Ferrari Me (Ferrarilim)

 Using layered insurance endowments payouts as Annuity Income: 1.  Previously INCOME and some insurers offer CLASSIC ANNUITY Plans for single premiums by cash or OA.  And those days, BI payout illustration was based on higher Par Fund Performance as follows: Before 1 Jul 2013: 4.75% to 5.25% I managed to buy 5 new endowments during this BEST period. After 1 Jul 2013: 3.25% to 4.75 % I managed to 4 new endowments  during this period. After 1 Jul 2021: Now the BI Par Fund Performance projection is much lower at 3.00% to 4.25%. Why Insurers lower than BI illustration ? Because MAS intervened to ensure its projection was based market Par Fund Performance conditions. MAS intervened twice on 1Jul 19 and 1 Jul 21. Since then, my opinion was that new endowments were not attractive anymore. 1. While one can argue that these are payout projections guidelines, insurers can pay more than these projection payout.   2. But again, which insurers would be.so nice to pay much more than it projected in

Dilemma: Local ETF or DBS shares or Traded Endowment ? 1.  When it comes to buying new/resale endowments, INCOME is my preferred first choice. 2. Of course my opinion is that new endowments are no longer attractive, due to lower BI Par Fund illustration at 3% & 4.25%.   Hardly any insurer will pay more than they stated in their BI; especially if it is a long maturity runway. 3. For me, I won't consider Unit Trust Fund; especially if bought from bank.  You will have to  Fund switching in your self interest. 4.  Today I happened to speak to INCOME Advisor on above INCOME WealthLink (Investment-Link Policy: ILP) investing in Asia Dynamic Return Fund.  It is a local fund managed by Fullerton Fund, incepted since 11 Jan 22 at Par Fund $1/unit.  Now it is trading at $0.81/unit. 5.  Since inception, it has lost 11%.   Fullerton is HQ in Singapore, regulated by MAS. Maybe we can buy at low for now?  lol. My opinion only: I would sure avoid old & mature Fund. In this case, this Asi

Happy Sonday. Someone shared this picture with me. "A Good Wife is Key to True Happiness" I thought that it is not really correct. ~~~   Good wife will slog very hard; and aged very much for the sake of the family. Happy Wife is better.  A Happy & Good Wife is Best. Whether Wife is Good, or Happy, one can maybe gauge on her inner body age.... and frequent smile on her face. ~~~~ Another wise said: When my wife is happy, I am happy. And when my wife is very happy, I am also very happy. Blessed Sunday.❤️🙏

My 11th & 12th Resale Endowments (INCOME X 2) 1. Yesterday I received the official e-Letter of notification of takeover of the two Wholelife policies. So I proceeded to pay up the $42,670 for initial premiums of two INCOME Wholelife Policies bought under Resale Endowments.    This completes the Resale Transitions. As easy that that. The two policies are seen on my MYINCOME Portal online. My next 13th & 14th Resale Endowments 2. TI13 (from GE) Premium: $23,820. Irr: 4.8% Lifetime payout --> $1,000 p.a. x 26 + $28,225 upon maturity payout at Year-26) At Year-26, I would be 60yo + 26 = 86yo. I have reserved my 13th policies which is to pay $1,000 p.a. for my wholelife from Year-0. 3. TI14 (GE) I just reserved this TI14 yesterday. Also from GE. Irr: 4.8% Premium: $18,470 + $1,900 × 6 = $29,870 Lifetime payout (from Year-6 at age 66) --> $1,600 p.a. x 25 + $40,76 upon maturity payout at 2055, at my age 85) 4. TI13 is better as I start collect at Year-0 at age 60 this year.

Manulife Income-Secure -  DBS agent quoted me the above Manulife policy yesterday. In short (Pay 5, Collect 60 @60yo) Pay $10k x 5 (Less Yr1 bonus $800). Projected lifetime payout: $1,000 p.a. for 60 years, from Year-3; based on the BI 4.25% Par Fund Performance. My Comment: 1. For me, this fixed income policy really cannot buy. Compare with CPF OA 2.5% (Reference#1) 2. Putting into OA @2.5%, risk free, capital guaranteed, $50,000×0.025 = *$1,250* p.a. In fact, it won't be attractive for anyone above age 55 who already can withdraw from OA interest. 3. I got back to her that we don't need to meet. Besides the BI at 100yo: At 4.25%, return is 2.84% p.a. At 3%, return is 1.87% p.a. Compare with DBS Stock (Ref#2) 4. lol. If I put into DBS $50k shares, I will have dividend $2k p.a. easily. Compare with (T-bills & banks interest rate)(Ref#3) For short term which these money market is still good, invest in them first. ~~~ My takeaway 1. Tradition new endowment market is not so b

Risk-free T-bills SGS T-bills have been around for many years. It only caught much attention due to recent high T-bill interest rate. For those who can afford to put-aside some money in T-bills, it is a useful avenue to get coffee money which is risk-free. The interest earned can also be used to pay utility bills or even pocket money for our school-going children. Example, 6-mth T-bill interest can fund our monthly expenses: $50,000 @3.7% = 50,000×0.037÷2÷6 = $150 p.m.  $100,000 @3.7% = 100,000×0.037÷2÷6 = $300 p.m. My takeaway Whatever it takes, make effort to invest.

