Hi Mr. Tan,
Let me say thank you for your blog which has been educational. I hope more people will read it and hopefully learn to be slightly more financially savvy in their personal financial planning / management.
I believed that ultimately knowledge and education is the best way the customer can be protected. The rules and regulation set by the authorities such as MAS are also important steps that served to protect customer's interest.
In view of Income proposed restructuring of its bonus, which effectively reduce the yearly vested annual bonus significantly in favour of non-vested terminal/special bonus, I think that parking SRS money in Growth policies for long-term is no longer an attractive option.
For you personally, where would you park your yearly SRS contribution, given the current situation, assuming that you are taking an investment time-frame of 15 to 20 years?
REPLY
In the past, I have invested my SRS in the Growth Policy (i.e. single premium endowment). I will keep this policy, as NTUC Income has assured the policyholders that the total bonus payout on maturity will not be reduced by the restructuring of the bonus. The reduction in annual bonus will be compensated by an increase in the special (terminal) bonus.
Today, if I wish to invest my SRS contribution for next 15 to 20 years, I would chose an investment fund. This is explained here:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/investown.html
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