Someone who is my cohort just retired last year. He candidly shared that his average monthly expenses is less than $1000. Some background that I gathered: 1. Married with a working adult child. 2. Stay in condo; ever spinned n profited from few property sales. 3. Still need to support aged parent with 4 siblings. 4. No car. So I did some quick calculation to see sure or not to retire with $1k monthly expenses. Think his $1k p.m. is thin retirement. Utility & PS, water : $100 p.m. Telco: $20 p.m. MCST: $200 p.m. (where got so low maintenance?) Medishieldlife: $800 / 12= $66 p.m. (can pay by CPF-MA) H&S Shield Plan: $1200 / 12 = $100 p.m. (excluded $680 deducted from MA) Support his parents: $2000/5 = $400. Basic fixed monthly overhead: 100+20+200+100 + 400 = $820 With just $1000 p.m., net available for meal = $1000 - $820 = $180 p.m. (or $6 per day) Not forgetting that he just retired, he need to fully pay his last year personal income t...
Which should I choose for my CPFLife; Basic, Standard or Escalating Plan? I wouldnt agree that Life Escalating or Std Plan makes much better sense. 1. Longevity means sure live beyond 94. Only when you sure able to live beyond 94 (+ 1 month) old, you gain. Can anyone sure guarantee to live beyond 94? Escalating Plan breakeven with Standard Plan total payout at age 94. Area under the Payout-Tenure curve. I vaguely remembered counting the area under the curve during CPF Roadshow. 2. Std Plan vs Basic Plan total payout at Std Lifetime Bequest at 85 yo in SG, difference sum of: ~$200 p.m x 12 mth x (84-65) = $45,000. (Should be less than $200 p.m. payout difference; but no matter for more buffer). If you can save this amount, and drawdown, don't even need to consider Std Plan. And with $45,000 topup in RA @4%, you earn perpetual $150 p.m. for lifetime. (=$45,000 x 0.04/12). In addition, you save your $45,000 more for bequest. Also Basic Plan b...
One of my cohorts shared on his recent NEW endowment policy bought with AIA after 1 Jul 2021. It was his first endowment bought. Jul 2021: Single Premium: $45k paid at age 57 After Year-10, Projected payout of $1k p.m. (or $12k p.a.) annually every year from Year-11 to Year-20 (at age 67 to 77). ($45k becomes $120k.) I worked it out on the Xirr calculator to be compounded return of 6.6%; wow it is simply too very good to believe. Based on my knowledge, I shared that if, by then, it's actual payout is $750 p.m. or $9k p.a., he should be laughing every month, at 4.6% compounded xirr rate of return; (highly unlikely to get $1k p.m.) While I agree that AIA is one of the best performing fund for past few years, this projected payout is too good to believe. I also shared a similiar 20-year INCOME Revoretire of $60k premium, payout Year-11 to 20 payout of $9.3k p.a. or $93k p.a. ($60k will become $93k) I am not insurance agent. But I spoke to him with 10-years experience buying 18 ...
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