Life cover policy vs Money Market Fund.

vmumo

Rule Number One of Insurance: It's not an INVESTMENT. It's just protection.

Lilian

@derrick4 haha nice read, as i fanya my hesabu i completely agree with @vmumo, the wisest thing i have heard all day.

EvansBoseman

very clever

EvansBoseman

I like the money market Idea

EvansBoseman

hi derick i like your idea would you do me a favor calculating it with old mutual

EvansBoseman

also do the math of sanlum for just 6months and old mutual as well

gnguyo

derrick4 Total Amount would be around 736K. Considering the fees.

sandrakimokoti

derrick4 More on the cons of insurance compared to other investments here: http://www.rookie-manager.com/investing/education-insurance/

derrick4

sandrakimokoti thank you for the great read.

lexndegwa

Life cover policy is mainly for individual protection,not much money is made in it.Money market is where the real money is,If you run yourself like a business then insuring yourself is prudent.Otherwise meaningful returns are made in market funds

isam45

Sanlaam has a crazy rate of a deal there is for both short term and longterm. With the percentage calculated the returns in the 1st withdrawal for unit trusts is 11.0640(no of days) / 100= 4.24 this gives you an exact yield expected then multiply by the cash you have i.e the minimum 2500 4.424= 11060ksh, so by a period of a month and 10 days 2,500 gives you 11k. Good deal

gnguyo

isam45 Your math is wrong. But the best way to know is to experiment. Put KES 2,500 this month and wait for next month.

lexndegwa

I agree with Gnguyo,Thats the approach i have taken with the funds on this investment platform,this is all a grand experiment and we are all learning how to work about it,moderate risk is advised.