Wednesday, November 17, 2010

Dave Ramsey on Life Insurance I

Truth about life insurance investing
http://www.youtube.com/watch?v=KCD7dgT17Rg&feature=related

Many people have a long term need for life insurance ....
http://www.youtube.com/watch?v=C7VOZnJy7lE&feature=related
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3 comments:

nice girls said...

Dave Ramsey was saying he advises people to take a mortgage loan of not more than 15 years, at the most 20 years. But in Singapore, a loan of 30 years is common.

November 17, 2010 1:36 PM
Spur said...

15-yr mortgage is so that you are able to save for retirement, and is a rough rule-of-thumb for affordability. Back in the 1970s and 1980s, our parents were able to finish paying their property loans in 10 or 15 years. It was quite normal in those days.

Today if people need to take 30-years to pay off their property loan, it means that they cannot really afford the property. It is at the expense of their retirement. Hence, unless you are earning high salary and saving large amount of cash from your take-home pay, otherwise after 30 years when you are already in your 50s or even 60, you will find that there is no money for retirement.

That's why the govt has to keep on increasing the so-called retirement age. They know that many people cannot afford retirement. Even the CPF Life will not have enough money to support the population if we all retire at 65. It is similar to pension crisis in Western countries --- not enough money in pension funds / CPF to support retirees, hence keep on increasing the "retirement age" or "draw-down age" or "pensionable age" or whatever you want to call it.

November 17, 2010 3:58 PM
Lye Khuen Way said...

Only in Singapore do the "authority" deem it wise & appropriate to get oneself tied to a 30 years debt. Mind you, it is for public housing so that you get a sense "rootness".

November 17, 2010 4:24 PM

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