Hai Guys,

I need an opinion from the masters here. Which is the best scheme for Retirement purpose?

PruCash Double Reward is an endowment plan whereas Pru Retirement Reward is ILP.

Maybe can get feedback from Prudential agents.

Thanks

Neither may be suitable, get an unbiased opinion from an independent personal financial consultant.
Try searching for impartial advice from a licensed planner at the financial planning assoc of malaysia or another organization, the Malaysian Financial Planners and Advisors Association www.mfpaa.com

Neither is a good plan. NEVER EVER EVER buy insurance products for savings purpose!!!!!

Just curious to know, whats the concern with getting saving plan from the insurance company?

Cannot brain your question.

For income tax claim under Annuity, one advantage is can take Pru Retirement Reward.

Am i right?

You can choose other vehicle for tax claim under annuity, e.g. private retirement scheme. These insurance saving plan can really ruin people's old age plans.

interesting point bro...care to elaborate? tq

But PRS have different tax claim which is RM3 K per year. What about annuity plan? I think so far only Prudential has that.

Great eastern will have it on october

Private Retirement Scheme is shared with annuity on RM3k tax rebate.

You can see bozo scamming insurance agents like ExpZero above, telling people they can get 20% monthly retirement scheme.

Malaysians! WAKE UP! Insurance is for protection, not for savings!

Even in the policy it states non guaranteed for the returns...same goes to unit trust.
Only thing insurance charges eat up our units in insurance.

What Highroller84 is saying is that there are other forms of investments that gives you more returns albeit faster (if you can embrace the risk). With money gained from investments, the RM 3K income tax deduction is meaningless and one would gladly pay the tax.

Regular paying Unit trust and endowment plans are geared towards someone whom are not able to monitor the funds themselves although there are definitely risks associated in any investments.

20% tax rebate is a truth, however that is depends on individual risk appetite toward higher risk and return investment vehicle. As Roy said, if one could gain higher return, he can totally ignore saving plan or ignore tax rebate.

The below thread is very beneficial to most of people who got question toward saving plan and through the below thread, ones will understand he is suitable or not suitable for saving plan. "Insurance savings plan, would you buy one?, Just a corner of sharing opinions" http://forum.lowyat.net/index.php?showtopic=2509517&hl=

I have a question here:

If i took up an ILP or endowment plane, at maturity can I get the money that i paid or higher?

Or will i be gaining loss?

What would it be?

Listen here fool, 20% tax rebate and "get 20% monthly retirement scheme" is totally different.


I'm not saying IF one could gain higher return than saving plan. Its GUARANTEED that even placing your money in FIXED DEPOSIT, you are GUARANTEED higher returns than saving plan!

So many agents still selling saving plan, some at the supermarket offering free LED TV, Ipad2. WTF???

From your previous post, I cans see that you are way over insured (medical, life, annuity, etc etc), paying so much premium until you are in financial trouble. Insurance is for protection and it is never meant for Investment. If you want to invest, only invest with money you can afford to lose. You should never have insurance premium > 10% of your earnings, otherwise you are just enriching the insurance industry with things that might or might not happen.

Using Insurance as a investment fails Investing 101.

---

Added on September 25, 2012, 10:43 amLearn to calculate before you invest.. lar...don't be fooled by insurance agents...read the brochure

Taking example PRU Double Cash Reward...basic policy

Each Year premium is RM 20,180 x 10 years = 201,800
Yearly Reward = 3000 x 10 + 6000 x 10 = 90,000
Maturity Benefit (Taking PRU 7% gain which is on high expectations) = 222,181

Based on 20 years investment, you invest 201,800 to get 312,181 in 20 years.. your annual CAGR is ... drumroll please... 2.21% per year.

Even if you factor in tax savings of Rm 3K/year (if got).. your CAGR barely rise to 3.11%...

Feel satisfied with your 'earning'? Still want you buy? Please go ahead then....

This post has been edited by gark: Sep 25 2012, 10:52 AM

You summed it up pretty good. Which lembu here wants to buy Prudential, Great Eastern or whatever insurance company saving plan that even 2.21% not even guaranteed?

Good analysis.
As i always emphasize, insurance is mainly / strictly / specially / particularly for Wealth Protection.. Wealth Protection.. Wealth Protection to each customers or prospects. So, fact finding is very important to identify what is the main financial objective of our customers or non-customers (most of the time my friends would ask since i am in the industry). If their objective is to invest, please lah dont "con" them into purchasing with all kind of reasons like saying this is a savings plan with free insurance coverage. I have also experienced with bank bancassurance staff telling me the same thing.
Financial planning / insurance planning is a long term commitment. Not to play a fool into wasting people's trust and hard-earn money into buying something that don't fit the needs.

