Author: The Astute Parent

Avoid retirement fantasies | Real sharing from retirees to help you!

Most use the 4% safe withdrawal rule, or 25x of current expense. It is the common formula for financial freedom and if you’re unsure, read on this post. Most just have fantasies on how much they need to retire (lump sum basis) and when they want to retire. Some answers come up to be $1m by age40 so as to F.I.R.E (financial independence retire early) and go traveling every 6 months without worrying about money. ​#vanlife #goodvibesonly ​Problem is if you go travelling everyday, your expenses will skyrocket but more importantly, as I’d share below, it’s unrealistic… Factor annual retirement expenses...

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NEW AIA Power Critical Cover (PWCC)| With Power Reset Benefit!

The AIA Power Critical Cover offers you possibly the highest number of conditions right now with 175 conditions. **Right now till 15Dec2019, you get a 30% off first year premiums!** 4/5 experience a lifetime of chronic health condition even after a CI recovery. You get coverage for 150 multi-stage CI conditions (42 early CI + 35 Intermediate CI + 73 major CI), 10 conditions under the Pre-Early Benefit and 15 special conditions. AIA Power Critical Cover Value Plan (till age75) vs Life Plan (till age100) There are 2 designs of the plan. First is the Power Critical Cover Value...

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AIA HealthShield Gold Max and Riders Revision Starting 11.11

Come 11.11.19, AIA will implement changes to it’s Healthshield Gold max shield plan and riders. Overview of AIA HealthShield Gold Max & Riders ​Few words before we move on, riders under the Max Essential series are not available for new purchases anymore. If you are on Max Essential A, consider converting it to Max Essential A Saver. There will be premium savings and you get to keep 100% coverage (if within AIA panel of doctors). For a downgrade to government hospital during an inpatient, there will still some hospital cash benefits.* *Refer to policy conditions The Max VitalHealth is...

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What to do with Singapore Savings Bond Return So Low?

Singapore Savings Bond (SSB) dropped yet again! The 1y rate is 1.56% and the 10y average yield is 1.71% for the Nov2019 issue! I bought some of the Sep2019 issue and this post is on your strategies and if Singapore Savings Bond comes in useful. One quick tip: buy just a few days before the closing. There’s no benefit to buy too early also. Take note the closing date is always a few working days before end month (26th Nov 2019 for this issue). Singapore Savings Bond (SSB) has NO potential capital gains unlike other bonds! You’d buy the...

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Start Your Retirement Planning at 40 & Forget About F.I.R.E.

​Retirement Planning is very much like the martial arts scene.  ​​There are forums where people extensively discuss ​how to fight.  ​​Many know how to throw a punch and a kick, but have never been in an actual fight. Last but not least, there are plenty of martial arts schools teaching their own style of martial arts. They claim to sell the best martial arts manuals. ​But jokes aside, I have been seeing more and more people start their FIRE (Financial Independence Retire Early) journey.  ​For that, we have created a Retirement Progress Checker for you to ​use, read ​on...

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Retirement Plan To Complement Your CPF Payouts| Vivowealth Solitaire

NTUC Income’s Vivowealth Solitaire is a single premium wholelife plan that pays you passive income from start of 6th policy year till age100. These are some highlights 1) Lifetime monthly cash payouts starting from the 6th policy year till age 100 You’ll receive monthly cash payouts. Over a year, these cash payouts can add up to 4.2% of your net single premium (1.56% is guaranteed and 2.64% is non- guaranteed). 2) Special cash benefits at the start of the 21st and 31st policy year On top of the monthly cash payouts, a guaranteed special cash benefit2 equivalent to 1.56% of...

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Travel Insurance For Pre-Existing Condition | MSIG & NTUC Income review

NOTE: This is NOT a sponsored post but a sharing if you or your aged parents have pre-existing conditions and doing a holiday trip. How MSIG TravelEasy Pre-Ex Plan works! The MSIG TravelEasy Pre-Ex requires the following questions to qualify for a plan. They are: Following your treating doctor’s advice on medication, medical tests, treatment or surgery No medical condition or symptom which you have not consulted a doctor or pending medical test, diagnosis, treatment or surgery. Not required to receive treatment at a hospital’s Accident & Emergency Department more than once in the last 12 months Not required...

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How Much Of Your CPF Be Locked Up When You Reach Age55?

