A good retirement plan

[redmanjp]

So just looking to see what's the best retirement plan out there with good growth rates and so on.

A rep from one company approached me about this as well as life insurance.

So we did a projection. Based on a retirement age of 65 (in 28 yrs) AND assuming i put in an initial lumpsum of $15000 and have monthly premiums of $1000, i retire with
$4700/mth pension at a rate of 4.5% and 3.5% (there are 2 funds)
$6600/mth at 6.5% and 5%

the ave rate of growth since inception however has been 9.3% and 4.5% respectively
(min. guaranteed is 1% and 0% p.a.)

so are those good rates or can i get better rates elsewhere?

[eliteauto]

take the 15K and open a parlour or doubles stand

[Strugglerzinc]

How long they paying the pension?

[redmanjp]

How long they paying the pension?

i'm assuming till i die i guess. perhaps i should make sure oui

[VexXx Dogg]

Shop around. Ask a proper financial advisor about putting your nest egg in one basket vs distributing across two or three.
Think clico.

[urbandilema]

Hear the tisp plan from republic decent as my dad advice me I still to investigate but when I do I will do.the reason I haven't as where I work has one already

[Redman]

Contemplate what the 4700 purchasing power would be in28 years..

I would say buy the 1st scheme and dollar cost average monthly.

And buy shares.

Build a portfolio of good cos...
Pay yourself the fees.

[Premchand1976]

Tisp has back end charges which would cost you more if vested early, most pensions are payable for life after maturity. Message me if you guys need any additional info on Guardians annuities

[RBphoto]

take the 15K and open a parlour or doubles stand

^^^This!!!! Pensions are for suckers. Forget about the tax rebates as well. Invest in a business and lease a car and claim back for that. Real benefits while you are still able bodied.

[Slartibartfast]

So just looking to see what's the best retirement plan out there with good growth rates and so on.

A rep from one company approached me about this as well as life insurance.

So we did a projection. Based on a retirement age of 65 (in 28 yrs) AND assuming i put in an initial lumpsum of $15000 and have monthly premiums of $1000, i retire with
$4700/mth pension at a rate of 4.5% and 3.5% (there are 2 funds)
$6600/mth at 6.5% and 5%

the ave rate of growth since inception however has been 9.3% and 4.5% respectively
(min. guaranteed is 1% and 0% p.a.)

so are those good rates or can i get better rates elsewhere?

Ok, a few things I learned since I been going through this a couple years now.

Projections don't mean sh!t. I was quoted 15%, 10% and 4.5% projections.
Average rate of growth since inception doesn't mean sh!t. These funds most likely started in the 80s or 90s when the international markets were booming. I got quoted an average rate of about 11% when I was signing up with Guardian.

The guaranteed is only on the premiums you pay under the pension plan and is calculated at maturity. This is the catch that I only found out after months of pestering.

Here is what I wasn't told. The average over the past 5 years was less than 1%. The fees incurred also made sure I never turned a profit (in 5 years with the plan so far). Now, after five years I have lost about $15,000.

They will tell you, "it is a long term investment and you won't see returns until after a good few years" and "everywhere going through a recession now so everywhere is giving poor returns"

Here is the thing, you are supposed to be giving them your money to manage because they are supposedly better at managing it than you. If they can't turn a profit due to the recession then why bother give them your money? Also a 4.5% return means that on every $1,000 you have you get back $45. At that rate you are better off doing what the others here said. Save your money and use it to start something on the side.

If it's with Guardian though send me a pm, I'll give you some stories of what I experienced.

[Miktay]

take the 15K and open a parlour or doubles stand

^^^This!!!! Pensions are for suckers. Forget about the tax rebates as well. Invest in a business and lease a car and claim back for that. Real benefits while you are still able bodied.

x2

Check bond yields in the developed world. They low.

http://www.tradingeconomics.com/bonds

Insurance cos will have 2 take a lot more risk to get u 4.5%-6.5% CAGR over the long term.

Small bidnezz on the side may be a good alternative. But that will cut into ur personal time. And not ebody cut out 2 run they own company.

Caveat Emptor

[uncle sam]

Call guardian

[redmanjp]

yeah its Guardian Life i got the quote from

[cherrypopper]

every body complaining of guardian yes .hmmm

[francis1979]

Rates are more or less the same.
What you need to look at is sign-up and management fees
As an example most insurance companies takes 50 to 75% of your 1st year premiums and thereafter management fees are 2-5% of each deposit

While banks, unit trust don't have the lost of premiums ; they also have similar management fees .

Projections are not worth anything ; they usually pull a random number . Amongst good companies rate of returns should be equal

Investment is not guaranteed ( government did not have to bail out clico

But due to the tax incentives there is value to investing in a government approved annuity .

