Dear Mr Tan
I am thinking of retiring at 60 in 2007. I like your advice concerning adequate provision for my family. What do I need to do?
I have a 4 year old son, my wife takes (mid 40s) earns about $x monthly. She may also decide to retire.
I have 2 fixed deposits of $50,000. One insurance policy will mature to realise $350,000. We have other policies and investments of about $1 million).
We do not have any outstanding debt.
Best Rgds
GY
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Dear GY
I advise you to consider the following plans:
For investing CPF or bank deposits:
Flexi-Link
For your wife to invest regular savings:
Ideal
Low cost term insurance (to provide security to your family)
Term
Life annuity
Life annuity
My business center manager will ask my product specialist to contact you.
The specialist is paid a salary and does not earn a commission. Feel free to
talk to the specialist.
Tan Kin Lian
Hi Mr Tan,
ReplyDeleteI was going through a discussion forum and there was an IFA that insisted and asserted that one shld NOT invest in NTUC Income Ideal Policies due to 2 reasons:
(1) the performance of NTUC Income funds are inferior to pure vanilla unit trusts. There are unit trusts that perform a lot better than Income's funds
(2) high sales charge of 3.5% compared to online unit trusts and high cost such as 15%-20% of annual premiums as advisory fees as compared to investments in unit trust.
I was under the impression that most funds be it NTUC Income ILP or pure unit trusts performance in the long term should be pretty much the same and that low management fees by Income shld bring about same if not better investments return. However, the IFA claimed that due to reason no. (1), a low management fees (as what is offered by NTUC Income) does not matter.
Do not believe the IFA. He will advise you to put your money in a "better performing fund". He can choose the fund from any of 300 funds that are available in the market.
ReplyDeleteHe will earn a large annual fee from advising you. This fee comes from your return.
The problem is that his recommended fund, which performed well in the past, will probably not perform well in the future. You are paying a high annual fee to the IFA for no real value.