Tan Kin Lian's Blog: Investing for the future

Sunday, January 20, 2008

Investing for the future

Hi Mr. Tan,

I am concerned that my savings for the future will be eroded away by inflation and that the yields in the CPFOA may not keep up with inflation.

I am considering putting some savings into UOB Growthpath 2040 fund and also the Combined Fund by NTUC Income. It seems that doing a regular ILP incurs high costs. I am thinking of putting some money in both funds over the next few months. What are your views?

Thanks for the advise on your website. It is sad that insurance agents put a lot of pressure on customers. I almost signed up an ILP with a friend only to realise of the high upfront costs, and also the relatively high annual charge of 1.5%. I was advised to put money in single country funds that are 'hot' economies. I decided to cancel the policy within the 14days grace period. I cannot afford to lose up to 18 months in upfront costs at this early stage of life.

I checked with another agent and was told that not all the information on DR Money's website is true about insurance.

REPLY:

You can read this FAQ about investments:
http://www.tankinlian.com/faq/savings.html

I am not able to give you specific views about the UOB fund. If you wish to invest in the Combined Fund from NTUC Income, you can invest through the Flexi Link policy, where the charges are much lower than a regular ILP.

You did right to cancel the high cost ILP policy. Your savings should be for your future, and not for the earnings of the insurance agent.

Dr Money's advice on insurance is sound. It may not be 100% accurate. My advice is not 100% accurate either. But, they are useful for consumers.

3 comments:

Anonymous said...: Insurance agents won't agree with Dr. Money because he provides the truth.Dr. Money is pro consumers . He thinks of the best for consumers. We must be thankful that we have people like Dr. Money to check on those unscrupulous agents out there.
You are beginning to see those policies sold long ago are rearing its ugly heads now. There will be more . You will be hearing of revosave, those rubbish cashback products, more ILPs, and those limited premium whole life plans.
From now, you have to choose your advisers carefully. Don't use salesmen. The word tells you they sell only and they do not advise.
Visit Mr. Tan's blog often if you are not sure.; January 20, 2008 9:13 AM
Anonymous said...: Uob growth path funds are life cycle funds made simple for investors who are accumulating for retirement.The portfolios are fixed, based on time horizon and investors can move from risky to less risky or conservative portfolio as they age nearer to retirement. The administrator can do that for you too .
This is good because it is protected from manipulation by agents or consultants ,who are often the cause of poor return.; January 20, 2008 6:24 PM
Anonymous said...: Even NtUC agents are not happy with Dr. Money. Whatever he writes is targeted at all insurance agents.His comments are unbiased and without any favour to any company. That is the kind of comments you should be reading. Whenever you are looking for a financial product consult this blog first and read Mr. Tan's and Dr. Money's comments, otherwise you will be conned by insurance agents on the prowl.; January 20, 2008 9:21 PM