Ferrari Me (Ferrarilim)

 Just sharing. I admitted myself at A&E this Wed.  Wonder why? It was hot Wed afternoon. Suddenly I felt that my right eye had sort-of a film in front of it. I quickly went to the mirror to assess. Looks normal, eye ball is still white, no sign of cataract, not flashes looking at all directions.  Hardly floaters when I close my eyes. The effect was like someone's eye sight just woke up in the morning. My intuitive was quickly to buy an Eye-Mo moist eye-drop.  It sorts of help a little. Why I then have to admit to A&E? What is the outcome?  Want to try guessing? ~~~~~~ For quick knowledge sharing Two severe degradations of the eyes are: Glaucoma & Retina tear or detachment.  For others, you can search online.  Should these severity happen, immediate medical attention is important; not even to wait for another day. Retinal detachment itself is painless. But warning signs almost always appear before it occurs or has advanced, such as: -sudden...

Just sharing on Personal Health charting Some people keep full record of the wealth and networth charting. For me, I keep a full record of 25-year personal health screening record of ~57 parameters tally; since 1998 to 2023. I would tabulate them, make diet adjustment to keep their numbers within baseline. In that way, my health numbers (cholesterol count, key organs numbers, blood and urine numbers) are regulated.  So far, from my 2023 health record to-date, I am able to keep these numbers to match my age 34 yo body health numbers. Many of my cohorts suffer from some conditions of diabetes, high blood pressure, bad cholesterol issues, some already on stents.  Putting aside hereditary cases, one can actually regulate through your dieting and regular exercises. ~~~~~~ For me, I started my jogging regiment since 2011 when I realised that my LDL cholesterol numbers had exceeded its nominal ranges.   Over the past 10-years, I pick my jogging, starting from 1.5km to compl...

 This week I spoke to two Seniors on the topics: They are in the Go-go years. Go-Go Years (age 65 to 75) . Slower-Go Years (age 76 to 85) N o -Go Years (age 86 to 100)   One was too absorbed into work into late nights still, even if he/she is able to retire; adult children nearing 30s and already working.  Within ~5 years, suffered some bad health that required few hospitalizations. But thankfully had recovered. The second retired who chose to stay at home looking after grandchildren on weekdays. Both knees had undergone Kneecap replacements. I shared on their Go-go years which is now. Don't choose to stay at home if you can. Leave it to the No-Go years stage when you can't even or has to be lugged to go out.

  Counting our blessings When one retires, one casual question usually someone would ask; that is, "what do you today these days into retirement? " I might say, "No nothing.  Even if it is just eat-sleep-shop-walk for few years, we deserve it.  Afterall, we have toiled a long whole lifetime." Allow me to share three heart-warming scenes which I saw this week. ~~~~ Scene 1: I was doing my regular jog at the KR Hill, I saw 2 retired couple, lifting up drain iron grills to remove the clog in the drain.  Upon asking, they were concerned of mosquitoes breeding.  The man came prepared, wore gloves, shovel in hand, he scooped up the blockages to clear the water flows.  He even went to the extent to ensure water flow into the reservoir. Scene 2: I heard an elderly woman gentle voice to her teenaged granddaughter ,"See you and have fun?" Upon seeing, this young girl seems mildly retarded, helped by a domestic helper. It was quite heartfelt pain for who would want...

 Usually such CPFLIFE Table payout refers to those who choose Standard Plan . When my RA account started at age 55: I topup my RA account to its max ERS in 2019. Over the years, annually in beginning of subsequent years, I keep topping up to the allowable RA limit.  The first cash sum of $88k then was a steep amount.  Subsequently I remembered it was easier: roughly $7.5k, $8k, $9k, now $10.2k.  2019: age 55: $264,000 2020: age 56: $273,000 (+$9k) 2021: age 57: $300,000 (+$13k) 2022: age 58: $322,000 (+$22k) 2023: age 59: $346,000 (+$24k) CPFB ever replied to my query on my Payout at age 65, under Basic Plan which I pay to choose,  the CPFLIFE payout would be: $2,200 to $2,500 p.m. for my life. So, this seems align with the above Std-Plan Payout Table. ~~~~ Why Basic Plan not Std Plan? 1. Large Bequest Sum is main consideration. For Basic Plan, Bequest Sum is $94k, at age 83. For Std Plan, Bequest sum: $0 after age 80. 2. Small Payout difference in monthly payou...

