Hi Tan,
I have about 60k in my ordinary account and no dependents. Taking into
consideration of the new interest rate government had annouced, kindly advise what alternate investment I should buy in order to increase wealth.
MY REPLY:
Please read the FAQS in
http://www.tankinlian.com/faq/
Leave 20K in CPF to grow at 3.5% risk free to accumulate for minimum sum and the remaining if you have no other commitment you can invest in a broadly diversified portfolio to get a return of 5% to 8% depending on risk appetite and other perimeters.
ReplyDeleteWhat about your Special account?
If you want a risk free product for your excess balance put it into Aviva Big-E to earn a guaranteed 3.5% without lock in. Any thing marginally above 3.5% but with risk you can forget about it, not worth the risk. In the market there is one by Ntuc Income, called Growth Policy. It has a projected 4% with long lock in period of minimum 10 years and not guaranteed. If 4% is attractive it is better that you transfer to your special account to earn more than 4% without risk and lock in.
ReplyDeleteIt serves you well to look for an adviser who has your needs and interest at heart.
One consideration-money that is transferred to special account can not be retransferred back to ordnary account.After the first 2 years there is no guarantee on the rate for the special account.
ReplyDeleteIt is still better than leaving in the ordinary account. Yes it is irreversible. But before you transfer make sure you have done your sum if the tranferred amount is needed for other comittments. Don't leave it around to make it easier for insurance agents to convince you that there is better return you can get somewhere. If you must invest, make sure you get at least 6% above. I f you go for low return products make sure there is no lock in. Don't fall into the snare of those that require long lock in, like ntuc growth plan. You might as well go for aviva big-E, although low return but with guarateed minimum 2.5% plus and this might be 1% to 1.5%.
ReplyDeleteBe careful when insurance agents tell you that there is free insurance. Don't be fooled. CPF is your retirement fund and not some fund for squandering on insuarcne you don't need. Buy a straight simple product without all the rubbish. Don't be confused by glib tongued insurance salesmen.