Trust Bank Singapore, New Digital Bank Freebies!

Image
Have you applied for your Savings Account or Credit Card with Trust Bank Singapore, Singapore's digital bank backed by a unique partnership between Standard Chartered Bank, and FairPrice Group? REFERRAL CODE: BZACYE0F ( it is a number zero, not letter ) Get $35 worth of free Fairprice vouchers and other freebies by just Downloading the Trust App and Open a Savings Account online with the App, simple/easy within 10mins!: Get free $10 Fairprice E-voucher (no minimum spend at stores/online) by entering this code ( BZACYE0F ) when apply for the Savings Account. Get free 1kg Fairprice Rice voucher Get free Kopitiam Breakfast Toast Set voucher Charge one transaction to your debit card to get free Fairprice $25 voucher (no minimum spend, at stores/online). Hack: Do a funds transfer of $1 or $10 from your own bank to Trustbank savings account. Then Just add your debit card number to Grab App, authenticate with $1 charge/refunded to your saving...
Post a Comment

CPF Life Plans: Basic or Standard?


Assumptions:
  1. A lower monthly payout is not a major concern for you.
  2. You have max Full Retirement Sum (FRS) in your Retirement Account (RA).
  3. You still have more than 60k in OA/SA/MA.
  4. With or without dependents.

When the CPF Life scheme was first started and my brother was required to make a choice, I advised him to opt for higher monthly payout as his income was/is low. He only has one child and I told him he need not worry about bequest to him as he should know how to take care of himself. At that time, I did not study the scheme in detail, only comparing monthly payouts and bequest amounts.

Now I study the plans in detail.

Under The Standard Plan:

1.  If I do not have dependents and should I die early after joining CPF Life, I do not mind donating my money under the Standard Plan to fellow Singaporeans in the CPF Life Pool since my beneficiaries will get less or nothing in bequest monies.

2.  However, should I not die early but instead suffer from a medical condition which causes me to be permanently unfit for any employment, to have a severely reduced life expectancy, or to be terminally ill, I would want to get more money back when exiting CPF Life. But under the Standard Plan, this is not possible as you can see from the lower Bequest Amounts you can get. The key reason why we will be getting a lower Refund Amount is the interest earned on CPF Life premium contributions, extra interests earned on CPF balances (first 60k) and CPF RA will remain in the CPF Life Pool: these are not considered your money when u exit. (hahaha, we dun know how they pay you back in the monthly payouts)

Conclusion:

I have prepared a table below to summarise the above, highlighting the key differences between the Basic Plan and the Standard Plan. I'll base my decision, not on the monthly payout amount, but on more money back should I need to exit from CPF Life. CPF Life is an insurance plan, so it should do what it should do, ie provide me with funds when I need it most when I exit, not just monthly payouts. Choose the Basic Plan!


(CPF Board allows changing of plans now, you have to cancel CPF Life then rejoin at age 65. However, if the above assumtpions dun apply to you and you have been on CPF Life for some years, it might not be worthwhile to change now.)

Comments

Post a Comment

Popular posts from this blog

FreePass - 21 Days EWI Forecast

Stocks couldn't care less about a "strong economy," or anything else on that list, either. If anyone raises an eyebrow at that,  ask them to explain  how in March 2020, when the economy was literally shut down and people were collectively freaked out, stocks bottomed and haven't looked back for a year and a half? No, something else drives the stock market. From our friends at Elliott Wave International's 40-plus years' experience, they know exactly what it is: Investor psychology. And they have a good idea  where it's headed next . Let EWI show you what they see -- free. Now through November 3,  they're opening the doors  to their flagship  Financial Forecast Service . Here is what's included: The Elliott Wave Financial Forecast . This service takes you through the ins and outs of 8 different major markets, with a U.S. focus, on a several-months' timeframe. The Elliott Wave Theorist . The inimitable Robert Prechter has...
Read more

Trust Bank Singapore, New Digital Bank Freebies!

Image
Have you applied for your Savings Account or Credit Card with Trust Bank Singapore, Singapore's digital bank backed by a unique partnership between Standard Chartered Bank, and FairPrice Group? REFERRAL CODE: BZACYE0F ( it is a number zero, not letter ) Get $35 worth of free Fairprice vouchers and other freebies by just Downloading the Trust App and Open a Savings Account online with the App, simple/easy within 10mins!: Get free $10 Fairprice E-voucher (no minimum spend at stores/online) by entering this code ( BZACYE0F ) when apply for the Savings Account. Get free 1kg Fairprice Rice voucher Get free Kopitiam Breakfast Toast Set voucher Charge one transaction to your debit card to get free Fairprice $25 voucher (no minimum spend, at stores/online). Hack: Do a funds transfer of $1 or $10 from your own bank to Trustbank savings account. Then Just add your debit card number to Grab App, authenticate with $1 charge/refunded to your saving...
Read more

Economic Cycle vs Stock Market Cycle

Image
Do you know that Stock Markets are usually about 6 to 9 months ahead of the Economic or Business cycle? There are 4 stages in the Stock Market and Economic Cycles as follows: Stock Market Cycle vs Economic Cycle 1. Market Bottom vs 1. Full Recession, Trough 2. Bull Market vs 2. Early Recovery, Expansion 3. Market Top vs 3. Full Recovery, Peak 4. Bear Market vs 4. Early Recession Below is the Theoretical Model Diagram which clearly depicts the relationship between the Stock Market Cycle and Economic Cycle. (Click on the diagram to zoom out) Diagram with courtesy of StockChart.com It is based on Sam Stovall's S&P's Guide to Sector Rotation. It states that different sectors are stronger at different points in the economic cycle. Traders/Investors use this model to anticipate which companies will be successful in the coming stages of an economic cycle. Watching the economic conditions (ie consumer expectations, industrial production, interest rates and yield curve) might ...
Read more