Wrong. What you did there was the income planner was 6 entries per year of 12060, while for FD you just dumped 1 lump sum of 72360 right on its 1st year! Of course the lump sum win big time!

Now if you followed the FD the same style as the cash builder to get a more accurate comparison you get:

FD 3%
------------

10 years investment
= 12060 * 6
= 72360

Year deposit surrender
1 12060 12,421.80
2 12060 25,216.25
3 12060 38,394.54
4 12060 51,968.18
5 12060 65,949.02
6 12060 80,349.29
7 0 82,759.77
8 0 85,242.57
9 0 87,799.84
10 0 90,433.84

Surrender value after 10 years
= 90433.84

Profit
= 18073.84

10 year ROI
= 18073.84/72360
= 0.249

NOW THIS IS WHAT A DO IT YOURSELF INCOME BUILDER WILL LOOK LIKE USING FD! Its like the same results but without an agent. The question is are you disciplined enough to do it yourself?

Results are damn close. Let's just take the performance as a tie. Which still makes FD better doesn't it? At the end of the year term you can cash it out instantly wihtout some agent begging "Don;t cash out, you'll lose everything you just built". Even at 10 years agents will tell you if you fully cash out you have to start all over again.

@Rice_Owl84: Agreed, I just took short cut to calculate which is not fair for the Cash Builder. But another thing is the income bit, which I totally omitted (this bit not sure - is it included in the surrender value?)

If include income, then Cash Builder > FD? Looks like it. Also, seems like you don't lose much even if you pull out early. But the surrender figure may be based on very high projected interest rate (4.5-6.5%).

This post has been edited by ummonkwatz: Apr 14 2012, 06:17 PM

i have done an analysis and here's the finding

https://docs.google.com/spreadsheet/ccc?key...MjNRR29STEh4cnc

In summary, the HL Cash Builder performance is similar to FD, but with insurance which you don't get in FD. And it's for long term, FD is for emergency.

If you want maximum profit with minimum risk. Go for Reit. Currently most of my reits are performing at 6.5% on average. The prices of REIT doesn't fluctuate like other shares, they only move like +/- 1 cent a day if any. But at double the interest you can get from FD, it's calculated risk.

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Added on April 18, 2012, 3:30 pmof course you don't put all your money in one basket you would still want to have some FD, REIT, shares, mutual funds.

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Added on April 18, 2012, 3:30 pmof course you don't put all your money in one basket you would still want to have some FD, REIT, shares, mutual funds.

This post has been edited by Vincent Pang: Apr 18 2012, 03:30 PM

You people factor in inflation for your calculations?

do you factor in inflation on ur FD ?

It's a good visual for the data compiled. I had used cash flow method to calculated the returns. The IRR is at 2.02% p.a. Did I missed or calculated wrongly? How much do I get upon maturity or surrender? bsc the calculation doesn't include any, if included the returns will be slightly higher.

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Added on April 19, 2012, 5:29 pmAlso after calculating the returns is at 2.80% p.a. Assumption made is commitment starts at the age of 20. Do you get back lump sum or surrender value at the age of 90?

This post has been edited by countdown: Apr 19 2012, 09:15 PM

Sure its 2.xx %? Why didn't factor in the GYI for the 10years? Since its guaranteed I thing it should be factored in.

Currently got agent selling this to me, hope get more details before I commit..

Anything that is more than this?? What if i'm a business owner and i wish to bought it with my company money as a director benefit?? will it deductible from the Tax?? Kindly advice as one of the agent approach me quite attractive on their interest.

the GYI already factored into the surrender value. If you are to take out the GYI the return should lower.
I'm wondering how much is the death benefit given to the RM 12,000/year plan.

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Added on April 30, 2012, 12:44 amI think this is better. But sadly the lowest premium is RM12,000.
It has a flexibility of withdrawing >50% of the premium paid without affecting the plan in case of emergency.
Moreover it has a high Death/TPD benefit compared to other endowment plans.

Year Premium Guaranteed N.Guaranteed Death/TPD Coverage
1 12,000 6,270 1,839 80,070
2 12,000 14,022 4,300 87,822
3 12,000 26,400 5,092 94,723
4 12,000 36,293 7,542 103,134
5 6,000 40,082 12,125 108,654
6 6,000 45,738 14,256 114,354
7 6,000 50,238 19,445 120,170
8 6,000 55,103 23,525 126,052
9 1,680 57,507 27,935 127,740
10 1,680 60,276 31,071 130,980
11 1,680 62,811 40,196 137,911
12 1,680 65,721 43,947 142,063
13 1,680 68,399 50,589 146,348
14 1,680 71,461 54,902 150,912
15 1,680 74,296 62,190 155,626
16 1,680 77,523 67,202 160,642
17 1,680 80,530 75,292 165,863
18 1,680 83,941 81,126 171,377
19 1,680 87,140 90,071 177,104
20 1,680 92,649 95,241 183,449

*editted due to wrong payment figure.

This post has been edited by cwsimonho: May 1 2012, 01:36 AM

In fact I don't fancy long term plan as although it may sounds good that after 10 years you will be getting substantial guarantee every years but taking inflation into consideration the guarantee income which they promised 10 years ago may sounds like peanuts nowadays. Imagine the economy rice which I'm eaten 10 years ago costs me RM2.50 but similiar dish nowadays costs RM6.50

Some HL agent did approach me on the income builder plan and on the phone the % sounds so great but when you see the plan and the table then you feel that it is created to cheat some consumers that did not see clearly the hidden part. The latest offer which I heard fm one of HL agent is that they even give you free Ipad3 for signing up of $50k plan and guarantee return of RM15/k per annum. I think Warren Buffet may be interested on this plan too.

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Added on May 20, 2012, 4:00 pmmay i now how abt the Fund Growth Endowment ?

This post has been edited by Andy^L: May 20 2012, 04:00 PM

I personally bought this plan. (few months back)

After 1 day, I was regret. But, I pay the annually one. (RM 6000 /annum)

Is it possible to get back my $$ ?

First of all, my friend (Hong Leong agent) refuse to let me see thoroughly the calculation table. (refuse to let me take home , said its co. policy)

Only after I pay it, it only let me have the policy & calculation table. After I see it thoroughly, it make PROJECTION & ASSUMPTION. which the return is not really good.

I felt kinda of being cheated....

@Irresistible

y u always kene cheat when come to financial investment?

By right they will attach it together on the proposal form. Seems like something fishy is going on.

its not really "cheating" , just they market gimmick.

They won't let u know the detail plan. Because when u know it, u won't invest it.

Bond is better, stock is better ! Even FD is better (flexibility)

@Irresistible

last time u kene investment, u buy rhb islamic bond.

haha, u still remember lo...

but, thats INVESTMENT LOSS. Not cheat lo... Also bad luck la..

normally, there is a 'cooling' period for insurance. one week. read all the t&c. can surrender if not satisfied. after that, if you want your money, surely kena burn. look at the surrender value.

Ya, I forgot about "the cooling period" ( that time, a bit regret but $$ still not too tight ... )

Now maybe more in need of $$, so thinking to get back $$.

em i have do the calculation after they give me the projection compare to FD the returns still better than FD, just that the things your savings will be lock-in for 6 years after calculate you still earn more interest than the FD when u surrender after 6 years:) Savings just for emergency so calculate how much you need for emergency then extra can invest on this plan because they have the guaranteed income annually

This post has been edited by wuisiah: Jun 3 2012, 01:48 PM