But that is true. Saving in bank account will rot your $$$

So do you mean that the Cash Builder Scheme is better?

At least it provide a compounding 5.5% interest better thn saving acc rite

Methinks it depends on individuals' experiences & knowledge.
Things like these are "locked in" for umteenth years if U want that kind of % returns
VS
FD much shorter term and can be planned / laddered for accessibility without lost of %
VS
Savings which is totally flexi but gets hit by %

Different vehicles leh - for me, i wouldnt touch it unless i've already got "more than enough" (ie. achieved my last level of asset accumulation goals/targets) and dunno where to sorok into my Asset Allocation / Sub-Classes.

Personally, it doesnt work for me (and i think Boney too ) now as cash to me is ammo to feed into Stocks/Equity Funds, REITs/Properties and a bit of alternative investments - thus, locking in my cash isnt my cuppa VS plonking my cash into a Flexi Mortgage effectively saving me 4.xx%pa, daily rest .

This post has been edited by wongmunkeong: Dec 2 2011, 07:51 AM

I would recommend you to save at both sides; ie

half at bank and half at Cash Builder

reason is, when emergency you can use the money in the bank (FD, Savings/Current ACC) but leave the Cash Builder money untouched.

If you have a habit of saving, then you should also educate yourself on financial management since you have a lot to lose if its not managed properly.

1. Assuming you plan to put 50k into this scheme, plot out a 30 year (or however many year savings plan) excel that allows you to see how much money you would have if you put the same money in FD for 30 years constant at 2.5%, 3%, 3.5%.

2. Refer to the scheme's table of returns, and compare the figures at 10, 15, 20, 30 years with your FD figures. If its not a guaranteed figure (it usually isn't), compare both minimum and maximum range.

3. Then answer these questions

i. At what point does this scheme yield better than FD (in the best case scenario and worst case scenario) - this tells you how long you have to lock your money up to finally beat the flexibility of FD.

ii. What is the actual compounded return of investment by the scheme? Just play around with your FD interest rate until you hit a figure close to what the scheme table has, and that's the compounded rate. For example if worst case scenario the compound rate is 3%, best case 5.5%, then ask yourself is it worth locking up the money for so long for up to an additional 2% but could be no addition or even less if FD interest rates go up further.

In the end the question is how much MORE are you getting over FD by locking in your money for XX years? Does it appeal to you or would you prefer to get less but have the flexibility to move your money around for XX years?

The more money you have, the more important it is to know whats happening to it.


This post has been edited by xjeez: Dec 2 2011, 12:40 PM

This is not guaranteed,
and this may only materialise when you serve the plan until maturity, it can be a decade or 2 decade long.
In between if you have zero money in pocket, even you have millions in saving plan, you are still dieing before of hunger due to no money in pocket to buy foods.
Joking only, but it has some truth inside.

Miss one year of premium, due to financial difficulty, mean pre-mature cancellation of saving plan, can mean money saved previously being burned if in early stage of the plan.

No.. Depends on your appetite.

You want cash builder, make sure you are committed for 6 years in payment. And then commit another 24 years to let it grow mushroom and fungus..

After 30 years, then only you will see a good big pile of mushroom

I second this statement.

Is it 100% accurate that after calculation, the return is only abt 3%pa over 30 yrs?
I dont really understand how the calculation was done...is this all HLA trick??
I plan to put in 5K/yr. that means 6yrs, i put 30K..how the calculation was done? I thought the return is abt 10-15%. pls enlighten me!

Those who bought these cash builder / wealth builder plans and other similar 'save 6/8/10 years' plans, thinking its a great savings plan for your retirement, I wish you all the best in your retirement years. Hope you have other backup plans as well.

Do remember to keep in touch with the agent till the day you die because you are gonna to the agent for CONsulting you into a so called forced savings plan.

And as for the agent who sold these plans, after year 7 of the policies sold, do a disappearing act, save your skin. Make damn sure you are no longer reachable by year 11.

For those in the dark, here's a bit more,

Year 1 commission paid to agents who sold you these so called savings plan is a min 17.5% of your premium paid to the cash/wealth builder plans.

