Share your retirement strategy

[item2sell]

even if that fren's father was allowed to withdraw the cpf monies, it still doesn't solve his problem in the long term. If he was allowed to withdraw the cpf monies to eat, then what happens when he finishes drawing the cpf monies? Isn't it back to square one ?

If the life expectancy suddenly increases from ~80-90 to 100-120 yrs , would you think changing from 55 yrs to 60 yrs would still be unreasonable ?

I starved you for one month.
After that I give you eat restaurant for the rest of your life.
Ok Bo?

 

[kehyi4]

1) CPF. ... I will opt for Full Retirement Scheme which pays around $1300. The balance that will be returned to me will be put in a bond ETF that pays around 2%. I estimate I should have $1,500 per month from 55 to 65 and $2,800 from 65 onwards when CPF Life kicks in.

Curious - why not leave the balance inside CPF and get between 2.5% to 4%, depending on how much OA and SA money you have left over. The interest is withdrawable, you know.

Or are you worried about unforeseen changes to CPF withdrawal policies ("shifting goalposts")?

 

[qhong61]

Curious - why not leave the balance inside CPF and get between 2.5% to 4%, depending on how much OA and SA money you have left over. The interest is withdrawable, you know.

Or are you worried about unforeseen changes to CPF withdrawal policies ("shifting goalposts")?

why is the interest withdrawable?

 

[Bedokian]

actually..investing in equities/bonds is not something we can pass down in a manual. It has to do with their emotions and ability to make analyze the investment and make the decision. It is definitely more complicated than property and i dont think a manual will suffice unless you have been hand holding them everytime you make investment decisions and they have been learning.

Free personal training will come with it.

It is hard to replicate one's mind and decision making process, so my manual will spell out the rationale behind every decision. And yes, I will include a chapter on the psyche of the investor.

 

[tiny]

This seems to have gone offtopic from retirement to estate planning lol. Isn't that what wills and executors are for?

That is very expensive fees. Appreciate the advice here for low networth people like me.

 

[highsulphur]

Curious - why not leave the balance inside CPF and get between 2.5% to 4%, depending on how much OA and SA money you have left over. The interest is withdrawable, you know.

Or are you worried about unforeseen changes to CPF withdrawal policies ("shifting goalposts")?

You mean you can delay the withdrawal of excess from 55 to 62?

 

[highsulphur]

That is very expensive fees. Appreciate the advice here for low networth people like me.

Wills are not that expensive. Around 300 to 500 can liao. You need one anyway. Might as well have it done sooner or later.

 

[limster]

Wills are not that expensive. Around 300 to 500 can liao. You need one anyway. Might as well have it done sooner or later.

already mentioned in the wills thread that you can just cut and paste a template will from various local sources. There is a book with sample wills, there are people who attend seminars and get template wills, there is even one guy helpfully uploaded his professionally paid will (with details removed) on google docs to let people copy from.

 

[kehyi4]

why is the interest withdrawable?

You mean you can delay the withdrawal of excess from 55 to 62?

At 55, the FRS amount will be transferred from your SA first, then OA, to your new Retirement Account (RA). The excess CPF you can choose to leave in their respective accounts. Withdrawal is not compulsory. It will continue to earn OA or SA interest respectively.

After 55, you can withdraw any amount in excess of FRS at any time. That means, you can choose to withdraw only the interest, leaving the principal intact. Rather like a FD

According to CPF@55 master henrylbh, the best time to withdraw CPF interest is in early Dec. Just go to a CPF office and tell them you want to withdraw interest only

Just to reiterate: this is applicable only after 55. And only if CPF withdrawal rules do not change.

 

[microtek]

Ok.. guys... I hope you all can give this some thought..
The reason why i advocate having more of your networth tied up in properties than equities/bonds..

What will your family do with your equities/bonds ,should you pass on(touch wood) or have a stroke or some unfortunate accident leaving you unable to make decisions? Would they be at a loss and panic and sell ? or would they just leave it running and take the dividends(would it be wise not to have someone manage it?).

