i am goign to tell u a fact. Ponzi like schemes are common anywhere a financial entity is involved
Madoff's Ponzi schem itself was inspired by ofiicial financial entities
I just found out from my friend, who is a finance professional, the meaning of PONZI SCHEME. We discussed the case of SUNSHINE EMPIRE where the boss ended up being charged.
What they need to do is to ensure that portfolio generate a returns that is higher than for the paid out of the CPF interest through various form of investment instrument.
Any reason why to dig on a Apr 2011 thread out ?
However, we can only speculate at what CPF does with our money... they do not offer transparency with their operation...
All their money is invested in SG Government Bonds that are guaranteed by the SG Government using the Nation's Reserves. Currently the SG reserves > CPF amount.
http://app.mof.gov.sg/data/cmsresource/Feature%20Articles/Singapore%20Government%20Borrowings%20An%20Overview.pdf
Im lazy to read but I feel every where , every gov in every countries work like this ~
"They" the powerful rich finanical elites lay down this system which EVERYONE must follow ~
you have to trace back histories of why there are currency ~
who are rothschild families ~
blah blah blah ~
nah it cant stand. then how u explain paper currencies turning up earlier in china? that the rothschilds or the wadever elites are actually ah tiongs?
sometimes angmohs spin doctors are so ignorant and lame.
Well, Temasek and GIC suck in investing.
The gov should let each individual singaporean do his/her investment.
How well can Singaporeans invest?
Year 2011
Members with losses (less than 0% return) 45%
Members with gains (less than 2.5% return) 38%
Members with gains (> 2.5% return) 17%
http://mycpf.cpf.gov.sg/NR/rdonlyre...B6361611DF/0/CPFISProfitandLossReport2011.pdf
Year 2010
Members with losses (less than 0% return) 49%
Members with gains (less than 2.5% return) 37%
Members with gains (> 2.5% return) 14%
http://mycpf.cpf.gov.sg/NR/rdonlyre...2FC1BD0AF4/0/CPFISProfitandLossReport2010.pdf
Year 2009
Members with losses (less than 0% return) 52%
Members with gains (less than 2.5% return) 35%
Members with gains (> 2.5% return) 13%
http://www.cpf.org.sg/NR/rdonlyres/...899FFF31FB/0/CPFISProfitandLossReport2009.pdf
Year 2008
Members with losses (less than 0% return) 49%
Members with gains (less than 2.5% return) 31%
Members with gains (> 2.5% return) 20%
http://www.cpf.org.sg/NR/rdonlyres/...561B31470/0/CPFISProfitandLossReportDec08.pdf
Year 2007
Members with losses (less than 0% return) 43%
Members with gains (less than 2.5% return) 29%
Members with gains (> 2.5% return) 28%
http://mycpf.cpf.gov.sg/NR/rdonlyres/D324F161-1F6A-4699-A6BA-C5ACA0E11C5F/0/IE_reportpl.pdf
I believe the answer is both yes and no
It is not a ponzi scheme outright but it works like a ponzi scheme because the fresh funds contributed from the working community will be paid out to the withdrawing community. This is because their investments are usually quite long term and it is impossible to en-cash that investment just to raise the funds to pay out to every individual retiree.
However, we can only speculate at what CPF does with our money... they do not offer transparency with their operation...
I'm 29 now.
I wonder if I will have to live to age 95 and beyond before I see my CPF money the way the rules keep changing every 2-3 years or so.
I'm 29 now.
I wonder if I will have to live to age 95 and beyond before I see my CPF money the way the rules keep changing every 2-3 years or so.
All their money is invested in SG Government Bonds that are guaranteed by the SG Government using the Nation's Reserves. Currently the SG reserves > CPF amount.
http://app.mof.gov.sg/data/cmsresource/Feature%20Articles/Singapore%20Government%20Borrowings%20An%20Overview.pdf
one typical tell-tale sign of a ponzi scheme is promised high returns within a relative short period, which obviously not in line with major savings schemes like banks, CPF, social security etc, or even govt bonds.
long term investments etc, the interests is for the risk factor and inflation. so no, CPF doesnt work like a ponzi scheme.