New DBS retirement account

[Lh77]

Received a call from DBS relationship manager touting a new account type which is like an endowment fund. Like to check your opinion on this, seems ok to me.

 

8 years monthly recurring deposit of a fixed amount say 3000 per mth.

After 8 years invested amt is abt 288k.

First Payout will be on 15th years, paying the monthly recurring amt x 12 x 10.

Using the example of 3000 payout is 360000.

On retirement age 65 the second payout of your principal.

 

In summary,

investment after 8 years = 288000

First payout after 15 years = 360000

Second payout at 65 years = 288000

Returns of 646 k with 288k investment

 

Your views?

[Lethalstrike]

Honestly, nah.

 

1st payout after 15 years? The market is too volatile even for banks to see 15 months ahead, don't even mention 15 years. By averaging out the returns, you might just be looking paltry results by the 1st payout. What kind of funds will DBS be investing with this scheme?

 

 

 

[Icedbs]

Received a call from DBS relationship manager touting a new account type which is like an endowment fund. Like to check your opinion on this, seems ok to me.

 

8 years monthly recurring deposit of a fixed amount say 3000 per mth.

After 8 years invested amt is abt 288k.

First Payout will be on 15th years, paying the monthly recurring amt x 12 x 10.

Using the example of 3000 payout is 360000.

On retirement age 65 the second payout of your principal.

 

In summary,

investment after 8 years = 288000

First payout after 15 years = 360000

Second payout at 65 years = 288000

Returns of 646 k with 288k investment

 

Your views?

 

What if I am now already 50 years of age? So at the 15th year (65 years old), I get both 1st and 2nd payout together??

 

[Wt_know]

1st payout at 15 years and 2nd payout at 65 years old .... what's the worth by then?

i'm abit regret for my life insurance too ... pay so much and now worth pee sai only

 

Honestly, nah.

 

1st payout after 15 years? The market is too volatile even for banks to see 15 months ahead, don't even mention 15 years. By averaging out the returns, you might just be looking paltry results by the 1st payout. What kind of funds will DBS be investing with this scheme?

 

[Wt_know]

50 years = 1 leg 6 feet down under liao

i think there is a age limit for this plan which encourage early saving for retirement which is as early as 20+

 

What if I am now already 50 years of age? So at the 15th year (65 years old), I get both 1st and 2nd payout together??

 

[Fitvip]

First payment after 15 years on a monthly installment of the amount you paid previously, and it carries on for 10 years! By the time the 1st payout is completed, you have already been on the programme for 25 years. That means the account has to be opened @ 40 years old or before!

 

What happens if the account holder kicks the bucket before 15 years, or before 65 years old? Will there be any payout?

Edited July 29, 2012 by Fitvip

[Coltplussport]

First payment after 15 years on a monthly installment of the amount you paid previously, and it carries on for 10 years! By the time the 1st payout is completed, you have already been on the programme for 25 years. That means the account has to be opened @ 40 years old or before!

 

What happens if the account holder kicks the bucket before 15 years, or before 65 years old? Will there be any payout?

 

 

Haha, call DBS

[Lh77]

648,000 at age 65, i.e approximately 25 years later, using 3% inflation rate gives a present value of about 309K.

Even using 17 years which is the year which you complete the 8 years payment period, the current value will be about 392K..

hmm indeed the return is low..

 

However, this should be the 'cash' portion of the overall retirement planning, unless you go all out with 100% of your available resource into more aggressive portfolio, else, where should the 'cash portion' be parked?

[Lh77]

648,000 at age 65, i.e approximately 25 years later, using 3% inflation rate gives a present value of about 309K.

Even using 17 years which is the year which you complete the 8 years payment period, the current value will be about 392K..

hmm indeed the return is low..

 

However, this should be the 'cash' portion of the overall retirement planning, unless you go all out with 100% of your available resource into more aggressive portfolio, else, where should the 'cash portion' be parked?

[Lh77]

First payment after 15 years on a monthly installment of the amount you paid previously, and it carries on for 10 years! By the time the 1st payout is completed, you have already been on the programme for 25 years. That means the account has to be opened @ 40 years old or before!

 

What happens if the account holder kicks the bucket before 15 years, or before 65 years old? Will there be any payout?

 

 

First payment is after about 15 years, assuming the plan starts at 40 years old...

Second payment at 65 years old, which is where you are in the plan for 25 years

[Wt_know]

return of coz is low la

bank and investment manager eat what?

[Mits_jc]

Singaporeans very forgetful, that's what they say. And they are not entirely wrong.

[Donut]

Its not bad actually. It's more for ppl who has no other investment or don't know much about investing. This DBS is better than just leaving $ in the saving account.

 

 

[Wt_know]

that's why everyone is so eager to whack property ... die die also must buy property because it's better to leave $ in the bank

 

Its not bad actually. It's more for ppl who has no other investment or don't know much about investing. This DBS is better than just leaving $ in the saving account.

 

[Twnll]

Received a call from DBS relationship manager touting a new account type which is like an endowment fund. Like to check your opinion on this, seems ok to me.

 

8 years monthly recurring deposit of a fixed amount say 3000 per mth.

After 8 years invested amt is abt 288k.

First Payout will be on 15th years, paying the monthly recurring amt x 12 x 10.

Using the example of 3000 payout is 360000.

On retirement age 65 the second payout of your principal.

 

In summary,

investment after 8 years = 288000

First payout after 15 years = 360000

Second payout at 65 years = 288000

Returns of 646 k with 288k investment

 

Your views?

 

 

Did they say the pay out is guaranteed? Don't have it 'part guaranteed, part not guaranteed,' then what's the point?

[Blackyv]

50 years = 1 leg 6 feet down under liao

i think there is a age limit for this plan which encourage early saving for retirement which is as early as 20+

 

Shop their target are all high flyer lor... who in the 20+ can afford 3k share cash for just 1 insurance......

[Donut]

that's why everyone is so eager to whack property ... die die also must buy property because it's better to leave $ in the bank

 

But not everyone can afford to buy property.

[Lh77]

Did they say the pay out is guaranteed? Don't have it 'part guaranteed, part not guaranteed,' then what's the point?

 

The guy says its guaranteed, but if I sign will want to see it in the contract