retirement plan

[sashti90]

Paiseh, it is put in $500/month for 20 years, accumulate 5 years then get guaranteed $13,200/year or $1,100/month for 15 years.. And also there is a non-guaranteed bonus of $176,000 at the end of the 15th year.

This means a 35 year old who takes up the exact plan I mentioned above, would get $1,100/month guaranteed from age 55 to 70 and also a non-guaranteed bonus of about $176,000.

Total Premiums Paid: $120,000
Total Guaranteed Retirement Income: $1,100 x 12 x 15 = $198,000
Non-Guaranteed Benefit: $176,000
Total Projected Payout: $374,000

We have various configurations- Put in money for 5,10,15,20 or 25 years, accumulate another 5 or more years and get 15 year or 20 year payouts.

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Is $1,100 pm Guaranteed for 15 years?

 

[akwl88]

Paiseh, it is put in $500/month for 20 years, accumulate 5 years then get guaranteed $13,200/year or $1,100/month for 15 years.. And also there is a non-guaranteed bonus of $176,000 at the end of the 15th year.

This means a 35 year old who takes up the exact plan I mentioned above, would get $1,100/month guaranteed from age 55 to 70 and also a non-guaranteed bonus of about $176,000.

Total Premiums Paid: $120,000
Total Guaranteed Retirement Income: $1,100 x 12 x 15 = $198,000
Non-Guaranteed Benefit: $176,000
Total Projected Payout: $374,000

We have various configurations- Put in money for 5,10,15,20 or 25 years, accumulate another 5 or more years and get 15 year or 20 year payouts.

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Pay 120k get 198k after 20yrs?

 

[sashti90]

Save $500/month for 20 years, wait 5 years and get back $1.1k/month for the next 15 years. That is a guaranteed payout of $198k.

You have to use a financial calculator to see the % returns. Using a 2% interest, $6k a year for 20 years is worth $145.7k though. And if you compound that amount for another 5 years accumulation period at 2%, you get $160.8k. Therefore, I think it is safe to say that the guaranteed payouts of this product yields above 2% interest rate.

On top of this, there is another $176k non-guaranteed bonus.

Pay 120k get 198k after 20yrs?

 

[henrylbh]

Paiseh, it is put in $500/month for 20 years, accumulate 5 years then get guaranteed $13,200/year or $1,100/month for 15 years.. And also there is a non-guaranteed bonus of $176,000 at the end of the 15th year.

This means a 35 year old who takes up the exact plan I mentioned above, would get $1,100/month guaranteed from age 55 to 70 and also a non-guaranteed bonus of about $176,000.

Total Premiums Paid: $120,000
Total Guaranteed Retirement Income: $1,100 x 12 x 15 = $198,000
Non-Guaranteed Benefit: $176,000
Total Projected Payout: $374,000

We have various configurations- Put in money for 5,10,15,20 or 25 years, accumulate another 5 or more years and get 15 year or 20 year payouts.

Mod:Unsolicited Content (Commercial solicitation / Ads / Referrals / Spam)

So not a fairly good deal after all, unlike what you mentioned initially.

 

[yukita]

Hi, as mentioned by several members AXA's RetireHappy plan is a pretty good plan. It is an annuity- you put in say $500/month for 15 years, let it accumulate for another 5 years, you can get back about $1,100/month for the next 15 years (good passive income) as well as a lumpsum payout at the end.

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isnt it $1100 20 years later will be very low amount?

 

[coldmilk2]

Save $500/month for 20 years, wait 5 years and get back $1.1k/month for the next 15 years. That is a guaranteed payout of $198k.

You have to use a financial calculator to see the % returns. Using a 2% interest, $6k a year for 20 years is worth $145.7k though. And if you compound that amount for another 5 years accumulation period at 2%, you get $160.8k. Therefore, I think it is safe to say that the guaranteed payouts of this product yields above 2% interest rate.

On top of this, there is another $176k non-guaranteed bonus.

Actually the guaranteed returns is just below 2%. This is not as good as the return in our CPF OA.

The only gravy in scheme is the non-guaranteed bonus, which may or may not be there.

 

[henrylbh]

Actually the guaranteed returns is just below 2%. This is not as good as the return in our CPF OA.

The only gravy in scheme is the non-guaranteed bonus, which may or may not be there.

