As a mini round-up to a few of my recent articles, namely:-
I decided to piece them together to produce a plan that may well be suitable for everyday people. If you still cannot figure out what the above 3 articles were about, here's a diagram that somewhat combines them together:
Here's what is in the $500-per-month-plan for a 35-year old male with a 30-year time frame:-
a) S$87 per month into a term insurance plan that provides $150,000 coverage for Death/TPD/Critical illness for 30 years;
b) S$213 per month into a "drip in money" strategy at 8.0%p.a target returns;
c) S$200 per month into a 25-year savings plan that converts into a perpetual annuity plan after age 65.
Rationale:-
a) Term insurance to cover this "project" in case the "money-making machine" (the 35-year old male subject) contracts critical illness;
b) S$213 x 12 = $2,556 may be channeled towards Supplementary Retirement Scheme (SRS) to further save on income taxes;
c) The purpose of the "perpetual annuity plan" is to provide an "anchor" into the predictability of the cashflow (after age 65).
The estimated monthly payout at retirement is S$1,029 per month til age 100 (and beyond), double the S$500-per-month "invested cost".
I have also included CPF LIFE and assumed the example (minimum $40,000) given in CPF's website. You can click here to estimate your monthly payout under the National LIFElong Income Scheme (CPF LIFE). CPF LIFE is a new scheme that will provide CPF members with a LIFElong income from age 65.
Other things that should not be overlooked:-
a) "As-Charged" Shield Plan;
b) Personal accidental plan. (for its low-cost-high-coverage feature)
Here's what is in the $500-per-month-plan for a 35-year old male with a 30-year time frame:-
a) S$87 per month into a term insurance plan that provides $150,000 coverage for Death/TPD/Critical illness for 30 years;
b) S$213 per month into a "drip in money" strategy at 8.0%p.a target returns;
c) S$200 per month into a 25-year savings plan that converts into a perpetual annuity plan after age 65.
Rationale:-
a) Term insurance to cover this "project" in case the "money-making machine" (the 35-year old male subject) contracts critical illness;
b) S$213 x 12 = $2,556 may be channeled towards Supplementary Retirement Scheme (SRS) to further save on income taxes;
c) The purpose of the "perpetual annuity plan" is to provide an "anchor" into the predictability of the cashflow (after age 65).
The estimated monthly payout at retirement is S$1,029 per month til age 100 (and beyond), double the S$500-per-month "invested cost".
I have also included CPF LIFE and assumed the example (minimum $40,000) given in CPF's website. You can click here to estimate your monthly payout under the National LIFElong Income Scheme (CPF LIFE). CPF LIFE is a new scheme that will provide CPF members with a LIFElong income from age 65.
Other things that should not be overlooked:-
a) "As-Charged" Shield Plan;
b) Personal accidental plan. (for its low-cost-high-coverage feature)
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