CPF System

[dendii]

I agree. And many at times this is also part of why parents buy life insurance for their kids even though many argue what good does it do for themselves except additional expenses.

Many were in that same shoe before. I am grateful to my parents whom bothered to get a WL + CI coverage for me. And I will do the same to my future kids as well.

The competition is real and economy is becoming more challenging every day.

We are called the sandwich generation. We have to take care of our parents and children and the burden is immerse. Just look at the insurance cost alone, you would wish your parents had bought their insurance themselves rather than you buying for them now and still have to buy for your own family.

But if we look farther, you would see the future generation is likely to be even worse. People are living longer and unless you have only 1 child, your child is also going to be even more sandwiched than you. This is the terrible effect of aging population and it is affecting every single developed countries.

 

[FP_IFA]

Back to the topic, CPF system is here for a good purpose. It has helped a lot of people in the past and it will continue in the future. But its purposes are not fully customised for everyone. It form a basic protection level but many of us want and need a higher protection. For that you need to get outside products or plans to supplement.

Whether you trust the CPF (I get this alot) is up to you. When it changed, there is always a good reason for it. If you ask me, I will think the drawout age will again change in the coming years. I think so because the rate of minimum sum increment is going to drop for the next 5 years. I think this, while is a popular policy, would be insufficient to cover both inflation AND increase in longevity for the lower income group.

 

[akwl88]

If cpf no good, which other things are good?

just asking theoretically

 

[dendii]

CPF no doubt serves a purpose but I think CPF alone is insufficient and you need other forms of passive income whether through investment or side businesses

If cpf no good, which other things are good?

just asking theoretically

 

[eternalxiii]

If cpf no good, which other things are good?

just asking theoretically

Look up wahkao3, the best investor in this forum. Low risk, high returns, the best guarantee you can get! Can be best buddies with him. All financial advisors can go eat grass.

"TA ok, FA ok, then I buy. Huat ah!"

 

[peterchan75]

Many years ago, my US colleague said of our CPF, you have a great system. It's your money and you keep what you earn. Our US social security is bankrupt and we are paying social security tax that we might not get it back.

 

[akwl88]

CPF no doubt serves a purpose but I think CPF alone is insufficient and you need other forms of passive income whether through investment or side businesses

Thats why i said make CPF a cornerstone of your retirement plan, not THE ONLY plan.

http://singaporeanstocksinvestor.blogspot.sg/2016/01/building-cornerstone-in-retirement.html

 

[koja6049]

If cpf no good, which other things are good?

just asking theoretically

EPF Malaysia gives 6%, but of course the risk is higher along with RM depreciation

 

[Maeda_Toshiie]

Look up wahkao3, the best investor in this forum. Low risk, high returns, the best guarantee you can get! Can be best buddies with him. All financial advisors can go eat grass.

"TA ok, FA ok, then I buy. Huat ah!"

You want to use a well known TKSS guy as example? Good grief, have some intellectual honesty if you want to debate.

Many years ago, my US colleague said of our CPF, you have a great system. It's your money and you keep what you earn. Our US social security is bankrupt and we are paying social security tax that we might not get it back.

The overly big pensions (guess who voted for those pensions...) of the baby boomers is what that is breaking their system. 401(k)s on ETFs can still serve the millennial reasonably well.

 

[dork32]

It is possible to get 10k interest yearly from CPF if you hit minimum sum and more.

2. Pay monthly HDB loan via cash or Internet banking
3. Dun pay HDB loan lump sum as the amount is decreasing while your CPF amount is increasing

what rubbish is this?

2. pay by cash means bank no money, cpf got money. pay by cpf means bank got money, cpf no money. bank money better or cpf better? uob1 giving 2.4%, cpf give 2.5%. i will keep my money in uob1 instead of cpf

3. dun pay hdb loan lump sum, u earn interest at 2.5%. but you pay hdb loan 2.6% interest. if it is for more cpf interest, might as well as forget it.

i can also give very good advice. you use moneyline from bank and borrow a lot of money. you then do voluntary top up your cpf account with the borrowed money. then your cpf will also earn a lot of interest.

 

[peterchan75]

CPF is cheng-hu guarantee. Cheng-hu can print money and bank cannot. Of course government can be like Zimbabwe if they print too much. Zimbabwe print until have to use US dollar. So, CPF can consider risk free. There is no deposit insurance for it. Bank has deposit insurance and during crisis time, they double the insurance limit.

 

[havetheveryfun]

what rubbish is this?

2. pay by cash means bank no money, cpf got money. pay by cpf means bank got money, cpf no money. bank money better or cpf better? uob1 giving 2.4%, cpf give 2.5%. i will keep my money in uob1 instead of cpf

3. dun pay hdb loan lump sum, u earn interest at 2.5%. but you pay hdb loan 2.6% interest. if it is for more cpf interest, might as well as forget it.

i can also give very good advice. you use moneyline from bank and borrow a lot of money. you then do voluntary top up your cpf account with the borrowed money. then your cpf will also earn a lot of interest.

true... its like saying since the banks only giving less than 2% interest now for fixed deposits and stuff but CPF give 2.5% interest, why not put the money in CPF instead?

 

[OngHuatHuat]

If you follow this strategy, you should put money into Cpf special which gives 4 + 1 % and let the compounding do the job for you.

true... its like saying since the banks only giving less than 2% interest now for fixed deposits and stuff but CPF give 2.5% interest, why not put the money in CPF instead?

 

[SBC]

Anyone top up cash into their kids' CPF account?
Pls share your view.

 

[koja6049]

true... its like saying since the banks only giving less than 2% interest now for fixed deposits and stuff but CPF give 2.5% interest, why not put the money in CPF instead?

I actually do that, but it is 5% and not 2.5%

 

[havetheveryfun]

I actually do that, but it is 5% and not 2.5%

yes, it is something worth considering if you are 40 + years old since you only have to wait for 15 more years compared to at 20 + years old

 

[henrylbh]

I actually do that, but it is 5% and not 2.5%

Where you get such info?

 

[koja6049]

Where you get such info?

CPF SA/MA 4% + 1%*, plus I reduce my 7% tax bracket, so a total of 12% interest for the 1st year of putting money in