Assumptions Used/All Articles

Updated: Mar 6

Are 'Private Annuity' Plans Superior to CPF? – A Gift for FI-35 and a Lesson for Others

Assumptions Used in Calculations:

Sibor: 1-mth Sibor for Loans

Flat Fee Assumption: 0.8%

Projected Monthly Returns Based on: 3.25% and 4.75% (Private Annuity), Age 55 begins, payouts begin Age 60

Projected Monthly Returns Based on: 3.75% and 4.25% (CPF, as stated on CPF Website, standard plan)

Borrowed Amount: 72% of the first year value --- where $350,000 = 28%, so 72% = $900,000 in borrowing value.

INDIRECT LOSSES! How They Kill Your Dreams (And How Investing Will Save You)

1) Career Opportunity Costs are calculated on an assumption of 5% per annum

For 1b), if you have to end work at the same age (55), Lawyer A would be unable to receive the increments he would otherwise have had if he had continued working.

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Here are some of my resources on:

1) Investing: Why you should invest aggressively NOW (and how you still can have peace of mind)

2) Insurance: The Newest, Rising Critical Illnesses in Singapore (2019)

3) Retirement and Leverage: Leveraging a Private Annuity, Pros and Cons (ft. Jamus Lim)

4) Spending and Saving: The Biggest Spending Mistakes You DIDNT Even Know you were Making (and how to avoid them)

5) Job Assessment: A Case Study on How a $6k/mth Girl makes MUCH more money than a $10k/mth Guy

6) Financial Optimisation: How I Avoid the Largest 'Fees' of All

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1) Influence of the time interval from diagnosis to treatment on survival for early-stage liver cancer*

2) SEER: Stomach Cancer Survival Rates**

3) Risk Management and Insurance, Mark S Dorfman [6th Edition, 1998]


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