Dear Mr. Tan
I have carried out the Financial Plan in your website based on my personal situation. I now understand how the difference in yield of 2% can make a lot of difference to my retirement income. I never realized it before - did not even check the yield.
May I ask a question. How can I get a higher yield? Where can I find the right insurance policy?
REPLY
You can buy my book "Get Value from your Life Insurance". It shows the yield earned by the life insurance policies in the market. In most cases, the yield is 2% or less. This is quite unsatisfactory.
If you wish to earn a higher yield, you have to invest in an indexed fund. This is explained in my talk "Financial Planning - A Practical Guide" organised by FISCA. You can join the talk on this Saturday. You will also get a free copy of my book "Practical Guide on Financial Planning".
Just remember this... Whole life, endowment and regular ILPs can NEVER give good decent yield.
ReplyDeleteWhat is a good yield?
A good yield grows your money in real term.
What is real term?
It is inflation adjusted. If there is real growth the return MUST be above inflation, at least double the inflation.. eg. if inflation is 3% the return must be 6%. If your money doesn't grow in purchasing power you are not growing in your standard of living, right?
So choose products that can help your money grow. There is NONE in insurance, wholelife, endwoment, or single premium endowment or some so called retirement products.
Investing in equities is the ONLY way. Get the help from a qualified honest and competent financial adviser but NEVER a salesman.