Dear Mr Tan
My friend has $100,000 in his CPF account. He intends to put $60k in his CPF account and the remaining $40k in avivadirect which promises to give 3.5% every year.
Is this the best alternative? Also is Aviva Direct really so good that it does not have any hidden admin charges,no lock up period and other charges? Appreciate your feedback please.
REPLY:
That is a wonderful idea. I would have done the same, if I were in your friend's position.
This is the best of the single premium endowments available in the market for people with low risk appetite. Forget about the rest . They cannot match this one.
ReplyDeleteTo warn your friend not to be talked into buying the growth plan from ntuc. The agents will try to convince you that it has projected 4% over 10 years.They will tell you as if it is guaranteed. It breaks even only at 4th or 5th years, ie returning as CPF
ReplyDelete2.5% and only you MAY get 4% if you hold for 10 years. They may try to sell other features, don't be fooled by them. Your objective is to grow your retirement fun. Alternatively,take some risks and grow at higher return with well diversified funds.Believe me you, you will be rewarded.
You will come across some unscrupulous ones who will hide facts from you especially your special account. Beware of this type of agents who will not bat an eyelid to fleece you off your hard earned saving.And there are agents who tell you the craps about the double indeminity insurance you get when YOU DIE of accident.Ask yourself , what good is the money to you. This is your retirement fund you are supposed to enjoy and your concern is that your money grows and works harder and not worry about leaving a legacy . Don't let ntuc agents rob you of your retirement. I heard they are prowling around looking for victims and suckers and with extra incentives by the company to motivate them to get your CPF saving at all cost. Buyers beware.
ReplyDelete