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Anonymous

18 Apr 2019

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Retirement

How to evaluate a good annuity plan and when is the best time to start it? Thank you.

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Hariz Arthur Maloy

17 Mar 2019

Independent Financial Advisor at Promiseland Independent

1) High capital guarantee

2) Flexible payout

3) High Projected Yield (above 4%)

4) Pays out for life (If you want shorter, get a retirement plan - the difference is that a retirement plan pays down your capital to 0, while a lifetime annuity protects your capital)

5) Benchmark it against CPF Life. (Many people think CPF Life is the best, but it may not be. It's definitely bloody amazing, but I can confidently say not the best - start another private annuity early enough and you can contribute lesser premiums to get a higher projected payout with 0 capital loss, unlike CPF Life)

Start one as early as possible. It's one of the best ways to receive a guaranteed passive stream of income for life. Even dividend income and rental income are active streams as you have to manage your assets, unlike the annuity.

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