Let UAP take you to the World Cup
As the logistics and numbers of the 2010 World Cup become clearer, and after my brief trip to South Africam it’s time to re-evaluate financial plans for the Cup and specifically take a fresh look at UAP who are the only company to so far come up with a targeted finance product.
I had looked at the UAP Insurance plan earlier and dismissed/rejected it on the basis of its marginal return. E.g. investing 5,000 shillings per month over next 42 months would give about 233,000 shillings at an assured internal rate of return of about 6%. However, of that, my own savings would be about 210,000 shillings (90%) while UAP would have chipped in only about 10%.
However it is important to note, and they state this in the 2010 product, that the package is a savings plan toward the World Cup, and not an investment plan and it is therefore wrong to compare the plan to an investment fund or unit trust.
The main benefits of saving with UAP come not from the investment return, but from their in-built package which includes discounted air tickets, discounted accommodation and a chance to (save &) travel with other Kenyans fans who could also be your friends. UAP will also bid for some of the limited number of tickets that will be made available here (from the quota allocated to Kenya) thus providing some assurance that the match tickets can be obtained beforehand at FIFA-recommended prices and not from scalpers at the last minute.
During my week in South Africa, in which the conference paid for hotel, air travel and some meals I still used about shillings 6,000 on upkeep, some meals, gifts, beers, newspapers etc. Accomodation at the hotel (bed and breakfast) - next to Jo'Burg airport- was about 6,000 shillings and a round trip air ticket would probabbly have costs about 40,000 shillings. Food in SA was reasonable at about 300 per meal, but there were some unexpected bills like currency exchange which sometimes cost 300 or 600 shillings each.
All this makes UAP package look pretty attractive for a similar trip to SA four years from now. Or I could stay home and watch the games on DSTV or some local TV channel, but I’d rather be there in person.
7 comments:
Did you go their News Cafe... Nice place... good food at reasonable prices & free WiFi for 1 hour a day!
I see the logic coz you can get 6% and much more... so the overall discount is better PLUS actual match tix... no point in going to SA & watching it on TV!
critical analysis. am curious though do they have some exit clause, lets say u've been contributing all this while then you cannot contribute anymore, maybe jobloss, are u able to "divert" the savings to another account, withdraw etc in essence converting it to a savings-cum scheme? all in all, i think its a good package, sounds more reliable than going it solo
Coldtusker: Wasn't aware of the their news cafe. Is that in Upper Hill? Pakage looks much more attractive now than a few months ago
Marazzmatazz: Exit clauses are tough. Can't withdraw any cash till 24 months before policy matures (circa 2008) and if you miss paying some instalments - but for not more than 12 consecutive months - they will reinstate your benefits in full when you pay up all the missing premiums.
Sorry... I meant the News Cafe in SA (they are a chain)...
I wish they had that in Kenya! They are livelier than the Kenya coffee shops but its the free 1 hour Wi-Fi I liked!
Whats in the package, any tourist related travel
Shiroh: Games will be played in 13 stadiums in 11 cities e.g. Johannesburg, Durban, Cape town, Port Elizabeth, Pretoria etc. - I guess you can travel around from wherever the games you choose are played
Toiyoi: My rough guide - decent meal (Lunch/Dinner) R60, while my fast food meals were all R30, (ii) airport hotel was R500 b&b (iii) didn't take taxi but was told it would be about R100 - R200
falconsgladiator: Will try and find out what the NSE and AIG indexes are. Last I heard was that AIG dropped Uchumi, Unga and Kakuzi tomake way for KenGen, Mumias and ARM
FG -The NSE index is a mystery to most. The NSE never answered my request for the methodology! I believe there are glaring errors!
I don't use the NSE index coz its price (not weighted) thus a split e.g. EABL's 5:1 actually REDUCED its "importance" within the index!
The NSE website is pathetically outdated!
Brooke Bond changed its name to Unilever Tea.
George Williamson to Williamson Tea.
KNM - It was merged with Unga so all KNM shares were converted to Unga shares.
E.A. Packaging delisted volntarily.
There was talk of including ARM, ScanGroup & Mumias into the NSE index to replace Uchumi among others.
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