looking for feedback on retirement plans

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foozgarden

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Bigoya said:
Aviva's MyRetirementChoice definitely have the highest G and NG yields for cases I've came across. There could be exceptions hence a comparison based on your ideal configuration is necessary.

Based on $500/mth guaranteed payout with 10yrs premium term, payout at age 55 for 15 yrs, annual premium is about $5.5k


Based on $500/mth guaranteed payout with 10yrs premium term, payout at age 55 for 35 yrs, annual premium is about $9.8k
Click to expand...

based on my excel calcs.
the 15 yr payout has 2.33% XIRR
the 35 yr payout has 2.6% XIRR

i did get hold of an ML-RR BI.
500/m guaranteed with 10 yr premium term, payout @55 for 25 yrs, annual premium is $4.6k
i got 2.57% XIRR

base on the above does it conclusively mean that ML-RR is slightly better?
not sure if i did my sums accurately and comparing apples to apples.
 
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Bigoya

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foozgarden said:
based on my excel calcs.
the 15 yr payout has 2.33% XIRR
the 35 yr payout has 2.6% XIRR

i did get hold of an ML-RR BI.
500/m guaranteed with 10 yr premium term, payout @55 for 25 yrs, annual premium is $4.6k
i got 2.57% XIRR

base on the above does it conclusively mean that ML-RR is slightly better?
not sure if i did my sums accurately and comparing apples to apples.
Click to expand...

vM984gK.png


Where did you get "annual premium is $4.6k" from?
Did I miss something?
 
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Bigoya

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foozgarden said:
based on my excel calcs.
the 15 yr payout has 2.33% XIRR
the 35 yr payout has 2.6% XIRR

i did get hold of an ML-RR BI.
500/m guaranteed with 10 yr premium term, payout @55 for 25 yrs, annual premium is $4.6k
i got 2.57% XIRR

base on the above does it conclusively mean that ML-RR is slightly better?
not sure if i did my sums accurately and comparing apples to apples.
Click to expand...


Did an actual calculation for u, based on Guaranteed and Projection at 4.75%.

Aviva:
15yr payout yield: 2.39% p.a. to 4.32% p.a.
25yr payout yield: 2.64% p.a. to 4.36% p.a.
35yr payout yield: 2.63% p.a. to 4.40% p.a.

Manulife:
25yr payout yield: 2.56% p.a. to 4.22% p.a.

I think it's quite obvious which is better now?
 
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foozgarden

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Bigoya said:
vM984gK.png


Where did you get "annual premium is $4.6k" from?
Did I miss something?
Click to expand...

how to paste an image here? need to save first , then paste?
cannot ctrl-c, ctrl-v?

i had a relook, at the BI.
you are right, i had the wrong figure in my mind. 300, not 500
300/m guaranteed with 10 yr premium term, payout @55 for 25 yrs, annual premium is $4.6k

so xirr based on Guaranteed and Projection at 4.75% for ML-RR resp is
2.57% & 4.26%
our ML-RR calcs seems to be close enough.
 
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final1

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Teclansi said:
Hi all, am hoping to get some advice on a plan that my financial planner recently introduced to me. It's the Great Eastern Maxretire Income plan.

The plan breakdown is as follows, from what i understand/remember:

- Buyer pay a fixed sum regularly [$8000 per year], for set amount of time [33 years]
- At age 65, 67, or 70 (up to buyer to decide), buyer starts receiving monthly payouts.
- Payout amount varies depending on investment return. Monthly payout is also greater if payout begins at older age [65yo: $2655-$4010; 67yo: $3133-$4730; 70yo: $4036-$6094]
- Plan includes death benefit, but i believe that's not the main point of this plan

Figures in square brackets is the calculation that was done for me.

I hope i have understood the plan accurately. Please point out any errors if any, or if i've missed out any important points.


My questions are basically this:
1. Is this plan worth getting?
2. Are there better retirement plan options available?

For context, i am hoping to get a retirement plan that can support me. I think i'm sufficiently covered wrt insurance and other matters, so im hoping to take care of post-retirement life now.

What interests me about this plan is that it guarantees a total payout amount that is more than the total premium amount, so it sounds like i'll get more bang for my buck through this plan. I'm pretty ignorant when it comes to financial instruments though so i hope to get some confirmation/contradiction on this impression.

Thanks in advance!
Click to expand...

Government already forces you to have CPF Life which will pay you every month at retirement.

Force yourself to have another one and lock up even more of your assets? I seriously think not....
Furthermore, I bet they will hit you with penalties if you need to withdraw early.

As others said, the only one laughing to the bank is your agent.
 
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Joel_l

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final1 said:
Government already forces you to have CPF Life which will pay you every month at retirement.

Force yourself to have another one and lock up even more of your assets? I seriously think not....
Furthermore, I bet they will hit you with penalties if you need to withdraw early.

As others said, the only one laughing to the bank is your agent.
Click to expand...

That's if,

1. You CPF Funds are not locked up in your house.

2. You trust that the government of the day do not raise the retirement age again

3. That CPF Life will not change significantly in terms of regulations etc. from today till the time you retire
 
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TS, after reading your first post carefully, I feel that the main problem is your mindset on annuity.

The main priority of annuity is to provide you with an insurance against longevity. An annuity is not meant to give you a profit, at least in my humble point of view.

Why I say that is simple, you are unable to know with high confidence how old are you going to live. That makes all these "calculations" on whether a plan is "worth it or not" useless in my POV.

For annuity, I only look at 2 factors.

Firstly, am I able to comfortably pay my premiums?

Secondly, is the monthly payout enough to maintain my lifestyle?

That's all. If you can change your mindset from it being an investment vehicle to an insurance, I can assure you that you will find peace in your life instead of trying to "outlive" your insurance.
 
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Bigoya

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