bbjslee,

The title of this thread is whether the TS is over-insured

A) I said if TS cannot save 10% to 15% of his gross income, he is over-insured.

B) You claim that is not true.

But,

C) Personally, you save 20% of your income while buying insurance.

So, should we believe (B) aka what you say or © aka what you do?? Or, you are just a hypocrite??

Dreamer

haha. ya, i nvr mention how is my saving level. To be honest, last time, when i have no credit card in my hand. i am still able to keep track how much i really save from my income, using simple excel form. Now, i does not able to do so. Yes, i am lazy. I know i am. But, i believe that, i am able to save 15% from my income.

Since one of my FD is mature and i do not plan to renew it. As, i plan to put the cash in bank -> RM10k to public bank foreign currency FD very soon. And, i have no unit trust and other investment.

I will clear the credit card debt in every statement. i never kena interest before.

The major expenses is my car, installment RM500 and the petrol. also some dating fee.

When i read thru the post, my concern is that, i buy wrong insurance as investment link is not the one for me.

Gosh... you never sleep?

How did I claim that is not true? Did I mention it from one of my sentence or you summarised it from my various post?

Why not you share with us what kind of insurance policy you have and why you chose it? (If you do not have any, then why?)
- I could learn some new points of selling insurance, and product idea to sell to people who have same mindset as you.
- People who are reading the thread could benefit from your sharing, since you been through recession soooo many times.

---

Added on May 10, 2008, 8:18 amHave your insurance agent told you
- What are the pros and cons of the product?
- What would happen if company's investment is not performing at all?
- What is the GUARANTEED coverage? is "Coverage" NOT "Return"

If missing any of the above, go back to your agent and ask him/her to explain again.


This post has been edited by bbjslee: May 10 2008, 08:18 AM

g00glesYYl,

Let's do some simple math.

<<1. my salary is about 2400 - 2700 (after deduct the epf + part time allowance)>>

That means your gross income (aka + EPF) ~ 3K

10% of gross income = $300

15% of gross income = $450

So, you should save $300 to $450 per month

<<My monthly saving is like +-200 (if i pay RM200 for the insurance)>>

Your monthly saving after insurance is ONLY $200 = 6.7% of your gross income. Aka, it is less than $300 per month.

In summary, you CANNOT afford the insurance.

<<Since one of my FD is mature and i do not plan to renew it. As, i plan to put the cash in bank -> RM10k to public bank foreign currency FD very soon>>

How wise is that?? If you have an emergency and that foreign currency crash at that week, you will be toasted.

Your EMERGENCY FUND should NEVER exposed to ANY risk.

Dreamer

Insurance is to protect ur from losing earning power, peaceful of mind of urself, is a must for u. Ur agent is selling u lnvestment-linked portfolio, be in mind, jz take that investment portion as an extra, don really take seriously on the return.

Go ahead for ur own protection! Are u over-insured? Jz value urself, Do U worth 100K?

hi dreamer101,

should never argue/debate with an insurance seller.. that's his bread & butter. there's a lot of pride to be defended here.

let it be.. for he needs the conviction to keep on selling. you know your risk allocation and it might better serve to those who really need(advice) them.

this is my 2cents

hi googlesyyl,

i really enjoy your ignorance here..
you're actually considering going from one hot water to another pot of hot water?

foreign fd is not a place where you make your money if you don't know what you're doing and simply buy into the marketing/advertisement.

for one, you need to pay attention to alot of minute details (e.g one of them is the bid-ask spread of currency trading)

since you've small money to play with.. my as well you go ahead and learn some real hard-knock lessons.. i'll double your 'haha' for you.. should be enjoyable watching you make such mistakes in life and being happy for it.

that's why, ignorance is bliss.. haha(again)

perhaps you overly generalized and attempted a mass-attack by your statement that got others ticked off?

it's irresponsible to say what you've said and since you haven't been thru real recessions, being insensitive to those who have been through one, is not really a good way to provoke others.

i however can respect your position as an insurance seller, it's a honorable vocation and you have to sell to make a living out of it.

i do hope that you'll go through tough financial times like a recession and perhaps able to learn and profit from it.

Sorry, i does not update my income. Well, this yr start, i have my increment. Now, basic is 3k and 4~500 allowance. And plus the bonus and travel/project allowance when i can travel oversea. But, not every month i can travel. this make me have less money...

oohh. the 10k is not my emergency fund. i have nvr say that. i still have 10k more located in normal FD.


Hi lwb
Foreign FD is very hot recently. It is better than the normal FD. The risk should be lower than the unit trust as the foreign currency like aus and nz is stable compare to malaysia. So you know how this foreign FD working?


