Invest my retirement savings

Dear Mr Tan

I have recently retired from work and taken out my money from the CPF.

I have a large sum of money kept in the bank earning a miserable interst rate of 2%. Is is safe for me to invest in a unit trust or investment fund to earn a higher return? What is a good time to invest in the stockmarket after it has corrected?

REPLY

You can read this FAQ.

My preference is:

* invest $200,000 in a life annuity
* invest the balance in a large, well diversified fund

As the global stockmarkets are still in turmoil, it is better to keep your money in the money market fund (to earn 1.5% to 2%). When the stockmarket has corrected to a lower level, you can invest in the combined fund.

You should talk to an insurance adviser.