Its not investment my friend. Its a saving plan and its not meant to be investment. Its for child education purposes. You will not want to put your son's education to investment.

Its not investment my friend. Its a saving plan and its not meant to be investment. Its for child education purposes. You will not want to put your son's education to investment.

By the way, i get a different explanation by friend.

Let say u invest rm300 per month, and rm3.6k per year, according to the HLA u will get a bonus around +-rm400 (10%) per year.

the rm3.6k per year will have compounding interest of 4.5-6.5% per year in additional to the bonus of rm400 paid.

while every year if u plan not to taken out your bonus that worth around +-rm400, you ll get additional 5.5% interest (amount not guarantee) on the rm400.

Recently one of my friends promoting HLA Wealth Builder to me. More info on the scheme can be found here --> HLA Wealth Builder

I have been trying to find the relevant topic but cannot find it here. Somehow, I felt skeptical when he assured me that the yield for capital growth can achieve >4.5% per year while non-withdrawal guaranteed income can get around 5.5%. So, I desperately needed some advice by financial guru here on whether this scheme is worth investing compare to other investment scheme such as UT. Feedbacks from buyers are welcomed on why they decided to buy it.

Another question, what's the difference between this scheme and the earlier HLA Cash Builder scheme? 

my mum bought it for me. it locks for 6 years but only can touch d money thereafter 10years sth litat

OK lets do some maths:

You need to put in RM 295.00/mth for 6 years.

Thereafter you get back RM 700.00/year + 5.5% on the dividend = RM 738.50/p.a for the next 30 years.

Part 1 of the calculation (The accumulation phase)
Mode = Begin, since your payment is paid at the beginning of the period
PMT = -(RM 295.00)
Period, N = 12mths x 6years = 72 periods
Present Value ,PVi = 0 meaning you start accumulation from zero
Interest rate, since you are not getting anything during this accumulation period, you are losing money because inflation is working against you. Therefore, I = (Growth - Inflation)/(1+inflation). I am using the conventional 5% inflation for calculation purpose. Therefore effective I = (0-5)/1.05 = -4.7619% p.a. or divided by twelve = 0.3968% per month.

Using these values I presented above I key in the figures into a financial calculator, your get a Future Value (FVi) = RM 18,433.48

Part 2 of the calculation (The distribution phase)
I will use Begin Mode as well, since I assume you will get your annuity due (payment) at the beginning of the period.
PMT = RM 700.00 + 5.5% = RM 738.50/p.a
Period, N = 30 years
Let the Present Value (PVii) equal to the above calculated FVi i.e. = RM 18,433.48
Let Future Value (FVii) = 0, since after 30 years you will get nothing back.
Now keying these new sets of figure into the financial calculator to calculate the Internal Rate Return or Return on Investment (ROI) for the whole 36 years tenure. (from start of the program until the end of distribution phase)

And....

...

...

IRR or ROI(I) = 1.32% p.a.(annualised)

Taa Daa.....

Are you happy with this ROI?

Even FD is consistently hovering above 2%

Xuzen

  so you think it is worth the investment?

Aren't we just playing with definitions here? a savings account is liquid, this means if I want I can just go to the ATM and take it out. If you tie something up for 18 years, you can't call it "savings"

Has anyone subscribed to this scheme or heard of it?

Someone introduced me this plan a while ago.

It's a force savings plan actually. You will need to pay monthly for 6 years only. The savings amount depends on how much you want to save, the agent will work out the rate for you. If you're saving about RM250, you will get yearly dividend (according to company performance) of RM700 (more or less). If you didnt withdraw any amount of dividend (there's a limit), they will add on 5.5% bonus on top of ur dividend. The dividend will be given for 35 years, but you can opt to withdraw after 6 years.

For those who know about it, may i know your opinion? Thanks!  \

CORRECTION!!!!

It's RM295 per month (RM3550 per year), pay for 6 years, for a period of 30 years