does endowment worth better than FD?
Lots of people are comparing Fd and saving plan, this good that bad whatever.
Either long term or short term, to all forumers, which one you prefer if you have a 50k right now?

Will you diversify or will you just Save ALL IN FD?

*there are so many HLA agents here o.O*

This post has been edited by invisibleccc: Dec 22 2011, 11:44 PM

yes it come with protection

which company product u are mentioning about btw? there are too many endowment plan le.. depends on theyears and the premiums and the projected return..

No, it is not a substitute of FD.

You cannot compared it with FD.
Apple and orange comparison.

Endowment plan is forced saving, miss the annual premium, be prepare to burn the previous premium paid, disregard how difficult your financial situation or whatever situation you are facing.
Also, even you have million worth of saving plan, but you have no cash in hand (FD can be instantly converted in cash whenever you like just lose some interest only), you also can "die" because of starving due to no cash to buy you foods.

I believe Endowment is good plan to help savings and perhaps good to have a token sum of consolation prize after years of savings.

FD could be shorter term.

Well... you can always surrender..

Anyways, pure endowment/endowment can be comparable to bond to a certain extend.. But it's really difficult to compare it with FD.

Each product got its purposes.. Diversify your $$$, make sure you earn money, not loss money

This post has been edited by Bonescythe: Dec 18 2011, 02:44 AM

Whether it's worth while paying for an endowment plan or sticking with FD is up to your objective in the place. Both may sound the same to some people but they're different in reality. FD is more liquid rather endowment plan hence it's not suitable for short term investment.

Just to share some thoughts - when compared to bonds & bond funds:
1. statistically i think bonds' & bond funds' returns pa CAGR is effectively higher than endowments which i've seen
2. bond funds are generally more liquid and flexible than endowment plans

This post has been edited by wongmunkeong: Dec 18 2011, 07:14 AM

After years of savings u will realise u shouldn't have used both Endowment policys or FDs - both get eaten up by real inflation! just look at compounded annual growth rates of homes in the last 10 years vs endowments or FDs!

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Added on December 18, 2011, 9:05 amSo how comparable is it? What is the likely average value of a bond to an endowment insurance in 3, 6 9months or 1 year?

This post has been edited by ccslink: Dec 18 2011, 09:09 AM

I cannot totally agree in this, sometimes, investing in houses might seem to be giving huge return, but in fact, it might not if it doesn't meet some criteria.

Some houses/shop lots/condominium might not be able to get flipped out. Hence, you might need to resort to renting out. But do keep in mind that at times, rental fails too. So, location is a very important consideration here. Who would know that they had made a wrong choice when they opted for the Bukit Beruntung houses? Of course on the brighter side of it, a good location will of course see prices soaring up in a heavenly manner.

Endowment policies and FDs, you will only know that the return is of this rate, and consistently receiving the returns.

Pros and Cons. Up to the individual to decide.

Which is why I said, only to a certain extend
They are comparable as they both have a maturity value, non-par endowment and bond has fixed return too..
If you want endowment solely for the purpose of investment and not protection, I believe pure endowment will be a better choice. While I'm not aware of pure endowment return rate as it is rare in the market, it should be higher than endowment and comparable to bonds.

what endowment plan ur refer to? hongleong assurance saving plan or maybank etika is endowment plan?im HLA newbie as saving plan seller

yeah, both are different, as we cant compare an apple with an orange.

however, if u hav enuf protection so far, so that u will not need any endowment anymore, u can try venture to any others income fund or bond fund, in order to get projected higher return compare to FD...

Hongleong assurance

Year 1 save RM28000 ---------------------------guarantee yearly income RM 3600(wont affected by interest rate, can be cash out on next year or
Year 2 save RM28000 --------------------------- RM 3600 accumulate into account to hv 5.5 % interest for GYI)
Year 3 save RM28000 --------------------------- RM 3600
Year 4 save RM28000 --------------------------- RM 3600
Year 5 save RM28000--------------------------- RM 8400 <--------------GYI increse to RM8400 on 5th year
Year 6 save RM28000 --------------------------- RM 8400
Year 7 save RM28000 --------------------------- RM 8400
Year 8 save RM28000 -------------------------- RM 8400
Year 9 save RM28000 --------------------------- RM 8400
Year 10 save RM28000 --------------------------- RM 8400
Year 11save 0 -------------------------- RM 8400<------- no need to save in money, but still hv GYI on year 11 onward
Year 12save 0 -------------------------- RM 8400
Year 13save 0 -------------------------- RM 8400
'' RM 8400
''
''
''
year 30save 0-------------------------------- RM8400
------------------------------------------------------------------------------------------
total capital = RM280000 total GYI RM 232800
bonus + RM100000 + 5% interest if accumulate in accont
-----------------------------------------------------------------------------------------------------
RM38000 + RM520000
TOTAL for money for 30 year accumulate= RM900000
plan selection: 1 lot RM 28000
half lot 14000~ 28000
RM5000~ 14000

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Added on December 18, 2011, 3:50 pmIs this a endowment?

This post has been edited by dreamerkid1986: Dec 18 2011, 03:50 PM

As a seller, ask this kind of question?

its these so - called savings plan that get people in trouble in their later years.

and to those who promote investment link and endowment policies as a great savings plan since sliced bread, if its so damn good, why isn't Warren Buffett, Jim Rogers, Soros and O'Neil buying these policies by the load full?

that's because once we calculate the EFFECTIVE RETURN RATE and the HUGE COMMISSIONS that the insurance companies pays to these agents, the returns are peanuts compared to monies in FD.

so a piece of advice to these agents, DO YOUR JOB, SELL INSURANCE aka term policy, whole life. DON'T DO OTHER PEOPLE'S JOB.



This post has been edited by lunchtime: Dec 19 2011, 01:16 AM

The biggest threat to the value of a endowment insurance policy is hyperinflation. A million dollar policy may look big, but a sudden hyperinflationary event may turn it into a piece of worthless paper. I have posed the question of hyperinflation to many insurance agents, but no one can give me any answer.

Many people just cannot understand that it is possible that a cup of coffee may cost RM1,000,000 one day.

That's because many people just can't imagine how such an event can ever happen. Many countries around the world have experienced hyperinflation before, including us. Once a government can't control its deficit and start printing more money, a runaway inflation can start and basically nothing can stop it until the currency is totally replaced.

Only physical wealth such as land, buildings, businesses and jewellery can prevent the erosion of wealth by hyperinflation.

If you buy endowmnet for SAVINGS, you are either a Nutter or a poor investor....... As for insurance, there are many many better plans

This post has been edited by prophetjul: Dec 19 2011, 08:17 AM

Buy insurance for PROTECTION only!!!