Another CPF supporter

[orwell76]

Satki is use loudhailer when make some profit.. but keep quiet when loss head heart leg arm family …

You can't sense the sarcasm?

 

[chaiscool]

S&P 500 annualised returns over past 20 years is 9.66%

Source : https://tradethatswing.com/average-...ns-for-sp-500-5-year-up-to-150-year-averages/

S&p 500 got tax leh and if buy in usd got currency fx variance. The likes of s27 has low liquidity.

 

[m0n0n0ke]

She is single

thats explain everything

 

[1982-1994]

thats explain everything

I find her attractive though
For her age, her body is considered well maintained

 

[zueinder]

Nothing wrong with using CPF as a retirement tool but to be 100% reliant or think that things won't change is quite naive lah. That's why some relatively 'rich' people still go out to work odd jobs because it helps with living costs & they can use their retirement money to do 'fun' stuff.

 

[jywy2005]

Turning 55 yo next year. I intend to do SA shielding . So using OA to form RA up to FRS. Dun want to lock up too much in RA. After 55, CPF SA becomes your FD account earning 4.08%. Whatever left in OA, continue to buy T-bills. Pray hard that yields continue to be above 3.5% next year.

I will still continue to top up my CPF acc via voluntary contributions.

 

[Southern Lights]

I plan to top up my RA to ERS at 55 years old.

This allows me to get a payout of $3.8k from 70.

I want to keep around $1 mil in the other CPF accounts for emergency.

This is my plan also.

If I stay on in this job, I'll comfortably hit FRS when I'm 55. Then, just top up to ERS. With retirement secured, I'll take on a more relaxed job, just to support the family and accumulate more monies to send my two children overseas to study.

A pity there is no tool to calculate the projected RA balance I'll have at 55.

 

[mp4005 help]

try to plan such that you have 5 x savings in cash to CPF total amount ratio. e.g. $300k CPF total - have $1.5m cash.
CPF is just a back up for pocket money. your real savings should be from cash components.

 

[1982-1994]

This is my plan also.

If I stay on in this job, I'll comfortably hit FRS when I'm 55. Then, just top up to ERS. With retirement secured, I'll take on a more relaxed job, just to support the family and accumulate more monies to send my two children overseas to study.

A pity there is no tool to calculate the projected RA balance I'll have at 55.

Manually calculate lor ,year by year
I am giving myself 3% pay increment yearly

 

[s0crates]

Actually CPF should only form 1 layer of a person's retirement fund.

Not wise to rely solely on CPF for retirement as it may not be enough.

For people who practise this, they wont worry abt shifting goalpost or illiquidity etc.

Not true. Eh 37% of your gross salary since your first paycheck goes into cpf leh. If we save that much and are not able to use it solely for retirement, something wrong right?

The trick is to not let cpf earn low interest and invest it when possible, and to not overstretch with ppty investment.

 

[s0crates]

Moi friend very happy when see the CPF statement every year………
Don’t know next year will let me take pic or not?………lol

Should invest in tbills minimally. Bless her retirement, hope she doesn't set such low standards for herself in money management...

 

[mp4005 help]

Not true. Eh 37% of your gross salary since your first paycheck goes into cpf leh. If we save that much and are not able to use it solely for retirement, something wrong right?

The trick is to not let cpf earn low interest and invest it when possible, and to not overstretch with ppty investment.

capped at $37k + per year only. it should be unlimited.
majority of people use OA to buy house. SA and MA - accumulate but it is not as fast as OA. OA increase is the fastest.

plan properly , OA will build up even faster once home loan finish. many people do try to pay off by 30s 40s latest. then don't big head want to upgrade get in debt again and then wipe out OA.

 

[snowblaze]

Waiting for government to change lo. Hope they demolish CPF and give the money inside to poor people like me.

 

[standarture]

Hoarding in CPF is a huge gamble. Most people will kenna health issues after 60. You cant travel that often, cant eat fancy that often, too old to do too much stuff also.

 

[DragonFire]

4% annual returns looks a lot, to the uninitiated

It is a lot for an almost risk free asset.

 

[s0crates]

capped at $37k + per year only. it should be unlimited.
majority of people use OA to buy house. SA and MA - accumulate but it is not as fast as OA. OA increase is the fastest.

plan properly , OA will build up even faster once home loan finish. many people do try to pay off by 30s 40s latest. then don't big head want to upgrade get in debt again and then wipe out OA.

Disagree. What's wrong with HDB loan?? Interest rate so low. Government even REFUSES to increase cpf OA interest rate benchmark, saying that homeowners on HDB loan will be adversely affected if OA rates increase and hence leading to hdb loan increase.

Hdb loan is good loan, probably the best, cheapest loan you can get, as long as you are not buying an extravagant ppty. Not maximising it out and stretching it out doesn't make sense. Just take the spare OA money and invest it for the long term? Or invest in tbills?

 

[DragonFire]

Hoarding in CPF is a huge gamble. Most people will kenna health issues after 60. You cant travel that often, cant eat fancy that often, too old to do too much stuff also.

Isn't the S&P just as big if not a bigger gamble considering the amounts involved in a typical investment portfolio?

 

[mp4005 help]

Disagree. What's wrong with HDB loan?? Interest rate so low. Government even REFUSES to increase cpf OA interest rate benchmark, saying that homeowners on HDB loan will be adversely affected if OA rates increase and hence leading to hdb loan increase.

Hdb loan is good loan, probably the best, cheapest loan you can get, as long as you are not buying an extravagant ppty. Not maximising it out and stretching it out doesn't make sense. Just take the spare OA money and invest it for the long term? Or invest in tbills?

for the past 5 years or so , bank rates were like 1+%. CPF home loan were double.
now t bills just 1+ % more than CPF OA. less the 1 or 2 months interest lost. think EIR maybe now less than 1% more. 1% of $500k is just $5k.

but yes - when interest rates are low - maximise borrowing, can even explore reverse mortgage if rates are low. just to borrow more.
when interest rates are high - maximise savings.

 

[s0crates]

for the past 5 years or so , bank rates were like 1+%. CPF home loan were double.
now t bills just 1+ % more than CPF OA. less the 1 or 2 months interest lost. think EIR maybe now less than 1% more. 1% of $500k is just $5k.

but yes - when interest rates are low - maximise borrowing, can even explore reverse mortgage if rates are low. just to borrow more.
when interest rates are high - maximise savings.

Yea, cpf has yet to adapt to the high interest rate environment over the last 2 years. They made cpf investing in tbills a lot simpler now so minimally we should take responsibility of our own money and exploit the difference.

the government is not doing enough to address retirement adequacy for the vast majority of the public with cpf interest rates being stagnant.

There are already tools and options that people should already use to get higher returns, but I don't see that happening. Yet on HWZ we got so many pple (who are probably seen as money savvy folks by their friends) celebrating huge cpf balances.

 

[jumpthepig]

But @woonwoonjiakbeehoon 4%
Those >8% have high risk

For CPF 1-2 millions….4% is more than 40k per annual.. They can woonwoonjiakbeehoonliao… many of these CPF millionaires only treat it as safety net only.