and when did i say you are soliciting for business here?

if this is a thread for reference and understand, then you should be open for discussions about the product, the marketing scheme, the consequences of the product and the conduct of most agents marketing such schemes rather than you trying to avoid what has been said and posted.

given the number of postings and other threads about how clients lose money or agents misrepresented the product or how such cash builder /endowments fail to even match inflation / FD in this section, your cup isn't holding water very well.

hahahahaha

May b ate some Fool Lunch ?

Agreed with V12Kompressor...

My friend offered me the income buider plan which gives us a return of 30%.
I was like really? i dun really know about it. he showed me the plan and all,
and i was quite amaze but , 30 % is a lot. is it true guys?

30% 1 year dividend?

if put 10 yr then 300% dividend?

after sourcing around and even myself becoming an agent, i think mnulife is giving a much more higher benefits.

It incorporated endowment + fd (4.5% daily rest, no penalty upon withdrawal) + life coverage (min 100k) with just a minimum premium of 500/month.

but talking about 30% 1 year? i think i wanna change to h.l.a already... lol

Don't just look at the 30% return on Year 1 but the whole plan as a whole.

Have anyone workout the effective ROI?

ROI for 20 years?
ROI for 30 years?
ROI for 40 years?

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Added on February 6, 2012, 5:37 pmNo Selling HERE!

I know enough to answer any questions regarding this product, feel free to ask.

No Selling HERE!

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Added on February 6, 2012, 5:38 pmDon't just look at the 30% return on Year 1 but the whole plan as a whole.

This post has been edited by AskChong: Feb 6 2012, 05:38 PM

i dont reli get this =.=

Still not understand what you trying to say about ..
people care about money and interest , and not all theory~

how much invest and how many interest will get ..

In my opinion, when we talk about investment, the important point is to compare the return rate of one particular investment to the other. The frequent asked questions are as below:

1) How much I have to pay?
2) How much I can receive in return?
3) How long it will spend?
4) Base on the above, what is the compound annual growth rate?

May I use scenario B as an example?

Based on scenario B, assuming Lisa took up the plan as mentioned and she lives very healthy throughout her life and she R.I.P at her age of 90.

So, assuming Lisa has to pay RM27,000.00 premium for 9 years (as mentioned in earlier thread) to enjoy the benefits mentioned above, how much Lisa has to pay?

Lisa needs to pay: RM27,000.00 x 9 years = RM243,000.00

After that, what will Lisa received up to 90 years old?

Lisa receive: First 40 year (28 to 68) x RM5,000 = RM200,000.00 + next 21 years (69 to 90 inclusive) x RM10,000 + RM210,000.00 = RM410,000.00

Therefore,

The cost: RM243,000.00
The return: RM167,000.00 (RM410,000.00 – RM243,000.00)
Time spend: 9 years
Compound annual growth rate: 5.98% (for 9 years)

If I am not mistaken, you cannot claim your return of RM167,000.00 at one time after the 9th year but can only claim it throughout 61 years (am I right?? Need advise). Therefore, if we calculate the compound annual growth rate based on 61 years (because you can only fully collected your return after 61 years), guess what is the compound annual growth rate? Is 0.86%

If we take the factor of inflation into consideration, that means in Lisa's case, she is using today’s RM27,000.00 per year "to buy" RM10,000 return per year at 40 years later… (because she can only receive RM10,000 per year at that time) By that time, what you except to buy with RM833.33 a month (RM10,000.00 / 12) ??? A cup of Kopi-o? A roti-canai???

Worth it?? Make your own judgment.

This post has been edited by Kokolat: Feb 17 2012, 08:43 PM

an agent came to me and let me know of this.

deposit 3k per year. thats around 250 per month. deposit for 6 years. will get 500 annually until age 90

i will get back 500 as 'reward' per year starting from year 1 and if not withdrawal of the 500 every year, can get 5.25% return from the 500. this is accumulated. so first year is 500X5.25% (=A). next year will be (A+500)X5.25% (=B), third year (B+500)x5.25% and so forth

the 500 will be paid annually upo to age 90

for the 3k, will be given some dividend depending on economy, so he said. the rate is better than fc but usually no more than 7%

i did some calculations but just needed some view from you guys... calculate calculate... seems like... doable to me? but i sense something is wrong somewhere... hope u guys can enlighten me

thanks

You commit 18k total.
Every year you get back Rm500 pa. You need 36 years to get back the original 18K you commit!

