Update for new readers:

I have cancelled 2 of my 3 insurance policies (page 4 - 7) and now attempting to recover the money back from my dishonest agent (page 8 onwards). Beginning story in the spolier below.




This post has been edited by RigerZ: Dec 1 2020, 09:07 AM

it is always not wise to buy saving plan from insurance company that will penalize the client if they cannot make a constant contribution.

myself is not a believer of insurance, bought none of insurance except bought medical card only

my investment goes to property and share market

Forget about it. Use EPF instead.
A. Contribute RM3,600 per year indefinitely. By age 65 I would have contributed around RM150,000 but the plan's cash-out value would be around RM450,000. Will be higher if I let it sit longer.
EPF will give you 588,475.70 at 65 years old

B. Contribute RM12,000 per year for 20 years (total RM240,000). By my mid 40s I will stop contributing but the cash value continues to grow until whenever I close the account. By age 65 the cash-out value is around RM900,000, RM1.1mil at age 70.
EPF will give you 1,532,158.60 at 65 years old

C. Contribute RM15,000 per year for 20 years (total RM360,000). By my mid 40s I will stop contributing but the cash value continues to grow until age 55 where the account matures and closes. Cash-out value is around RM700,000
EPF will give you 1,915,198.22 at 65 years old

Assuming 6% return from EPF.

Thank you for the eye-opener. But any self-contributed amount cannot be withdrawn until age 55, correct?

This post has been edited by RigerZ: Aug 24 2019, 02:46 PM

Yes. If you Want to do that and able to withdraw anyrime then use promo FD. Earn more or less same with. But can withdraw anytime you need it.
More info on this page
https://forum.lowyat.net/topic/4154481

For me personally, I like to use amanah saham fixed price fund
https://forum.lowyat.net/topic/4801114

Avoid those saving plan/retirement plan/insurnace plan being sold to you by banks or insurnace agents as 50% of commision will enter their pocket and you are funding their holiday or next big house.

I have seen these promos before but never really rang the bells in my head.

I did look at ASNB but since their units are almost never available, maybe time to make iASNB my homepage.

Yup. My agent saw a fresh and naive graduate who knew nothing about finances and took his chance. Now driving new C class and bought bungalow. Every year at least 2-3 Euro trips

Thanks again for making me realise.

I still welcome any extra input from others.

Go for those pure FD promos and not those step up/enmark 10-20% into savings account as it will lower your nett interest.

Oh there's unit. 3x a year when they additional units is given to members. That time most people will sell. Can buy during that time. More info are found on asnb link. I like ASNB as it behaves exactly like FD but give higher returns.

This post has been edited by Ramjade: Aug 24 2019, 03:03 PM

wow..agreed

since your total income next year to be just barely enough to cover living costs (which is quite minimally) and contribute to your savings plans,
what ever you want to do, better do it fast...for that 50k in FD will last about <2 yrs of your 30k premium pa.

btw, putting a portion of the FD into investment may not helps you much to get out of this predicament, unless it is a money games kind of returns.

This post has been edited by MUM: Aug 24 2019, 03:18 PM

Take a hit and cancel some or all of it lor...

And yes over commit

This post has been edited by dwRK: Aug 24 2019, 03:16 PM

The 30k premium is for the savings plan already.

I.e:
My total annual income is barely enough for Living costs + 30k savings plans premium



yeah I'm reading around and studying the best options instead of the 3.x% interest I'm getting now

Well said SIr.

EPF is a wise retirement plan...

how much do you short pm actually?

increase your income fast or use the FD amount to top up until FD amount finish.

Just a lil over commit. Just that committed on the not so optimum investment vehicle. As mentioned above, epf is good since you are committing it till age 55+ anyway.

Asnb if you want more volatility. Just it's a bit hard to get.

You are still young
Still not to late to let your money grow in a better place hehe

All the best!!

Do not commit to anything if total annual income barely cover living cost. Keep cash in high interest account or make a 12 month FD ladder (every month you will have FD maturing) Not sure if you have bought your saving plan. If not, don't buy and don't ever think of buying. If bought, see how much you can get by cancelling it. Savings plan usually cannot withdraw as there's heavy penalty associated with it
Why? In the event of an emergency, you cannot cover the emergency + living cost + saving plan. You might be tempted to take up debt. This is the start of a hole you are digging for yourself.

This post has been edited by Ramjade: Aug 24 2019, 04:25 PM

Your scenario is exactly same as mine during my first few years in the corporate world. With very little commitment and finance knowledge, being psychoed by those agent to buy the saving plan.
I think mine is from ING 12 years saving plan , forgot the name already. 12k++ annually iirc , paid until the 4th year and career hv some hiccup and forced to surrender the policy. Roughly 48k paid and when surrender i think i got back about 18k , definitely less than 50% for what i have paid.
A good lesson for the young me tht time and since never bother about any insurance investment saving plan anymore. I still maintain medical insurance thou.
If you think your income in near future unable to sustain the policy i suggest you cut it earlier to prevent more losses.

This post has been edited by Reventon: Aug 24 2019, 05:28 PM

I'm also make the same mistake by buying saving plan. It's too late for me to surrender now, not sure how long you had been purchased, maybe consider surrender if able to afford the loss since your current earning able to barely cover your commitment, instead you can invest into some high dividend stock counters. Just my cent.

Yes I bought them while I was at my previous job. I calculated I would lose about half my contribution (RM50k) if I cancel them.

I feel like crying

Sorry to hear that . Have you managed to recover the loss from other investment options?

Not only is there uncertainty about the future, but as Ramjade highlighted I can be earning so much more from EPF if I contribute the same amount (assuming the interest rate continues to perform as it is).

Saving plans or unit trust does not guarantee performance and there is HIGH chance for them to underperform the market, yet they charges you a HIGH upfront sales charge and annual management fees.

ETF and EPF are better bets to me.

A. Contribute RM3,600 per year indefinitely. By age 65 I would have contributed around RM150,000 but the plan's cash-out value would be around RM450,000. Will be higher if I let it sit longer.
Average return over 40+ years for this plan is 4.0-4.5%. Slightly over inflation and underperform EPF.

B. Contribute RM12,000 per year for 20 years (total RM240,000). By my mid 40s I will stop contributing but the cash value continues to grow until whenever I close the account. By age 65 the cash-out value is around RM900,000, RM1.1mil at age 70.
Again this 4.5% return over 40 years, and chances are return is not guaranteed.

C. Contribute RM15,000 per year for 20 years (total RM360,000). By my mid 40s I will stop contributing but the cash value continues to grow until age 55 where the account matures and closes. Cash-out value is around RM700,000.
Same as B

Inflation will kill all the millions that you seemingly obsessed to. At 4% inflation per year until your are 65, RM1 mil at that time is equivalent to RM200k today.




This post has been edited by kbandito: Aug 24 2019, 07:47 PM

How long have you been contributing and if i may ask, how much would you lose?