Dear Kin Lian,
I will most certainly send to you me and my wife's signature to protest against the low annual bonus. The terminal bonus to me, is something which any insurance company can indicate, or 'pluck from the air'.
Currently, my wife and I both have ID2 Plan and have been contributing $X monthly to the plan since Sep 2006. Do you think we should withdraw from this plan and go on to the STI ETF that you had highly recommended in your blog?
Our wish is to grow our money for our retirement. We had always trusted NTUC and its agent to managed this for us. We both have Protection Policies and a Foundation for our son since 2000 as well. They are all affected by the low annual bonus which I am extremely concerned.
REPLY
I think that it is all right for you to continue with the Ideal (ID2). You have already incurred half of the upfront charge of 45%. Anyway this upfront charge is much lower than other ILPs in the market.
If you buy the STI ETF you will need a sum of $3,300 to buy 1,000 shares.This may be inconvenient for you.
Do you know how much the agent earns from your ID2? It is 45% X 12 X $280 = $1,512. Does the agent give you advice worth $1,512 or just fill up forms?
ReplyDeleteIf you terminate the ID2, you can save $750 now.
NTUC agents don't give advice.They are product pushers. Likely you have pushed this product without knowing why you were buying. I don't a need a analysis was conducted for you. It is up to you to cancel or to continue after all you have incurred some charges already.
ReplyDeleteYou can also consiser low costs funds at fundsupermart and dollardex
ReplyDeleteFlex-link is better than Ideal plan. of coz the best is to purchase stock directly or fund through FSM
ReplyDelete