u keep till 30 years or after 15 years or so, then your return is higher than FD.

is a good way to diversify your income here, but not the only way to do your saving

Is like this.. When people are desperate, they can do anything.
In the view of sales, desperate is good.. Company likes it..
For customer point of view, this agent is a cheater.

Same like MLM, like Amway. No doubt this is a good company, but... Look at the market response towards it.. It is the agent that made it..

well spoken

I thought this scheme have already sold out? Is it open for selling again?

Happy 1st December everyone~

This is the final month for purchasing Cash Builder scheme. The scheme replacing Cash Builder will require a much longer payment period (9 and 12 years).

Dont miss this opportunity to sign up one of the greatest and best saving plan in the industry.

Hurry and consult your respective HLA agent.

Cheers~

My colleague just ask me to sign up for this scheme.
According to him, this scheme has better return compared to savings in the bank.
The savings plan is for 6-10years.
The question.. is do I need this scheme?
I save 50% of my income every month.
To me, this scheme is suited for people who can't save money well.
Any advise for me? Thanks.

@wu ming

u nid buy coz saving canot beat inflation

LOL, very contradicting. Thanks for the advise.