Retirement plans

[greentiger]

The most scary part in retirement planning is medical expenditure that is difficult to gauge and could even wipe a big portion of retirement assets for draw down. That uncertainty could be cushioned with insurance. But premium keeps spiking that it may become unbearably high that one may have to give at an old age or downgrade to an unbearable level. I can't go ward with no aircon like C ward

Why cannot stay in C class?

The blood tests are the same. The xrays are the same.

Why pay more for same test?

At home can sleep without aircond right?

It is just a psychological barrier.

Can save a lot of money.

Only lose face a bit.

 

[BBCWatcher]

in theory can work, but how many ppl can really pay off HDB by cash?

Not everyone, of course, but I'm routinely surprised how many people can.

 

[Sprinklesofrainbow]

What’s the difference then from doing your own DCA and cutting out the middleman? Correct me if I’m wrong but there are huge commissions to be paid to the insurer and agent with each sign up of a new policy. Wouldn’t it be more beneficial if the person can save on these substantial costs?

Not everyone has the knowledge and time to pick equities/bonds. How much to sell and when to sell becomes a problem to them.
Not everything can be done without middlemen, if you’re going to pinpoint on Property Agent, car agent etc feeling sour about commissions

 

[BBCWatcher]

Not everyone has the knowledge and time to pick equities/bonds.

OK....

How much to sell and when to sell becomes a problem to them.

When to sell shouldn't be a problem: that's for retirement. How much is a little more interesting perhaps.

Not everything can be done without middlemen, if you’re going to pinpoint on Property Agent, car agent etc feeling sour about commissions

How does an ILP help with the alleged problems you're describing?

 

[nautilus]

Not everyone has the knowledge and time to pick equities/bonds. How much to sell and when to sell becomes a problem to them.
Not everything can be done without middlemen, if you’re going to pinpoint on Property Agent, car agent etc feeling sour about commissions

That's precisely why people without any investment knowledge purchase an ILP / endowment / annuity in the first place. The underlying funds are supposed to be managed and rebalanced according to DCA rules if they are sensible funds. Why purchase multiples of the same thing if the end goal is the same?

How about this, can you list down in detail the commissions and annual management fees per policy, for 10 policies (one per year), assuming an individual does "policy DCA" according to your advise? And at the end of a 30-year timeline, what is the total financial charge for all 10 policies that goes into commissions and fees?

The point is not about feeling sour about earning commissions, but when an agent comes into this forum and tries to make insensible recommendations that goes against sound financial advise, then equally others have the right to advise against him. I'm not sure if you are even aware that the members who frequent this forum are pretty savvy financially and with many of them providing very good sensible financial advise.

I hope you realise that it's a very different crowd that you're working with here and be prepared to defend your position if you believe in what you recommend to others.

 

[Sprinklesofrainbow]

That's precisely why people without any investment knowledge purchase an ILP / endowment / annuity in the first place. The underlying funds are supposed to be managed and rebalanced according to DCA rules if they are sensible funds. Why purchase multiples of the same thing if the end goal is the same?

How about this, can you list down in detail the commissions and annual management fees per policy, for 10 policies (one per year), assuming an individual does "policy DCA" according to your advise? And at the end of a 30-year timeline, what is the total financial charge for all 10 policies that goes into commissions and fees?

The point is not about feeling sour about earning commissions, but when an agent comes into this forum and tries to make insensible recommendations that goes against sound financial advise, then equally others have the right to advise against him. I'm not sure if you are even aware that the members who frequent this forum are pretty savvy financially and with many of them providing very good sensible financial advise.

I hope you realise that it's a very different crowd that you're working with here and be prepared to defend your position if you believe in what you recommend to others.

Even people with investment knowledge still make purchase of plans while you’re condemning it. Whether it’s single or Multiple purchases, it’s catered to their needs.
End of the day, you’re still digging at the commission and fees

 

[nautilus]

Even people with investment knowledge still make purchase of plans while you’re condemning it. Whether it’s single or Multiple purchases, it’s catered to their needs.
End of the day, you’re still digging at the commission and fees

I think you still don’t get the point. Policy DCA-ing is just really bad advise. Commissions and fees are just part of it but you’re missing the main point.

Why not back up your advise with numbers if you’re so confident that that’s the way to go?

 

[Sprinklesofrainbow]

I think you still don’t get the point. Policy DCA-ing is just really bad advise. Commissions and fees are just part of it but you’re missing the main point.

Why not back up your advise with numbers if you’re so confident that that’s the way to go?

If it’s such a bad advice, why would these products even exist for people to make purchases which helps them to reach financial goals?
The figures are there for a purpose.

 

[Goesaround]

If it’s such a bad advice, why would these products even exist for people to make purchases which helps them to reach financial goals?
The figures are there for a purpose.

U still dont get it? Ilp is just a wrapper. We are all asking. Why ilp when we can go for robo adviser, or thru broker where fees are much lower which also help us to pick ? And the funds are much more wider range than ilp. Plus its way more flexibility than ilp.

 

[nautilus]

If it’s such a bad advice, why would these products even exist for people to make purchases which helps them to reach financial goals?
The figures are there for a purpose.

