Retirement vs Wealthbuilder ?

[wts2013]

For someone 30 who has WL, adequate term coverage and hosp plan in place, what is the better option nxt? Retirement planning?

I invest in the stock market long term but i think it is also gd to set aside something "safe" for retirement, on top of investments.

From what i know, retirement hv to pay until 55/60/65 then can receive annuities.. Usually guaranteed abt 2% or less.. Non-guaranteed up to 4%

Wealthbuilder pay for 20 yrs, afterwhich can take out anytime, or leave it until retirement for interest to "roll", more flexibility.

I do not think endowment is a gd plan compare to above as i think alot of fees r paid twds the " coverage" portion?

What is ur choice??

Your question is retirement policy (annuity) or wealthbuilder type of policy is better for u at this age of 30 to compliment/supplement with what u have?

Age 30, will any major life changes occur going forward, like starting a family, buying a home, etc?

Will your CPF meet the FRS by 55?

Where will be your sources of funds for retirement planning? Liquidation of part of your investments in stocks/bonds? Salary?

Do you consider your WL as part of your retirement funds, what does it cover, can it be terminated for that purpose without adding risks?

Do you have SRS?

 

[wts2013]

For cpf, we can only withdraw when we are 65, and we dun hv option to withdraw lumpsum, but only annuity. What if 30 yrs later, withdrawal age becomes 70, or 75?

I consider retirement plan cuz i want sth at maybe 55, or 60?

I hv iwda/sti/a35 right now too. But what if between 55-60 of age, there is an economic crisis, and it is not "ideal time" to start withdrawing the portfolio for retirement ?

I posted all these last week, so copy here for your reading pleasure:

In summary, there are 4 ways to grow your SA faster:

1. Topup SA with cash
2. Transfer from OA to SA
3. Make VC (on top of your salary/mandatory contribution if max not hit)
4. Invest your SA

U will not be able to do 1 n 2 when SA hit the minimum sum, but still can do 3 n 4 to grow your SA.

If u got the money and can afford to do it like AK, just do it, it is worth it

U should focus your time and energy on growing your SA instead of worrrying over something which will never happen. CPF withdrawal age will always be 55, only change is how much u can withdraw. Now the CPF Life payout is already 65 and u can choose to defer to 70.

I'm very happy that CPF Life payout starts at 65 and the decision to join CPF Life can be deferred to 65. My CPF monies still remain in my account to accumulate higher interest until 65, should anything happen before 65, I get all my money back, not a single cent is lost compared to if u join CPF Life at 55.

CPF withdrawal age will always be 55, I repeat 55, and I will continue to leave the money in CPF to earn higher interests, unless I need it.

CPF should not be your only source of retirement funds.

CPF withdrawal age is always at 55 since CPF inception, it is still 55 at SG50 and come SG100. There is no need to change it. To control how much u can withdraw, just change the minimum sum, and this has been changed in the past and already “cast in stone” till 2020.

Why waste your time and effort focusing on things which u cannot control, instead of focusing on things which u can control like growing your CPF/SA with strategies which others had kindly shared. I only found out about these strategies recently and too late for me to practise all but I have no regrets cos I aleady pass the goal post with hardwork not with these super short cut strategies!

This will be my last post on this topic. It is your choice, think positive and take advantage of these opportunities or be left behind

 

[hogrider88]

Your question is retirement policy (annuity) or wealthbuilder type of policy is better for u at this age of 30 to compliment/supplement with what u have?

Age 30, will any major life changes occur going forward, like starting a family, buying a home, etc?

Will your CPF meet the FRS by 55?

Where will be your sources of funds for retirement planning? Liquidation of part of your investments in stocks/bonds? Salary?

Do you consider your WL as part of your retirement funds, what does it cover, can it be terminated for that purpose without adding risks?

Do you have SRS?

my big ticket item like house reno and wedding past liao , phew. now starting a family.

i am not sure if frs can be met by 55, at the rate the target is moving ..

at the moment sources of funds for retirement planning only liquidation of investments and savings.

i hv a basic limited pay WL (death+tpd+CI), which will be paid up by the time i m 55, i will leave it for my beneficial, at least can cover after 65. i hv a term of coverage 1 mill till 65 (death+tpd+ci).
therefore, i do not see a need for an additional WL to provide cover+retirement savings (thats why the thread).

i dont hv SRS. networth still not so high leh..

r u guys trying to say that we shd topup SA right now with my excess cash, so that 4% will compound and by the time 55, we can withdraw the amount that are >FRS ??

