I am intending to purchase a retirement plan from Prudential with the purpose to use SRS.
https://www.prudential.com.sg/products/wealth-accumulation/retirement/pruactive-retirement-ii
May I seek some guidance from the guru here if this plan is good? As long as the returns is about 3% plus, I am ok.
There's no guarantee PRUActive Retirement II will generate at least 3.0% nominal net annualized returns.
If that's what you want just buy a Singapore Government Security (SGS). The 5 year SGS is available for auction now, and the 10 year SGS is available next month (April). Both should yield a little above 3.00% based on current daily pricing data. Singapore Government Securities are the general debt obligations of the Government of Singapore, via the Monetary Authority of Singapore (MAS). They're backed by the full faith and credit of the AAA-rated government. There's nothing safer available for Singapore dollars. If you hold a SGS to maturity then you're guaranteed (by the government) Singapore dollar coupon payments every 6 months plus return of face value at maturity. It's free to place bids for either/both of these bonds, and you can place a competitive bid at 3.00% to be assured of getting at least that yield (if your order is filled).
I believe orders for the 5 year bond (N524100X) must be placed before 9:00 PM on March 25, 2024. The 10 year bond (NX24100T) ordering deadline is 9:00 PM on April 25, 2024. If you prefer a little "safety" you may wish to place your bid one business day prior to the last ordering day. I wouldn't pick anything earlier than that since you'll lose a bit of interest in your SRS account (0.05% p.a., so not much).
Personally I wouldn't pick either of these options, but I'm answering the question you asked.
