Is saving money in bank considered an investment? - Page 2 - Singapore's Online Community

**Leocravensky** · 08-11-2007, 10:23 AM

	Quote:			Originally Posted by djchris
	Den I would wonder why are you promoting ILPs since you believe in investing yourself?

I'm not exactly promoting, but the thingis that Savings ILP are more popular then endowment policies nowdays. I've seal a few ILP cases recently, i've presented both case to my client but once they hear about ILP they do not want endowment policy.

I hope I can offer them unit trust but Great Eastern is still trying to apply for their agents to sell unit trusts from the allied fund managers.

And not every client will really bother about studying the 200-300kinds of unit trusts in the market.

And our company have some performing funds that the clients like and its my job to tell them what we have. Eventually its their call to engage the financial product a not.

Like you said ILP, Endowment, Unit Trust are all different investment vehicles, its up to each individual choice which investment vehicle they wanna engage.

**djchris** · 08-11-2007, 10:31 AM

Sigh~ Class 95..only listen to the good stuff...

**MukGu** · 08-11-2007, 11:11 AM

mm.. you might want to open a fixed deposit account (the one whereby you put a sum of money in an account for a period and after that period they return you the money + interest).. which means that the interest is more if you put the money in for a longer time...

**mysterious** · 09-11-2007, 02:40 PM

i dont think is considered investment bah... just saving. i agree with whitecocorynn. i keep in back coz i scared later ppl steal. and also my hand a bit itchy coz whenever i see money in my wallet then i wanna spend it. hahas.

**sweeheng** · 09-11-2007, 05:07 PM

	Quote:			Originally Posted by Leocravensky
	Endowment plans are kinda thingy of the pass, nowadays people are more interested in ILP from insurance companies and select a stable fund for stable returns. Some people also invest directly into a particular stable unit trust.

Isn't there IPL endowment but are they willing to take the risk? If they are not risk adverse, then they can buy a lot of things beside insurances.

**sweeheng** · 09-11-2007, 05:13 PM

	Quote:			Originally Posted by djchris
	I'm rather disappointed that you said that endowent is a thing of the past because it's not! endowment and ILPs are two different types of plans. just becoz insurance agents try to push ILPs, prob due to higher comm. doesn't mean endowment should be forgotten. I kinda hate ILPs now coz the cost of insurance and investment is sky high!\ To me, ILPs just equates to higher cost of investment with lesser choice of funds. And for the record, most people (at least those financially knowledgable ones) don't like ILP. I certainly hope this thread doesn't turn into some stupid ILP thread.

IPL is a flexible insurance plans. You get protection, saving and investment all bundled into one package and you get to choose how much you want to put into protection, saving and investment.

IPL plans are also more transparent because all the charges are listed out nicely for you to see but in most cases, not much people cares about those things.

IPL are for people that are new to investing in unit trust or those with limited capital but still want to make money from investment.

**sweeheng** · 09-11-2007, 05:18 PM

	Quote:			Originally Posted by Leocravensky
	Theres a lot of different ILPs in the market, yes theres 1 that provides High coverage and the cost is high, theres also 1 that provides extremely low coverage which is meant for investment returns. The commission is lower then endowment plans for your information. Example: Great Eastern has an savings investment plan that aims to break even before yr 2-3 and it is called Greatlink Dynamic Saver and the coverage is extremely low. (http://www.lifeisgreat.com.sg/en/jsp...namicsaver.pdf) Yes we do have ILPs that provides high coverage called Greatlink SupremeLife that aims to break even before year 10 and provides high coverage. Please dun shoot me when u do not know much about our companies product. Thank you very much. The only difference between Endowment and this Savings ILP is that, endowment is extremely low risk. The company's life fund try to aim to get at least 5.25% returns over 10 years by investing a major portion in bonds and securities and when you minus the charges and stuff we're looking around 3-4% returns. Greatlink Dynamic Saver actually allows you a high chance to see more then 6% returns over 10 yrs. This plan commision is lower then endowment plans... ok? I'm so pissed when you say that I go for high commision, cause i actually tell my client not to buy anything when they have enough coverage.....pfft I myself dun really like the idea of ILP for savings either, I'm just trying to say endowment polices are less favourable if compared to plans like Greatlink Dynamic Saver, but eventually directly investing into unit trust will be the best option for investment returns. Monkeybusiness : I believe you got the ILP with high coverage, the policy was meant to be the foundation of your insurance yet provide you some investment returns. If you have enough coverage you might want to just do top ups or buy unit trusts.

From what I know, the risk difference is great when you compare unit trusts with endowment plans. Not everyone is willing to take risk.

**sweeheng** · 09-11-2007, 05:23 PM

	Quote:			Originally Posted by djchris
	I already mentioned, if you want to talk about ILP, start a new thread. And I did not say that you push ILP to get high comm. READ my post again and again to get that straight. I am talking about INVESTMENT costs. Not INSURANCE coverage. READ again. Are you telling me that GE does not charge fees for investing for clients? If no, then there are costs. And comparing DIY purchase of UT versus ILP, ILP cost is HIGH. ALL of them are. I have loads of insurance agents say they want to sell me insurance. Then tell me how good their managers are, and how they will look after my portfolio. Den my question will be, why should I go through those agents since their managers are the knowledgable ones? I'm sure most insurance agents start out this way. They know ZERO about investments, yet they want to sell ILPs. Of course, I'm sure there are those who know the economy and know what they are recommending. So how many are there? I haven't even met a single one. Are you one of them?