 

[wts2013]

Sources of retirement funds: plan for more than 1, 2 is better, three or more if u can afford

Do some benchmarking.

What is the average annual rate of return of your investment portfolio in stocks/bonds?

How much passive income your investment portfolio in stocks/bonds are u gettting? How is it being used?

If u liquidate some of your investments, how will it affect the above?

Just some pointers for consideration. With more info from you, the discussion will be more fruitful.

(not asking u to buy more WL, just need to understand your existing portfolio, so WL is not a possible source of retirement fund for u)

 

[Pandule]

Haha I'm one who got buy Aviva my retirement lol

But mine is pay 2k over 30 years. I'm only 28/29 this year

I'm also investing in POSB invest saver. At $300 STI and $100 ABF. I'm also a strong believer That I can take out my excess CPF money when I turn 55.

 

[hogrider88]

Haha I'm one who got buy Aviva my retirement lol

But mine is pay 2k over 30 years. I'm only 28/29 this year

I'm also investing in POSB invest saver. At $300 STI and $100 ABF. I'm also a strong believer That I can take out my excess CPF money when I turn 55.

what is ur reason to sign up aviva myretirement? why not other savings plan?

u nv thought of voluntary contribution cpf SA?

 

[hogrider88]

Sources of retirement funds: plan for more than 1, 2 is better, three or more if u can afford

Do some benchmarking.

What is the average annual rate of return of your investment portfolio in stocks/bonds?

How much passive income your investment portfolio in stocks/bonds are u gettting? How is it being used?

If u liquidate some of your investments, how will it affect the above?

Just some pointers for consideration. With more info from you, the discussion will be more fruitful.

(not asking u to buy more WL, just need to understand your existing portfolio, so WL is not a possible source of retirement fund for u)

my house reno wipe out my savings in mid-2014. only manage to save up my emergency funds and some savings before starting to invest in mid-2015.

currently reinvest dividend, portfolio still down 5%, still buying in.. haha

 

[Pandule]

Hmm I compared the 3

TM one is if similar premium paid. Is $500 monthly and they will give you $6k yearly bonus but what's there to stop the bonus from cutting.

With myretirement at least I'm guaranteed of 1k monthly for 10 years. Ok la maybe by 30 years later it will not seem like much but hey it's something

I thought about contributing to SA. But I have a feeling I'll have excess amount which I can take out next time so don't bother. And you never know when the goalpost can be shifted again.

what is ur reason to sign up aviva myretirement? why not other savings plan?

u nv thought of voluntary contribution cpf SA?

 

[henrylbh]

Retirement planning? First ensure your CPF gao gao and go for ERS. Then go for dividend stocks (and properties if still got fund) to enhance your retirement income. If the other two fail you, your CPF will be your saviour.

Of course, first thing is to ensure you got enough medical coverage till old age.

Forget about insurance except for term.

 

[wts2013]

Hmm I compared the 3

TM one is if similar premium paid. Is $500 monthly and they will give you $6k yearly bonus but what's there to stop the bonus from cutting.

With myretirement at least I'm guaranteed of 1k monthly for 10 years. Ok la maybe by 30 years later it will not seem like much but hey it's something

I thought about contributing to SA. But I have a feeling I'll have excess amount which I can take out next time so don't bother. And you never know when the goalpost can be shifted again.

Hmmm... looks like not much benefits u can share why u buy myretirement?

I remember reading this: guaranteed return of 2.38% provided u hold till maturity.

How much better is this compared to a Whole Life Policy features/benefits? (Step 1 Exercise)

 

[wts2013]

my house reno wipe out my savings in mid-2014. only manage to save up my emergency funds and some savings before starting to invest in mid-2015.

currently reinvest dividend, portfolio still down 5%, still buying in.. haha

Ok, looks much easier than I thought to analyse, so should be able to reach a conclusion faster, hopefully.

Let's do some risk assessment and risk management exercise.

Pls ponder over it, I'm busy busy liao

 

[makav31i]

Retirement planning? First ensure your CPF gao gao and go for ERS. Then go for dividend stocks (and properties if still got fund) to enhance your retirement income. If the other two fail you, your CPF will be your saviour.

