Dear Mr Tan,
If the Growth Policy can return between 3%-4% do you think it is wise to invest your CPF Special Account in this product?
The Special Account gives a guaranteed 4% without the risk and no need to hold to maturity.
I have one NTUC agent persuading me to invest my special account in the Growth POlicy. Trying hard to convince me about the insurance, which is actually a personal insurance stripped of all other benefits. I am amazed by her argument.
REPLY
It is better to keep your money in the Special Account to earn 4% per annum, rather than invest in the Growth policy, which is likely to pay a lower return. You can get your life insurance by buying a low cost term insurance.
I discovered about CPF paying 4% without risk and lock in after an IFA reviewed all my policies. Before this I wasn't bothered about all this and about what I bought or my retirement.
ReplyDeleteWhen the IFA reviewed my investment of my CPFSA in the growth policy he told me there was financial benefit or added value other than the useless double payout insurance when i die. This isn't what i wanted. I thought if i got 4% from growth policy I would be happy but didn't know i was already earning 4% from CPFSA. This is outrageous that the insurance agent didn't disclose.
I am thinking of cancelling this growth policy.It is already one
year plus and i am not getting any return. I know i have lost this opportunity cost but dragging makes it worse.
I am 53 years. I need to grow my whatever assets to maximum so i can have a decent retirement with my wife.
Complaining against the agent don't help much except some sastifaction to see him reprimanded. Will i be compensated for this small loss?