Hey bro, when you buy ILP from insurance agents, you are actually buying protections from them and they helps you to link up to their experienced fund managers. If insurance agents got to take care of funds for their clients, I guess the numbers of insurance agents will drop drastically because it not easy to be a fund manager let alone a good one.

One differences between ILP and unit trusts is that ILP offers bid to bid fund switching which allows investors to save on the spread.

**sweeheng** · 09-11-2007, 05:25 PM

	Quote:			Originally Posted by WhiteCocoRynn
	if u survive longer in tis world.. maybe can define as 'investment'... but... i kip money in da bank cuz i scare got theif...

Keep too little in the bank and you are risking your investment profits.
Keep too much and you are wasting your money.

**sweeheng** · 09-11-2007, 05:35 PM

	Quote:			Originally Posted by MukGu
	mm.. you might want to open a fixed deposit account (the one whereby you put a sum of money in an account for a period and after that period they return you the money + interest).. which means that the interest is more if you put the money in for a longer time...

That's a very good idea. Imagine you put 10 000 into FD account and should you die, the bank will pay you 12 500 and if you manage to survive after say 3 year period. They pay you 3%pa which mean you earn about 1 000 for that 3 years. What happens if that person had cancer during this 3 years? That mean he will have to forfeit the interest and withdraw the money to pay his medical bills.

Frankly speaking, this is a very good idea to put money into FD if you are still young and healthy and without any commitment. If you are prone to falling sick or had a high risk job, don't bother putting money into FD.

C'mon, there got to be a better ROI than this FD thing. Make sure you don't have to touch those invested money when you are in an emergency.

**sweeheng** · 09-11-2007, 05:38 PM

	Quote:			Originally Posted by mysterious
	i dont think is considered investment bah... just saving. i agree with whitecocorynn. i keep in back coz i scared later ppl steal. and also my hand a bit itchy coz whenever i see money in my wallet then i wanna spend it. hahas.

Actually saving money is like fighting with your emotion. The more money you had in the bank, the more luxuries you tend to buy and the more yaya you are.

When you are penniless, you won't even think of walking into a Gucci shop but when you got the money, you tends to wander unconsciously into it and starts looking at leather wallets and bags.

**janelle_** · 09-11-2007, 10:52 PM

Saving in banks are good. It's not really an investment esp for people like me. Too little to enjoy luxuries... CHANEL!!:rock: lolz

janelle_'s law: save=invest=more $$ lolz

And yes! It is so so important to save! ( I am not refering to those savings insurance that u can only get after 20-25years. ) If not, use eggs to invest??

**sweeheng** · 10-11-2007, 08:30 AM

	Quote:			Originally Posted by janelle_
	Saving in banks are good. It's not really an investment esp for people like me. Too little to enjoy luxuries... CHANEL!!:rock: lolz janelle_'s law: save=invest=more $$ lolz And yes! It is so so important to save! ( I am not refering to those savings insurance that u can only get after 20-25years. ) If not, use eggs to invest??

Saving in the bank for too long will only make your Chanel more and more expensive because money shrink every year. If your money can't grow as fast as it shrink, your money will just get smaller and smaller.

**janelle_** · 10-11-2007, 10:52 AM

	Quote:			Originally Posted by sweeheng
	Keep too little in the bank and you are risking your investment profits. Keep too much and you are wasting your money.

Hey sweeheng,

I like this statement of yours!

	Quote:			Originally Posted by sweeheng
	Saving in the bank for too long will only make your Chanel more and more expensive because money shrink every year. If your money can't grow as fast as it shrink, your money will just get smaller and smaller.

I dont think u get what I mean...Everyone who wants to invest started out by their savings. If u got no savings in the first place, how are u suppose to grow your money?

Why? I am a real example.. I used to spend all the money I earned. Hmm.. a few 'ks'. I never had my own savings in the bank. End up... Always no money. Esp the last week of the month..lolz.. BUT NOT NOW DEFINITELY!! I've change for the better. lolz.

So guys, start to save before u can invest! Jia you!

**djchris** · 10-11-2007, 12:31 PM

	Quote:			Originally Posted by janelle_
	I dont think u get what I mean...Everyone who wants to invest started out by their savings. If u got no savings in the first place, how are u suppose to grow your money? Why? I am a real example.. I used to spend all the money I earned. Hmm.. a few 'ks'. I never had my own savings in the bank. End up... Always no money. Esp the last week of the month..lolz.. BUT NOT NOW DEFINITELY!! I've change for the better. lolz. So guys, start to save before u can invest! Jia you!

I tend to agree. Before wealth accumulation (investing), one should have already managed wealth protection (insurance and savings).

As a rule of the thumb, one should have savings of 6 months living expenses before starting to invest.

**Wize** · 10-11-2007, 02:10 PM

Actually, can also use money in CPF account to invest if not enough savings in the bank.