private annuities

[foozgarden]

Insurance companies love people like you.

I guess you got a lot of limited paying WL policies.

they dont like me. coz i dont buy from them,

 

[Knight_Rider]

By foundations you mean like savings and bonds?

I recently placed a policy with NTUC 50k @ 2.15% p.a for 3 years. ( Short term)

Thinking of placing another 50k at SSB till maturity.

I am still holding 200k awaiting for good timing to enter the market. These would most likely be divided among developed/developing economies for long term, till retirement 3 decades later.

By foundation I mean UL and endowment/annuities. Then one third can go to more risky products. Your paramid will be very stable.

 

[foozgarden]

You dun use insurance to build annuity. Normally it pays after the fifth year.

Yeah.

The returns from annuity can be low when compared to other relatively safer tools (long term).

Which is why quite hesitant of putting a lump sum for annuity when I can buy ETFs for the long run. Which may give me better returns.

From 21 to 55, any annuity plan will give you around 3+ to 4% p.a compounded (XIRR). I suggest that if you could build your wealth starting from age 22, do invest in IWDA+EIMI... and then buy the annuity plan at 55.

you are all looking at the ROI POV.

annuity is not the same as IWDA+EMI.
the purpose is not the same. if you are just comparing ROI. then yes, the latter wins it hands down.

IF and big IF, you get a GFC part 2, are you able to stomach it at your retirement age?

annuities give u a peace of mind when u retire. you are guaranteed a sum (assume the non-g to be bonus. but work your sums for retirement base on G portion.

 

[Knight_Rider]

you are all looking at the ROI POV.

annuity is not the same as IWDA+EMI.
the purpose is not the same. if you are just comparing ROI. then yes, the latter wins it hands down.

IF and big IF, you get a GFC part 2, are you able to stomach it at your retirement age?

annuities give u a peace of mind when u retire. you are guaranteed a sum (assume the non-g to be bonus. but work your sums for retirement base on G portion.

The new annuity protects 3 gen. Makes a lot of sense. Double up as a Legacy plan as well.

 

[Prof. Utonium]

I see.

Thanks for the inputs guys.

Will shop around.

 

[cloud1984]

I was considering this, but finally didn’t pull the trigger.

https://www.tokiomarine.com/sg/en/personal/save/for-your-retirement/tm-retirement-SP.html

Watch the video within.

Disclaimer: I’m not from TM, just sharing and will not be responsible, DYODD.

How come you decide not to do it? U were plannin to buy with SRS?

 

[ELKYme]

I was considering several retirement options then. (This is one of them)

Finally decided to use cash to purchase a retirement plan and start the payouts when I’m 65. (Coincide with CPF Life).

In the event that I choose to retire at 62, I’ll do annual 40K withdrawals of my SRS funds.

I assume you’re 35? (YOB 1984). If you are, than this plan could be an option. Think things through and weigh your options before deciding.

BTW, congratulations for doing retirement planning at your age, the future cloud will thank the current cloud 20 years from now.

How come you decide not to do it? U were plannin to buy with SRS?

 

[foozgarden]

Bought for my children. Cover Legacy and Retirement across 3 generations. I think this is the trend now

https://www.greateasternlife.com/sg...lth-accumulation/prestige-life-rewards-2.html

https://www.aia.com.sg/en/our-products/platinum/aia-platinum-gift-for-life.html

this is legacy rite, not annuity rite?

 

[Knight_Rider]

this is legacy rite, not annuity rite?

Pays me annuity pays my children annuity when I am gone and pays my grandchildren when the policy mature because you buy on children's life. You are the owner but life assured is your children. This type of plan pretty useful for planning.

 

[foozgarden]

and how much is your premium?

 

[Knight_Rider]

and how much is your premium?

It's a single premium product. Yield is definitely better than buying a condo. You can check GE website got illustration

 

[cloud1984]

I was considering several retirement options then. (This is one of them)

Finally decided to use cash to purchase a retirement plan and start the payouts when I’m 65. (Coincide with CPF Life).

