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.
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]