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Understanding Leveraged Annuity Plans: How They Operate and Key Risks to Be Mindful of


✅ Engage JOSH TAN on a FEE to build towards for your retirement, achieve your breakthrough TODAY: ✅ ✅ Looking For A Career With Us ✅ For REIT Investing and passive income discussions, JOIN Telegram group "PASSIVE INCOME 2.1k" here - ✅ NEW TheAveragePerson Podcast: - Is cash useless? - How to invest with as little as $2,000 - How to hit your financial goals! Retirement planning in singapore has traditionally involved #annuity plans. However, with low interest rates, many are buying annuity plans with leverage from banks. This is life insurance premium financing. In this tutorial, you'll hear on why it is appealing now. And what are risk to be aware of before buying a #leveragedannuityplans where there are guaranteed returns and non guaranteed returns from PAR funds. Chapter 0:00 : Introduction and disclaimer 0:51 : What I'm doing a breakdown of leveraged annuity how does it work 1:26 : Picture description of how it works with guaranteed and non guaranteed components 2:30 : How non guaranteed performance from PAR plans 3:50 : Leverage from banks and how it changes the projected yield to possibly 10% 7:18 : Understanding Sibor trends and how it can affect returns 8:36 : Summary table of leveraged annuity plan vs property investment. Edit "Loan to value" better description than "Leverage factor" in table 11:05 : Mistakes of understanding this plan with special attention to risk and pitfalls 13:41 : My approach to retirement planning ******* We do not make any recommendations on whether a security is a buy/sell as every investor has different investment goals and risk profiles. The presentation of ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material. Some of the referral links in the video summary are products and services personally used by Josh Tan and they may pay an affiliate commission or referral bonus. It is not an endorsement of the product unless explicitly stated and we will not be liable for any losses. The content in this video and any promotions mentioned is accurate as of the posting date. ******* ____________________________________________________________________________________________ About Josh: Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips to help you kickstart your journey towards financial freedom. As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video. ✅ To learn more on financial planning and insurance concepts, visit ✅ Engage JOSH TAN on a FEE to build towards for your retirement, achieve your breakthrough TODAY: ...(read more)



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Leveraged Annuity Plans: How They Work and What Risks to Watch Out For! In the world of financial planning, annuities have long been a popular choice for individuals looking to secure a stable income stream during retirement. However, some investors have taken this concept one step further by exploring leveraged annuity plans. These plans, although potentially rewarding, come with their own set of risks. In this article, we will delve into how leveraged annuity plans work and discuss the risks investors need to be aware of. A leveraged annuity plan involves borrowing money to purchase an annuity contract. The borrowed funds, usually obtained through a loan, are then invested in the annuity. The hope behind this strategy is to generate a greater return on investment compared to the interest paid on the loan. By leveraging their investments, individuals aim to amplify their gains and potentially enjoy a more comfortable retirement. The appeal of leveraged annuity plans lies in their potential for accelerated growth. With the borrowed funds working alongside the principal investment, investors can take advantage of market upswings and potentially magnify their returns. The amplified gains may also provide the added benefit of increased retirement income, allowing individuals to maintain a desired standard of living. However, along with the potential for higher returns, leveraged annuity plans come with inherent risks. The primary risk revolves around the borrowed funds and their associated interest rates. If the return on investment from the annuity falls short of the interest paid on the loan, the investor faces the consequences of negative returns. In such a scenario, not only does the investor lose out on potential gains, but they may also struggle to meet loan repayment obligations. This can lead to financial distress and a significant dent in their retirement savings. Additionally, leveraged annuity plans are highly dependent on market conditions. If the market experiences a downturn, the invested funds could significantly decrease in value. This can hinder the investor's ability to generate enough income for their retirement and cause a chain reaction of financial difficulties. Another risk factor to watch out for is the complexity of leveraged annuity plans. These plans require a meticulous understanding of the intricacies involved in leveraging borrowed funds. Investors must carefully evaluate the potential returns and weigh them against the repayment obligations to ensure they are financially equipped to handle worst-case scenarios. It is crucial for investors to assess their risk tolerance and financial capabilities before venturing into leveraged annuity plans. Consulting with a trusted financial advisor can help individuals better understand the risks involved and make informed decisions based on their individual circumstances. In conclusion, leveraged annuity plans can provide the potential for increased returns and enhanced retirement income. However, these plans carry inherent risks that should not be taken lightly. Investors must thoroughly comprehend the complexities of leveraging borrowed funds, evaluate market conditions, and assess their financial capabilities before embarking on such plans. By being aware of the risks and seeking professional guidance, individuals can make well-informed decisions and safeguard their financial future. https://inflationprotection.org/understanding-leveraged-annuity-plans-how-they-operate-and-key-risks-to-be-mindful-of/?feed_id=121675&_unique_id=64c31ab28f7ac #Inflation #Retirement #GoldIRA #Wealth #Investing #annuities #annuity #annuityplanssingapore #bestretirementplaninsingapore #chinataipinginfiniteharvest #greateasternpremierlifegenerationreview #howtoplanforretirement #leveragedannuityplans #lifeinsurancepremiumfinancing #manulifesignatureincome2 #manulifesignatureincomereview #ntucvivowealthsolitairereview #retirementinsingapore #retirementplanning #retirementplanningsingapore #singaporeannuityplans #whatareannuityplans #Premiumfinancing #RetirementAnnuity #annuities #annuity #annuityplanssingapore #bestretirementplaninsingapore #chinataipinginfiniteharvest #greateasternpremierlifegenerationreview #howtoplanforretirement #leveragedannuityplans #lifeinsurancepremiumfinancing #manulifesignatureincome2 #manulifesignatureincomereview #ntucvivowealthsolitairereview #retirementinsingapore #retirementplanning #retirementplanningsingapore #singaporeannuityplans #whatareannuityplans #Premiumfinancing

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