In the event that I choose to retire at 62, I’ll do annual 40K withdrawals of my SRS funds.

I assume you’re 35? (YOB 1984). If you are, than this plan could be an option. Think things through and weigh your options before deciding.

BTW, congratulations for doing retirement planning at your age, the future cloud will thank the current cloud 20 years from now.

Thanks! will research more before deciding. actually was just thinking if it is worth it to open an SRS account. I do not have 1 now. Cost of living is too high in singapore, wanted to start planning now so as to be better prepared and not burden my children.

 

[ELKYme]

Bro opening a SRS account and saving inside is definitely “worth”!

1) Straightaway you save about 2K for next year’s income tax.
2) You’re committed to save for retirement.
3) Investment made with the money inside is long-term and because of the time-frame, the chances of making decent returns is very high.

I agree, cost of living is indeed high, unfortunately, it will only get higher due to inflation.

First, open the account, even if you don’t put the maximum amount allowed ($15,300), put some, it’ll start you off. (1st step is always the most difficult)

Suggestion: Maybe put in your year-end bonus for a start? Note that contributions for the year is last day of the year.

Thanks! will research more before deciding. actually was just thinking if it is worth it to open an SRS account. I do not have 1 now. Cost of living is too high in singapore, wanted to start planning now so as to be better prepared and not burden my children.

 

[Knight_Rider]

I wouldn't put so much in because one you can't withdraw. Two the payout is not consistent ie diff year to year and three the goalpost always change. Just put enough for deduction and income tax relief. The benefits of private annuity is getting more creative.

 

[RAYRAY1]

Hi Bro,

I am looking into Manulife Signature Income using cash for single premium payment. I would like to know which retirement plan you had purchased for my comparison.

I was considering several retirement options then. (This is one of them)

Finally decided to use cash to purchase a retirement plan and start the payouts when I’m 65. (Coincide with CPF Life).

 

[slec7166]

Hi,

Can I check if I use balance of CPF monies in OA or SA (once RA has been created) to buy annuity from private insurance, is it advisable?

 

[ELKYme]

Hi Bro, I chose Manulife RetireReady Plus as it suits my needs better.
https://www.interestguru.sg/2018-in...tirement-plans-in-singapore-with-high-income/

As you’re looking to compare annuities, perhaps this review may help:
https://www.interestguru.sg/3-best-retirement-plans-in-singapore-with-lifetime-income-2018-edition/

The above link doesn’t cover Manulife’s signature income, here’s the review:
https://www.interestguru.sg/manulife-signature-income/

Disclaimer: I’m not associated with interestguru, please DYODD on the info. provided by them.

Hi Bro,

I am looking into Manulife Signature Income using cash for single premium payment. I would like to know which retirement plan you had purchased for my comparison.

 

[JuniorLion]

Hi,

Can I check if I use balance of CPF monies in OA or SA (once RA has been created) to buy annuity from private insurance, is it advisable?

You cannot use SA to purchase Private Annuities, under ANY circumstances.

For OA, you can use it to buy SINGLE PREMIUM ENDOWMENT plans. But it may exclude annuities (please check on this).

 

[ELKYme]

I guess you can? After setting aside BRS/FRS/ERS, you’re free to do anything with the remaining $ in OA/SA accounts.

Believe you already have the ERS amount in RA? It doesn’t make sense to have only BRS/FRS in RA and using the remaining funds to buy private annuities.

If indeed you already have ERS in RA, it all depends on how much is remaining in your OA/SA and what your objective is (different strokes for different folks).

Hi,

Can I check if I use balance of CPF monies in OA or SA (once RA has been created) to buy annuity from private insurance, is it advisable?

 

[ELKYme]

JL, u missed this: “once RA is created”....he’s >55.

You cannot use SA to purchase Private Annuities, under ANY circumstances.

For OA, you can use it to buy SINGLE PREMIUM ENDOWMENT plans. But it may exclude annuities (please check on this).