Well, i really feel thank you to your bcoz you all give such a lot of experience and opinion to me. Yes, we need to think a lot before do something. Yes, i am lazy, but i too study the plan b4, just may be not to detail.

This is year 2008, the old thing sometime cant work. If you really wan to argue, there will be a lot of things.

Dun make the life suffer. And, most of the people become rich not because how good they save the money but it is how good they use their saving make money for them. How many of you become very rich because just your saving?

build the foundation and then ... fly~~ If you fail, just mean that, you are not good enough.

This post has been edited by g00glesYYl: May 11 2008, 08:30 PM

g00glesYYl,

<<orry, i does not update my income. Well, this yr start, i have my increment. Now, basic is 3k and 4~500 allowance.>>

Do you know SIMPLE MATHS?? That means with HIGHER INCOME, your saving level of 10% to 15% of your GROSS INCOME is even higher. After insurance, you are STILL not saving 10% to 15%. So, you CANNOT AFFORD the insurance.

<<Dun make the life suffer. And, MOST of the people become rich not because how good they save the money but it is how good they use their saving make money for them. How many of you become very rich because just your saving?>>

How do you know?? How MANY millionaires that you KNOW personally??

I know plenty of people that become rich just from their savings.

Earn, save, invest.

If your earning is SO MUCH that you only need savings and invest a little bit is ENOUGH.

Don't assume SOMETHING that you know NOTHING about.

From your POSTS, we know that you know VERY LITTLE about personal finance. So, how dare you to assume ANYTHING?? Isn't it foolish??

Dreamer

They offer u the min return is 2-9%, izzit guaranteed 1 ?

Based on what, you claim that, after insurance, i still not able to save 10 - 15%? i already mention i have the increment and of course i will have more saving as my increment is over 20-30%.

Yes, i know very little about the personal finance and i never assume anything as what you say.

Earn, save, invest. -> this is everyone know's fact. Like chinese say, "who do not know your mother is a ladies? " Work hard is a must to gain better income. I am talking about the thing over the scope.

Your post is different from what i learn from the personal financial advisor. hey dreamer, why i cant listen to who is professional.

i might be foolish... but thank, i will remember you when i have more money.

the min is guaranteed. However, the max is not. Why? Because it is a livestment link, it can gove you more return compare to Life insurance(fixed 4~5%). U wan more, then u need to take the risk.

g00glesYYl,

<<Your post is different from what i learn from the personal financial advisor. hey dreamer, why i cant listen to who is professional. >>

What can I say?? You cannot even differentiate between a sales person from a REAL personal financial adviser. Do you know the difference??

<<i might be foolish... but thank, i will remember you when i have more money. >>

Don't worry. At the rate that you are going, the money will not be staying with you for long.

Dreamer

Insurance is not investment, period.

If you can't even take care of yourself now, why on earth would you take an insurance policy to care about your future?

Why don't you join the insurance companies as an agent?
It does give some good knowledge of how things go...

Ask a real CFP which do not have any obligation to sell any product from whichever insurance/finance company and see what are their thoughts.
Every sales person nowadays in the field calls themselves financial planner. But would they introduce products that are not sold by their company? I do not blame them as it's their rice bowl. How many agent you came across advised on "emergency fund". How many agent you came across really sit down and help you calculate your monthly expenses vs your salary and say...."here, this is the max you can 'invest' if you want to".

is the guaranteed for min return of 2% stated in writing ?

agreed, either u get full insurance or full investment.... dont mix them up..

Well, seem like we are having the different point of view.

Nothing to be argue.

wish you all the best in your life.

hi dreamer, my advise to you, dun understand the statement in sentences but read in overall. It is very dangerous as it will cause the missunderstanding. If you are christian. Consult your pastor on how to read bible.

This post has been edited by g00glesYYl: May 12 2008, 01:57 PM

g00glesYYl, what we're saying is that there's still a lot of investment method out there that gives better return in years as compared to Insurance. yes, insurance can gives profit as investment and it's like how we always compare with FD returns.
Now replace <FD> with <insurance> compare against other investment vehicle. Or if one is crazy enough, do try and compound FD returns for 30 years and see whether or not the return is really that bad.

EG:
If one puts 10,000 into FD and rack the return for the next 30 years without taking it out at constant 3.7% annual interest rate:
FV(3.7%/12,12*30,,-10000) = 30,291.81 = 202.92% = 16.91% per annum
Not a bad return at all!! (So why is everyone complaining that FD is not worth it?)

The point I want to make here is by looking at this calculation, the return is superb! But than again, how much money and how long do you need to reap that profit comes into question. Thus, for insurance and it's investment plans and also most of the investment vehicle out there, we need to factor in those components to see whether or not it's worth the purpose.

Ok boon. i got you. thank you