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Retiree suffered heavy losses after borrowing to buy $2m of investment products
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A retiree ended with losses because he borrowed over $1.4 million to buy insurance products.
ST ILLUSTRATION: MANUEL FRANCISCO
Follow topic:
- A retiree borrowed heavily to invest in insurance, misled by a bank manager, and suffered significant losses due to rising interest and unsuitable products.
- MAS guidelines mandate banks protect elderly customers from risky investments. The bank disregarded them, leading to partial compensation for the retiree's claim.
- CPF LIFE offers a risk-free, government-guaranteed lifelong annuity, potentially providing higher retirement income than market products.
AI generated
You should always think twice before borrowing to invest because this increases the risk of losses, as a retiree who took out huge loans to buy $2 million worth of insurance products found out.
The 67-year-old man thought he had chanced upon a good investment plan that could pay for his monthly expenses because his bank’s manager told him he could borrow to pay for 70 per cent of the single-premium policy. So he paid $300,000 and was given a loan of over $700,000 to pay for the million-dollar plan.
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