From the day you start to work, you have been contributing to your 3 CPF accounts. The Full Retirement Sum (FRS) is the “usual” amount you have to lock up when you reach the Age55. If you have more than the Full Retirement Sum (FRS), you can withdraw the excess at Age 55! Some history of the withdrawal limit from CPF Before I can answer that question fully, knowing the history of the withdrawal limits imposed which is defined by the Minimum Sum (before 2016) or Full Retirement Sum FRS  (current standard) will be helpful. The FRS will be...

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New Critical Illness (CI) definition | Is it better to buy NOW?

If you have an existing critical illness policies, it will NOT be impacted by the new definitions. Read till the end to see my analysis on differences and if you should buy your CI policy now from your adviser! What are the key changes from the Previous 37 Critical Illness Conditions Source: LIA summary of changes Analysis of the key changes by understanding the TOP 5 CI claims Do you know that 90 per cent of all severe stage claims received by life insurers are for five critical illnesses: major cancer heart attack of specified severity stroke with permanent neurological deficit...

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Best Credit Cards For Students (My Ultimate Guide On The Top 3 For 2019!)

Credit cards can give actually save you some money! That’s if you use it responsibly and avoid owing the bank on repayments. I know right, school didn’t really teach much on it. This post is to share the best credit cards for university and tertiary students! Why using credit cards are better than debit card! I am currently using the FRANK debit card by OCBC as it was free and I was attracted by its variety of designs.  Why did i resist using a credit card till now? I was afraid to use a credit card because of the...

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Is Topping Up To Your Child’s CPF and Medisave a good idea?

It’s a common question: “What to do with spare cash” or “What to do with “Hong Bao” or “Green Packet” money given to your child”? Where would be a good place to park it? Today I’d be sharing with you the three methods to topping Up To Your Child’s CPF and some insights to it! Method 1: Topping Up To Your Child’s CPF Via Voluntary Cash Contribution (VC) You can use the VC to top up. Link to CPF E-cashier here. Funds deposited will be broken down to CPFOA, CPFSA and Medisave respectively. The interest given to your child...

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10 Best Ways To Save Cost During Your Pregnancy!

My wife recently gave birth at Thomson Medical, ​we were required by doctor to stay​ an extra day in hospital and the bill came up an additional $4000!!! My confinement nanny is very good cook, and when I took her grocery shopping for 1 chicken, the receipt scroll touched the ground and total was $73 for the many things purchased! ​Also, during confinement, we noticed that baby had a little block nose, we ​bought a Xiaomi Air Purifier for $200. ​This is the maternity industry. Pregnancy is going to cost you a lot of money. Let’s talk about the top...

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Low Risk Investment (Edition Oct2019)|3y Endowment, Portfolio or Bonds?

If you like low risk investment or even those with no risk, your expectation of returns should be lowered. Some alternative methods to get some interest would be by accounts such as the DBS multiplier or the OCBC 360 account which should be explored. These accounts do have terms and conditions to fulfil thought and they can change the interest rates easily. But let’s say you’ve done them already or you don’t like them and are ready to get invested, these are 3 possible options. 3y Endowment plans into the NEW Singlife Endowment Series 4 Below is a snapshot...

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Great Family Care Plan – Why It’s A Unique 3 Generation CI coverage!

If you feel you are part of the Sandwich Generation, you are not alone. 79% of young Singaporean’s believe they will be the next sandwich generation. (According to NTUC INCOME). Hence, this Great Family Care Plan by Great Eastern to help cover for you, children and parents. How does Great Family Care plan work? You gets the following GREAT Family Care benefits with a $100,000 sum assured coverage: S$100,000 coverage from 53 critical illnesses, death, total and permanent disability, terminal illness, till age 85. Your children gets FREE S$25,000 coverage from 53 critical illnesses and 25 juvenile conditions at...

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Why I’ve Deliberately Increased Expenses To Move Towards Financial Independence

If you start saving more, you are doing the FIRST step towards financial independence. It is correct. And also conventional wisdom. Most “FIRE GURUS” advocate being frugal and to save at least 50% of income. Why? Because a savings rate of 50% (With an assumed investment ROI of 5%p.a), it allows you to possibly reach financial independence in 17years. BUT cutting back on expenses only is the LAZY way to attain FIRE (Financial independence retire early). Frugalness has limits to helping you reach financial freedom Look at the equation again… ** INCOME – EXPENSES = SAVINGS ** You can...

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