Mid-year review: Goal met of $200k cash at 28. $400k+ net worth and Astrea bond V

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Half a year gone.

I still have not gotten my keys to my new home and am still childless. Ok, TMI.

On financial front, I've been seeing a steady increase in my net worth. As at my last update in end 2018, my net worth was at $372k.

Half a year later, I've successfully crossed $200k cash savings (previously it dropped as I topped up my MA) and exceeded $400k in networth. I may be able to hit $450k by end year but will just need to carve out some money for renovation and home stuff.

Most gains came from employment. While I lament how sick I am of work, it is my main source of $. I've not added any stocks and can never not live off my portfolio for passive income. It is with salary crediting that I've received 1.85-2% interest on my DBS multiplier anyway.

I've been thinking if I'm making my money work hard enough. I occasionally browse the SGX hoping to see some stocks to purchase, but am not comfortable enough to make the move.

Since Jan till date, my transactions …

2.02% p.a. guaranteed returns. Would you sign this?

I'm contemplating on this endowment plan from FWD which gives 2.02% interest p.a. It guarantees return when the plan matures after 3 years.

This is the best "savings" plan I've seen. I'm thinking of putting $15k for this, which will mature to $15,927 after 3 years.
That is, if you don't terminate your policy early.


What are your thoughts to this offer?

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After thinking for half a day and seeing some comments, I've decided to go ahead with this offer.

Looking forward to my $927 gain in 3 years' time!

Would you be joining me? :)

Comments

  1. If you definitely don't need the S$15,000 for the next 3 years, you can consider it. Guaranteed 2.02%pa is slightly better than most high interest bank accounts. I just never like the part about the endowment plan whereby early withdrawal causes the surrender value to be less than the principal amount. It's punitive, unnecessary and suggests some level of commissions being charged.

    ReplyDelete
    Replies
    1. Hi, agree. Sadly, the bank accounts are not offering good interest rates. With remaining cash lying around, I figured it'll be better to park it here for a slightly higher returns. You can consider it too!

      Delete
  2. I took a look at https://www.fwd.com.sg/savings-and-investments/endowment-insurance/ and this looks promising!

    If you don't need the $15k now and can leave it for 3 years to earn this 2.02% guaranteed interest, it is close to risk free and offering a shorter maturity period than SG saving bonds.

    ReplyDelete
    Replies
    1. Thanks for your thoughts! Just signed up for it. I think I can afford to stash this $15k away, even for the next 3 years! :)

      Delete
  3. Perhaps a money market fund could be considered as well.

    ReplyDelete
  4. Wonder if this company is reliable. Since application is done online, how to seek redress if it turns up a fraud?

    ReplyDelete

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