If one is 30 years old, mean when 66 years old time, you get back the original 18k, disregard how much potential non-guaranteed dividend/bonus first
Sound good?

if you look properly, i think the ROI not included the amount of premium u paid over 3 years...

Cash builder is a very POOR WAY to save for retirement as it yields are poor. And to make things worse, the sum assured is very low in relation to the premium paid.

Why would anyone want to use a cash builder or any similar endowment policy aka save 5 years, save 10 years for a savings plan?

Agents promoting such plans should be shot.

Do you people know how low is the yield ? FD rates are even better.

Do you know how much commission the agent is making from your monthly premiums? Minimum 17.5% before bonus from the premiums paid. You put in 100, agent take 17.50. You understand?

Do you know how low the sum assured is? You can easily buy 5x more coverage with whole life policy with the same premium paid for endowment.

Now ask yourself, can you survive on $500 per year? I don't about you but I need at least $300000 per year. Now imagine how much premium I have to paid for cash builder.

This post has been edited by lunchtime: Mar 13 2012, 02:48 PM

first of all thanks for the reply.
how i saw it (or made to understand) was like this:
1st year
put 3k get back 500. thats around 16.7%. plus the 5.25% from the 500 if not withdrawal. plus interest for the 3k

2nd year
add 3k get back 500. thats around 16.7%. plus the 5.25% from the 500 if not withdrawal. plus interest for the 3k

7th year
no need to top up, let the 18k (plus whatever interest it already accumulated in the 6 years) run its course), and get 500, also getting 5.25% to all the 500s (assuming no withdrawal).

well it does sound too good or am i doing the calculations wrongly here? pls help

thanks for the reply. can i say its 500 for every 3k invested? pls enlighten me

thanks for the reply
assuming its only about 3k per year for 6 years, 500 every year (first 6 year, 500 return from 3k) and 7th year onwards no need to top up... sounds too good? or am i missing something here?

thanks for the helpl

This post has been edited by Petre: Mar 13 2012, 03:46 PM

bought that plan few yr ago......

Based on your input, as I do not know the plan, so I explain based on the input provided.

It is not 16.7% pa.

It is not put 3k get 500.
The 500 comes from your 3K.
It is not the like give you 500, while you still have 3k principal intact that can be withdraw. It is not the like FD.

As said you put 18k then you get back Rm500 every year until 90. So you need to wait until 36 years before 18k recouped. Only after 36 years, you start to "reap" extra "profit".

If it is a 16.7% pa return, I can assure you that you will see miles long rich people to queue up to buy up this plan.

This post has been edited by cherroy: Mar 13 2012, 04:31 PM

hi dhkau
mind share with me whether i got the details correct? and what you feel about it?

thanks

not really sure about the details....agent told me every yr get income and after dunno how many yr can get how many hundred % return........

This post has been edited by dkhau: Mar 13 2012, 04:17 PM

You ask that agent of yours, can you withdrawal your 6k after year 2. Bet you he will tell you sorry this is long term savings, can withdraw only after 6 years.

You know why? Cuz in your account, there is very little money left after paying the commission and fees and charges.

How can there be 16.7% return? Your 3k is not even there in your account. That $500 is really your money paid back to you.

Ask your agent to stop twisting facts and stop the creative selling.

Use a financial calculator, work out the IRR.

About the hundred % returns, given 30 years time frame, any instruments with compoundong interest will give hundred % returns, just that this cash builder and similar endowment policies gives the lowest returns.

even bond funds give better return.


And why would anyone in their right mind save money with an insurance company?

This post has been edited by lunchtime: Mar 13 2012, 05:47 PM