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Looking for that perfect regular savings plan for your retirement? Free to decide on how long you want to save and when to end it.

Let me guide you through the entire retirement planning journey and build your retirement portfolio!

  • Lower cost than a Roboadvisor
  • No lock-in period & no penalty
  • Safety net for unexpected death
  • Personalised wealth coaching

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Retirement Planning

Investment Planning

Estate Planning

How To Insure Your Retirement

What is an Annuity?

An annuity is basically a stream of regular payment made at regular intervals. In the context of retirement planning, these are financial products (usually from insurance companies) that pay out a stream of regular income to the retiree.

 

Pros and Cons of using an Annuity for Retirement

Pros:

  1. The regular income payment is typically made of a guaranteed portion and non-guaranteed portion where it provides extra income. The non-guaranteed portion is dependent on the investment performance of the insurer. The total guaranteed income payment is usually larger than the total amount you have invested into the annuity. Therefore with an annuity you can lock in a guaranteed income stream from the insurance contract.
  2. There is a chance your regular income can hedge against inflation if your non-guaranteed portion is performing well.
  3. Your retirement plan is more predictable as you have decided on the retirement income which is guaranteed. You would also have decided on the tenure of your retirement and to start receiving payment at which retirement age.

Cons:

  1. An annuity is a long term commitment. You need to start saving up for the annuity at least 10 to 15 years before your retirement age. And once you are started, you are locked in for the rest of your life.
  2. You cannot make any withdrawals before your retirement age.
  3. You cannot cash out your principal invested in one lump sum once you are committed to an annuity. Therefore there are no liquidity. You may still terminate your annuity during your lifetime, however, there is no guarantee you will receive back your principal sum invested in full.
  4. There isn’t any flexibility to make changes. Once you are decided on the annuity, it is cast in stone. You cannot increase or decrease your contribution to your plan. You cannot stop your contribution as well. Non-payment for an extended period of time will also result in your annuity lapsing, becoming worthless. You usually cannot make changes to your retirement age or income payment as well.
  5. A decent Annuity plan usually requires a high monthly commitment to start. A monthly contribution of at least $800 to $1000 per month is not uncommon.

Alternatives to Annuity

Nowadays you can construct your retirement plan with an investment portfolio. These are investment linked plans that allow you to invest into actively managed funds. Such funds are managed by a professional fund house. The fund managers will invest for you depending on the mandate of the fund you have chosen.

 

Pros and Cons of Investment Linked Plans for Retirement

Pros:

  1. Liquidity. You can cash out anytime by selling your holdings at the prevailing market price.
  2. You can choose not to have any lock-in period when you construct your retirement plan. Therefore there is no minimum tenure imposed and you are free to stop or continue contributing to your plan anytime.
  3. Flexibility on your retirement. You can choose to adjust your retirement age as you like as there are no lock-ins. You can also adjust your budget on the go when you are able to save & contribute more.
  4. Regular income stream. You can choose dividend paying funds for your retirement objective. Some funds pay monthly, quarterly, half yearly and yearly, depending on the choice of fund. There are also options to reinvest back your dividends. Best of all, you can receive your income payout as soon as the same year.
  5. Reduction of investment risk through dollar cost averaging every month. This strategy removes the risk of timing the market wrongly. You buy more units when prices are low to trade off for times when prices are higher & lesser units are bought.
  6. You can invest with as little as a few hundred dollars. Therefore you can construct your retirement plan without much budget constraints.
  7. Your investment linked plan will insure you with a Death coverage. This will ensure any untimely exit at a time of market downturn due to Death will not result in loss on your principal sum invested. Usually it ranges from 100 to 110% of your invested sum.

Cons:

  1. For any investment linked plans, the sum invested and the future performance of your fund are not guaranteed. Past performances are also not an indicator of future performance as well.

Why Choose The Annuity Coach

I have been through more than 19 years of market cycle and seen both the benefits of dollar cost averaging & power of compounding interest.

Your retirement plan will be tailored through a discussion on your needs and a risk profiling session. You will also be given an insight of our investment strategy specifically for your retirement. Your personalised annuity income stream is just a click away. It is time to act now.

 

CLAIM Your Free Coffee Session On How You Can Lock In Attractive Retirement Income From Undervalued Funds In Singapore Now!

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