Hi,

Received this offer from one of the bank. Details as below.


- A fixed deposit (similar amount) per annum whereby one-off for the 1st year and multiple deposits for the subsequent year.
- Counted by the date of 1st deposit as a year for the dividend.
- The principle is compulsory to be deposit annually for six years before being able to withdraw.
- After the 6th year, if you haven't withdrawn the accumulated principle - you can enjoy continuous dividends for a maximum of 20 years.
- Dividends for frontliner - 30% p.a (!!!) - limited time & quota for selected group of individual.
- Minimum of RM10k/year. Don't overcommit as you need to deposit a similar amount every year for six years.
- If you haven't withdrawn the dividends, it will be compound for the next year with an average of 5-8%. However, you are free to withdraw the dividends as you like.
- Possible to open more than one policy.
- Policy approval is based on overall financial status.
- Limited quota.
- Insured by PIDM.

The guaranteed of 30% p.a for maximum of 20 years was in black & white on my form from the bank, not agent's lips.

Most likely going to open for both of my kids if all okay.


Thanks in advance for all the input and insight!

Plan?
You need to see if they write subject to market conditions. No market can give you consistent 30% p.a for 20 years.

You need to dig deeper into the 30%. This sounds like ILP where the beneficiary is only the agent/banker.

This one apparently guaranteed. Supported by legal documents. The word "guaranteed" written there clearly.

30% guaranteed? what they invest to get consistent 30% dividend? what bank? Is it Insurance?

Dividends for frontliner, what is this mean? You mean for doctors and nurses only?

This post has been edited by kelvinfixx: Jun 12 2020, 08:00 AM

Since you had already decided to buy before you even write this thread, so what you want now?

well, u refer to product by HLB?

a quick check reveal there is a monthly charge/fee of RM8. Not sure abt other fees... the info aint much to cross chrck.

as other said, the so call guarantee actually aint a guaranteed, no firm can give u a constant return at the rate thst you claimed... do dohble check again., better if u have the pripisal as well quotation frm the agent.... look for detaik.

its good to plan for retirement at early day but not at the cost of burning own money.


on the other token, do consider PRS, its tax relief somemore... but its not insurance or any protection plan

probably got somewhere in the fine print saying terms are subjected to change depending on market conditions.

if i am not mistaken,...many months/years back...almost similar product from HLA...
can check from previous LYN threads for some valuable threads and posts....
https://www.google.com/search?q=hla+wealth+...iw=1366&bih=657

where they gives 20% pa.....
from only after 1st year after deposit
sort of like...
July 2020 you deposit RM10000
July 2021 you deposit RM10000, you get RM2000, thus 20% of your current deposit money, but your total deposit is RM20000, (2k of 18k is 11.1%)
July 2022 you deposit RM10000, you get RM2000, thus 20% of your current deposit money, but your total deposit is RM30000, (2k of 26k is 7.69%)
July 2023 you deposit RM10000, you get RM2000, thus 20% of your current deposit money, but your total deposit is RM40000, (2k of 34k is 5.88%)
July 2024 you deposit RM10000, you get RM2000, thus 20% of your current deposit money, but your total deposit is RM50000, (2k of 42k is 4.76%)
July 2025 you deposit RM10000, you get RM2000, thus 20% of your current deposit money, but your total deposit is RM60000, (2k of 50k is 4%)
and so on....
do take note....if you take that $$ out...your total cash value will be much affected later on

like in post 9 mentioned...."cash back came from your own capital."

or see the % of reduction of the "Guaranteed Death Benefits" as in the same image in post 17
this "REDUCTION" was not highlighted to the unobservant.....they are just too focused on what is the ROI...
they can gives you abit more % of ROI BUT reduce on other benefits

This post has been edited by yklooi: Jun 15 2020, 09:40 AM

I don't know what plan you are posting.

But based on above limited info, it is more like a saving plan or endowment plan. It is not a fixed deposit with 30% or whatever % dividend/interest.

Saving plan guaranteed cash back is not your earned interest or dividend. It is not like you placed 100K with 30% cash back, then you you have 100K + 30K. It doesn't work that way.
Once you get the 30%, then surrender value drops.

A portion of cash back came from your own capital.

Normally saving plan return rate or IRR is more and less comparable to FD rate if held until maturity.
You need to count entire amount guaranteed cash back you are getting + maturity amount you are getting to determine the "real" dividend you are getting.
It is not like every year you get guaranteed 30% or 20%, then you still get back your own origin principal amount.

