I need your advice. What are your views on POSB MoneySmart Kids? The financial advisor told me that the interest rate is 4% better than the interest on savings account. I need to grow money for my kids' education.
Pls refer to attached link. http://www.dbs.com/posb/
REPLY
As this is a life insurance policy, you should ask for a benefit illustration and look for the two key factors (i.e. distribution cost and effect of deduction) as explained in my FAQ and my financial planning book.
none of these insurance products can grow your money.. they only lose your money in real term.For this reason it is risky.
ReplyDeleteNothing beats regular investing. It is low risk and better return.You decide the return and the risk.
Why insurance agents never mention this product?
This product gives the insurance agents very low commission and that is why they try to hide it from you.
Before you jump into the boiling water ask what is the annualised return and what is the risk. Why this product and not other product? How much commission does the product give to the agent?
I find it hard to believe there is any investment out there that gives us a good return.
ReplyDeleteWhenever the bank advisor sells an investment and says the interest rate is better than savings or fixed deposits, BEWARE!!! I am speaking from my experience and now I am very wary and avoid these bankers like plague.