Generally speaking the best saving plans out there gives around FD + one or two percent more in terms of IRR. With a lock in period of many years.

Saving plans when compared to pure investment (example a equity UTF) sure lose. It is like comparing lemon and orange. The best quality lemon will always be less sweet than the lousiest quality orange.

However, who will benefit most from saving plans?

I) Those who already have enough money and want to create a trust for their next of kin (who after many years will be adult to collect the benefit)

II) Those who already have enough money and want to create a trust that is creditor proof versus pure investment UTF that is not creditor proof.

Xuzen

p/s Saving plan is not a good tool to generate wealth. It is a better tool to preserve wealth and to prepare smooth transfer of wealth to the next of kin.

This post has been edited by xuzen: Sep 8 2016, 10:47 AM

Put it in another way.

HLA is an insurance company. Whatever they sell, it's still an insurance plan. The information i'm trying to impart is insurance plans are meant for long term.

If you are interested in something shorter term, say 5 to 10 years, please ignore insurance agents.

And the nature of savings/endowment plan is usually lower payout upon death, but higher premium.

hope you understand the difference of endowment plan vs those insurance with higher protection.

Think twice..
Spend wisely..

Definitely.. thats why asking advice and feedbacks from all the Gurus here...

Not rich a guy with money to throw around

With return ~4-5% from the plan, buy blue chip shares better. Maybank DY now >5-6% price RM7.xx. In 9 years time, chances are price will increase. You have RM100k per year, even buy property for rental is better although rental yield could be around 3-4% only. In 9 years time, the price is at another level

I'm not properties savvy... only have one extra cause I upgrading and keeping the old one to rent out for long term... equities also me limited.. mostly in SIngapore which also acts as a currency hedge...

Anyway spoek to the agent...

Scratch this plan... not for me

Once again thanks for all the positive feedback/advice... learnt a fair bit from this thread.

The agent must be feeling down. Some more raining heavily..
Susah nak cari Makan la..

You are right... susah cari makan.. I'm not like most of the Taikors here got lots of money to fling around.. all hard earned blood and sweat $$ leh

Bro I don't point u.. I just sympathy the agent..
Luckily I quit n move on.

This post has been edited by Imleonardlim: Sep 8 2016, 04:40 PM

so what plan have you heard so far asides from the HLA one?

amount of money doesn't matter. what's more important is how u manage them

Hi pls ask ur agent to contact me.i want to buy only if he/she agree me on 1 condition.

That is i will need to record down the presentation becoz i cant have difficulty remembering.if my condition is met,then feel free to contact me.

Otherwise, u know i know la.

Just came across this thread, I am getting the same offer. Did the TS get any conclusions?

Insurance plans is not the best way to save money. If you want guaranteed returns, put into FD is much better.

I'm very disappointed with all the insurance agent by how they are "selling" these product. They are not being honest and always paint a false picture of the real situation. I know - the argument is that Insurance Agent is also human and need to make money to live, and bring up their own children, blah blah blah. But I can never think of a good reason to "cheat" others.

Dividend is not guaranteed. If good time, give a little. If bad time, don't give at all. You're stuck and eventually you will realize FD given better return.

Remember this - something which not many people are aware of. Insurance Companies themselves rely heavily on Fixed Deposit to earn a BIG percentage of the returns to pay you back. While a small percentage is in equity, those are more for those Equity-Linked type of plans. Insurance Companies themselves cannot guarantee you a "minimum" return from the equity portion of the portfolio.

SO - if Insurance companies get 4.5% p.a. on their FD, how much do you think you will get on your insurance plan? Maybe 4.00% because the need to pay their own staff salary, bosses bonus + mercedes + etc. All those "heartwarming" advertisement is paid by the profit them skimmed from you.

FD is such a good deal for consumer - you don't need "agents" to sell to you and take a cut of the profit.

If anyone still think Insurance Plans is good because it has the "protection" in it - well, the truth is, BUY PA instead. It's cheaper and you get the same amount of protection. Why do you think "Agents" don't ever peddle buying PA?

Conclusion is look elsewhere.

i ask my fren whether is this gooding xia. my fren HLA

DOnt need jor...

I did the maths, huge misrepresentation by the Agent.

Insurance may not be the Best way to safe money, as it is best for those who cant control their spending behaviour, it's a force savings by monthly.
For an individual who can't save money, this is an alternative way since you still need a lumpsum for FD. It may not be an easy road for a spindrift to save a sum n put into FD.

One more thing is that yes, PA is cheap and that is because PA is only one small part of 'protection' + life insurance.Meaning, only if this person got himself into an accident or passed away due to an accident, then it is claimable. If this individual passed away due to other than accident, having PA insurance has nth to do with this person anymore.

The 'protection' part that comes together with savings plan are usually only Life coverage,which means only if the person passed away then the nominee can get the money. It's two different types of protection.

There is one thing against such "force saving, low return" plan...

Infaltion... especialyl in Malaysia when our Currency is going down the drains steadily...

RInggit is currently at its LOWEST against USD EVER...

With fears of inflation due to weak currency, bad economic planning, and fear of GST increaing looming.. all these low returns plan are less attractive cause at the end of the tenure you might end up with less money then u started with..

I was approached by an agent on HLA Prime Wealth too. Did my own calculation, sans the dividend which is not guaranteed, the Guaranteed Yearly Cash Coupon (GYCC) came up to 8.17% on average for min. 6 years tenure.

When you said withdrawal can only happens on 9th year (8 years tenure), hence the GYCC would be averaged at 6.96%.

I did some formula calculation on Google Spreadsheets to came up with this figure. Not 100% exact as tabled on HLA's website, but the GYCC return rate is pretty easy to calculate though. The rest were just the compounding interests, which complicates thing.