I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

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Friday, 25 December 2020

When Your Bank RM Called??? (4)

Read? When Your Bank RM Called??? (3)

After clearing his 5 years HDB housing loan 28 years ago and becoming debt free; now Uncle8888 is back into debt with his POSB Front Page showing "Cards and Loans" in RED whenever he logged in.

Interest rate payable for Month 1 is 0.99%

Countdown to Month 37 for monthly income from annuity plan. Not sure got kena snake oil into taking advantage of leveraging on lower interest rate over the next 10 years???





Posted by Createwealth8888 at 08:57
Labels:

9 comments:

  1. Spur25 December 2020 at 13:03:00 GMT+8

    Hi Uncle8888,

    A bit late for buyer's remorse ... free-look over... I'm guessing the first 3 years is sianz coz -ve cashflow ... no panadols for 3 years, bear the pain. 😂

    Anyway, trade (or save?) according to the plan. Ehh, yours is accurate to 1 decimal place LOL.

    Your plan allows for the interest rate to rise to beyond 6%, and still get XIRR of 2.5%.

    Besides tracking interest rate, the other main thing is to monitor the projected return is on track.

    I'm assuming the monthly payouts are guaranteed while the maturity lumpsum amount is projected.

    Every 3 years, just ask them to generate the latest BI to check the projected returns.

    ReplyDelete
    Replies
    1. CreateWealth888825 December 2020 at 13:23:00 GMT+8

      Ha ha! Not too bad. Actually, this single premium $200k is counted towards monthly AUM for waiver of monthly service fee so it will free up $144K cash to invest.

      Delete
  2. Singapore Man of Leisure25 December 2020 at 17:06:00 GMT+8

    CW,

    Well, at least you made one RM happy! Kaching!

    Commission for annuity just as juicy like for Endowment and Wholelife ;)

    The best bang for the buck when it comes to annuities is CPF Life (I can't believe I just said that).

    I hope at least you had fun flirting with the RM! Enjoy tight skirts and chiffon must pay up!

    Not everything has to be money, money, money ;)

    ReplyDelete
    Replies
    1. CreateWealth888825 December 2020 at 17:24:00 GMT+8

      Of course it is juicy commission for all parties concerned with the product. Three years worth of Panadols for distribution to them

      Delete
  3. Rainbow25 December 2020 at 20:51:00 GMT+8

    Hi Uncle8888,

    How's the interest rate through till payout?

    ReplyDelete
    Replies
    1. CreateWealth888825 December 2020 at 21:01:00 GMT+8

      It is currently based on monthly SIBOR + 0.75% and will be switched to SORA + 0.75%

      Delete
  4. hyom26 December 2020 at 09:09:00 GMT+8

    Hi CreateWealth8888,

    From reading your blog, it seems like you are a fan of CPF. To persuade a savvy CPF fan to buy an annuity is really quite an achievement for a salesman, even if the product is good.

    If you don't mind, may I ask what is your rationale for buying the annuity? Mainly for the low interest? If interest rate shoots up later, are you allowed to exit? If yes, at what penalty?

    I wish you all the best in this new annuity plan!

    ReplyDelete
  5. CreateWealth888826 December 2020 at 12:58:00 GMT+8

    For this annuity plan by insurance; we may have to think along the line of CPF RSS @ 2.5% over $200K @ 65 and monthly payout after three years or Month 37. CPF RSS is also monthly capital reduction i.e. taking back our own money

    ReplyDelete
  6. CreateWealth888826 December 2020 at 16:06:00 GMT+8

    Hard to find anunnity plan that beat CPF RSS 4% . Matching 2.5% possible. Can use CPF OA to create our own RSS @ 2.5%

    ReplyDelete

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