I have updated my FAQ on Financial Planning for Seniors. It contains tips on investment and insurance for seniors (i.e. age 45 and older). I hope that you find it to be useful.
After 2008 you can only withdraw the balance after setting aside the minimum sum.So those looking forward to withdraw some money when you reach 55 i advise that you start making your money work harder.and for some even harder. What types of instruments give a better run for your money. I can't think of any except a portfolio of diversified ILPs or unit trusts. Forget about those fixed return or participating single premium endowment. They can't help you except the agents who sell you.It is time to understand risk and embrace it to your advantage otherwise money no enough when you retire.
I strongly advise those with substantial balance in the CPFOA to transfer some to your special account and if possible to maximise up to the allowable minimum sum to earn a risk free 4%. Currently it is $99,600. Some insurance agents will cite irreversibility to discourage you from transferring for they don't want you to earn the 4% and also because they have nothing to sell you which can earn you more than 4%. It is good to start early if you have spare balance which is not used for housing to quickly accumulate the minimum sum. After all, you have to have it one day. And even if it is in the special account you can still invest but make sure that you earn at least 6% to 8% and above otherwise don't consider.If they tell you it is difficult go to a qualified one who can.
After 2008 you can only withdraw the balance after setting aside the minimum sum.So those looking forward to withdraw some money when you reach 55 i advise that you start making your money work harder.and for some even harder. What types of instruments give a better run for your money. I can't think of any except a portfolio of diversified ILPs or unit trusts. Forget about those fixed return or participating single premium endowment. They can't help you except the agents who sell you.It is time to understand risk and embrace it to your advantage otherwise money no enough when you retire.
ReplyDeleteI strongly advise those with substantial balance in the CPFOA to transfer some to your special account and if possible to maximise up to the allowable minimum sum to earn a risk free 4%. Currently it is $99,600.
ReplyDeleteSome insurance agents will cite irreversibility to discourage you from transferring for they don't want you to earn the 4% and also because they have nothing to sell you which can earn you more than 4%.
It is good to start early if you have spare balance which is not used for housing to quickly accumulate the minimum sum. After all, you have to have it one day.
And even if it is in the special account you can still invest but make sure that you earn at least 6% to 8% and above otherwise don't consider.If they tell you it is difficult go to a qualified one who can.