You are absolutely correct. Nowdays good insurance agents are very rare....

Today i get good info.....i will wait for PRS and invest there......

Lol... even after showing examples why insurance and investment cannot be mixed, you still want to invest in 'insurance' albeit another one. Even after a few insurance agent also tell you the difference between of protection vs investment, also not take notice meh?

Hard to believe... cannot help liao

This post has been edited by gark: Sep 25 2012, 07:13 PM

PRS can be pure unit trust, not necessarily insurance annuities.

There are practically loads of other UT which perform better than prudential funds. Also by buying through agent, there load fees are high. This put you at a disadvantage already even before you start.

Can't think why invest through insurance the only logical choice meh?

Hi all

just to add.

I have a good friend that is doing very well. How well? Let's just say he has his own construction co, bungalow, land here & there, asset
overseas etc etc. Smart biz man.

And so, he ask my opinion about endowment plan. I told him there are better investment out there. And he says he wants it for his children.
Pay limited years & get returns.

There are people who wants such plans. Many are better investors than a lot of fin planners out there but just want something lower risk despite low returns. It is not all about high returns all the time. Nothing against common advice.

Different strokes for different folks.

Yes, how about having NO risk and slightly higher returns. Most Savings plan underperform Fixed Deposit, and since FD is guaranteed by PIDM, so this is a no brainer.

Lembu, you are the expert in insurance, he's the expert in his business.
Still dare say different strokes for different people?

Gark, beginning to like you

This post has been edited by HighRoller84: Sep 26 2012, 11:39 AM

Although I am agreeable to your view, I think you are being unnecessary harsh in your words. This is a discussion forum, so some civility is required.

Hai Bro,

What i meant is Private Retirement Scheme not insirance plan.....So i will wait for this.

Same thing no difference, this is commonly known as endowment plan, no difference in the concept, at most you get slightly below FD...

This post has been edited by gark: Sep 28 2012, 09:39 AM

It's still a viable plan for those who doesn't have the habit of saving for their retirement / other plans.

Well that another point to see it, for those who cannot save money and need to 'forced' to do so. But in the in it is themselves who will lose out.

can anyone enlighten me on the disadvantages of the PruCash Double Reward savings scheme ? http://www2.prudential.com.my/corp/prudent...ublereward.html

it may seem too good to be true ? thanks in advance for the time and effort taken

Gark,

Just "sepak dia".

im still waiting any forumer can advise @ gimme some info for this Q..

From the example given for PRUcash double reward in the website, if one were to contribute RM20180 annually for 10 years, by the end of the 20th year, they'll get RM222181.

However, do note that this amount is viable only if Prudential's gross investment return p.a is 7%. You'll have to ask the agents what is gross investment return for this item in the past years to know if this is a good indicator.

Including the annual guaranteed payout and the final payout, it should add up to RM324181.
If you were to place RM20180 annually in FD for 10 years and let the interest compound for another 10 years, by the end of the 20th year, you would get RM307948 (assuming FD interest of 3.15%), which is just RM16232 lower than what Prudential gives.

And if you read the fine print, the RM222181 final payout is inclusive of bonus payouts which are not guaranteed.

So, the question is can Prudential have an average annual return of 7% for 20 years?
If you invest on your own and would manage to get an average return of 4% annually, you would have get more returns than that given by Prudential in their illustrated example.

As a savings plan, I would say you would be better off if you invest by yourself.

goshh...i boought this via friend few years back...he said guaranteed can get double...

but now i check back only realise this...

from the prudential website: "The diagram above summarises the basic structure of the PRUcash double reward for a male non-smoker, age 35,..."

i bought this about 21 yrs old...now 4th yrs...and now i become a smoker...so how?wat means for this? please help!! ((

Just declare your smoker status through your agent.

PRS is already in the market.
If you're in your 20s, you will also qualify for RM500 gov incentive into your PRS account!

Minimum contribution is RM1k the first year, plus RM10 account opening fee.

PRS is basically a privately managed EPF. It is administered by the PPA and governed bt the SC.
Also you can't withdraw without a penalty until age 55.

I am an agent with APAM (AIA Pension and Asset Management). If you're interested to start a PRS account, why not send me a private message?

Under any circumstances, insurance company only wants to know your smoker status upon application. Doesnt matter if you became a smoker after you bought the policy... This is for any life insurance policy.

Those diagram is only for illustration... Dont need to be paranoid about smoker status.