I wrote to CPFB to query on my ERS payout if I keep topping up from age 55 to age 65. Their reply for my case, under CPFLife Basic Plan: At age 65, I should get $2,200 ~ $2,500 p.m. for life. This was the official CPFB payout reply of my ERS payout. ~~~~~ If for each year I keep deferring payout till age 70, my CPFLife payout will be: Age 65: $2200 ~ $2500 p.m. Age 66: ($2200 * 1.07) ~ ($2500 * 1.07).. Age 66: $2,354 ~ $2,675 p.m. Age 67: $2,518 ~ $2,862 p.m. Age 68: $2,695 ~ $3,062 p.m. Age 69: $2,883 ~ $3,276 p.m. Age 70: $3,085 ~ $3,506 p.m. At age 70, Under Basic Plan, payout $3k ~ $3.5k p.m. singly, just from CPFLife payout.

Someone mentioned that his RA can touch $825k at age 65.  Now his SA is $210k early 40yo. My opinion: RA @65yo $825,000 seems a large sum to reach.   What would be the FRS or ERS amount to reach this $825,000 at age 65?   During my time at age 55, my RA @55/ERS was then $264,000. Max that I can topup. And I annually rtsu max $9k to $10.3k every Jan still might not even touch this large number.    I am still working and contributing to my max RA annually.  At age 58, my ERS is only $355k. Some calculation hopefully correct, $355k+(($355k−$264k)÷(58−55)) ×(65−58) = $567,300 at my age 65 yo. (Still cannot touch $825k for me in my RA at age 65.) With 7 more years to reach age 65, I dont think that I would touch $825k. ~~~~~ So I extrapolate from age 55 to 58, Even with SA $0 at age 55, one can max cash topup into RA. So need not bring in SA. So we focus on what is the RA required at age 55 to reach $825k. So, I try to interpolate, ($825,000−$60,000)×(...

I just saw a typical hdb coffeeshop drink also adds a big scoop of sugar in their fresh brew of tea (maybe even coffee). No wonder Singaporeans are diabetes prone. Even kosong has sugar added! Looks like need to order Lipton Tea no sugar, or Chinese Tea now. ~~~~ Why am I so concerned about sugar intake? Under my company sponsored Annual Health Screening Package since age 34, I faithfully tabulate the entire 57 parameters of my full health historical record, from Year 1998 till 2023.   And I try made adjustment to my diet to bring these numbers back to desired ranges.  Just to share, Age 34: Glucose was 81 mg/dL (desired range: 65 to 120). Age 40: Glucose: 84 Age 50: Glucose: 83 Age 58: Glucose: 81 mg/dL (Jan 2023) Excessive salt and sugar intake can create health adhoc to our bodies. Remember our Garhman call for "War on Diabetes?"

It is the season of Tech companies trimming employees world-wide to maintain biz competitiveness.    Hiring and firing takes just an email of notification.  Where to find job security? Just forget about long term career prospect in the company or long term biz plan. So hold two jobs and build up Passive Income?   1. In short: say nimble, and be prepared in your mindset.  Tomorrow might be your last day of work.  We are never indispensable. 2. Reduce high leveraged on loan. 3. Keep six month or even one year of cash buffer for contingency like this. Cash buffer maybe in Insurance policies cash value, stock at hand.  If no choice, just have to tide over. 4. Always keep your network wide, upkeep your resume, sharpen your interview skills, keep your job experience relevant and not too narrowly scoped. ~~~~  But where can we find the save cash to buffer?  1.  Your cash value in your insurance or policy surrender value.   (In on...

