Tag: T_nannyState

## SG citizenship: $value imt GC

Posted on by tiger40490

I feel lucky to have Singapore citizenship. Now I feel SG citizenship is better than U.S. green card because

  1. — ranked by … strategic value to my family
  2. nanny-state public (+ private) service ..
    • Grade A vs C. It’s possible to put a dollar value on this ‘grade’
    • client service — good, efficient CRM (uncommon in many countries) when I’m in need of help
  3. medical cost relief — Medishield, polyclinics…
    • long-term nursing cost (esp. out-patient) is probably lower based on my personal observation.
    • Without insurance, hospitalization is probably much cheaper in Singapore than U.S.
  4. housing — relatively affordable public housing for citizens
  5. overall lower minimum burn rate, easier to achieve carefree if not absolute ffree
  6. for me, Singapore CPF beats U.S. social security
  7. weather — warm for retirees
  8. low crime rate — important to wife
  9. NRY — thanks to the open and robust economy, foreign professionals represent a stable rental demand.
  10. transport — Reliable and cheap public transport for non-drivers, though gas is costly
  11. college — Singapore universities for my kids
  12. Property tax — much lower than U.S.
  13. inflation control — better control than in many countries
  14. SG government has a large past reserve to protect Singapore against many threats.
  15. if stranded overseas — I can count on SG government to bring me home. U.S. citizens probably have lower confidence.

Q: If SG citizenship offers so many tantalizing carefree features, then why are they unattractive to so many shrewd Chinese professionals?

  • A: even if we agree that SG citizenship contributes to a bare-bones ffree far out in the future, the ffree is too bare-bones, too far out, and contribution are too small and unattractive to most people
  • A: these capable, qualified, elite professionals tend to be well-established in their country. In such a case, the sacrifice is too high, and risk is too high.
  • A: At our age, to abandon the current home country (US or ..) and try out a small SEA country is highly questionable, risky and a long shot. There’s too much at stake.
  • A: there’s a age window for choosing and changing home country. After that window closes, it’s increasingly costly to do that now.
  • A: SG citizenship is hard to get
  • A: SG is seen as too small too vulnerable to be strong, robust and powerful

[17] sg as#1 retirement destination #Dilip

Posted on by tiger40490

See also

Hi Dilip,

After our chat, I wrote down my reasons. Singapore and U.S. (perhaps near NY) are two of my most likely retirement destinations. The advantages of Singapore include:

  1. in-patient medical — .. care is subsidized (for Singapore citizens), including all major operations and hospitalizations. In some cases (like mine) there’s no deductible or co-insurance and no claim limit.
  2. climate — My wife hates cold weather. I will, too, when I get older
  3. cost level — Excluding housing and cars, most everyday expenses are 15% to 30% cheaper than U.S. so our savings are more significant.
    1. Stable inflation. I have little worry about inflation in Singapore.
  4. nanny sate — Essential services from government. Singapore government is known as a nanny state, esp. attentive to senior and low-income citizens’ needs — maintenance; out-patient health care; disaster management; taxes ..
    • Shrewd fiscal policies. Government won’t run out of money and cut services
  5. My wife can work part time till an old age, as a Chinese teacher.
  6. Chinese communities — My wife much prefers Chinese communities. There are a few Chinese communities in NY area but we can’t afford the housing cost therein.
  7. My wife has a large extended family in China, so we could visit them easily. My mother may also live a very long life, and she too has an extended family in China.
  8. driving — No driving required when we grow old. Excellent public transportation. I lived in Singapore for about 20 years, never owning a car.

Allianz annuity as(poor)cousin@CpfLife

Posted on by tiger40490

All of the annuity products featured here suffer from long-wait, low return, horrible liquidity. As I stressed in many blogposts, I need current income rather than retirement income, but these products do the opposite — increasing retirement income at the expense of current income.

I think because YJL invested heavily herein, his current income from his other investments is very low. His retirement income could be too much for his needs.

This product is rather complex. Here’s My simplified numerical illustration: (Still too much to remember and not so relevant)

assuming growth phase = age 55 to 65
and the subsequent payout phase = age 65 to 85 or 95 or whatever

At age 55 we invest 300k. Let’s not assume the very optimistic or extremely negative outcomes, so this 300k will increase at (non-compounded but guaranteed) 8% a year, during the growth phrase.

