of course this product cannot be compared to a direct equity investment, which can give a potential much higher return (but with greater volatility and risk).

It boils down to the individual as to the kind of investments he can manage without taking on excessive risk, and then do the asset allocation accordingly.

Timing the market is near to impossible and trying to do so might result in always buying high and selling low.

The returns from an investment funded using SRS will go back into SRS.

Most of the time, a product that locks in you for a longer period of time should give you a higher yield compared to one that is shorter.

If someone is due to retire in 2016 and buys a 5 year product now, he or she will have the issue of finding something (with a 2 year investment horizon) to invest in when 2014 comes along. (Assuming he or she intends to withdraw everything in 2014).

If he intends to do a phrased withdrawal over 10 years (as most people would), then that is less of an issue and he can plan to have different products maturing at different time horizons.

Something like constructing a bond ladder using different investment products.

Sorry, I missed out your comment completely.

Hope it didn’t affect your decision to get the product if it was suitable for you.

As S’pore is expected to be technically out of recession and the recent decent performance of market generally, would this product still be a good investment for $50K for 5 years. (Yearly cash dividends of 2.5% of the single premium will be paid out at the end of each year.) Previously TM Asia has launched a similar product in May 09 but the duration is only for 4 years. Would the extra year make any difference to the investor? If the person uses SRS to invest in this product, could he still receive the yearly cash dividends or it will be automatically channel to his SRS account? The investment is for 5 years, so it would not matter to him who is due for retirement in 2016, right? Anyway, he is not able to withdraw any amt from his SRS account until he is retired. Appreciate to receive your advice early. Thank you.

Warm regards.

You can contact me and I can help you to sign up.

http://www.lioninvestor.com/contact/

Application for this product will close once S$20 million subscription has been received.

Let me check out the date for you.

This is not a deposit and as such does not fall under the Singapore Deposit Insurance Act.

However, for insurance products – the Insurance Act provides for the setting up of a Policy Owner’s Protection Fund (”PPF”) to compensate policy owners. Under the current provisions, the PPF will cover up to 90% of an insurer’s liability on any life policy.

AIG is really the exception rather than the norm as it was bought down single-handedly by its unit which writes CDS.

In general, insurance companies in Singapore operate under a very strict regulation regime. They are required to maintain a capital adequacy ratio of at least 120 per cent, and all the insurance companies in Singapore far exceed this adequacy ratio. Many go to 200 per cent and above.

Don’t think so. This is a fairly straight forward product with no bells and whistles.

Furthermore, it is non-par so the returns are fixed and not dependent on the performance of the participating (pooled) funds.