Saving plan is long term commitment, any premature withdraw may affect the principal amount, it is not a fixed deposit.

It is irresponsible for anyone to promote saving plan as fixed deposit.
It is also irresponsible to say guaranteed cash back is an interest or dividend earned.

Some of my family members fell into the same traps before (the wealth booster plan by HLB), and they can't withdraw thereafter (hefty penalty). (My parents bought for me and regretted).

I calculated the IRR thereafter and it's somewhat like 4-5%. Even worse than your EPF return and can easily be on par with the current ASNB FP fund returns.

Many insurance agents (at least in Malaysia) like to promote saving insurance (or saving plans) and treat them as FD products, cheating customers' money.

The agents just sweeten the deal by manipulating the numbers as shown by some members above. Look before you leap.

This post has been edited by TOS: Jun 12 2020, 10:20 AM

I think I heard b4
Great Eastern?
I was approached by them before the covid19 and after some simple math, FD at that time is much better choice then their plan.
After showing my calculations, they had admit their plan is worthless than FD except for their plan included insurance.

So doubt and questions everything they say and what they show. Don't make decision on the spot.
Do your calculations..

How much is the dividend given annually
The 30% is calculated based on what, dividend on dividend? 1st capital deposited? 60k capital?

What is the website details selling this plan?
I also want to buy

sounds like insurance saving plan to me lol

If u want better investment return, 6 - 10% is not an issue

Deleted

This post has been edited by Cyclopes: Jun 12 2020, 02:52 PM

Bro better read carefully, the guaranteed percentage might not be on the total amount invested, but on a face value amount that is lower than what you have put in.

For example you have put in 50k over 5 years, the face value of the policy is 20k. They will only pay 10% interest on the 20k, and not the 50k that you have invested.

What bank / insurance is this lol? Seems a little too good to be true, but from the looks of it, macam GE punya Wealth Plan

As pic attached above.

Sorry for the late reply. Was super busy during Covid phase.

Offer ends by 12pm+ today.

Bro pls refer to my reply above, 30% only for first year (60k/200k premium paid). After that as you put 200k each year, the guaranteed income percentage will drop. At the end you are only getting 5% interest on 1.2 million premium paid.

I’ll advise you not to take the offer and lock yourself for 20 years. Investment return are not guaranteed and it’s extremely illiquid that you will confirm lose out if you withdraw before 20 years.

Should be HLA plan,

https://www.hla.com.my/CMS/Product-Services...uct=73&Sub=1022

Yes. Just read the link and its accurate.

Not yet boss. Asking opinion in Lowyat.NET not unwise for most of the aspect.

These two comments are very insightful for me.

Thank you

/+rep

Yes, they only highlighting the return for the first year, and not the overall return.

Dont rush. Wait first.

It's HLA product, it wont end at 12pm. It's an insurance savings plan typically (non guarantee) give you 4% to 6% per annum return over the long term.

Keep in mind 20 years is a long time. But insurance savings plan has it benefits as well. Just make sure you can accept the cons as well.

It's not fixed deposit and it's not for short term return.

As long as you realise this, then wont kena tipu. Strictly speaking you dont get that return in 1st year because you cant get back your original premium, so strictly speaking 1st year is lose money also.

Haha. Anyway, there are other benefits cause if it is eligible for tax relief if you have not max especially the education insurance, you can receive financial gain.

Happy shopping for the right investment strategy for yourself and kids.


This post has been edited by adele123: Jun 13 2020, 11:55 AM

Yes. I do agree with your points. But anyway lock for 6 years, not 20 years as you put it.

Spent hour and half going through link that yklooi provide. Lucky stumbled upon you guys before commenting.

6 years, rather than 20 years you guys mentioned.

But you pay 6 years cant withdraw for 20 years. That's why 20 years lo. Fixed deposit normally 1 year ma.

you just don't get it.

the payment is for 6 years, if you take out anywhere before 20 years, you'll lose money. Simple as that.

Putting aside this money with your mentioned 200k budget under investment could potentially get you RM3,343,351.36 - RM6,446,003.55 without being locked.

Ahhh. Just clarified, you guys are right. I misunderstood.

