Tan Kin Lian's Blog: Pros and Cons of Annuities

Friday, April 30, 2010

Pros and Cons of Annuities

Read this article for the pros and cons of annuities. You can read about annuities, in the context of Singapore, from my book, Practical Guide on Financial Planning. My book also gives you an alternative on how to manage your lifestime savings, by investing in a low cost investment fund and making regular withdrawals.

9 comments:

Anonymous said...: Is it advisible to buy Insurance Policies /Annuties/Mortgage Loans/
Unit Trusts etc. from a single Insurance Company under one umbrella because of convenience
or in other words "Never Put All Your Eggs Un One Basket" because of RISK?; April 30, 2010 9:57 AM
Anonymous said...: Annuities don't benefit everyone but ntuc agents sell them as one size fits all.
Worse knowing full well that their annuities are not comparable to CPFlife, especially the classic annuity which allows CPF minimum sum to buy the agents are still pushing them with dubious and misleading presentation. This is not putting their clients' interest first.Putting your clients' interest first means recommending the BEST and not motivated by commission and even recommending a third party's product.
I find it hard to trust ntuc agents. They are really salesmen , product pushers and they only have one thing in mind, ie.squeezing a commission out of their clients.This is no good.
For this reason MAS must quickly ban commission otherwise many consumers will be conned into buying rubbish products that short change them. Is it a wonder many cannot retire comfortably? Buying from insurance agents depends on luck. It is like throwing a stone in the dark hoping to hit a cockroach.Only when you are retiring that you realise that the light at the end of the tunnel is the light from an on coming train.
It is too late . The agent screwed you up.; April 30, 2010 11:28 AM
Anonymous said...: Kin Lian,

Annuity is not advisable for people:

(a) with poor health
(b) who do not exercise regularly and adequately
(c) who has serious preexisting conditions many years ago
(d)who are overweight and with poor family medical history
(e)whose habit, vocation and hobby are life threatening or dangerous; April 30, 2010 12:07 PM
Anonymous said...: After reading article, I am not sure whether the Annuity I bought from NTUC two years ago is the right decision, I am waiting to collect the first payment when I hit sixty two next year.; April 30, 2010 2:41 PM
Anonymous said...: Anon,April 30, 2010 12:07 PM,

do ntuc agents care? their sales pitch is always 'payout for life'.
For those who not in good health, 'for life' can be only 65 years old or 70, right? but ntuc agents ignore the health question and push the product for the commission. This is unscrupulous.The customer cannot benefit. These agents are now conning people and talk bad about CPFLIFE especailly about less for refund.
MAS must stop these people. Did ntuc become #1 in 2009 using this trick and unethical means?; April 30, 2010 7:16 PM
Anonymous said...: Anonymous April 30, 2010 2:41 PM,
check how much you will get if you cancel and use the refund figure for CPFlife calculator to compare the payouts.; April 30, 2010 7:23 PM
Anonymous said...: April 30, 2010 7:16 PM
ntuc got #1 from pushing 1.4% capital plus in last month of the year 2009. would you buy a product like this , which guarantees you loss?; April 30, 2010 8:05 PM
Anonymous said...: My understanding that after the recent Financial crisis, nothing is safe:
Banks can go bankcrupt.
Insurance Companies can falter.
Hedge Funds & Pension Funds can collapse and disappear!
God is my only insurance!!!; April 30, 2010 10:15 PM
Anonymous said...: Screw them especially the FT at the AGM on 27 May at union house, 7th floor.; May 01, 2010 8:44 AM