Today I read an annuity benefit illustration on a brochure: 40 year old male contributes 24,200 yearly for 5 years. At age 65, he receives $2,000 per month (non-guaranteed) till 85 with a lump sum maturity of $72,000 (non-guaranteed). Hence the total potential return is $552,000. The insurer has a track record of meeting its projection. Hence for simplicity sake, let’s assume above are guaranteed returns. At the onset, it sounds extremely attractive to me. I can have an income to complement my CPF life of about $1,200 per month and about $2,000 a month I will be able to retire comfortably assuming inflation is at 0%! However, as a discerning citizen, I tried to replicate using a balance funds portfolio of unit trust. Assume I purchase a balance equity fund of Fixed income + Equity. The fund is likely to be able to meet its 4.5% ......