For amuse, "who came to save Harry Potter in the Last Episode "Deathly Hallow"? Did someone say was His Father!? Just a laugh.  It was Harry himself. Many parents are not aware nor reluctant to be their Children's Plan B. First priority, take care of ourselves first, as parents.  Let us be the Last Sandwiched Generation . Of course for those who are in late 50s, by now, one should have achieved self sufficiency; not forgetting to level-up your spouse in health n finances, alongside with your progress. While I am sad n acknowledged that some sickness n illness that strike is not within our controls. ~~~~ Case 1: Past week, I chatted with a healthy looking man at the coffee-shop. He just consulted the Doctor for his dropping Platelet counts. Wow, quite low. Platelet normal range: 150,000/mL to 400,000/mL. His Platelet count is: 50,000/mL. Ma-chiam kenna Dengue. But diagnosis says it's not. Case 2: Someone's mum diagnosed with Panacea Cancer; maybe at least ...

Someone just chatted that $2,000 p.m. is enough for retirement for him as a single.  Maybe he is about 35? So I free free check. Can Singles retire with $2,000 p.m. (present value) now? H&S : $1,000 p.a. Home conservancy fee: $100 x 12 = $1,200 p.a. CareshieldLife: $0 (pay by MA) Utility n Broadband/Telco: $130 x 12 = $1,560 CI : $0 Term Insurance : $0 Home loan:  $0 (fully paid) Home Property Tax: $100 p.a. Transport : $30 Parent allowance: $100 p.m. Total annual fixed cost : $3,990 p.a. (= $330 p.m.) ~~~~~ P lanned budget: $2,000 p.m. Food : $15 daily x 30 =$600 p.m. Surplus: $2,000 - $330 - $600 = $1,070 p.m. In summary , 1. Previously someone said $1,000 p.m. (married with adult child, stay in condo, 5 Siblings support aged parent): $1,000 p.m. is not enough. 2. Here is the other way for Singles: $1,000 p.m. may even be possible. GxGx. 3. In 25-years time, $1,000 p.m. would be $2,000 per month, at 3% inflation rate compounded. Poor me, even with $7,000 p.m. (singly) ...

In our chat, someone shared on his semi-retirement at age 32, married with 2 kids. He has some grandparents inheritance boost.   So I free free make a guess. How much does it cost to setup a new family.  With rising cost, young couple can be deterred to rush into marriage. It is very costly to start a family, I think.  Imagine to get married, buy home & furnishing, wedding, honeymoon.  We put aside car ownership and then service the home loan.   What is the minimum one needs at least $150k to start a family?  "Face" hoh.  Wedding is a woman's big day hoh.   Maybe I make a guess how much is required to setup one new family in SG; assume: - 4bedroom hdb: 4% BSD cash + 25% downpayment (5% cash, 20% cash/cpf) of say, $450k home (cash outlay: $18k + 20k = $38k); assume their cpf OA can cover the 20%. - Basic home furnishing: $50k.  Maybe BTO saves on some renov cost but need to wait for TOP. - Wedding reception: delta cost damag...

Good to know on things of the Brain Health.  Physical fitness does not imply  Mental Health. ~~~~ I know of a marathoner, my cohort, who clocks 4hr+ in his full marathons, has shown some sign of early sign of Parkinson. Our Mr Sim MW, the Ultra-marathoner and at least 50 full marathons under his belt. He passed away suddenly in Jan 2023 this year. Super-fit! We need: - to listen to our body, - watch over weakness, - don't over clock our Max Heartbeat, - keep our body circulatory system and digestive system clean. I observe that our old folks' aging problems are in: - sight, - hearing, - knee cap, - weakness in limbs, - stroke, - dementia or Parkinson, - heart weakness ~~~~~ Other minor signs like Prostate, urinary, issue, wrinkling .... we put them aside. Lung (our respiratory system) - dont forget our 3th most common cancers in SG. I am still pondering over this. My lady friend died of Stage 4 few years ago. She was not a smoker, but used inhaler. I really don't know. One...

