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

Retirement

Asked by Anonymous

Asked on 17 Mar 2019

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

0

Answers (1)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent

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.

0 comments

1