Part II: The Art is Not in Making Money But Keeping It

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In this week's edition, we will continue to discuss Part II: Saving Is A Breeze. If you missed part I, you can read it here.

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PART II: SAVING IS A BREEZE

Written by Dave Loh

..We shall illustrate investment tools from the second investment risk-return tier, using endowment savings as a concept to share on accumulating wealth.

Single premium, one-time premium product, after five years of the accumulation period, provides you with continuous income for a lifetime.

This concept works like property investment. With an initial down payment and some waiting period, you start receiving rental income from the property. Like ups and downs in the rental market, the plan will be affected by the performance of the insurance company. However, you will not face issues in not getting tenants, delay or default in rental payments and the usual property maintenance issue.?

This insurance will pay out regular fixed benefits so you won’t find yourself without any income. The rate of return is projected to be around 4%, depending on the insurance provider. This plan works well with clients planning for their retirement and would like to set aside cash of $100,000 or more.

A fixed period, regular premium plan, with five to 15 years of accumulation period followed by receiving 10 to 30 years of fixed saving/retirement income.

People who are not able to commit a lump-sum premium may choose to save on a regular basis. Clients who prefer to start enjoying their benefits in the shortest time can have the pick of insurance products created with premium terms as short as five years. After a short accumulation period, there are income benefits of 10 to 30 years. For plans with shorter premium terms, and with larger premiums of, say $20,000, the projected returns are about 3.5% to 4.5%.

Create a disciplined regular savings plan, with or without a waiting period, to receive a lump sum payment at the end of the term.

Since young, we are rather used to set aside some money every month. This is how a traditional type of endowment saving works. There is a wide range of plan types offered by insurance companies. Options include saving 10 years and receiving a maturity sum at the end of the 15th year. Or you can opt for monthly savings for 25 years and receive a maturity. This is a common option for people to take up as their first plan.

What we need for mountain climbing is a combination of stamina, determination and endurance, and it is exactly the same with investment. In investment, we need endurance. Not all investments can let you see the result immediately, so you must constantly remind yourself to let your money continue to multiply into more money and not just let it stay sitting in the bank. We also need stamina, and this stamina is for withstanding the stress faced by the ups and downs of the investment returns. We all know that our focus is always on the higher level from where we are currently but before that, you must be able to withstand the fluctuating progress in between before getting to the best outcome.

There are many people who because they don’t know how to lay their hands, or have no stamina, endurance, as well as determination, end up missing their own golden investment period. With that said, linger no longer; call us today and let us make it happen for you!

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