Would it be easier for your family to rent out properties (of course, you highlight the illquid nature.. but... we talk about your family members who know nuts about equiteis/bnds)>

food for thought..

plan ur retirement portfolio in a way ..an idiot can take over and run it

Well basically there is no fail safe for anything, be it whether you invested in property or bonds / stocks etc... There are always upsides in the economy be it in properties or stocks / bonds etc... Property is quiet now because of the cooling measures and the more stringent foreigner quotas but as you all know, stocks markets have also crashed before. Everything comes in cycles. For now, Singaporeans are property crazy as a condo is still seen as a status symbol and is thought to be a "no brainer" investment, the support for property is still very strong. Just watch, once the government slightly relaxes the cooling measures crowds will be running to the showrooms again. I still believe in a property for investment but will also put some in high dividend stocks.

For me, I don't really care about what happens to my money when I'm gone because that would already be beyond my control. If my family sold everything I had and spent it all I won't care either. Sucks to be them if they end up living on the streets due to poor planning.

 

[rrr2015]

already mentioned in the wills thread that you can just cut and paste a template will from various local sources. There is a book with sample wills, there are people who attend seminars and get template wills, there is even one guy helpfully uploaded his professionally paid will (with details removed) on google docs to let people copy from.

do we need lawyer to be present & to safe keep the will?
i guess there will be a fee for that?

also often discussed is "Lasting power of Attorney", is that necessary as well?

i guess i'm really going OT & probably there is already a thread discussing these. appreciate your help to direct me there. thanks!

 

[blengend]

When you guys transfer your OA to SA, do you all do it monthly, whenever your contribution is credited in?

Cause I don't think if you transfer all your OA to SA on the last day of the year, you still get the full year's interest rates right

 

[hyperbole]

When you guys transfer your OA to SA, do you all do it monthly, whenever your contribution is credited in?

Cause I don't think if you transfer all your OA to SA on the last day of the year, you still get the full year's interest rates right

i do it monthly. as long as you do it before month end every month it's fine because interest is only given to lowest balance of the month.

 

[tiny]

Ok.. guys... I hope you all can give this some thought..
The reason why i advocate having more of your networth tied up in properties than equities/bonds..

What will your family do with your equities/bonds ,should you pass on(touch wood) or have a stroke or some unfortunate accident leaving you unable to make decisions? Would they be at a loss and panic and sell ? or would they just leave it running and take the dividends(would it be wise not to have someone manage it?).

Would it be easier for your family to rent out properties (of course, you highlight the illquid nature.. but... we talk about your family members who know nuts about equiteis/bnds)>

food for thought..

plan ur retirement portfolio in a way ..an idiot can take over and run it

Legacy planning is truly a headache. If the person passes away suddenly without proper planning, will the family members know how to:

- Renew the FD voucher?
- Decide to take scrip dividends or cash option?
- Apply for rights and excess rights? How to calculate the fair value?
- etc etc

 

[Seannie]

Discussing the equities vs properties with my wife now. Told her she needs to sell off my investment at IB, convert to sgd and transfer back to Singapore if anything happens to me. Her reply was "I'll be grieving and you still expect me to do such complicated things? "

Die already she will go find another dependent or let her new love manage your assets. Think so much for wat. When u are gone dont need worry so much lar.

 

[Seannie]

Legacy planning is truly a headache. If the person passes away suddenly without proper planning, will the family members know how to:

- Renew the FD voucher?
- Decide to take scrip dividends or cash option?
- Apply for rights and excess rights? How to calculate the fair value?
- etc etc

According to my experience with many estate cases most abt 95% doesnt know. They will just liquidate everything. Sell everything. Even when i told them dont need to sell good stocks away can keep for good consistent dividends most dont want.

 

[Seannie]

You mean you can delay the withdrawal of excess from 55 to 62?

Why delay? Retirement wont be viable becos things will only get more and more expensive when reach 55yrs old. One bowl of noodles at kopitiam $10 already minimum by time 55yrs old.

 

[Seannie]

I starved you for one month.
After that I give you eat restaurant for the rest of your life.
Ok Bo?

Not ok. Will be dead before got chance eat abalone. Simple facts that clever people overlook lehz.

 

[highsulphur]

Why delay? Retirement wont be viable becos things will only get more and more expensive when reach 55yrs old. One bowl of noodles at kopitiam $10 already minimum by time 55yrs old.

Because of the 4% interest paid by SA

 

[tiny]

Die already she will go find another dependent or let her new love manage your assets. Think so much for wat. When u are gone dont need worry so much lar.

Wah lao then the wife use the dead husband's inherited wealth to find a younger boyfriend.