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.