After 10 years, 300k becomes 540k, but this is not available for a lump sum withdrawal. This 540k is a reference value, as explained in this video, officially known as benefit base. The actual contract value (i.e. asset value or account value) is probably much lower since few fund managers can guarantee 8% for 10Y. This value depends on the annual fees (like 4%) and participation rate (like 50% of the actual asset goes into some equity funds). I believe the actual contract value is likely well below 540k.

Nevertheless, the 540k is the basis of the retirement income. Each year until I die, I receive something like 4% of this 540k, equal to $1800/month. This $1800/month as a percentage of the initial outlay of 300k is 7.2% — decent, but remember the 10Y wait.

If the growth period is longer like 20Y, then the initial investment improves from 300k to merely 208k, so the $1800/month amounts to 10.4% (of premium) payout_rate after 20 years wait.

I think I would prefer a shorter wait, like age 45 to age 55. Not sure how the numbers would change. For even shorter wait, my rental properties deliver immediate current income but at much higher credit risks. See the section below.

Note the annual fees don’t directly impact the guaranteed 8% garanteed increment (during Growth phase) or the 4% guaranteed income (during payout phase).  Guarantees are guarantees. The fees are how the operators make money, but fees are already factored into the prices.

How does it stack up against CPF Life

Similar. With the same 10Y wait, CPF Life seems cheaper i.e. payout is higher (8-9%).

I wanted to know the payout for $100k top-up at age 65…. Aha – Online Estimator shows that for someone born 1955 (aged 65 in 2020), a 275k top-up to RA would immediately start producing $1.3-1.4k in the Basic plan, around 6% payout rate. Standard plan would pay more than 1.5k i.e. 6.5% payout rate.

See also ##cpfLife adv over private annuity 

How does it stack up against property

  • active management — is much worse with properties.
    • The guaranteed rent income improves that significantly
  • risks — market risk, political risk etc is much better with annuity
  • growth — (long term) is much better with properties. With notable exceptions like Tokyo, most properties appreciate over 20Y. (In every city, there are individual buyers who happen to buy at the very peak and end up waiting for 20Y to break even. )
  • liquidity — is much worse with annuities
    • Except CPF-life, the annuity can be surrendered by giving up most of the lifetime benefits
    • properties can be sold any time, even during the first 10 years
  • inflation (long term concern) — is better for property rental income

 

[16] SGP+MYS: 2 retirement destinations #R.Xia,AshS

Posted on by tiger40490

See also Malaysia: my#3 retirement destination

Ashish pointed out that SG is the best retirement destination in the world for me. Miles Yang agreed SG is a good choice for me.

XR,

I said Singapore wasn’t a popular retirement destination but there are still some advantages.

  • familiarity. Reliable government and service providers, much needed when we are no longer so capable and resourceful. Those Singaporeans who retire elsewhere usually know the destinations well. I don’t, so Singapore is my #2 or #3 choice.
  • high-quality but Relatively low-cost health care. When I go to a Singapore hospital I never worry about /burdensome/ bills I can’t afford.
    • ** medishield covers all hospitalization costs including pre- and post-hospitalization.
    • ** My kids and wife were hospitalized a few (like 5) times. About $400-$600/day total.
    • ** polyclinic xp: elderly healthcare
    • ** Emergency treatment costs $110 per visit on average, including medicines.
    • ** Specialists consultation costs $100 on average.
  • Singapore employers are traditionally open to old workers esp. in the service industry.
    • ** Low wages, but I don’t mind. Singapore features very low unemployment rate so Those low-wage service jobs always need someone but few young people want them.
    • ** It would be ideal if we could find a higher paying job in our 70’s, such as teaching or research.
  • stable inflation (ignoring properties) and currency. Remember my CPF Life and HDB rental will be in SGD. If income is in SGD then my expenses had better be in SGD.
  • rent out our HDB home
  • CPF Life.
  • can invite our parents to stay in Singapore long term. When I retire, my mother or mother-in-law would be around.
  • many cities build street fixtures for wheelchairs or the blind, but only SG government maintains them!
  • maid — low-cost domestic helpers from SEA countries, esp. if retiree needs a human helper (ElderShield). Miles Yang told me no such maid service in China. This kind of responsibility falls on the next generation.
  • Walking distance — (Ashish pointed out) No driving required when I’m old. Excellent public transportation. I lived in Singapore for about 20 years, never owning a car.
  • ==== less specific, high-level keywords:
  • street safety
  • efficient government
  • nanny state — The older I get the more I would appreciate it.
  • convenience