 This is an illustration of Resale Insurance which I bought in Jun 2021.  Original Aviva Policy -  started 23 Mar 17. Ends on 23 Mar 32.  Total: 15-year. Bought by a 50-yo woman. Her premium term: 10-year. Cashback started at end of Year-2, which was subtracted from her annual premium. Resale Policy  - started 23 Jun 21.  Ends on 23 Mar 32.  Total: 10-year 9-month. Bought by me through TES Capital, the Middleman. ~~~~ To compare original vs Resale XIRR.   Some observations made: Observation#1 : The saving is about S$2k discount the new endowment. Regrettably subsided by the first original policy holder who surrendered. Observation#2 : Maturity payout at Year-15 remains unchanged as I bought over the policy; nevermind who that Original Assured is still "her". Observation#3 : Her original premium is slightly more as she added rider to her policy. This adds to her premium without adding to its payout.  Observation#4 would be to quickly p...

Why Mr Ferrari?  Not my Christian name certainly.  Ferrari is conveniently derived to my approach to saving through layers of endowment policies, unknowingly, into a "Endowment Tap" that gives me a Ferrari-worth of premium and its payouts for my retirement. ~~~~  I had developed some PowerPoint slides to illustrate "My Ferrari Story". Some listened and got inspired. Some listened and got disappointed. Some listened and got critical. One walked away half-way through my sharing; this number and the way to save so big a number is too impossible for him. That was what his colleague shared with me. This guy in his mid-30s barely earn $3000 a month. But the colleague stayed and learned a way to getting more out of his CPF as he enquired and spoke with me. He is my cohort; age 59 this year and not earning much as a xxxxxx. ~~~~ We are here to share and learn from one another.   Not to teach but to grow as we age healthily and retire comfortably.

How much to retire in MY? Interestingly, the number is quite similar to retiring in SG, but in MY Ringgits. A 'S$1.8M figure' was earlier asked in one of the large SG chatgroup if it is possible to retire in SG with this portfolio". So I blogged on this S$1.8M portfolio, did some basic estimate calculation with 3% cost inflation.  My conclusion is "Yes it seems very possible.  Somehow it translates to S$3k per month, and of course RM10k p.m. in MY!" RM10k! p.m. in MY sure can retire in MY. How many people in MY earns RM10k p.m. income? ~~~~~ Now, as I am taking a break in MY, I free free compute if RM1.8M possible to retire in MY. Not S$1.8M or RM6M hoh! ~~~~~~ Assume one owns a MY property, fully paid. Annual Maintenance cost to cover Svc Charge, Sinking fund, water n electricity charges, quit rent, fire insurance, water tax, property tax.   It works out to be RM4k ~ RM6k, depend on State n Development size.   Yes. it is RM4k to RM6k per year. If it is R...

 If you are in your 20s, 30s or even 40 year old, to consider CI in another 30-40 years is a long time of uncertainty.   Single's consideration for CI is different from Married Man's consideration. Just hopefully don't burden those who are most affected to care for you. Any guru wants to try derive an estimate for CI Coverage in 30-40 years time ?  $500k is better than $200k; $1M better than $500k... ~~~~ Few years ago, I met a senior whose wife underwent triple hosp treatment for recurrent stroke op in a private hospital.   The total bill came up to $1M.  He didn't ask him what was the actual cash that he paid. Assuming best case of 10% Co-pay Assist for H&S, with CI As-charged rider, it would be $100k cash.  And this was present-day cost in a Private Hospital. Maybe cancer treatment cost and medicine would have to pay much more.  I really don't know either.   Few years back, Medishieldlife has yet kicked in. At the end of the ...