Just got the reply from agent regarding surrender value at 7th year is only RM 59,210 lol if 10k was initial capital.

topkek

this RM59210 value maybe "best" case scenario too

as stated in this HLA Wealth Booster Plus PDS, just hope your policy does NOT have this T&C

What are some of the key terms and conditions that I should be aware of?
........
.......
Cash value - the cash value of the investment-linked policy depends on the performance of the investment-linked funds selected.
The higher the level of insurance coverage selected, the more units will be absorbed to pay for the insurance charges and the fewer units will remain to accumulate cash values under your policy.
https://www.hla.com.my/CMS/CMSPages/GetFile...ce-5784770d1a61

Please read and understand before committing to it
The 30% are only for 1st deposit
With 1.2m, 60k only 5% of it.
I recall black and white 30% is guaranteed but if I'm not mistaken the rest are not. Double check with your agent
Also how about fee? Charge monthly? Yearly? How much?

With market crashing, I rather study and brush up my knowledge to enter the market now. But that's just me.

Good luck

Bro no one will buy this plan to withdraw on the sixth year. If you go in, you die die must hold it until 20 years, else you will get less than what you have paid for.

That’s why think carefully before you commit to this plan.

This post has been edited by victorian: Jun 13 2020, 02:19 PM

Just DIY invest in S&P 500 or stashaway. All these bancassurance plans have plenty of hidden fees to benefit the bank.

Better still, just invest into bank stocks, they pay your dividend with customers money.

Just to add on, if you really need the insurance portion and don't want to be locked for such a long period of time, can consider buying a term life insurance plus creating your own portfolio of investment vehicle. That way, you can have the insurance part plus the ability to alter your own risk appetite and have the freedom to choose your investment target.

Have the best of both world.

This post has been edited by TOS: Jun 13 2020, 05:59 PM

to me this plan first boost insurance company and agent wealth before yours

Did you end up committing to the purchase?

Nope.

If you really want 30% returns yearly there's only one way I can think of. Buy LSE plc stock. Wait 30-40 years. By then the dividends received will be 30% p.a and growing.

This is the world of dividend growth investing which I am doing.

maybank has a similar plan called Smartcash Xtra. They gave me the same sales pitch. Did my calculation and it came to around 4% PA.

where is it stated that this offer ends by 12pm+?

Maybank is guaranteed right? While HLB is not.

read post 17,....there is this word "Guaranteed Income per year (RM)", in title heading of the 5th column of the image

the main different between this 2 plans, looks like; one is guaranteed % of yearly payment based on premium paid and the other is based on sum insured.

in the end both will have their final cash value greatly impacted when compared with other "normal" plans

like in post 9 mentioned...."cash back came from your own capital."

or see the % of reduction of the "Guaranteed Death Benefits" as in the same image in post 17

This post has been edited by MUM: Jun 15 2020, 09:11 AM

that's super misleading. I'm always confused with these HLB plan they are trying to sell.. 6 years bla bla bla.. return da da da. Anyway i think few years back i did calculated before and the return of investment is just slightly better when compared to fixed deposit the caveat is, one i have to lock on donkey years while the other most likely a year.

IMO totally not worth it.

Simple rule of thumb - when see/hear HLA stuff, run other way

Love this comment.

aaahh damn... already buy this plan in august 2020. If i cancel it now, wont probably my full capital. This year is hard because of covid.

If you cancel now, pretty much, poof gone. But at least no more pain of putting in more.

Don't worry, it's still a good vehicle to park your money for long term, you can call it as a sort of wealth preservation, the money won't disappear for sure the next 20 years.

i would not call it wealth preservation though....
yes, the money will not disappear for sure in in the next 20 years....but i am just not sure it can "preserve" my wealth in the next 20 years.....will the returns be enough to covers the inflation cost?

effective i/r around 4%~6% according to some calculations here, isn't that enough to cover?

It's called Preservation when you still "see" your money in that account, but don't expect it to beat inflation.

If you're looking in growing your wealth, then this is not the right plan for you.

ideally this is the last place few places to put into your surplus funds otherwise, invest your money instead if you're not cash rich yet.

if can "legally promised" to be 4~6% pa investment returns for 20 yrs....then ok lah....for it has insurance coverage
epf gives abt 6, without insurance coverage
if it is like 3% pa like most other plans...then, cannot beat inflation liao....

Being a Hong Leong shareholder, I can confirm this. Love the dividend though.

yup - what's good for the biz, may not be good for staff/customers

own a piece of the biz XD

HSBC Universal Treasure Plus is even worse
I signed up and instantly regret
It is a lie from the bank agent to earn commission
There is surrender value
And in the end your interest will be even worse than FD rate
Less than 1% per annum