1. Have you ever asked why Resale Endowments are able to give lifetime payout risk-free 4.1%? 2. What is the catch and where does the returns come from? My reply: 1.  Insurers can also pay because their biz model comes from getting customers invest in them.   2. Recently the policies Benefit Illustration was made to reduce their return projection, these insurers have to keep innovating to draw customers, in a small local market. 3. That's why we have to be careful which insurers we invest in, their fees n costs overhead. Ultimately can they keep delivering? 4. While they guarantee annual cashbacks, they will likely cut in their maturity payout. As an illustration Actually the original policy pays 3.+%, but because it was re-sold at a discount to us, our premiums were lower & discounted. This allows us to now enjoy higher irr 4.+% ~ 5%, though the policy remaining terms and payouts are unchanged at 3.+%.   That's the mechanism and benefits of Resale Insurance. ~~~ My takeaw

 1. Today I signed to takeover the 2 resale insurance; mainly TI11 & TI12. 2. At INCOME Branch, I tallied and confirmed the Policies Cash Values are as sold to me. 3. Interestingly, both policies are not endowments, but someone's wholelife policies, They started at their ages 13 & 21 on 2005 & 2006 respectively. 4. It was the first time buying someone's wholelife policies.   The irony: I surrendered both my PrudLink and Manulife Estate Protector policies as my own CI will expire by my age 63 in a few years' time.  Yet now, I buy someone's much younger wholelife policies which have breakeven.  I buy their wholelife which have Cash Values to form my Cash CI which covers me from now  and beyond. 5.  Both policies have guaranteed surrendered value upon maturity payout in 8~9years (Xirr: 5%) 6. In 2032/33, age 67/68, Total premiums paid $55.2k, Total combined guaranteed maturity payout = $81.7k. (XIRR =5%.) 7. While it was guaranteed upto my age 67/68, they are

  Building a stock portfolio 1. Know your risk tolerance. 2. Adequate industrial diversification 3. Don't put all your eggs in one region 4. Each portfolio size 5. Monitor & Review I wonder if this writer is old-fashioned way of stock investment ?  But I agree that "not to put all eggs in one basket". 1.  What stocks make up STI? Top-5 largest components of the ST: 1. DBS (20.2% weightage) 2. OCBC (11.8% weightage) 3. UOB (11.6% weightage) 4. Singtel (6.2% weightage) 5. Jardin Matheson (4.6%) makes up 60% of STI. These companies pay most of dividends. Why then bother to buy other stocks ? When these stock prices rise, so will the Index. 2. What stocks made up S&P 500 ? Top 8 largest companies of S&P 500 that made up 30% of market capitalization. 1. Apple, 2. Microsoft, 3. Amazon.com, 4. Nvidia, 5. Alphabet 6. Meta Platforms 7. Tesla 8. Berkshire Why then bother to buy other stocks ?  ~~~ Talking of diversification, most of us put 100% of our assets into SG bas

Pay5, Wait5, Payout5 This is my first 15-year $100k endowment bought from GE in 2011.  It was my first venture into buying 21 endowments journey.... And I am still buying more. Lol. I heard from my agent that many queue at GE Centre @Pickering St to complain after GE declare their policies payouts cut !!   It suffered a cut in maturity payout from $29,100 to $20,320 at Year-15 maturity year. ~~~ Year-11 to Year-14 (Guaranteed payout) Year-11 to Year-14 is guaranteed at $29,100 annually from 2021 to 2024. My 4th payout is this 7th Mar 2024, guaranteed at $29,100. Year-15 in 2025 Even with the maturity payout cut/revised from $29,100 to $20,320. ~~~ XIRR downs It's effective XIRR drops from 3.77% to 3.16% p.a. annualized return. Effect :  Still beat OA 2.5% p.a. ~~~~~ Paradox of buying endowment/annuity 1. I know how to invest. I would not invest in endowment. I sure can make. 2 Don't trust Endowments. The payouts are not guaranteed. 3. Endowments payout yield will not be eve