Is There A Retirement Plan That Can Provide Us With More Than 7% Annualized Return?
Yes! With the right annuity plan and when you take on financing, we can achieve higher than 7% annualized return. People familiar with the insurance industry in Singapore are usually aware that insurance companies here adopt a more conservative approach to investing their participating funds. Participating products in the market (i.e. your annuity or endowment plans or whole life plans), though are highly stable and consistent in distributing projected bonuses, generally do not give us high returns. As a reference, the long term annualized returns of Singapore dollar annuity plans normally range from 3.5% to 4%. Even products with the highest projected returns hardly ever go above 4.5%. Still, there are a number of financial tools available in Singapore that can help us significantly enhance the actual return we can get from participating plans, the most common of which is "premium financing". What is "Premium Financing"? Simply put, "premium financing" ...