CPF Easy Info Thread. :)

[dork32]

From a pure math perspective, there really isn’t a huge difference between Standard and Escalating. Up to age 80 the two are almost the same. By age 85 you might see 0.5% higher IRR with Standard, but then that difference slowly fades away and disappears into your 90’s.

sorry the irr of standard stays above that of escalating, even if you lived beyond 150 years old.

 

[dork32]

From a pure math perspective, there really isn’t a huge difference between Standard and Escalating. Up to age 80 the two are almost the same. By age 85 you might see 0.5% higher IRR with Standard, but then that difference slowly fades away and disappears into your 90’s.

Put another way, I would not choose Standard over Escalating just because one beats the other by 0.5% during a few years of my life. Instead, I would choose based on how valuable that inflation protection is to me.

okenba, this is the way to do analysis. you do not choose the middle ground and say that you cannot be too wrong.

 

[dork32]

I question the whole premise of bequests in certain respects. I want to do much, much better than leave a mere bequest.

you get 120 extra per month. you cannot do much much better with that sum

 

[dork32]

Your last paragraph is enlightening for me. Thanks

i totally disagree. so nobel is a financial failure. he left so much money behind that he can afford to feed the prize winners every year for decades.

it is natural selection, that we take care of our kids and try to do the best for our kids. it is then that our genes can be propagated through the generations. the genes that nudge you to leaving more for your kids will carry on in your future generations.

if there is a mutation, and your genes tell that having no kids is better. your mutated genes will die off with you.

 

[highsulphur]

i totally disagree. so nobel is a financial failure. he left so much money behind that he can afford to feed the prize winners every year for decades.

it is natural selection, that we take care of our kids and try to do the best for our kids. it is then that our genes can be propagated through the generations. the genes that nudge you to leaving more for your kids will carry on in your future generations.

if there is a mutation, and your genes tell that having no kids is better. your mutated genes will die off with you.

he didn't say don't provide or don't leave anything for your kids. Just give it to them earlier for them to enjoy it earlier.

Your bias towards him is really deep

I don't agree with everything he says nor do I disagree with everything.

 

[Okenba]

It's not about bias against anyone lah. Some people are just so full of themselves that even if everyone says he is a loser he will think that everyone is wrong. They always think there is only one way and that their way is the only way.

This one edmw have a lot. I think they call them bbfa. Maybe some of them got lost and think this is edmw.

 

[dork32]

he didn't say don't provide or don't leave anything for your kids. Just give it to them earlier for them to enjoy it earlier.

Your bias towards him is really deep

I don't agree with everything he says nor do I disagree with everything.

i am not bias against him. maybe you do not watch enuf dramas. there are so many storied that kids take the money and dump their parents. why do you want to risk that?

 

[dork32]

It's not about bias against anyone lah. Some people are just so full of themselves that even if everyone says he is a loser he will think that everyone is wrong. They always think there is only one way and that their way is the only way.

This one edmw have a lot. I think they call them bbfa. Maybe some of them got lost and think this is edmw.

this type of post got no value watsover. go ahead and choose standard for yourself and see how many people will view you as a loser.

 

[reddevil0728]

i am not bias against him. maybe you do not watch enuf dramas. there are so many storied that kids take the money and dump their parents. why do you want to risk that?

It really depends on the kid’s upbringing then...

 

[Okenba]

It really depends on the kid’s upbringing then...

Maybe people who think that aren't confident of their own parenting.
Or maybe they aren't married, and so don't have their own kids.

Who knows why people would want to think of their own kids in this way...

 

[reddevil0728]

Maybe people who think that aren't confident of their own parenting.
Or maybe they aren't married, and so don't have their own kids.

Who knows why people would want to think of their own kids in this way...

everybody has their own thought. So it’s ok to think whatever they want.

But just don’t impose one’s thought on the other lor. Then everything will be fine.

 

[Okenba]

everybody as their own thought. So it’s ok to think whatever they want.

But just don’t impose one’s thought on the other lor. That everything will be fine.

I also say.
There is rarely only a single answer. All the more so when people are involved.

 

[celtosaxon]

sorry the irr of standard stays above that of escalating, even if you lived beyond 150 years old.

It varies depending on the scenario, male/female, age of birth. I’ve seen some cases where the IRR for escalating surpasses standard as early as age 95/96, but I’ve also seen others that take until 100 or more.

But my point was, standard doesn’t win by much... in your 90’s we are talking tenths of a percent difference in IRR. Even in your mid to late 80’s where the IRR difference is the most, worst case it can be up to 3/4 of a percent, and that is only for a brief few years.

I just don’t see enough IRR difference between Std/Esc to make a meaningful difference, not enough to impact a decision between them. It’s close enough for me.

On the other hand, Basic has huge IRR differences, it can be a multiple percentage point delta along large portions of a person’s lifespan - - it is significant.

 

[dork32]

It really depends on the kid’s upbringing then...

are you very sure how your kid is going to behave next time. even if your kid is good when they are young, they could be influence by their spouse.

to me. i will just play it safe. i make sure i keep more than enough for myself. i will just pass it to them when i really do not need it any more.

 

[dork32]

I also say.
There is rarely only a single answer. All the more so when people are involved.

it is ok. just choose anything you feel is right. it is your life. choose it yourself.

it is like i make this decision because i like it. i do not have to give any reasons other than i am happy with it.

 

[dork32]

Maybe people who think that aren't confident of their own parenting.
Or maybe they aren't married, and so don't have their own kids.

Who knows why people would want to think of their own kids in this way...

yeah, your kids are very well brought up.

i really want to see you do what bbc suggest. give all to your kids. dont worry. your kids are very well brought up. they will be able to manage your money well. they will take care of you when you have no money at all.

 

[dork32]

zoneguard: i choose basic because maths tell me to do so

bbc: i choose escalating because i want to make sure i have enough should i live forever.

okenba: i choose standard because it is middle ground?????

 

[Okenba]

it is ok. just choose anything you feel is right. it is your life. choose it yourself.

it is like i make this decision because i like it. i do not have to give any reasons other than i am happy with it.

You are right.

You happy can liao. No need to seek validation from random internet stranger. After all, you have no idea who he is and who he says he is may not even be true.

Engine grad? Arts grad? Undergrad? Who knows.
Lecturer? Teacher? Student? Who knows.
Kids? No kids? Nobody even want to marry? Who knows.

People like being right on the internet, just let them think they are right lah.

You are right.

 

[BBCWatcher]

Dork32, if you're concerned your heirs are going to be evil, I think you've got it exactly backwards. If you're waiting to die before sharing wealth with heirs, then those heirs are powerfully motivated to hasten your death.

https://youtu.be/qGTDE9ftyIg

 

[streetfighter]

I choose Standard because highest payout from the start, don't need think too much.

zoneguard: i choose basic because maths tell me to do so

bbc: i choose escalating because i want to make sure i have enough should i live forever.

okenba: i choose standard because it is middle ground?????