As part of my active crowd-sourcing effort to find out the actual returns of matured investment policy (you can take a look at the results in this post), a reader kindly contributed her matured policy bought 10 years ago.
I realize that insurance companies seldom archive the data on their old plans.
The Aviva MoneySmart looks like an ILP, until you realize someone in Hardwarezone was asking an anxious question whether his mother was duped into signing on to some insurance scam.
Well this is not a scam, however the returns might not be like what it was projected to be.
The details:
- Name: AVIVA MoneySmart (RP) – Ladies
- Start Year: 2008
- End Year: 2018
- Duration: 10 Years
- Premium Paid: $100.85 monthly
- End Value: $13,992.54
- The returns you get: 2.62%
- Does the plan have any cash back or return: No cash back
The Internal Rate of Return (XIRR) of This Plan
In investments, we usually compute the internal rate of return. That is how I was able to derive a comparison between:
- REITS vs insurance plans
- Stock A’s performance versus Bond B’s performance
- Insurance plans vs other insurance plans with different amounts, different maturity, different nuances
- Artwork and Stocks
Basically, you can imagine that the IRR is the “annual interest” that you are getting from this Aviva Insurance Savings Plan “bank” if you keep putting money into it.
The following shows the XIRR of this insurance savings plan:
As a summary, you can take a look at MoneySmart’s performance versus the other insurance savings policy:
If you, or your family, or your relatives have a matured insurance savings plan, and would like to contribute to the data, do let me know.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
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BC
Friday 27th of April 2018
Dear Kyith
It will be interesting to compare this actual value against the original projection, if still available.
Kyith
Saturday 28th of April 2018
Hi BC unfortunately most would not have kept that.