Another option is a balanced stock portfolio

Just remember; in most cases what is called a financial advisor is an insurance agent. Who works on commission . So they may have a hidden agenda

[Cheddar]

You can shop around to find the plan that is right for you. I am a financial advisor with the Maritime Financial Group. Give me a call on 286-0890. I would be able to give you some options and explain to you properly how annuities work.

[Chimera]

Better yuh get some Spanish to sell bottle water at the side of the road than invest in any of them thing.

[dude2014]

A good retirement plan is your own house (no rent to pay when you retire), money in the bank, if you are working 750 NIS contributions = $3000.00 a month tax free, civil servant ( depending on years of service) $3500.00/month.

I took out a life insurance, did not die. Just getting my Guardian Agent Rich. Do not worry, I woke up to their grime and on the way to tell them off. If I had invested in buying and selling, weld shop or some other self employed gimmick, I would have over a million in the bank, best trips every year, 2 million house/s or more etc. Also as a civil servant I do not get OT. Ever hear more madness? A little OT get things done today, not tomorrow. It piles up and the country runs like oil, without OIL.

That is why I am investing MY MONEY IN AN AGRI PROJECT. Did that way back and floated out a big Debt Hole, which had a big hold on me. Cancelled an $800.00/month medical. Freeness in the health center/public hospital for me.

[car]

Contemplate what the 4700 purchasing power would be in28 years..

I would say buy the 1st scheme and dollar cost average monthly.

And buy shares.

Build a portfolio of good cos...
Pay yourself the fees.

$4700 in 28 years would only be able to by u groceries.
I had a pension and life insurance for 17 years. Stop both earlier this year. I watched the buying power of my money decreasing every year and contemplating for the last 5 years wheather to stop the policy or not. When recession hit it was the best time to stop it.
17 years ago a 3 bedroom upstairs house and land was $250k easy. How much you paying for that now??? That is just 1 example of how the buying power change. Things not going to get cheaper. Don't fall for this when investing your hard earned money.

[car]

So just looking to see what's the best retirement plan out there with good growth rates and so on.

A rep from one company approached me about this as well as life insurance.

So we did a projection. Based on a retirement age of 65 (in 28 yrs) AND assuming i put in an initial lumpsum of $15000 and have monthly premiums of $1000, i retire with
$4700/mth pension at a rate of 4.5% and 3.5% (there are 2 funds)
$6600/mth at 6.5% and 5%

the ave rate of growth since inception however has been 9.3% and 4.5% respectively
(min. guaranteed is 1% and 0% p.a.)

so are those good rates or can i get better rates elsewhere?

Ok, a few things I learned since I been going through this a couple years now.

Projections don't mean sh!t. I was quoted 15%, 10% and 4.5% projections.
Average rate of growth since inception doesn't mean sh!t. These funds most likely started in the 80s or 90s when the international markets were booming. I got quoted an average rate of about 11% when I was signing up with Guardian.

The guaranteed is only on the premiums you pay under the pension plan and is calculated at maturity. This is the catch that I only found out after months of pestering.

Here is what I wasn't told. The average over the past 5 years was less than 1%. The fees incurred also made sure I never turned a profit (in 5 years with the plan so far). Now, after five years I have lost about $15,000.

They will tell you, "it is a long term investment and you won't see returns until after a good few years" and "everywhere going through a recession now so everywhere is giving poor returns"

Here is the thing, you are supposed to be giving them your money to manage because they are supposedly better at managing it than you. If they can't turn a profit due to the recession then why bother give them your money? Also a 4.5% return means that on every $1,000 you have you get back $45. At that rate you are better off doing what the others here said. Save your money and use it to start something on the side.

If it's with Guardian though send me a pm, I'll give you some stories of what I experienced.

What guardian life and any other investment company wouldn't tell you is that there is a Maintenance/handling fee of $35 per month per policy. Sagicor charges $25.
These are thing they wouldn't tell you until you ready to close the account or it matures. When you check payment of $35 per month vs the investment of returns most of the times you breaking even or at a loss. You have to invest for a long time to profit and by that length of time your buying power is reduced. You loose most of the time.
There is a number for time I've been approached by life advisors and when I asked about the buying power of my money they could never answer. Their answer is to invest more money to the policy per month to counteract the loss of buying power.
I used to hide from them long before. Now I want them to approach me and try to sell me a policy. I just like to look at their blank faces when I challenge them with questions. They realise that they can't win with me and move on to an easier target.

[Slartibartfast]

What guardian life and any other investment company wouldn't tell you is that there is a Maintenance/handling fee of $35 per month per policy. Sagicor charges $25.
These are thing they wouldn't tell you until you ready to close the account or it matures. When you check payment of $35 per month vs the investment of returns most of the times you breaking even or at a loss. You have to invest for a long time to profit and by that length of time your buying power is reduced. You loose most of the time.
There is a number for time I've been approached by life advisors and when I asked about the buying power of my money they could never answer. Their answer is to invest more money to the policy per month to counteract the loss of buying power.
I used to hide from them long before. Now I want them to approach me and try to sell me a policy. I just like to look at their blank faces when I challenge them with questions. They realise that they can't win with me and move on to an easier target.