How much total to cover $1M CI TermLife? Different insurers CI coverage may vary;  - pre-post consultation duration by its Panel doctors,  - early or advanced stage CI  - premium overlay (limited pay or lifetime pay, fixed level or age adjusted cost) - Termlife coverage (accelerated or fixed) - Lifetime or limited age tenure. - in their T&Cs (fine-print). Insurers may not even last our lifetime, even being sold off to another; worse if it closes its biz CI segment. So my opinion is to buy CI through various insurers; better local ones like INCOME, GE Life, Singlife-Aviva.   I am not insurance agent.  But I am familiar with the cost which I paid for.  So allow me to give you some cost estimate to cover $1M in their lifetime over next 60 years! ~~~~~ Someone says CI is good to have.  Should it strikes, your loved ones will suffer to take care of you. CI insurance has to work hand in hand with H&S + 10% Co-Pay Assist to cover As-charged cost....

  It's so painful to see old auntie n uncle being held by their children as they walk. We are nearing or hit 60.  In another 20-years, we will be the old man or woman being helped as we walk. How prepared are you for this day to come? That's life ... One generation builds, another enjoys. One generation helps another generation. So, when is the best time for ourselves?  Dont think we are always the marathoner or Superman, super-fit and super-healthy. Reply1: They are fortunate to have children who are willing to hold their hands. I have seen old man, old woman struggling to walk with walking stick with no one by their sides. Reply2: Ask your children not to hold your hands too tight lah. Squeezing can hurt our fragile hands. Reply3:  Is it better for them to walk alone with no children in sight?

How to fight 3% inflation when you retire? Some say $1,000 per month is enough to retire; another say $3,500; yet another say $5,000.  And that is assuming no inflation effect that capsizes our plan. Assume if you can retire with $5,000 per month singly. How to do it? Using my default Vindeep Xirr calculator, this policy gives xirr: 3.57%. ~~~~~~~ Yr0: Age 47 (2012): Bought $100k policy. (Before my birthday at age 48 in 2012) Yr3: At Age 50 (2015): $5k payout cash started Yr4 to Yr11 (2016 to 2023): Age 51 to 58: $5k payout cash.   I have been collecting guaranteed $5,000 p.a. for past 8 years. Yr12 (now) at age 59 to Yr 19 at age 66 (= 8 years more before policy matures).  Yr20 at age 67: maturity sum $118k payout (which can be drawdown at $5k for next 23 years.) or $8k p.a. for next 8-years to account for inflation. Yr-21 to Yr-21+22: another 23 years drawdown $5k. ~~~~~~ 2.  My own retirement expenses This article, I hope to share with you how one can retire ...

Who says MY bank home loan is very high, more than 5%? Why rely on hearsay or rumour? Why not ask someone who owns MY property for more than a decade ago? Since TOP till now, my bank loan interest rate is fixed at 6.6%  - 2.4% = 4.2%; 6.6% being Basic Loan Rate (BLR) & 2.4% being fixed cost of finance. In other words, my MY home loan has been 4.2% fixed for many years.   (I jusy checked.  In fact my loan rate is now 4.05) Imagine 10-years ago, RM:S$ = 2.5; now RM:S$3.23   Translate to S$ loan interest, it's equivalent rate would be 4.2%/3.23 = 1.3%. So, 1.3% fixed rate, so long as the BLR is 6.6%. 1. Someone asks: "But that also means the actual value of your house has dropped via depreciating exchange rate." My reply: "Contrary, your purchased price is now discounted at 30% saving due to forex advantage for SG. 2. Someone asks: "But if you sell now? Current asset value…" I would reply, "It is always a blessing to enlarge our boundary and a good Pl...

