I saw an advertisement of the new policy, called MyRetirement, from Aviva. Here are my views:
a) The capital is guaranteed
My view: A long term investment that is capital guaranteed usually pays a poor return. Please check carefully.
b) There is a guaranteed return of up to 2.38% per annum. This means that the return could be lower than 2.38% p.a. but could not be higher than 2.38% p.a.
My view: A return of 2.38% p.a., is quite poor for savings that is locked up for a long term.
c) It provides a guaranteed monthly income for 10 years.
My view: This statement means nothing. If I have $120 dollars, I can also get a monthly income of $1 over 10 years. It is more important to get an adequate return on your monthly income.
A better choice
If you are investing for the long term, make sure that you can get a yield of at least 4% per annum. You can attend the FISCA talk on financial planning or investments (see http://easyapps.sg/assn/Org/Event.aspx?id=5) to find out some better choices.
a) The capital is guaranteed
My view: A long term investment that is capital guaranteed usually pays a poor return. Please check carefully.
b) There is a guaranteed return of up to 2.38% per annum. This means that the return could be lower than 2.38% p.a. but could not be higher than 2.38% p.a.
My view: A return of 2.38% p.a., is quite poor for savings that is locked up for a long term.
c) It provides a guaranteed monthly income for 10 years.
My view: This statement means nothing. If I have $120 dollars, I can also get a monthly income of $1 over 10 years. It is more important to get an adequate return on your monthly income.
A better choice
If you are investing for the long term, make sure that you can get a yield of at least 4% per annum. You can attend the FISCA talk on financial planning or investments (see http://easyapps.sg/assn/Org/Event.aspx?id=5) to find out some better choices.
1 comment:
Before the Minibond saga, FIs dared not use the word "Guaranteed" nonchalantly, which is contractual, legally.
Now, they play around with this Word, "Guaranteed" by subtly sneaking in with a " up to 2.38% returns." Like what TKL said, on certain years may have only 1.38% returns guaranteed, and then wrestle themselves out of the discrepancy of the other 1% by making a scapegoat out of poor economic world conditions beyond their control.
Heads the Insurer wins, tails they also win.
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