Retirement plan

[iMac]

Hi, can you share the sources and how did you achieve $6k passive income per month? Would like to take some learnings. Thanks

You never attend the "Sell 1 HDB, Buy 2 Condo" talk ?

 

[Prof. Utonium]

By this logic -- and there's a certain amount of logic to it -- your next "basket" wouldn't actually be a private Singapore dollar life annuity. It'd be an *offshore* life annuity in a high quality currency from a high quality payer.

Those USD plans I got access to at that point of time, the returns are so horrible. The guaranteed can be below 1%. Those better quality ones you either have to be a US citizen or an employee working in US. Not all would have such opportunity.

 

[justwakeup]

As an owner of an annuity plan, if you really seek one then it is because you want to avoid putting into 1 basket. When I got 1, I have close to 3 decades of personal retirement age (or 4 decades till retirement age) so CPF may change their regulation thus I do not wish to put all my faith into 1 basket (did not want to top up cash into CPF).

However, if you are looking into (the current value of) which is the most bang for buck then it is no brainer CPFLIFE is the best value in terms of annuity/retirement plan.

Guess i will have to skip those products

 

[BBCWatcher]

Those USD plans I got access to at that point of time, the returns are so horrible. The guaranteed can be below 1%. Those better quality ones you either have to be a US citizen or an employee working in US. Not all would have such opportunity.

I'm merely responding to the concern raised and carrying the logic forward to where it naturally leads, that's all. Let's suppose the returns are low. Maybe it's still worth doing depending on how you evaluate these particular risks.

 

[bbwinnie1]

My agent is recommending me China Life retirement option, do any of the experts here know how does it compare to the Manulife one in terms of return? Seems like a few of you here have opted for Manulife Retireready plus..

Personally I am looking at putting a single premium amount.

 

[boredboiboi]

My agent is recommending me China Life retirement option, do any of the experts here know how does it compare to the Manulife one in terms of return? Seems like a few of you here have opted for Manulife Retireready plus..

Personally I am looking at putting a single premium amount.

Usually is which 1 you prefer. Most of my clients go for manulife as chinalife does not have much track record on their par fund

 

[bbwinnie1]

I see...do you represent China Life too? Heard from my agent that China Life is good but is it better than Manulife in terms of the income payout?

 

[boredboiboi]

I see...do you represent China Life too? Heard from my agent that China Life is good but is it better than Manulife in terms of the income payout?

Yes i can represent chinalife too. A few others as well. I would say the difference will be minimal. Probably the agent include the non guaranteed portion. Probably after generate and compare then can give u an answer. Results are not always constant, so only generate then can compare.

 

[BBCWatcher]

My agent is recommending me China Life retirement option...

Which one?

 

[cmanz81]

I think you mean you're unable to top up your Special Account, i.e. your Special Account has reached the Full Retirement Sum (FRS)? Is that correct?

CPF offers drawdown options starting as early as age 55, so no problem there.

So let's suppose your SA has reached the FRS. You are still able to do the following:

1. You can deposit cash into your MediSave Account as long as the deposit fits within both the CPF Annual Limit and Basic Healthcare Sum (BHS). MA earns 4.0% interest, and this deposit is eligible for tax relief.

2. You can make an "all three account" Voluntary Contribution. This contribution must fit within the CPF Annual Limit. It is eligible for tax relief only if you are self-employed. You will earn >>2.5% interest on this type of contribution, with the exact rate depending on whether your MA has reached the BHS.

3. You can repay OA funds used for housing. The limit is the amount you've used for housing plus accrued interest. These dollars will earn 2.5% interest and are not eligible for tax relief.

4. You may have options involving a spouse or partner.

Options #1 and #2 are very highly likely to beat any/all insurance company sold retirement plans. I'd say even Option #3 is competitive. However, while I think Options #1 and #2 are sufficiently attractive, generally speaking I think regular purchases of a couple low cost, well diversified index funds are more attractive than #3. So that's what I suggest you look into as the non-CPF part of your retirement plan, to make regular monthly buys of a couple low cost, well diversified index funds for the next couple decades. There are lots of discussions about how to do that, and you may decide to do at least some of that via a SRS account, depending on your income tax situation.

I love our CPF schemes!! Thanks for putting it across clearly!

 

[BBCWatcher]

I love our CPF schemes!! Thanks for putting it across clearly!

Please note that Voluntary Contributions to MediSave no longer need to fit within the CPF Annual Limit. Also, VCs to MA are only eligible for tax relief within a $8,000 combined VC/top up limit (MA/SA/RA).

 

[dork32]

If leave $35k for five yrs, monthly payout abt $365 for next ten yrs, is it good? By Ntuc Income.

sorry for replying so late. i do not come into this sort of thread very frequently.

insurance company love doing things like this. they come up with a convoluted plan that hope people dont know how to evaluate. then people gong gong buy their plan.

the best way to evaluate this plan is using the xirr method. i take it as single premium of 35k and 120 monthly payouts of 365 after 5 years. the xirr = 2.3%.

To me this is a total waste of time. cpf oa gives me 2.5%, tbills 3%, fraser bond 4.5%. why do i want to waste time on this total trash

 

[dork32]

If leave $35k for five yrs, monthly payout abt $365 for next ten yrs, is it good? By Ntuc Income.

you put 35k into your oa, 5 years later you start withdrawing for the next 10 years, you can draw 373 per month

 

[a4973]

you put 35k into your oa, 5 years later you start withdrawing for the next 10 years, you can draw 373 per month

If the policy has some insurance coverage, there should be some value in that?

 

[henrylbh]

Please note that Voluntary Contributions to MediSave no longer need to fit within the CPF Annual Limit.

Pls provide the link. I hate browsing the new CPF site. Thanks.

Does it mean the order of contribution doesn't matter?

If VC 37,740 to annual limit and after that I can still top up MA to limit of BHS.

If top up MA to limit of BHS and after that I can still VC 37,740 to annual limit

 

[reddevil0728]

Pls provide the link. I hate browsing the new CPF site. Thanks.

https://www.cpf.gov.sg/member/faq/g...hanges-to-the-tax-relief-cap-for-cash-top-ups

Does it mean the order of contribution doesn't matter?

If VC 37,740 to annual limit and after that I can still top up MA to limit of BHS.

Former no tax relief if you are an employee. yea

If top up MA to limit of BHS and after that I can still VC 37,740 to annual limit

MA will overflow like this

 

[henrylbh]

https://www.cpf.gov.sg/member/faq/g...hanges-to-the-tax-relief-cap-for-cash-top-ups
Former no tax relief if you are an employee. yea

MA will overflow like this

Not asking about tax reliefs or overflow. Want to know that cash top-up to MA does not affect the limit for VC.

 

[reddevil0728]

Not asking about tax reliefs or overflow. Want to know that cash top-up to MA does not affect the limit for VC.

It should not.

separate

 

[BBCWatcher]

Pls provide the link. I hate browsing the new CPF site. Thanks.

Item #3 here.

 

[henrylbh]

Item #3 here.

many thanks.