Asked 3w ago
I currently already have money invested in stocks and various Life Insurance plans and even a ManuLife Ready LifeIncome plan(Probably mistake buying this). Any advice would be great. Thanks!
There is nothing in the market that can give 4%-5% safely. Even CPF can only give 4% on the SA and MA monies, and there are restrictions on flexibility.
To get 4%-5%, you will have to take on risk. Bond funds, blue chips, etc can give such yields but you have to take on the full ups and downs of the market. As you are already invested in stocks, you already have such exposure.
If you truly want no risk, you will have to look at short term endowments and FDs. You could get around 2% risk-free on a short term endowment, but with a lock in of around 3 years. It's probably the only option you can get right now in this market.
Readylifeincome does give you a guranteed 0.95% of your sum assured for life. The plan is geared more toward building and increasing the death benefit and maturity benefits towards the end of the policy, which is why the guaranteed payout is not that good. I suppose you are past the free look period already, else you are allowed to free-look, take back your premiums and evaluate your options on similar plans with better yields.
1 more comments
No risk, No gain. If there's something very safe that initially generate 4-5%, it would have been bid up by risk-advserse investors, reducing its yield subsequently
As Frankie mentioned, for 4-5%, there's nothing safe. The only possible safe is CPF SA (RSTU). As long as they dont adjust the rates, it 4% annually and additional 1% for first 60k.
For safe options (capital guaranteed), fixed deposits, high interest savings account is usually 1-2% p.a.
Followed by bonds (capital guarenteed unless bankrupt). SSB is out of the picture now since its lower than FD/HISA... Corporate bonds around 3%.