Is the market too high?

Someone asked me, "Is the market too high for investing my money now?"

Here is my advice:

1. For people who are 60 years or older

It is a good time to buy a life annuity. You can get an attractive payback (5% or more) with a bonus that can add another 2% to 3% to the return (not guaranteed). The bonus will be compounded.

If you have invested in a fund previously and made a good gain, make the switch now.

2. For those who are 45 to 60 years

I suggest that you invest in our growth plan. It is for a lump sum investment (using your CPF, SRS or FD). It has a guaranteed return of at least 2% per annum. With bonus, it is likely to earn about 4% to 4% p.a. It is quite safe.

3. If you are younger than 45 years

It is still a good time to invest in our combined fund or global equity fund. As you are investing for 20 years or longer, you will average out the good and bad years.

If you feel that the market is too high now, you can invest your savings in 3 installments over the next 6 to 12 months. You can invest one-third now.

You can keep the remaining savings in the CPF or in our money market fund (which earns 2.5% to 3% and has no lock-in period).

These investments are also available from other insurance companies. But, NTUC Income offers a better return compared to the market, as our charges are lower and most of the investment gain are given back to our customers.