Assumptions Used/All Articles

Updated: Oct 11


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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Money Maverick is a Licensed Financial Consultant with MAS, who specializes in Investments and Critical Illness Insurance.


The views on his blog are strictly of his own opinion and have no affiliation to any of the companies he works with.


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


Investments are also available using CPF (Ordinary Account), SRS (Supplementary Retirement Scheme) and Cash.


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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Money Maverick © 2019 | All Rights Reserved | Disclaimer

The views, opinion and information in all articles are those of the author. These materials do not represent or reflect the views of Manulife Financial Advisors nor is endorsed by them. Manulife Financial Advisors shall not be liable or responsible for the materials of the author. 

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