Assumptions Used/All Articles

Updated: Sep 28


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.



Money Maverick



Sources:

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

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6014663/

2) SEER: Stomach Cancer Survival Rates**

https://www.cancer.org/cancer/stomach-cancer/detection-diagnosis-staging/survival-rates.html

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


4) https://sbr.com.sg/healthcare/news/medical-inflation-rise-93-in-2020#:~:text=The%20cost%20of%20employer%2Dsponsored,insurers%20by%20Willis%20Towers%20Watson***




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