Bro, use IRR calculation to assess an investment with periodical cash inflow and cash outflow

Don't need to see what are the returns rate 5.25%, bonus, dividend etc

Your cash inflow and outflow is as follows :

Year 0 -RM100k
Year 1 -RM100k
Year 2 -RM100k
Year 3 -RM100k
Year 4 -RM100k
Year 5 -RM100k
Year 6 RM0
Year 7 RM0
Year 8 RM0
Year 9 +RM812k

The IRR is 4.7152%

http://www.calkoo.com/?lang=3&page=26

The calculation will be affected by :

1. Your "guarantee" on bonus and dividend - whether they are fixed or variable
2. If you can withdraw without penalty in 9th year

If the above calculation is correct (please check the timing of cashflow), then 4.7% is not that a fantastic returns. It fits roughly in with a lot of those Saving Plans which force you to save XXX amt a year, by the year Y, you get ZZZ amount. Considering there are still some variable dividend which they don't commit to you, and that might affect your returns.

Invest in stock market like Reits can get more % for that.

But IMO, these types of saving plans are best for those who have no discipline and spend all their money whenever they see balance in their bank. It is a force saving.

Ya, use the IRR calculator to estimate the cash inflow and outflow (add in the additional compound interest), then you can compare whether the plan suits you

You have already made investment in shares, commodity, properties. You already have some higher risk stuff in your portfolio. If I were you, I will put in FD/bonds for saver investment to balance the risk

Because this type of investment tie you in for years. It is not as flexible as FD or bond funds.

But at the end of the day, it is your pick.

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