Advice on reducing risk

Hello Mr Tan

I am only 45 but am not a risk taker. I wish to invest lump sum $30K from CPF-OA to accumulate till age 62 to draw out monthly in future. Should I take a guaranteed annuity now?

J

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Dear J,

I suggest that you invest in our Growth plan, which offers a guaranteed return of about 2%. With bonus, it should earn slightly more than 4%. You this FAQ: Growth

You should also consider investing in our combined fund. Although it has higher risk, the risk can be minimised by investing in a large, well diversified fund and invested for the long term (ie 10 years or longer). You can turn risk to your advantage. Read this FAQ: Ideal

You can convert your investments into a life annuity at age 62 or later. I will get an insurance consultant to advise you.

Tan Kin Lian