TM Retirement Gio

[raysdad]

Understand that you like plans that do not have drawdown of surrender value for annuity payout, but in return you will get lower guaranteed payout.
Lets not look at non-guaranteed, after all no matter who say what, it is still non-guaranteed.

Even if you take your 100% capital preservation for surrender value at any future years + all the guaranteed yearly payout, this plan will still lose to those plans that pay high guaranteed payout, but with drawdown of surrender value, simply due to impact that inflation has on the time value of money.
It is always better to take more money now when your dollar value is stronger and has more purchasing power than future.

You have a point. My simple thinking then was comparing against cash (which is probably not used in this lifetime) which sits in bank FDs earning 1-2%. This seems a better arrangement so a small percentage here.

 

[raysdad]

Nothing is free in this world.

There is a cost to "capital preservation", just that it is packaged nicely many times over and becomes hidden to you.

If anything, buying DPI whole life and then surrendering it 30 years later would yield better returns.

yup definitely agree. Just comparing against bank fds which was what I used to be mainly doing in the past.. ... what's DPI?

 

[JuniorLion]

yup definitely agree. Just comparing against bank fds which was what I used to be mainly doing in the past.. ... what's DPI?

Direct Purchase Insurance.

 

[audiovideo]

As per thread title.. bought via Bank of China

same .....

 

[audiovideo]

The lower the premium paying period and the further the payout date (longer accumulation period), the return will be higher.

For your case, because you do not have any accumulation period, therefore your guaranteed + non guaranteed return is lower.

Thanks for clearing the air
Looks like this BOC "agent" should have done a better job
let see what he gona say later

anyone nominate a beneficiary for this plan?

 

[audiovideo]

if I plan to put a small $50k into another retirement plan, any recommendation? thanks

 

[mSnooze]

if I plan to put a small $50k into another retirement plan, any recommendation? thanks

What is your time horizon? Perhaps I can share with you something.

 

[yohjun]

or can look for passive income strategies to preserve capital and provide income. no need to be annuity, a lot of strategies out there.

 

[audiovideo]

What is your time horizon? Perhaps I can share with you something.

similar to this plan, pay premium for 5yrs and start payout on 6th year

 

[audiovideo]

Boc agent clarify the guaranteed 2% is for sum assured, not lump sum lol. And sum assured based on entry age and perhaps premium park duration? Anyway this plan should be fine. Sit back and wait to collect 3.8% yearly.

 

[raysdad]

or can look for passive income strategies to preserve capital and provide income. no need to be annuity, a lot of strategies out there.

Hi yohjun, can you share some of these strategies/methods that can comparable in terms of risk level and returns (yield and consistency)?

Thanks!

 

[Silver Serpentza]

Sorry to bump this thread.

I just came to know of this plan. I am in my late 50s and was told that at 65 I can draw out $4000/year up to 99 years old if I put in $20,000 a year for five years. The principal is protected and I can surrender from year 5 onwards with the capital in tact.

I find this plan very good but would like to hear any comments from anyone out there before signing up this plan.

 

[JuniorLion]

Sorry to bump this thread.

I just came to know of this plan. I am in my late 50s and was told that at 65 I can draw out $4000/year up to 99 years old if I put in $20,000 a year for five years. The principal is protected and I can surrender from year 5 onwards with the capital in tact.

I find this plan very good but would like to hear any comments from anyone out there before signing up this plan.

Put it in simplistic terms, you are getting 4% interest p.a.

In reality, less - because you are putting in 20k per year for 5 years...

 

[tangent314]

Sorry to bump this thread.

I just came to know of this plan. I am in my late 50s and was told that at 65 I can draw out $4000/year up to 99 years old if I put in $20,000 a year for five years. The principal is protected and I can surrender from year 5 onwards with the capital in tact.

I find this plan very good but would like to hear any comments from anyone out there before signing up this plan.

Of the $4000/year, ~$2100 is guaranteed, and the other ~$1900 depends on the PAR fund performing at 4.75% (in which case they give you 3.8% interest and keep 0.95% for themselves).

You can do better than that. Easiest way would be to top up your CPF RA up to the ERS if you haven't already done so, although you have to bear in mind that CPF Life is a life annuity where your principle will be drawn down on.

 

[aarontansp]

Sorry to bump this thread.

I just came to know of this plan. I am in my late 50s and was told that at 65 I can draw out $4000/year up to 99 years old if I put in $20,000 a year for five years. The principal is protected and I can surrender from year 5 onwards with the capital in tact.

I find this plan very good but would like to hear any comments from anyone out there before signing up this plan.

Aviva Myretirement Plus is better.

 

[JuniorLion]

Of the $4000/year, ~$2100 is guaranteed, and the other ~$1900 depends on the PAR fund performing at 4.75% (in which case they give you 3.8% interest and keep 0.95% for themselves).

You can do better than that. Easiest way would be to top up your CPF RA up to the ERS if you haven't already done so, although you have to bear in mind that CPF Life is a life annuity where your principle will be drawn down on.

You cannot surrender your CPF life at all.

 

[tangent314]

Just because you cannot surrender your CPF Life doesn't mean it's not a suitable product. Unless bequest is really important, I don't see the need for the return of the principle sum also for my retirement income. Everyone has to decide for themselves what features they want from their retirement income.

 

[tangent314]

Aviva Myretirement Plus is better.

I've calculated XIRR = 3.75% from the illustration 1 on the website, so not quite better.

 

[foozgarden]

I've calculated XIRR = 3.75% from the illustration 1 on the website, so not quite better.

unless they can beat 4% .. otherwise there is no use for pte annuity.

 

[aarontansp]

I've calculated XIRR = 3.75% from the illustration 1 on the website, so not quite better.

I got another separate calculation at 3.98%. Very close to 4%.