Endowment Plans.
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Hi guys, I need advise
Im a 25 Year old male. ORD-ed, non-Smoker, healthy, very good saver. No obligations to spend my cash. Should I lock myself in a 25 years endowment plan?
Was planning on setting aside parts of my cash with this plan, and let it mature till Im 50 years old and get that lump sum.
Thoughts? Greatly appreciated.
Thanks. -
u can guarantee u live till 50 to enjoy the sum of money?
and with the sum of money, u are already 50, what are u going to spend on?
包二奶?
by tt time the amount enough to 包?
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Assuming I can live till 50
. I just want to save that money to get extra cash. That extra cash to fund for my retirement and/or my childrens future. I'm not interested in stocks or investments.
I can pay the premiums for 25 years.. got enough in my bank. Not interested in withdrawing the cashback. Just wanna let it rot there and gain at least some interest.
Thanks for the prompt reply! -
see, u already decided.
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So its a good decision or bad decision. lols.
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it's ur money.
u decide what to do with it.
and how much u trust your financial advisor.
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From the professional view of an independent financial advisor which I am one, I do not recommend my client to take up endownment plans especially when you say u are saving for retirement and for your children future.
Reasons being
1) Endownment plans at best only beats inflation 3% which means the returns for 25 years is at best 3%. Also, it means your purchasing power now and 25 yrs later is the same.
2) As I do not represent any insurance company, I get to access many different comapnies payout after 25 yrs. The best plan in the market, I could safely say would not cover your retirement needs and children future expenses.
Have a good read on this article published by MoneySense. Very reliable source from our government.
4) http://www.straitstimes.com/business/138m-thats-how-much-you-need-to-retire-online-poll
Retirement amount need to set aside. Definitely is something endownment plan cant give you.
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