Now agent CONsult you to 'save' $500 per month, 17.5% or $87.50 per month goes into agent's pocket, this excludes overriding commission paid to agency managers and what have you expenses of the insurance company. Easily 60-70% of your premium paid is gone for all these expenses. That's $350 per month gone. So you actual start savings with close to ZERO ringgit. And this will go on for 6 years on a reducing basis. (Now you know why the minimum period for such plans is 6 years.)

Ever wonder why agents tell you NEVER TO WITHDRAW within the 1st 6 years? Cuz in your so called savings plan, its EMPTY/KOSONG. Notice that if you surrender with 1-3 years, its ZERO meaning NO MONEY BACK.

Now ask yourself this when the GOVT increases the service tax from 5% to 6% or when your local mamak increase your fav teh tarik from $1 to $1.30, you bising like no tomorrow, the hell with the govt, fxxk this mamak, i never coming back again, but when your agent CONsult you a so called savings plan which quietly eat 60-70% of your so called savings premium, why you never bising?

If these cash / wealth builder are so good, why take 30 years to mature? Why lock your own money and subject it to others placing terms & conditions on your own money? Ever heard of APL and how much it can charge you interest for late premium payments? Nice for some companies to charge you interest on your own money, just nice.

And use your brain for a moment, can an insurance company ever paid interest higher than a bank on the capital sum with a guarantee? If yes, why isn't there a queue at every insurance company with people signing up such cash wealth builder plan? Why do insurance companies still need the agents to CONsult you? Similar to buying iphone 4s, so damn good that people auto queue, you see any agents CONsult the queue?

By the way, why isn't Warren Buffett and Jim Rogers queuing as well for the great savings plan?

Now look at this from another thread, save 28000 per year, get back 8400 till Year 30.
Ask yourself and use some sense,
1) how much is your salary today? close to $28000 per year?
2) how much is your expenses today? close to $28000 per year?
3) can you live on $8400 per year?

If you cannot afford $28000 premium per year, that's means the you can only lower premiums which directly meaning your GYI is lower as well. Say you can afford $6000 premium per year, your GYI is probably around $1800 per year. Now, in your retirement, can you survive on $1800 per year? What a great reCONmend from your best buddy agent for your retirement.

You only want to meet your INSURANCE agent, SLL or otherwise, for PROTECTION policies and CLAIMS, and not for any other reasons apart from these.
HAHAHAHAHAHA


This post has been edited by lunchtime: Dec 21 2011, 11:15 PM

+1

im an insurance agent and i want u all to google the word insurance

insurance means protection

u wanna save and invest, u are better off elsewhere

u want protection to protect your savings and investments, come to us

Fully agree, I salute you as one of the insurance agent which is not selling this so called "savings plan" which is neither a savings nor investment plan but it's an endowment plan...

Now a days traditional insurance plan can't work... see... insurance company are smart just turn a different selling point to attract the customers.. in fact this is a traditional insurance plan which bought by our grand parents previously.. now world changes a lot do you still want to stay in the past??

But most of the insurance agents are marketing this as a savings plan rather than an endowment plan which is rather confusing to the end buyer. The marketing catch of this product are the high returns in dividends and interests rates which are promised over a period of long time. Not all people will be able to finish up the scheme and some might not reach the target (death).

That's right but who will know after N years what will happen to the fund as well as it's not guaranteed.

dunno y i still think like this... mb im wrong la..

40 years before.. my father use rm1500 to buy a land
and saving in "ban hen lee" 10k < --- i dunno how to spell the bank name.
after BHL den southern bank den cimb.

and today. the land got ppl offer for 2.3mil ( WTF )
and the saving 10k only get back 14k+-

correct me if i wrong... jus wat it happen around me

This post has been edited by kelvin_hata: Jan 4 2012, 12:28 AM

heard from my friend
the scheme extend till mar 2012

Is program still got?

FInally , this is what i call Financial Guru , he just provided everyone a very valuable lesson not even u can get from A Financial Consultant.Thanks man.