The non-guaranteed bonus of 176k considered as gravy? Lucky if there is any leftover. They cant even guaranteed 50% of that, not even 10% of it. Likely nothing at all at the end.

 

[akwl88]

The non-guaranteed bonus of 176k considered as gravy? Lucky if there is any leftover. They cant even guaranteed 50% of that, not even 10% of it. Likely nothing at all at the end.

Give money to them to manage get non-guranteed returns might as well ownself manage? At least can ans to ownself

 

[G_Zola]

non guaranteed means it can be none. Better exclude the non guaranteed portion when doing comparison. Also we need to be aware that early termination results getting back only a percentage of the premiums you have paid, not the whole sum. In my opinion, it is very risky to lock down for a very long period of time. You never know when you need the cash. At least sg savings bond does not have penalty for early termination.

 

[akwl88]

non guaranteed means it can be none. Better exclude the non guaranteed portion when doing comparison. Also we need to be aware that early termination results getting back only a percentage of the premiums you have paid, not the whole sum. In my opinion, it is very risky to lock down for a very long period of time. You never know when you need the cash. At least sg savings bond does not have penalty for early termination.

Ya lor. Why pay to have non guranteed returns?

 

[coldmilk2]

The non-guaranteed bonus of 176k considered as gravy? Lucky if there is any leftover. They cant even guaranteed 50% of that, not even 10% of it. Likely nothing at all at the end.

What is wrong with my reply to get such a reaction from you?

Do you understand what I meant when I said that "gravy" which may or may not be there?

 

[tiny]

isnt it $1100 20 years later will be very low amount?

I agree. 20 years ago, one plate of chicken rice how much? Use that logic and ask yourself how much is a plate 20 years later?

 

[Pandule]

I agree. But I don't think you should use $1100 as just your retirement. There's still your stocks and bonds. And some people might hate it but there's still CPF(provided you are constantly working and you don't overstretched your OA to pay off )

 

[SBC]

This is where multiple income streams are crucial.

Eg CPF, SRS, insurances, down-sizing property, saving, stock, rental.
Some may argue saving is not an income.

I have ranked the above options according to my level of difficulty.
It may vary from person to person.
I have indicated down-sizing property as an income source for retirement. During retirement, we will need cashflow, not assets.

 

[cscs3]

I agree. 20 years ago, one plate of chicken rice how much? Use that logic and ask yourself how much is a plate 20 years later?

This is how these fanacial adversor tell you in order to get you to buy the product.

Well, 20 years ago. 1 laptop with 286 CPU will cost you S$7K ! and you may be earning 1K or less per month. Now, it may be less then 1K for a much better laptop. So it depend on your spending need. Inflation may not be as high as you think!

 

[havetheveryfun]

This is how these fanacial adversor tell you in order to get you to buy the product.

Well, 20 years ago. 1 laptop with 286 CPU will cost you S$7K ! and you may be earning 1K or less per month. Now, it may be less then 1K for a much better laptop. So it depend on your spending need. Inflation may not be as high as you think!

yep not everything suffers from inflation. some prices doesn't increase, but only decrease. e.g our pay

who knows 20 years later maybe humans already evolve to such an extent where we do not require food anymore to survive. or maybe technology improved to such an extent that we can grow our own organic chicken or meat at home.

now already have 3d printer printing bread and chocolate biscuit

 

[sashti90]

Hi henrylbh, can you show me a better retirement plan?

I am starting to save up for my retirement. Would be interested in anything that offers $2k a month in retirement income for 15 years. Thanks.

So not a fairly good deal after all, unlike what you mentioned initially.

 

[highsulphur]

Hi henrylbh, can you show me a better retirement plan?

I am starting to save up for my retirement. Would be interested in anything that offers $2k a month in retirement income for 15 years. Thanks.

To be honest, cpf is your best bet with 4% risk free compounding

 

[limpingsim98]

Does anyone know of what is the best retirement plan policy now?

CPF, always.

 

[henrylbh]

Hi henrylbh, can you show me a better retirement plan?

I am starting to save up for my retirement. Would be interested in anything that offers $2k a month in retirement income for 15 years. Thanks.

I am open to any retirement plan or annuity payments that can beat the CPF retirement payout. So far none!

Initially you mentioned "put in say $500/month for 15 years, let it accumulate for another 5 years, you can get back about $1,100/month for the next 15 years". That was a fair deal or may be better than CPF Life even without the non-guaranteed bonus.