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Hi,
Came across an article from a blog today
http://helmihakim.com/investment/ntuc-in...promotion/
From the article, it mentions of a lady who is able to obtain 210k cash from a policy at age 60 despite only saving a small amount monthly.
This article does serve to highlight the importance of saving young and reaping the benefits when you are older. And how saving little each month goes a long way
However, one fact baffles me is the accumulation of $210k of an investment plan from saving $50/mth. Even if this lady started this plan from the age of 18 paying $50/mth, this means the investment plan has to yield 7.93% per annum (nett of fees and commissions). Assuming she contributes $80/mth from age 18, the policy has to yield 6.56% (nett of fees and commissions).
Understand previously Drizzt did a write up on the returns of insurance savings plans . Perhaps he may be interested in this case and dig up more to see if such old plans with good yields exist.
Came across an article from a blog today
http://helmihakim.com/investment/ntuc-in...promotion/
From the article, it mentions of a lady who is able to obtain 210k cash from a policy at age 60 despite only saving a small amount monthly.
This article does serve to highlight the importance of saving young and reaping the benefits when you are older. And how saving little each month goes a long way
However, one fact baffles me is the accumulation of $210k of an investment plan from saving $50/mth. Even if this lady started this plan from the age of 18 paying $50/mth, this means the investment plan has to yield 7.93% per annum (nett of fees and commissions). Assuming she contributes $80/mth from age 18, the policy has to yield 6.56% (nett of fees and commissions).
Understand previously Drizzt did a write up on the returns of insurance savings plans . Perhaps he may be interested in this case and dig up more to see if such old plans with good yields exist.