In a rare case of “happy endings” with insurance companies, I sold my NTUC endowment policy that I bought during my NS days to a company that buys them. After calculating the quoted value that REPS Holdings gave me (using the spreadsheet from InvestmentMoats) by e-mail, versus the internal rate of return on the total value of premiums paid till date, it was at an “acceptable” value of -1.53%, which is around the cost of a fund manager’s fees for a unit trust.
Some of you might ask, why would I want to sell it? Well, silly me did not plan for this endowment properly as a 21 year old fortunate son back in 2004, and thus resulted in me taking up a cheap but long endowment plan (30 years!), and by the time I reach 51, the sum would be trivial compared to what I could be …Read the full article →