My friends and I is discussing about monthly saving plan.
Those type where u save 200 or 300 per month? Will have some interests and come with a bond of 10years, 15years , 20 or 25 years.
Any recommandation which is the best of NS man? Was approached by AIA agent, my friends seems quite interested. But i know this kind of plan, if halfway want to get out very hard. The will not pay u the interest rate and stuff. So it's best to choose a saving plan that provide the best.
The saving plan do not need to cover any insurance like medical, just pure saving plan also can. Medical insurance like death coverage will be a plus point.
Anybody have good recommandations? Not looking for investing, dont mind if prenium is low too.
quick question. how old r u now ?
if you are looking for a savings plan that has an insurance component e.g. death coverage, critical illness coverage, paralysis coverage, you might want to consider an investment-linked plan. Advantages > all-in-one plan which invests your savings and gives you protection at the same time. Disadvantages > can be very expensive due to alot of misc charges. e.g. policy fee, distribution cost etc etc. All insurance companies and banks offer this kind of plan.
if you are just looking for something that has no insurance, you might want to consider doing a regular savings plan with a unit trust. im assuming u know what a unit trust is. Do remember that unit trusts have risks involved but they can give u potentially higher returns.
These sites might help.
www.dollardex.com
www.fundsupermart.com
If u are not comfortable with investment because u think markets are very unstable now u might want to consider a regular savings account. POSB's save-as-you-earn, OCBC's monthly savings account both offer higher interest rates than the regular savings account. Alternatively, Standard Chartered's e-saver account can be quite attractive with their 1.88% p.a. interest rates.
With regard to the AIA's offer u received, i'd just like to pre-empt you on 2 issues.
1) the current financial climate is quite unstable and AIA has been the subject of some bankruptcy speculation just last week. To say the the storm has passed might be a bit early.
2) AIA charges differently from the rest of the insurance companies. It's very difficult to explain it on the web but basically their charges are deducted @ the end, which might make charges potentially more expensive then the rest of the companies.
All in all, i'd just like to say that there is no best product. They are all about the same, more impt which one is more suitable for u.
Based on your post, It seems that this is your first policy that you are going to own.
If thats the case, go for an ILP. Go for one that is flexible and can last till you retire. Don't get a plan that only last for 10 or 20 years. When savings and investments are concern, You would have lose out on the growth potential.
Furthermore, if this is your first policy, please do not go for endowment and wholelife plans.
1) endowment plans are inflexible. You would only profit from it 25 years later. If there is any withdrawal or termination before year 25, you are bound to make a lost.
2) As for whole life plans, you can only withdraw your savings when you terminate the policy or make a claim.
Whereas by getting an ILP gives you more flexibility. It offers you high protection cover at a very very affordable charges and starts a platform for your savings to grow exponentially.
If you are not looking into investments, and you are looking into pure savings, what maxtor suggested will be a good alternative. But, do take note that the value f your savings in the bank will be erroded by inflation rapidly.
okay i get a better picture now.
I will be considering the monthly saving that will invest... Looking into uni trust or divinity shares...
save and invest by urself lah... dun trust anyone else with ur money...
Just a word of caution.
Many likes to go straight into investment when they have the money. However, this is not advisable.
Start your investment first by insuring your life. Shall anything happens to yourself, not only you do not need to worry about money, you also do not need to trouble your family.
Once your financial planning is in place, then you proceed to do your own investment.
Originally posted by Kheetat 86:Just a word of caution.
Many likes to go straight into investment when they have the money. However, this is not advisable.
Start your investment first by insuring your life. Shall anything happens to yourself, not only you do not need to worry about money, you also do not need to trouble your family.
Once your financial planning is in place, then you proceed to do your own investment.
yup noted. I have my own life insurance , like if i die or hospitalised, i will get a certain amount. That's a MUST yup....
My friends advised me to have like 5k in bank for emegency use, and extra money can use for investment.
By the way i am 20 years old, waiting to go army.