Sharing on the outcome of my MrFerrari Blog postings (within this month). The hits may give some indications of  "What Interest 1M65?" Top-10 hits (with numbers) 1.  Can retire with $1k? (426) 2. Blessing our children (314) 3. Why hurry to retire ? (282) 4. Which CI would I buy? (137) 5. Endowment vs Resale Endowment (135) 6. FI at 40? (119) 7. $3.5k p.m. realistic or not? (88) 8. Crystal Ball for Longevity (86) 9.  Is Endowment better than our SA ? (79) 10. With $1.8M, can retire? (77)

"Overseas property Purchase checklist#1" makes easy Bettter to hear from someone who has own overseas properties for more than a decade;  live in them, manage them & even going through past few years of closed borders during recent Covid Pandemic. Buying into an overseas property, esp. your first, can be a scary plunge, going through the sales processes and financing.  It takes time to learn. It will be a long term investment, minimum 3 years; not like buying into stocks, where buy and sell within a minute! Off the cuff, I list out a reality checklist#1 to hopefully guide you into your first plunge into the whole new world of Plan B or/& proud property owner beyond our shores. This checklist is actually basic. Hopefully it helps you start-off your thinking before you plunge into it. Woes or Blessings you interpret.   Checklist#1 - Buying O/S Property 1. Why do you decide to buy an overseas property?  2. Which country & city would you wish to stay or ...

I have ever asked a MY working in SG. $3k p.m. can retire in SG? She hesitated and replied: "Hard." I asked again, "Can RM10k retire in MY ?" Without hesitation, she replied: "Can!". And that was 5-years' ago question. But I think that it is still Valid as $3k p.m. is a good buffer.    Imagine if I settle with $1k or RM3.2K p.m. retirement, the reply would be "Very Hard!" now with rising cost. Of course, one can still scale down to $1k p.m. (or RM3.2k p.m.).  But we dont treat ourselves badly in our last leg. Being frugal is one, but really, no $ no talk.   Old age has old age problem and cost, aggravated by inflation.  So don't anyhow declare FIRE blindly now and becomes someone problem 30-years later. Cannot hao-lian one. In other words,  1. If MY is the retirement road to take, maybe Act Now and find out more. 2. If it is ours & children Plan B or to follow Mr Loo for "Good Food", maybe Act Now and find out more. But make...

With $1.8M portfolio, can retire at age 55? Someone ever asked if $2M portfolio can retire comfortably in Singapore? (and assume excludes our home asset). I put in some numbers for clarity.  It is always easy to understand with illustrations. But it assumes retiring at age 55, where one can draw out from our CPF Annual interest. Generally, safely assume that $1.8M is distributed as follows, in 4 Taps: CPF: ~$1M (our most valuable asset) SRS: $100k (build-up for tax saving; lockup till age 62) Stock Dividend:$500k Endowment: $200k, with 3% annual cashback One can achieve $3k p.m. for retirement passive income. $950k cpf @age 55 RA: ~$300k (FRS: $198.8k ERS:$298k). No payout till age 65. MA: $60k (assume don't touch $) SA: $100k: $4k OA: $490k: $12.2k Total interest: $16k p.a. ($1.3k p.m.) (oh ok.  Drawdown SA then OA, we assume SA: $0 after 6-years and no SA interest.) srs: $100k (cannot touch till age 62). (After age 61, srs can takeover to contribute). $500k @3%,  Divide...

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 ...

XIRR or CAGR more practical ? For a layman who tries to invest, if he can gain more than Bank FD and don't lose his capital, it is already a blessing. Of course gain 1,000% is even better. Let me share my two simple calculators which I usually use; xirr & cagr for my investment return. From Web-search of Xirr & cagr: 1. XIRR stands for Extended Internal Rate of Return is a method to calculate returns on investments of multiple transactions at different times. 2. XIRR is an annualized form of return over a time period if the annual return is compounded. 3. XIRR is our personal rate of actual return on our investments. Don't really understand, nevermind. We read on. As for Cagr: Compound annual growth rate is a business & investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.  Oops! Nevermind I show you by an example. ~~~~~ 1. I use both xirr n cagr to compare my investment and to cross-check. 2. M...

