In the previous post, I have talked about the steps to create our own insurance which has an investment component comprising 60% “CPF bonds” and 40% “STI ETF”. For this post, I will touch how it generates a better return. Projected returns From the SPDR STI ETF’s track record, the annualised return is 7.11% as of end August 15. While for the “CPF bonds”, we have to assume under two scenarios: i) 4% returns or ii) 5% returns. This is because while the Singapore government guarantees 4% for the CPF SA, the first combined $60,000 yields an additional 1%. Also as some will purchase whole life when young (25 to 30), the voluntary contributions may result in “CPF bonds” that are likely to yield 5% instead of 4%. Assume “4% CPF Bond return” scenario The formula is simple where the weight of each asset class is multiplied by ......