When to get a private annuity?

Reader:
Been reading your blog for a while now and wanted to ask you what do you think of XXXXXXXXXXX as a retirement plan.

My financial consultant suggested this (product) to me recently but I wanted to get a second opinion on this.

Could you talk to yourself about this please?

AK:
As a retirement plan, there is nothing out there that can beat the returns offered by CPF Life.

Unless I have maxed out my CPF account, I would not consider putting money in a private plan.

http://singaporeanstocksinvestor.blogspot.sg/2015/02/an-annuity-would-you-rather-have-it-or.html




I have done a case study of a private plan before and how it could not beat CPF Life. 

You might want to use this as reference when looking at the product offered to you:

http://singaporeanstocksinvestor.blogspot.sg/2014/07/an-annuity-proposal-case-study.html




In summary, max out your CPF account first (i.e. top up your CPF-SA to hit prevailing FRS) or if you are above 55, think about maxing out your CPF-RA.

Only then, think of possibly getting a private plan to supplement CPF Life.

Related posts:
1. 4 ways to beef up CPF savings.
2. CPF savings 10 years from now.

Cannot do this in Singapore because...

Most of us are amateurs when it comes to anything that has nothing to do with our full time job. It stands to reason.

However, even if we spend hours each day doing something, we might not be very professional about it. So, we could remain amateurs. This stands to reason too.

AK is an amateur this and an amateur that in retirement. 

I do the things I enjoy but I am not necessarily good at them. 

It is about having fun and not making a living. 

So, I am not going to set professional targets or high standards. Just thinking about doing this is stressful. 

Naturally, this is how I treat gardening as a past time too. For an amateur gardener, I think I have done OK.

To be honest, it is probably because I have mostly chosen plants which are easier to grow. 

Yes, AK is a lazy fellow and always likes options which have lesser resistance.




A friend told me that it is too difficult to grow Lavender in Singapore because the weather is too warm.

Then, a friend told me that it is impossible for Lavender to flower in Singapore because it is too warm.

I would need to have a cool environment like in the Flower Dome in Gardens by the Bay for Lavender to bloom.


I told him I didn't know that and, by the way, I think my Lavender plant might just be flowering:

(Photos taken on 1 Sep 17.)

Some people tell me that they can never achieve financial freedom in Singapore. It is impossible because it is just too warm hard.

(Photos taken on 12 Sep 17.)

This final photo was taken moments ago this morning:

OK, maybe, AK is just lucky.

Related posts:
1. Gardening and investing.
2. Financial freedom for Singaporeans.