Of course, first thing is to ensure you got enough medical coverage till old age.

Forget about insurance except for term.

Obviously did not even bother to read TS post and just anyhow whack... Either that or trying to bait post and shift the topic to WL vs Term insurance again...Read what TS want to discuss...Up for mods to take action...

For someone 30 who has WL, adequate term coverage and hosp plan in place, what is the better option nxt? Retirement planning?

I invest in the stock market long term but i think it is also gd to set aside something "safe" for retirement, on top of investments.

From what i know, retirement hv to pay until 55/60/65 then can receive annuities.. Usually guaranteed abt 2% or less.. Non-guaranteed up to 4%

Wealthbuilder pay for 20 yrs, afterwhich can take out anytime, or leave it until retirement for interest to "roll", more flexibility.

I do not think endowment is a gd plan compare to above as i think alot of fees r paid twds the " coverage" portion?

What is ur choice??

 

[Pandule]

I didn't think of comparing between whole life and retirement plan mate. Sorry.

 

[hogrider88]

Exercise??

 

[Mecisteus]

These retirement plans are similar and work exactly like endowments. The guaranteed returns are probably slightly higher because you need to fork out a higher amount of premiums upfront for a number of X years.

 

[Perisher]

Obviously did not even bother to read TS post and just anyhow whack... Either that or trying to bait post and shift the topic to WL vs Term insurance again...Read what TS want to discuss...Up for mods to take action...

He already stated why don't use wealthbuilder which TS ask about. We cannot be blind to compare other things if there are better alternatives right?

Some people would suggest not to use wealthbuilder but something else too.
He is talking about retirement planning afterall.

I removed the earlier posting because it deviates too far from TS's point.
But there should be room to discuss people's idea of retirement planning no?

Let's just observe a while more.

 

[makav31i]

He already stated why don't use wealthbuilder which TS ask about. We cannot be blind to compare other things if there are better alternatives right?

Some people would suggest not to use wealthbuilder but something else too.
He is talking about retirement planning afterall.

I removed the earlier posting because it deviates too far from TS's point.
But there should be room to discuss people's idea of retirement planning no?

Let's just observe a while more.

Ts already posted this...

For someone 30 who has WL, adequate term coverage and hosp plan in place, what is the better option nxt? Retirement planning?

So why the need to post this?

Forget about insurance except for term.

So a person should terminate his Personal Accident, Critical Illness and Hospitalization Plan and just keep Term?

Obviously the TS already stated that he have adequate Term coverage, so how does that point contribute to anything other than to troll topic to become an insurance discussion thread...

 

[Perisher]

Ts already posted this...



So why the need to post this?



So a person should terminate his Personal Accident, Critical Illness and Hospitalization Plan and just keep Term?

Obviously the TS already stated that he have adequate Term coverage, so how does that point contribute to anything other than to troll topic to become an insurance discussion thread...

Well, different people have different ideas with regards to retirement planning or future planning. I wouldn't agree with terminating H&S or CI(I assume it's a rider) and term. But there are other ways to plan retirement. And this is his way.

Afterall TS did say this

What is ur choice??

Chill.

 

[wts2013]

1. Tokiomarine Wealth Enhancement
- This is a cashback plan. Are you retiring soon? If not why get a cashback plan at this age?

2. Aviva Mywealth plan
- An endowment plan NOT a retirement plan. The payout is one lumpsum. It is a good endowment plan if your maturity period is between 10 to 15 years. Anything above you can look at TM NestEgg.

3. PruWealth
- No idea as don't have access to it.

Can TS or IFA or anyone help to identify the key differences in features/benefits of:

1. Retirement policy
2. Wealthbuilder type of policy (some identified above)
3. Endowment policy
4. Whole Life (participating) policy

I'm still busy busy

 

[hogrider88]

Can TS or IFA or anyone help to identify the key differences in features/benefits of:

1. Retirement policy
2. Wealthbuilder type of policy (some identified above)
3. Endowment policy
4. Whole Life (participating) policy

I'm still busy busy

1. pay until old, then receive annuties + lump OR lumpsum at retirement age

2. pay single premium or regular premium for certain number of years. option to take out certain/full amount or leave it inside until needed. longer u leave, the more cash u hv.

3. pay 20 or 25 yrs with coverage. only lumpsum pay out on the yr of policy matures.

4. coverage + savings until u happy then surrender