***Sorry,not sure how do i post a reply,so i had copied and pasted my original post and tangent314's comments (thanks for replying to my post!).
My replies:
1) Aviva Global Savings account (the one with Blackrock funds)- My friend informed me that the surrender value +penalty is currently SGD20,130.92.
Total losses around SGD 6100
He said there is an option for premium holiday for up to 5 years and asked me to consider that instead.
2)Thanks. Will redeem all holdings from cash account since there is no penalty.
3) Yes, an expensive lesson learnt.
4) Ok, I plan to redeem my CPF-OA investments and leave it to accrue the 2.5%. I have a housing loan of SGD320,000 with my spouse, so it will make up part of the monies.
ChinoGirl wrote:
I am 38 years old and not a DIY investor and has always left my investments to my friend. But I realise that my portfolio isn't going anywhere, and it is better to be hands-on for your own financial future. I need advice from members and understand that the final decision is up to myself. Time for some spring cleaning!
Welcome!
Quote:
1) Aviva Global Savings Account
- inception date is 20 Sepember 2010
- payment frequency is SGD250/month
- funds are since inception of account are BlackRock Global Funds - Latin American A2 Fund US, and BlackRock Global Funds - World Gold A2 Fund USD
- premium end date is 20 September 2035
- As of 29 May 2019, the total premiums paid is SGD26,250.00 and investment value is sgd21,213.8. I have asked my friend to let me know how much I will get back if I liquidate this account as there will be penalty charges =(
Questions:
1a) Should I surrender this account entirely? Or switch it to other funds offered under Aviva Global Savings? I do not mind lower returns (is 1% too much to ask for?but it does not beat inflation) less fund management fees etc.
1b) If the suggestion is to switch to other funds on offer under Aviva Global Savings Account, what would be your suggestions and the reason(s) for the selected funds (for my understanding and learning).
A quick look at this plan and I can only say ouch at the fees. I'm inclined to say that you should surrender it as soon as you can - but let's take a look at the surrender fees first.
Quote:
2) Aviva Navigator cash account
-inception date is 30 Dec 2008
-was in growth portfolio until mid of last year when I asked to switch to Balanced portfolio
- am not charged an advisory fee/wrap fee by my friend, but believe there may be a platform fee incurred for using the Aviva Navigator platform, and of course the usual fund management fees etc which are also gnawing at my returns.
- initial lump sum of cash investment was SGD28,000 and the current value is at SGD39,700. No further contribution.
-no penalty for terminating account
This would be an easy since there's no penalty, just redeem everything.
Quote:
3) CPF-SA
- I have terminated the investments last year with a loss of SGD854.20 (15.12%). Had some greens but after that it was red for as long as I can recall. Seeing that the past few years has been a bull run………
Using CPFIS-SA is almost always a mistake. Redeem this as soon as possible. You are going to need some bonds in your portfolio and SA is arguably the best 'bond' to be counted as part of your portfolio.
Quote:
4) CPF-OA
- current value as of 29 May 2019 is 23,742.07, with a loss of -7.14%. Had some greens but after that it was red for as long as I can recall. Thinking of terminating this too.
-was in growth portfolio until mid of last year when I asked to switch to Balanced portfolio.
Appreciate it if you could advise this newbie. Thank you very much! Have a lot to learn.
Ideally, redeem your CPFIS-OA, but you want to plan what to do with them, depending on whether you will need your OA for future housing. If you don't plan to use your OA, then it would make sense to transfer your OA to SA. If you are planning to keep it for housing, you should keep it around. Otherwise, you can choose to keep it around for the 2.5% interest, or use some with CPFIS-OA to purchase ES3.
