Should you delay your CPF Life payout

[dork32]

What makes you think that bequest given out in front and is worth less?

I no good in maths to calculate xirr and insert a column for it. Can you try?

bequest is given out at the back. that is why it is no good

eg
i prefer the payout to be

year 1 1000
year 2 100
year 3 100
year 4 100

than

year 1 100
year 2 100
year 3 100
year 4 1000

both total payout is 1300. but xirr for the first is higher than the second.

 

[dork32]

What makes you think that bequest given out in front and is worth less?

I no good in maths to calculate xirr and insert a column for it. Can you try?

you need to insert 2 columns for xirr, one for the date and one for the xirr formula

date is
1 jan 2019
1 feb 2019
1 mar 2019.....

xirr is =XIRR(B1:B6,A1:A6)

 

[dork32]

What makes you think that bequest given out in front and is worth less?

I no good in maths to calculate xirr and insert a column for it. Can you try?

can you share some google spreadsheet or something like dat. i cannot tahan key in all the numbers.

i oso not sure if google spreadsheet can calculate xirr. i very old fashion. still using ms excel

 

[henrylbh]

bequest is worth less than since it is given out in front.

What makes you think that bequest given out in front and is worth less?

bequest is given out at the back. that is why it is no good

I am confused

Bequest is the unused premium for SP and EP with no interest. For BP, it mainly the balance in the RA which earns interest to the month preceding death (plus unused premiums?).

 

[henrylbh]

can you share some google spreadsheet or something like dat. i cannot tahan key in all the numbers.

i oso not sure if google spreadsheet can calculate xirr. i very old fashion. still using ms excel

I don't know google spread or how to attach editable worksheet

 

[dork32]

bequest is given out at the back. that is why it is no good

eg
i prefer the payout to be

year 1 1000
year 2 100
year 3 100
year 4 100

than

year 1 100
year 2 100
year 3 100
year 4 1000

both total payout is 1300. but xirr for the first is higher than the second.

lets say i pay 1100 for both the plan,

xirr for the first plan is 12.54%
xirr for the second plan is 4.86%

 

[dork32]

I am confused

Bequest is the unused premium for SP and EP with no interest. For BP, it mainly the balance in the RA which earns interest to the month preceding death (plus unused premiums?).

there is nothing wrong with everything that you have posted.

your above statement is correct.

it is that you are using cp+b as an evaluation which plan is better. you cannot do this.

 

[jyantzen]

Very easy to convert from existing excel, if you have google account

Go to https://drive.google.com/

Click on New - upload excel file.
Once uploaded, open "with Google Sheet".

Now you can view/edit/share with your smartphone.

 

[dork32]

Very easy to convert from existing excel, if you have google account

Go to https://drive.google.com/

Click on New - upload excel file.
Once uploaded, open "with Google Sheet".

Now you can view/edit/share with your smartphone.

great job. but can you help me with this?

can you change the first entry (line 2) to
date = 1 dec 2029
amount = 266000 (or whatever amount you have at that date)

with this change, you can see you xirr standard/escalating plummetting to 0 for the first 10 years.

 

[dork32]

Very easy to convert from existing excel, if you have google account

Go to https://drive.google.com/

Click on New - upload excel file.
Once uploaded, open "with Google Sheet".

Now you can view/edit/share with your smartphone.

the other problem is that now everyone knows your name.

 

[SKenny]

all of us are going to be elderly destitute. old uncle kenny is going to be the first. hahaha.

and if we are not going to be elderly destitute, it makes no difference.

I think he may be referring to me. I am going to be old and a destitute!!!! Sob sob sob.

Maybe that is why he insisted that I need longevity insurance?

 

[tmkedmw]

For some, ERS is well less than 10% of their net worth. So don't really care too much on optimising amongst the various flavors of cpf life.

 

[henrylbh]

Wait for someone to compile the figures if u delay payout to 70, to see what message is being conveyed

Give your observations.

 

[The_Davis]

why cannot choose basic plan?

 

[ELKYme]

Ervino is saying that it is UNWISE to choose payouts at 70 with escalating plan lah.

why cannot choose basic plan?

 

[dork32]

I think he may be referring to me. I am going to be old and a destitute!!!! Sob sob sob.

Maybe that is why he insisted that I need longevity insurance?

not only you, i am going to be a bankrupt as well at old age. maybe we can hug each other and cry then

 

[dork32]

Xyou should compute the XIRR starting from age 65 (like what dork said).

you know why dork say you must compute xirr from 65?

if you do that, you will realize that the xirr for standard and escalating is a perfect 0.

dork also say xirr is the compound interest rate
dork also say interest for escalating and standard is 0
bbc say no.
numbers and formulae dont lie.
dork is correct, bbc is talking rubbish

 

[dork32]

I think you mean "Bequest" given out later instead?
This is because of Time Value of Money.
More money paid out earlier is more "valuable" and hence higher XIRR than later.

XIRR may be a better gauge of what "return" you are getting from CPF Life (which is a factor of what age you can live to), and you should compute the XIRR starting from age 65 (like what dork said).

you are right. this is what i meant

 

[dork32]

I thought almost everyone already know henrylbh?

your name will be on the google spreadsheet.

 

[dork32]

Ervino is saying that it is UNWISE to choose payouts at 70 with escalating plan lah.

i will not say it is unwise.

there are pros and cons for all. you just need to know everything before jumping in.