Straits Times Article on 5 Jul

[dork32]

I am quoting a paragraph by Tan Ooi Boon on CPF Life.

"Assuming a member who has $288,000 set aside (at 55), dies at 75, in the 10 years before his death, he would already have received a cumulative payout of more than $290,000."

i added the words in red myself to help you understand what he say better.

i feel what he wrote is very lousy

 

[dork32]

Another lousy paragraph.

"Take a member who plans to set aside the maximum retirement amount of $288,000 in 2022. If he takes the payout at 65, he will get an estimated $2,400 a month. But if he does so at 70, he will get over $3,200.

Just like the tortoise that wins the race with the rabbit in the children's fable, members who start receiving their payouts later in life will slowly catch up and get even more."

 

[rrr2015]

my england very poor, what does "in the 10 years before his death" means?

I am quoting a paragraph by Tan Ooi Boon on CPF Life.

"Assuming a member who has $288,000 set aside (at 55), dies at 75, in the 10 years before his death, he would already have received a cumulative payout of more than $290,000."

i added the words in red myself to help you understand what he say better.

i feel what he wrote is very lousy

 

[reddevil0728]

my england very poor, what does "in the 10 years before his death" means?

Member dies at 75, so 10 years before means 65 lor

 

[dork32]

my england very poor, what does "in the 10 years before his death" means?

it means
age 55: 288k in ra
age 65: start payout of 2400 a month
age 75 die: total payout = 290k , in the next para you still get a bequest of 150k (sorry i did not put this in)
wah put in 288k and get back 440k supergood man

dork say wtf

 

[rrr2015]

ok thanks! not bad leh

it means
age 55: 288k in ra
age 65: start payout of 2400 a month
age 75 die: total payout = 290k , in the next para you still get a bequest of 150k (sorry i did not put this in)
wah put in 288k and get back 440k supergood man

dork say wtf

Member dies at 75, so 10 years before means 65 lor

 

[dork32]

ok thanks! not bad leh

not bad as in cpf life is not bad, or our explanation is not bad?

 

[rrr2015]

both ... so CPF life breakeven around 75
your explanation easier to understand too

not bad as in cpf life is not bad, or our explanation is not bad?

 

[dork32]

it means
age 55: 288k in ra
age 65: start payout of 2400 a month
age 75 die: total payout = 290k , in the next para you still get a bequest of 150k (sorry i did not put this in)
wah put in 288k and get back 440k supergood man

dork say wtf

i just want to add in my lines to shoot it down.

if you put 288k at 55, interest +principal at 65 = 440k

die at 65 bequest= 440k
die at 70 payout = 145k, bequest = 295k. total = 440k
die at 75 payout = 295k, bequest = 145k, total = 440k
die at 80 payout = 440k

do you know what this means

 

[dork32]

both ... so CPF life breakeven around 75
your explanation easier to understand too

no, according to this idiot's maths cpf life got no break even, you always win. you die at any age before 80, you get 440k when you put in only 288k

 

[rrr2015]

it stops earning interest from 65 onwards?
so you going get back whatever you accumulate in CPF life at 65?
More if you live beyond 80?

i just want to add in my lines to shoot it down.

if you put 288k at 55, interest +principal at 65 = 440k

die at 65 bequest= 440k
die at 70 payout = 145k, bequest = 295k. total = 440k
die at 75 payout = 295k, bequest = 145k, total = 440k
die at 80 payout = 440k

do you know what this means

 

[lifeafter41]

i just want to add in my lines to shoot it down.

if you put 288k at 55, interest +principal at 65 = 440k

die at 65 bequest= 440k
die at 70 payout = 145k, bequest = 295k. total = 440k
die at 75 payout = 295k, bequest = 145k, total = 440k
die at 80 payout = 440k

do you know what this means

After 65, all the interest goes into CPF life pool.

 

[maple96]

I am quoting a paragraph by Tan Ooi Boon on CPF Life.

"Assuming a member who has $288,000 set aside (at 55), dies at 75, in the 10 years before his death, he would already have received a cumulative payout of more than $290,000."

i added the words in red myself to help you understand what he say better.

i feel what he wrote is very lousy

Rubbish article, dun understand how CPF Life works, misinterpret CPF Life Facts/Rules, mixed up stats on RSS and CPF Life members!

 

[reddevil0728]

What’s the title of the article? A bit no head no tail.

 

[s0crates]

If I am not wrong ooi boon never covered any investment related news before.

Give chance leh. Haha

 

[BBCWatcher]

Yes, all these potshots are astute because everyone knows there’s a permanent, God given right to government guaranteed, tax free 4.0% interest, plus bonus interest, on Singapore dollars that have been mostly or entirely never been taxed.

Hint: There is no “break even” measurement against an alternative that doesn’t exist. You evaluate any/all deals on offer against the next best AVAILABLE alternative, not against a fairy tale.

 

[maple96]

Know the CPF Life Facts/Rules vs personal opinions which someone always like to throw around!

 

[s0crates]

It's not guaranteed. Let's see what happens when the SA/RA/MA rates expire end of this year, POST ELECTION.

Yes, all these potshots are astute because everyone knows there’s a permanent, God given right to government guaranteed, tax free 4.0% interest, plus bonus interest, on Singapore dollars that have been mostly or entirely never been taxed.

Hint: There is no “break even” measurement against an alternative that doesn’t exist. You evaluate any/all deals on offer against the next best AVAILABLE alternative, not against a fairy tale.

 

[BBCWatcher]

It's not guaranteed.

Correct! The floor interest rates feeding into life annuities, medical savings, etc. could be changed.

So *if* the government needs to reduce interest rates — not likely, but if — how should it do it? Well, one possible way would be to reduce OA interest to 2.0% starting the month following a member’s 55th birthday. This’ll encourage members to push more funds into their Retirement Accounts, in particular. (Also more OA to SA transfers before 55.) It’ll also make CPF “piggybanking” a little less attractive but still fairly attractive. And it should stimulate a bit of consumer demand. Another way would be to get rid of OA’s contribution to bonus interest from age 55.1 onward.

 

[henrylbh]

If I am not wrong ooi boon never covered any investment related news before.

Give chance leh. Haha

He is ST Invest Editor?