Saving For Big Ticket Items - We Can Help!

By Joanne Poh, 26 August 2019 210

Image: iStock

Have you ever dreamt about going on a round-the-world trip, owing a business or buying that dream home? 

If you’re anything like me, there’s a good chance you’re intimidated by the amount of money you would have to save in order to start putting your dreams into action.

Saving up for big ticket purchases can seem unachievable, but it’s really just about taking small steps and planning ahead. You have the power to make your dreams come true and we have the products to help you achieve your financial masterpiece, whatever it might be! Here’s how.

Save with discipline, but flexibility too.

Gro Flex Saver and Gro Secure Saver are two savings plans that enable you to grow your money in order to achieve your savings goals.

Both products enable you to customise your premium term (how long you wish to actively keep putting money into the plan) and policy term (how long you wish to let your money grow before receiving your payouts). This makes them suitable for a variety of goals, both short-term and long-term. You also get to choose how much you wish to save, which makes these plans suitable for any budget.

With Gro Secure Saver, you can select a policy term between 10 and 25 years. The plan then offers a lump sum payout at the end of that period. If you want to cultivate the discipline to ensure you’re always on track to achieve your dreams, this is the perfect plan to help with that.

Gro Flex Saver, on the other hand, offers you the option of liquidity, which makes it ideal if you’re not sure when you might need some spare cash. You’ll receive guaranteed yearly cash benefits after the first two years, and you have the flexibility to use these cash benefits in any way you wish. 

Or if you don’t need the cash, you can choose to accumulate these cash benefits so that your wealth grows faster. 

So how exactly can Gro Flex Saver and Gro Secure Saver help you? We have here 3 popular goals which can be easily achieved using either of these savings plans.

Round-the-world trip

Image: iStock

Travelling the world for a year or more is something many people dream about, but few actually achieve. 

Depending on your comfort level and the destinations you choose, a ballpark figure for a year of travelling the world could be about $30,000 to $40,000, although many have done it on even less.

Saving up for a year of travel is not as hard as it looks. 

For instance, let’s say you’re 25 now and hope to celebrate your 40th or 50th birthday with a round-the-world trip, and you consistently put $650/month (or $21/day) into Gro Flex Saver for 10 years.

And after saving for 2 years, the plan will start paying out a yearly cash benefit of $2,925, which you can choose to accumulate in order to accelerate your money’s growth. By the age of 35, you’ll be able with withdraw that $30,000 needed for your big trip, while still enjoying an annual payout of $2,925, every year thereafter until you reach the age of 50. 

Not too shabby for just $21/day!

Leaving your Desk Job Behind

Image: Pexels

Chances are, your current office job isn’t exactly what you dreamt of doing as a child. You might have toyed with the idea of someday starting your own ice cream parlour or a cool dive bar. But setting up the business of your dreams will require start-up capital.

To open a small F&B business, you might need about $100,000. Let’s say you start saving from the age of 25 years and would ideally like to have your capital ready by the time you’re 40. 

Using Gro Secure Saver, you could achieve this by saving $7,100 per year for 10 years, and then leaving your premiums to grow for another 5 years. That works out to roughly $20/day for 10 years – not that daunting right? 

Becasue the money you put in will grow over time, you'll receive a payout that is higher than the sum of what you put in. This means you’ll be able to achieve your financial target in a shorter amount of time than if you had just saved the money in a bank account.

Redesigning your Dream Home

Image: Pexels

If you’ve caught yourself browsing Pinterest for interior design inspiration, you might have been dreaming of transforming your home into your ideal abode. Saving up for a big renovation isn’t that hard when you have a plan to help get you there.

Let’s say you’ve budgeted $120,000 with which you plan to hire an interior designer and contractor, and undertake renovations in order to transform your property into your dream home.

With Income’s Gro Flex Saver, you can select a premium term and a policy term according to how long you wish to save and when you wish to receive your payout in order to renovate your home.

Let’s say you opt for a premium term of 10 years and a policy term of 25 years. You would set aside $6,409 per year for 10 years, which works out to just $18 a day. At the end of the 25-year policy term, you receive a lump sum payout of $125,103 that you can use to dramatically renovate your home. The plan will help your money grow, so you’ll achieve your full reno budget in less time than if you relied purely on saving cash to achieve your goal. 

The Not-So-Impossible Dream

Raising the money to reach your goals is not hard when you have the right tools to keep you on track with saving and that help your money grow. Check out Income’s digital advisor, Sage, for help on figuring out what savings plans would best suit you, or reach out to our (human) advisors for more in-depth reviews of your finances and financial planning goals. 

The figures above are not guaranteed and are illustrated based on the assumption that the Life Participating Fund earns a long-term average return of 4.75% per annum in the future. Returns are illustrated based on estimated bonus rates that are not guaranteed. The actual benefit payable will vary according to the future performance of the Life Participating Fund.


Important Notes:
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income insurance advisor.

This advertisement has not been reviewed by the Monetary Authority of Singapore.