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Investments

Insurance

CPF

Retirement

Hi Jennifer, CPF SA will go into CPF RA, which will then be used to buy (what I feel is) the best annuity there is (in terms of guaranteed return): CPF Life. So not to worry. You'll be buying an annuity in time to come. It's just that there are caps on what you can put into CPF Life, so if you needed more guaranteed income, you would probably want to look at complementing CPF LIfe with a private annunity.

Savings

Insurance

Retirement

CPF

Investments

Hi anon, Hope I'm understanding your question correctly. OA to SA transfer is not allowed after 55. You can only transfer to RA. Thus the shielding 'trick' must be applied prior to 55 for maximum benefit.

Insurance

Hi anon, I see that you are talking about your hospitalization plan. Raffles Shield has options which may allow you to take up hospitalization cover despite your underlying condition. It will also help your case if your blood pressure is under control with medication, but ultimately it is still at the discretion of the underwriter. Beyond that you will want to look at Death and TPD cover if you have liabilities, and CI cover for expenses and out of pocket costs. Given that your HBP is genetic, you will have to live with it for life and hence now will be the best time to get coverage; it will only be harder and more costly as time passes by. You can perform a parallel submission to multiple insurers to get death/TPD/CI cover via an independent financial advisor in order to maximise your chances, even if all insurers respond with a loading, you will at least have options. I would recommend that you then take up a plan at least, as it will likely be the most favourable time you can get a plan while you are still young. If you have further questions, feel free to reach out to me by replying to this post.

Retirement

Investments

Insurance

Savings

Lifestyle

Start by setting aside 6 months of your expenses for emergencies. After that, invest 20-50% of your income. Break down your short term, mid term, and long term goals and quantify them. A marriage, a first home, children, children education, a second home, retirement, etc. How much would these cost you and when do you have to start paying for them. Start understanding our CPF and how each accounts work as well. When you have a clearer roadmap, you can make better decisions to get there.

Retirement

CPF

Savings

Insurance

Family

Hi anon, I'm sorry to hear about the condition of your son. Assuming you maximize your son's MA and SA, you will have prepare him for an adequate stream of income when he is 65, which is almost 40 years away. If there are no major policy changes, that would ensure that his basic income streams will be ok 40 years from now. $176K in SA compounds to $812K in 39 years, not counting spillover from MA interest. You would be able to generate very decent income with that sum. I'm guessing that your $310K has been earmarked for this and that your own emergency funds, etc are taken care of. The next question would be to ensure financial security during the period between now and him turning 65. Instead of an endowment that matures, consider deferred annuities as a way to generate guaranteed income for him. I'm going to make a conjecture here and presume you are around age 50-55, which means that you will have an income stream to support him while you can still work. Once you retire around 65, this is when you will want an income stream from a deferred annuity to provide for him. The reason why an annuity might be better for him is because you will be getting a stream of income, which would mean that your capital is stretched over a period of time, generating better returns for you as opposed to maturing in a lump sum. I find that most people might be tempted to spend money if it is easily accessible to them; having the money come in as a stream will make people budget and spend carefully. You'll also have to ensure that you have the appropriate insurance coverage for yourself in case anything happens to you, CI or otherwise, but that is out of the scope of this question and I will only mention it in passing. If you have any further questions, feel free to reply to this post.

Insurance

Hi anon, Both plans work very differently in terms of structure. I will dissect the key points briefly for you, as it is always better to speak face to face with an independent financial advisor for greater detail/illustrations. Manulife RCC key takeaways: - Pays your sum assured (SA) on each claim, and if it is a major CI, there is an additional 200% of your SA (One off payment) - Additional 2 x 100% SA on recurring cancer (One off payment) - Waiting period of 12 months to restore your coverage back to 100%, up to 5x of your SA Aviva MP Key takeaways - 2 x 100% of your SA on early or intermediate critical illness as the first layer, no waiting period provide the 2 claims are not of the same group (they have grouped CIs into 3 'pots') - 300% of your SA upon major CI, provided the first layer was not paid. If not, they will reduce the amount accordingly. - First time or recurrent Major Cancer/Heart Attack/Stroke: Additional 150% SA, up to 2 times, with a 2 year waiting period, as the 3rd and 4th layer. - Once layer 2 is claimed, all future premiums waived. I would recommend that you fully understand the combinations of the payout structure in order to decide which plan you prefer. If you have further questions, feel free to reply to this post.

Insurance

Hi anon, Medisave is not an insurance, but rather an account that you add to via your work contributions. The monies inside can be used to get insurance such as shield plan, etc. You have Medishield life as a form of basic coverage. In order of importance, here is what you should be looking at: 1. Hospitalization plan. This covers any hospital bills and associated pre/post hospitalization costs. This would be from an integrated shield plan, with a rider to take care of the deductible/co-insurance. Depending on your budget, you can take a private hospital plan and downgrade later, or just go for Goverment A ward. 2. Critical Illness coverage. This provides a sum of money for you to cover your expenses and other out of pocket costs should you fall critically ill and are not able to work. Usually recommended to cover at least 5 years of expenses and an additional sum to cover out of pocket. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs 3. Death coverage. This provides a lump sum of money should something happen to you. Not mandatory if you have no dependents or liabilities. Usually takes the form of a term plan. For the coverage amount, you could use a multiple such as 10 x of your current income, or calculate based on your current liabilities. 4. Personal Accident. For the minor stuff like TCM claims, etc. Generally, you should not have to spend more than 10% of your income on coverage. Work with an independent financial advisor who can provide multiple options and explain in detail what you will need to know before coming to a decision, especially with respect to cost effectiveness as well as the minor differences between the plans.. Feel free to reply to this post if you have further questions.

Insurance

Family

Healthcare

Hi Anon, There are plans that can also be offered. Sharing these various plans so that more elderly can also be covered. They are 1) AVIVA MyCoreCI plan - covering life and 11 CI conditions 2) AIA diabetes care plan - covering life and 5 CI conditions 3) Merdeka Care - Personal accident plan Premiums for AVIVA MyCoreCI plan and AIA diabetes care plan are based on entry age and more details in this post: https://www.theastuteparent.com/2018/12/insurance-for-diabetes/ Merdeka Care is the easiest for application. For health insurance, the plan that may offer a coverage is Raffles Shield. I've put through plans on multiple occasions with different private clients. This should your first target to get as medical coverage is very important. There will be loading if an offer is given to you. Read more here https://www.theastuteparent.com/2018/12/raffles-shield-details-and-case-studies-that-you-must-see/ There is a strict underwriting guideline and a subsequent regime of health checkups needed to be done. If you are keen to discuss, do drop me an email at [email protected]

Insurance

Hi anon, In general, no more than 10% of your gross income. If you are a sole breadwinner paying for the coverage of your spouse or kids, 15% is probably the maximum.

Milelion

Miles

Insurance

Credit Card

Hi, while most credit cards exclude insurance premiums, here is a lsit of miles credit cards that allow you to earn miles for insurance premiums: - American Express KrisFlyer Ascend: $1 = 1.2 miles 5,000 bonus miles with your first transaction & 15,000 miles with $6,000 spend (within first 3 months) + 15,000 miles with $6,000 spend in the 4th to 6th month. - American Express KrisFlyer: $1 = 1.1 miles 5,000 bonus miles with your first transaction & 7,500 miles with $3,000 spend (within first 3 months) + 7,500 miles with $3,000 spend in the 4th to 6th month. - Maybank Horizon: $1 = 0.4 miles Min. spend $300/month
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