The life insurance companies are doing a roaring business because their product offer a better return, compared to the low interest rate paid on fixed deposits. Consumers may not realize that they are locking up their savings for a long period, sometimes up to 30 years, for a return of 2% per annum. This will not cover inflation.
Consumers should invest in a low cost index fund, such as the STI ETF, and earn a much higher return, that is likely to be much higher than inflation. The difference over a 30 year period can be about 40%. Do you prefer to collect $500,000 or $300,000?
Consumers should invest in a low cost index fund, such as the STI ETF, and earn a much higher return, that is likely to be much higher than inflation. The difference over a 30 year period can be about 40%. Do you prefer to collect $500,000 or $300,000?
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