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Anonymous

18 Apr 2019

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Why do we buy insurance retirement policy when the CPF provides 4-6% interest returns for retirement account?

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Hariz Arthur Maloy

27 Oct 2018

Independent Financial Advisor at Promiseland Independent

Diversification of income streams. CPF and CPF Life has their limitations as well. Other than just maximum amounts that can be kept, there is also no flexibility and the rules can be changed.

However it is a great tool and should be abused if you're already a contributing member.

But there are financial products that can achieve similar payout structures if started early enough which also allows for flexibility in choosing your payout age and also stopping the policy at an old age when you don't want to receive the annuities anymore, plus a 100% preservation of capital unlike CPF Life.

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I have 100k in cpf special account. Although cpf SA earns interest of min 4 %; wld like to invest for more return, what should i invest?

Would it be better for me to 1) Contribute to CPF SA to generate a guarantee 4% return and at the same time get tax relief OR 2) Purchase and annuity plan that provides monthly income from retirement?

Why don't the CPF simply buy more of the higher yielding government bonds at 4%, instead of buying those yielding 2.5%? And then pass the higher interest rates to us?

Should I cancel my insurance plan? I am reaching 55 next year, i am considering whether to cancel my WL insurance which i have brought in year 1985 and put it into CPF to earn 4% interest. Is it a good idea?

If I am currently earning x% interest in the bank, is there a reason why I would buy SSB now even though it will take at least 4 years to achieve more than x% average return per year? ?

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