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(18-05-2013, 05:10 PM)NTL Wrote: (18-05-2013, 04:47 PM)Temperament Wrote: (18-05-2013, 04:41 PM)NTL Wrote: If you are a Japanese to retire in 1990, you will wish that you never listen to that advice... Sorry, can you elaborate? Are you pro or con? i suppose you are the former? Inflation in Japan from 1990 till now must be as bad as USA also.
Yup, con.
Digging a bit into some historical data.
http://sg.finance.yahoo.com/q/bc?s=%5EN2...&z=l&q=l&c=
Since 1990, Japan Nikkei Index is going down from 40,000 to 8,000, only to recover to 15,000 pretty recently.
http://www.tradingeconomics.com/japan/go...bond-yield
Japanese 10yr Govt Bond had been under 2% since 1997. Current rate is not even 0.5%.
http://www.inflation.eu/inflation-rates/...japan.aspx
The inflation for Japan CPI since 1990 is almost flat.
If follow the advice, and a Japanese only invest in his own country (which most nationals actually do), will he be able to have sufficient funds for retirment?
Maybe I just overly pessimistic, but I rather be safe, then to err when my turn is here. That's why I rather put a little of my savings in an annuity plan.
Oh i see! It's really a case of no one size fits all. People keep on stressing for those who doesn't want to invest in individual stocks can always invest in index fund. Imagine if you invested in Nikkei Index. (Vanguard comes to mind.)
It's the same as "HIGH RISK does not guarantee HIGH RETURN" and "Low RISK does not necessary means Low Return." Basically, CAVEAT EMPTOR"
Ha! Ha!
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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27-05-2013, 09:49 AM
(This post was last modified: 27-05-2013, 10:39 AM by Temperament.)
What’s the best annuity right now?
Gasp! Yes, I said it, annuities aren't for everyone and shouldn't be promoted as such.
In my world, annuities primarily solve four specific goals and I have created an acronym that you can easily remember to determine if an annuity strategy should even be considered. That word is P.I.L.L.
P = Principal protection
I = Income for life
L = Legacy
L = Long-term care
If you don't need to contractually solve for these transfer of risk solutions, then you probably don't need an annuity. Yes, I said it again! Even if there is part of P.I.L.L. that applies to you, it is important that the annuity solution compliments your overall portfolio and is allocated at an amount that reflects your age, your goals, and your risk tolerance.
The P.I.L.L. strategy goes against the grain of most annuity sales today, which are primarily deferred variable and fixed-indexed annuities. Those strategies would presumably fall under the letter "G" for growth, which I think is the wrong reason to buy an annuity, and why I never include growth as the primary justification for an annuity purchase.
NB:-
i have decided my wife's CPF MS can be used as 4% inflation offset bond "until we need to touch the money". This is of course, CPF Board (GOV) board keeps their side of the bargain. There is no where you can put your money with out some risk except converted to food in your stomach. Ha! Ha!
Reflecting on P.I.L.L. , What i am doing for my wife's MS actually satisfy all the conditions. In fact i think it is even better after a certain years. Just like some older liquor or wine will taste better.
Hope we don't need to touch the money as long as possible. That actually it becomes an "Emergency Fund" that we shall never need to draw on. And CPF Board is intact, whoever is the Gov.
Anyway, all of us has "no choice" but to leave the MS with CPF Board, whoever is the GOV.
Shalom.
Amen.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Quote:NB:-
i have decided my wife's CPF MS can be used as 4% inflation offset bond "until we need to touch the money". This is of course, CPF Board (GOV) board keeps their side of the bargain. There is no where you can put your money with out some risk except converted to food in your stomach. Ha! Ha!
Technically speaking, this is probably the best bond in Singapore subjected to future CPF rulings. However, CPF rulings are normally retroactive to the date of enactment and so I suppose your wife's MS should not be affected by future rules.
It also can serve as life insurance and the MS owner can terminate or reduce his/her current life insurance amount.
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(27-05-2013, 12:45 PM)yeokiwi Wrote: Quote:NB:-
i have decided my wife's CPF MS can be used as 4% inflation offset bond "until we need to touch the money". This is of course, CPF Board (GOV) board keeps their side of the bargain. There is no where you can put your money with out some risk except converted to food in your stomach. Ha! Ha!