If you read my post properly, I said policy DCA-ing is just bad advise. I did not mention that policies are bad advise. If people without financial knowledge are looking to purchase an instrument, wouldn't just ONE policy suffice? What you are advocating are (DCA-ing) multiple policies which doesn't make sense!

 

[FreshFunds]

Why not? If you dont mind returns lower than investment. I believe that is also for risk diversification. Since its gonna guaranteed your capital and returns higher than FD.

Yup agree there’s diversification in terms of capital preservation, but I would say my risk level is moderate so I don’t mind taking a higher risk to reward ratio.

If I were to compound 1k/mth (12k/year) for next 30 years @ 3% returns I would get about 588k (lower risk, guaranteed capital) OR

Focus on averaging my stocks every 3 or 4 months and keep increasing my dividends/mth with dividend yield of about 5% (blue chips/reits).

Dilemma between passive income (main financial objective) vs worry-free guaranteed capital when retired.

 

[boredboiboi]

Yup agree there’s diversification in terms of capital preservation, but I would say my risk level is moderate so I don’t mind taking a higher risk to reward ratio.

If I were to compound 1k/mth (12k/year) for next 30 years @ 3% returns I would get about 588k (lower risk, guaranteed capital) OR

Focus on averaging my stocks every 3 or 4 months and keep increasing my dividends/mth with dividend yield of about 5% (blue chips/reits).

Dilemma between passive income (main financial objective) vs worry-free guaranteed capital when retired.

Why choose 1 when u can go for both? The safe instrument is to diversify your risk. Many have done with both options together, u nv know when the investment u have will stop paying dividend correct? Although its not common. Just like i heard some of my clients say some of their investment property is empty now without rental.

 

[Mysterio2020]

I met with many Financial Planners who are just for their commission. They claim they are independant financial consultant and not affiliated to any of the insurance/financial companies, thus, recomending only the best plan which tailored to my needs. In the end, picha lobang that they are from XXX financial/insurance company. I need one who are able to analyse my need and recommend suitable retirement plan based on my need and not based on how much commission they can generate out of my plan.

 

[cscs3]

I met with many Financial Planners who are just for their commission. They claim they are independant financial consultant and not affiliated to any of the insurance/financial companies, thus, recomending only the best plan which tailored to my needs. In the end, picha lobang that they are from XXX financial/insurance company. I need one who are able to analyse my need and recommend suitable retirement plan based on my need and not based on how much commission they can generate out of my plan.

Planners is just a nicer name vs salesman.
Just like those housing agents. Agents=salesman.

They takes commission for product sold. So if they don't provide a services or against rule. Just report them.

Independent means they are probably freelance, who ever give them best commission means that is the best plan for you!

 

[Mr. Wood]

i feel those who are cheated by agents who sell high comms plan.
if anyone want real independent views, consider them:
https://www.sonylifefa.com/
consultation is free and they dun receive comms.

*i not affiliated or receiving any referral fees*

 

[boredboiboi]

I met with many Financial Planners who are just for their commission. They claim they are independant financial consultant and not affiliated to any of the insurance/financial companies, thus, recomending only the best plan which tailored to my needs. In the end, picha lobang that they are from XXX financial/insurance company. I need one who are able to analyse my need and recommend suitable retirement plan based on my need and not based on how much commission they can generate out of my plan.

I might be able to assist on this.

 

[FreshFunds]

Why choose 1 when u can go for both? The safe instrument is to diversify your risk. Many have done with both options together, u nv know when the investment u have will stop paying dividend correct? Although its not common. Just like i heard some of my clients say some of their investment property is empty now without rental.

Limited capital/savings power.. Can do both but will have to trade off a part of the other. Guess it depends on how much I wanna diversify.

 

[boredboiboi]

Limited capital/savings power.. Can do both but will have to trade off a part of the other. Guess it depends on how much I wanna diversify.

Yup. Its has to be planned accordingly to your budget. As u know saving plan are meant for the long term.

 

[amazingneil]

I met with many Financial Planners who are just for their commission. They claim they are independant financial consultant and not affiliated to any of the insurance/financial companies, thus, recomending only the best plan which tailored to my needs. In the end, picha lobang that they are from XXX financial/insurance company. I need one who are able to analyse my need and recommend suitable retirement plan based on my need and not based on how much commission they can generate out of my plan.

maybe before meeting them u ownself do research of potential plans that u intereted, then u can enquire more. if meet and personality like damn pushy then dw, try changing advisor. company so big got so many advisors, some confirm damn pushy and strive for commission, but i'm sure got some still care about clients' and their needs and preference. now w technology ppl share blogs and articles and even here forums can help aid and give you reference can check them out uh like moneysmart. if not can try PolicyPal, heard they like an Insurance brooker, get information from you then they help connect you to an advisor that suit what u say. dk much tho i only read the information they share on blogs

https://blog.moneysmart.sg/budgeting/retirement-planning-singapore/
https://www.policypal.com/blog/insurance/best-retirement-plans-in-singapore/

 

[ALZW94]

Hi all,

just wanna ask, for endowment plans once the term is up, would the money be automatically credited to our bank account? or do we have to approach them?