With CPF changes from Sep 23 for Senior (between 55 to 60),  this increases monthly contribution from max cap of $6,000 to $6,300 in Sep. For my cohort between age 55 to 60, our contribution rate is reduced from 37% to recently adjusted 29.5%; (that is, employer contributes $14.5%, employee contributes $15% per month.) From Sep onwards, CPF topup is 29.5% of $6,300 per month. In other words, now we can topup slightly lesser with this extra $300 per month into CPF. I usually try to topup my CPF annual contribution to its max $37,740. --- For those above age 55 to 60, this year 2023 total CPF contributions will be: Jan - Aug 23: $1,770 x 8 (= 0.295 × $6000 x 8) = $14,160 (for 8-months) Sep - Dec 23: $1,858.50 × 4 (= 0.295 x $6,300 x 4) = $7,434 (for 4-months) Assume Add:  3-mth bonus in Jul: $1,770 x 3 = $5,310 AWS in Dec23: $1,858.50 Total whole year CPF contribution = ($14,160 + $7,434)+ ($5,310 + $1,858.50) = $28,762.50 Additional $ to topup to $37,740 max = $37,740 - $28,76...

Further sharing on Resale Endowments. 1. Possible to share what are the things to take note before taking up the resale endowment policy?  Off my mind: 1. Budget  (if digestible). 2. Tenure.  Keep it short, within 5-7 years (if possible to lower risk) 3. IRR, learn to compute if it's true as per middleman computed. 4. Guaranteed vs non-guaranteed payout ratio.   This is dependent on insurer.  Only trust local ones, if possible.  If guaranteed can't even breakeven your total premium paid, then don't bother as it can be risky for me. 5. Those with annual cashback is better as it can lower your annual payout.  I usually reinvest the cashback, generally at guaranteed 3%~3.5%; I don't withdraw and collect it as higher maturity payout. 6. I buy policies long enough to trust that insures will pay nearer to higher BI.  But experience may be different.   7.  I choose TES Capital and Conservation Capital. These are two of the seven middl...

I just reserve to buy 2 more resale endowments.  They will add to my 9th resale endowments. Part1:  As an illustration of one of them. Simply, at age 47, I bought: First Insurance from GE direct: 1st policy of $100k; pay $20k p.a. x 5 year.  In this case, I talk about (one  $20k) bought in 2012, matured and payout ($29.1k) in 2023 (after 11years).   This is a new endowment which I bought from GE insurance directly.  At that time, I don't think that there is such Resale Insurance market yet. Second insurance. Resale Endowment: After 10-years, this first endowment matured last year. Started to payout on 11th year.  That's when I reinvest into Resale Insurance. This matured sum of $29.1k is then recycled to reinvest in 2nd resale policy, which will mature in 6-Yr in Year 2029. (My age 65). It's combined IRR: 4.47% Invested $20k,got $29.1k which then reinvest $18.4k to get $24.3k. In summary for Part1: $20k --》($29.1k - $18.43k) + $24.32k  $20k -...

It's a good and cool weekend R&R after a long week. When we hear of people able to retire with $1k p.m., we would usually react that it may not be adequate.  I agree that we should not judge on how low or high?   Agree that to each his own.  In the end, some may just cheer or jeer. Web-search survey shows $3.5k p.m. is possible to retire with in SG for a household, maybe with no car and staying in hdb or frugal expenditure ? I am a bit KS. If $3.5k p.m is enough, then: My quoting of $5k p.m. is to pitch higher than the typical norm that $3.5k p.m. is enough.  Generally some better-off say the realistic monthly expenses, for now, is $5k p.m.   I quite agree with this practical and realistic number. Better to aim high, but expect the worst. Certainly not $1k p.m. as my cohort had earlier shared and I shared earlier.   See my blog. For his case, he stays in condo, have aged dependency and married.   But for singles without any obli...