Technically speaking, this is probably the best bond in Singapore subjected to future CPF rulings. However, CPF rulings are normally retroactive to the date of enactment and so I suppose your wife's MS should not be affected by future rules.
It also can serve as life insurance and the MS owner can terminate or reduce his/her current life insurance amount. Thank you for your input. It's very enlightening. Regarding my wife's life insurance, (very small amount only) we intend to keep it as it is more then 25 years already. And the premium/month is only $54.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(27-05-2013, 09:49 AM)Temperament Wrote: What’s the best annuity right now?
After TM ends their Retirement Life, and have it replaced by something else, I think it's back to Income Annuity, not considering CPF's plan of coz.
See if I can try find out about TM new plan and see how well it compare to Income.
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(27-05-2013, 12:57 PM)NTL Wrote: (27-05-2013, 09:49 AM)Temperament Wrote: What’s the best annuity right now?
After TM ends their Retirement Life, and have it replaced by something else, I think it's back to Income Annuity, not considering CPF's plan of coz.
See if I can try find out about TM new plan and see how well it compare to Income. Like i say,
"There is no one size fits all. Only there is no end to learning to how to manage our money better & better. So never, never lock-up our brains though some people may want to do it to/for you. Ha! Ha!"
Cheers!
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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6
(27-05-2013, 01:08 PM)Temperament Wrote: (27-05-2013, 12:57 PM)NTL Wrote: (27-05-2013, 09:49 AM)Temperament Wrote: What’s the best annuity right now?
After TM ends their Retirement Life, and have it replaced by something else, I think it's back to Income Annuity, not considering CPF's plan of coz.
See if I can try find out about TM new plan and see how well it compare to Income. Like i say,
"There is no one size fits all. Only there is no end to learning to how to manage our money better & better. So never, never lock-up our brains though some people may want to do it to/for you. Ha! Ha!"
Cheers!
Agree! If not, why the other insurers also have their own version.
From what I know, only the 3 companies pay for life:
- Income
- GE
- TM
The rest all pay for a period of time only. But they also have their own pools of supporters!
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27-05-2013, 01:20 PM
(This post was last modified: 27-05-2013, 01:21 PM by yeokiwi.)
http://www.btinvest.com.sg/insurance/lif...turns-bar/
Quote:A projected annual investment returns figure that has been used to market life insurance products for more than 11 years might be coming down.
The Business Times understands from various sources that from July this year, the figure could drop from its current 5.25 per cent by possibly half a percentage point.
So, the projected return is going to be 4.75%.
I think we all can imagine what is the guaranteed payout...
With 30 years SGS bond at 2.7%, this is an era of high depreciation of cash savings.
Cash is king... provided you can hang on until the market tanks..(5, 10, 15 or 20 years??)
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(27-05-2013, 01:20 PM)yeokiwi Wrote: http://www.btinvest.com.sg/insurance/lif...turns-bar/
Quote:A projected annual investment returns figure that has been used to market life insurance products for more than 11 years might be coming down.
The Business Times understands from various sources that from July this year, the figure could drop from its current 5.25 per cent by possibly half a percentage point.
So, the projected return is going to be 4.75%.
I think we all can imagine what is the guaranteed payout...
With 30 years SGS bond at 2.7%, this is an era of high depreciation of cash savings.
Cash is king... provided you can hang on until the market tanks..(5, 10, 15 or 20 years??)
From what I can see from my family policies from various insurers, the insurers generally have a portfolio of 60% bonds, 40% equities/others. Assume the equities/others earn a long term return of 8%, and 30yr SG bonds give 2.7%, that gives a return of 4.82% on the portfolio. Pretty close. 
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Sorry for me I dun believe in Annuities, more importantly to have to good hospitalize medical plan to protect your old age best use your cpf medisave to buy, after all u cannot touch the money.
I prefer the 20yrs draw-down option more monthly allowance for me to spend.
If can withdraw out all the money then wait for opportunity and invest in ppty for long term...sure return better then the force savings in CPF,
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