With Guardian as well they recoup all of their additional fees from your first three years of contributions. I think like 90% - 95% of the first year's contributions are taken by them and then 60% for the second year and like 30% for the third year. Not sure about year 2 and 3 but year I remember cussing up and getting rid of my agent after the first year because of the 90 - 95% charges thing. Like I said, I have lost about $15,000 so far. Also, remember this is a long term investment so I lost $15,000 that would have been compounded over 40 years and 4.5% so I really lost $87,000.

When I called the sales rep also didn`t know the difference between simple and compound interest and flat out told me I wouldn`t understand the equations that the actuarial department uses to calculate returns because it real complicated. I tell her maybe for someone without CXC passes that doesn`t know what compound interest is.

Anyway, in their defense, I have a new agent now and he seems willing to show me the ins and out of the policy once I send him some details and was upset that I was treated like that.

[car]

There is also a penality for surrendering the policy for the first 10 years.

[Miktay]

What guardian life and any other investment company wouldn't tell you is that there is a Maintenance/handling fee of $35 per month per policy. Sagicor charges $25.
These are thing they wouldn't tell you until you ready to close the account or it matures. When you check payment of $35 per month vs the investment of returns most of the times you breaking even or at a loss. You have to invest for a long time to profit and by that length of time your buying power is reduced. You loose most of the time.
There is a number for time I've been approached by life advisors and when I asked about the buying power of my money they could never answer. Their answer is to invest more money to the policy per month to counteract the loss of buying power.
I used to hide from them long before. Now I want them to approach me and try to sell me a policy. I just like to look at their blank faces when I challenge them with questions. They realise that they can't win with me and move on to an easier target.

With Guardian as well they recoup all of their additional fees from your first three years of contributions. I think like 90% - 95% of the first year's contributions are taken by them and then 60% for the second year and like 30% for the third year. Not sure about year 2 and 3 but year I remember cussing up and getting rid of my agent after the first year because of the 90 - 95% charges thing. Like I said, I have lost about $15,000 so far. Also, remember this is a long term investment so I lost $15,000 that would have been compounded over 40 years and 4.5% so I really lost $87,000.

When I called the sales rep also didn`t know the difference between simple and compound interest and flat out told me I wouldn`t understand the equations that the actuarial department uses to calculate returns because it real complicated. I tell her maybe for someone without CXC passes that doesn`t know what compound interest is.

Anyway, in their defense, I have a new agent now and he seems willing to show me the ins and out of the policy once I send him some details and was upset that I was treated like that.

Nah. Returns are simple maths. The time value of money.

http://www.zenwealth.com/businessfinanc ... lator.html

Life expectancy...on the other hand...iz actuarial science. AKA probabilities based on history and lifestyle

[Slartibartfast]

Nah. Returns are simple maths. The time value of money.

http://www.zenwealth.com/businessfinanc ... lator.html

Life expectancy...on the other hand...iz actuarial science. AKA probabilities based on history and lifestyle

Yeah I understand that. All I wanted to see was how they calculated my returns for the years so far though. I had to do account in UWI as part of my degree so I understand annuities, future value, present value etc. Extremely simple stuff that can be easily derived from first principals. I knew they were taking money out for something and I wanted to see exactly how much they were taking out and what interest rate I was actually getting.

[redmanjp]

so if guardian takes 90-95% the 1st year then i shouldnt put in a lumpsum initally?

and 90-94% of what exactly- the interest alone?

[Slartibartfast]

so if guardian takes 90-95% the 1st year then i shouldnt put in a lumpsum initally?

and 90-94% of what exactly- the interest alone?

You will need to confirm with your agent if he/she is even knowledgeable enough. But from reading through the contract document it says nothing about lump sums being affected (which is good) or guaranteed rates being applied to lump sums as well (bad). The contract document explicitly states what premium is covered by the policy

The 90-95% is taken out of you actual contributions. Example
You pay $1,000/mo as your premium
they take out $900/mo and $35 service fee
they enter $65/mo as your policy contribution
End of the year cash value is $780 with 1% interest

So at the end of your first year after paying $12,000 you are left with $787.10

Send me a pm later and if I get chance I'll send you the actual numbers from my annual statements when I get home. I don't want to spread misinformation.

[desifemlove]

seeing a broker who is reputable is good advice. But then it's also good form to back this up with long-term savings, fixed deposits, bonds, etc. or get an employee plan if yuh have one, or ensure you have a steady source of passive income like renting a house. No reason yuh cannot have a wide base to go from.

[The_Honourable]

every body complaining of guardian yes .hmmm

How so? Currently looking into Guardian and their products.

[cherrypopper]

The fine print. .

Don't let guaranteed and projected rates fool you. .

[pjfred]

This all means an annuity is not a good investment?