  FI at 40?  Can or not? Someone tries to compute the means to achieve $1M for FI at age 40. Say he started salary at $3.5k, which is about current glassdoor salary for some industry. I thought it is too low bar for Gen Z.  Some New Age starting pay is already near $6k. Anyway, who are we to judge if the bar is too low? To each, his own.  Good reminder. I had wanted to compute how much the under-40 can save $1M in CPF.  But realised that it is too academic and not practical.  Simply because they need to pay for their new home loan.  They also need to support new family expenses and children dependencies. That's life in SG or anywhere.   But count our blessing that our Income Tax bracket is capped at 22% for now. Count ourselves as blessed, enjoying food, shelter, job opportunity, security & safety in SG. New Age benefits, new age opportunities and challenges. Just one email and we are out of job for the New Age. To achieve FI at 40, it ma...

Those were the days our father brought home the bacon, gave us the education & provided us an environment for success. These days, I am glad that parenting go beyond what our parents had shown us; especially in the new world of uncertainty and job market competition. We cover our children with insurance, topup their CPF,  ... best parenting plan for them... As I am reading the WORD, "price" and "prize" came to me. Let our gifts to our children be a prize to them; and not be a price they have to pay. Then how do we tell if it's prize or price？ Simple.  Does this gift bring warmth, love and bonding? or tear family apart ? Make it a blessing; not a burden to them. Remember, Wealth Whisper; just don't tempt the evil ones.

 New endowment vs Resale endowment Thought it would be good to share. I like Resale Endowment better as it fast-forward policy maturity and better payout due to shorter tenure takeover. ~~~~~~ 1.  What is difference between Annuity n Endowment?  From web search, most annuity plans pay a regular income for as long as one lives. On the other hand, endowment plans are typically insurance policies which help you to save. However, the difference between such plans is getting increasingly blurred as insurers respond to market demands and become more creative with their product offerings. It is now common to find Endowment plans that have features which also pay a regular income over a fixed period. ~~~~ 2. What brands of annuity do u recommend? This era I wouldn't buy annuity for now. T-Bills and FD returns are better for now. I have leveraged annuity,  like GE/PLG6 or PLR6.  (I earlier bought PLG1 & PLG3). Pay in single premium & loan the rest. You can pay in...

 What high inflation? No scare! After 55yo, CPF monthly contributions, salary cap at $6k p.m @29.5% rate = $1,770 Employee: $900 p.m. (15% of $6k) Employer: $870 p.m (= 14.5% of $6k) Total CPF mthly contribution : ($900 + $870) = $1,770 Annual CPF contribution: $1,770 × 13 = $23,010 Imagine one works from 55 to 63: It adds: $23,010 × (62-55) = $161,070 over 7-years For a working couple , combined CPF earning : $161,070 p.a. x 2 = $322,140 p.a. for 7-years . Critics would say still need contribute into MA too.   But no matter, keep it simple.These additional contributions earn annual interest; we yearly use it to topup our MA or even RA. With $322,140 from working from age 55 upto 63, the retirement options are plentiful. In summary,  -if health permits,  -work half-time allows,  -still keep salary above $6k singly, or $12k couple, you are ready for Fat R; this alone can fund 5.4-years @$5k p.m household expenses. ($5k pm x 12 mth) x 5.4 years = $324,000). ...

Recent T-bills high 4% interest rate may have created much turbulence in Insurance Industry; esp. in Annuity n Endowment sales.   Coupled by MAS guidelines of triple whammy lowering of the lower & higher Illustration of Investment Return from: 3.75% ~ 5.25% 3.25% ~ 4.75% (from 1 Jul 13) 3.00% ~ 4.25% (from 1 Jul 21) Buying of new endowment policies are not so attractive now, aggravated by high T-bills interest rate. While insurers can say these  illustration benefits are just guidelines; insurers can still give higher payout above these higher illustration;  Say what you like, which insurer would be so generous to pay higher than what they are obliged to?   So far only NTUC Income ever did it, during Mr Tan Kin Lian era.  It ever gave higher than the 5.25% illustrated for 20-year policies. It went on the Papers. Tokio Marine has never cut its bonus for past 110 years. I am no insurance agent.  But if I were to buy endowments again, beyond my c...