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Thread: CPF: Fixed 4% or variable return

  1. #1

    Smile CPF: Fixed 4% or variable return

    i want 4% fixed. predictable and certainty. the pros in the industry are doubting whether the proposed cpf's move will benefit older members as much as younger ones.

  2. #2

    Default Re: CPF: Fixed 4% or variable return

    has CPF announced anything yet on this? Have not been following the news lately

  3. #3

    Default Re: CPF: Fixed 4% or variable return

    Quote Originally Posted by reachme2003 View Post
    the pros in the industry are doubting whether the proposed cpf's move will benefit older members as much as younger ones.

    Why should pros doubting the pros who came up this pro policy?
    Don't fret, the pros will know what they are doing.

    Afterall they are pros, you are not.



  4. #4
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    Default Re: CPF: Fixed 4% or variable return

    Quote Originally Posted by reachme2003 View Post
    i want 4% fixed. predictable and certainty. the pros in the industry are doubting whether the proposed cpf's move will benefit older members as much as younger ones.
    Individual risk tolerance level.

    However, CPF is like a mass population thing and they can't possibly say, "Ok! Those who opt in variable returns shall have variable returns. Those with lower risk tolerance threshold will remain 4% fixed regardless."

    In good times, those with lower risk tolerance threshold will look upon those having variable returns and say, "Hey! Not fair! We want it too! We contribute to CPF too!"
    In bad times, those with higher risk threshold will look upon those having fixed returns and say, "I contribute to CPF too! Why can't it protect me?"

    Greed at work? Sounds too familiar huh? The pretty standard boring whines which anyone can know with a twitch of their eyebrows....

    I see plus & minus for it. But even though it may be variable, I personally feel that there shld be a bottom 'cap' of sorts. Maybe fix the bottom cap like standard 4% (cover for inflation at the minimum level) to ensure CPF contributors are sufficiently protected in relatively bad times when interest rates are lowered to prevent a 1% or 0.25% interest rate incident from happening.
    Last edited by jsbn; 19th September 2007 at 09:55 AM.

  5. #5

    Smile Re: CPF: Fixed 4% or variable return

    this is the kind of mindset to avoid. might as well surrender your life to the authorities. besides, it is our $ we are talking about.

    Quote Originally Posted by Deceased View Post
    Why should pros doubting the pros who came up this pro policy?
    Don't fret, the pros will know what they are doing.

    Afterall they are pros, you are not.



  6. #6

    Smile Re: CPF: Fixed 4% or variable return

    i concurred with the point about keeping the floor rate at 4%. we have been underpaid for our cpf $ all these years.

    Quote Originally Posted by jsbn View Post
    Individual risk tolerance level.

    However, CPF is like a mass population thing and they can't possibly say, "Ok! Those who opt in variable returns shall have variable returns. Those with lower risk tolerance threshold will remain 4% fixed regardless."

    In good times, those with lower risk tolerance threshold will look upon those having variable returns and say, "Hey! Not fair! We want it too! We contribute to CPF too!"
    In bad times, those with higher risk threshold will look upon those having fixed returns and say, "I contribute to CPF too! Why can't it protect me?"

    Greed at work? Sounds too familiar huh? The pretty standard boring whines which anyone can know with a twitch of their eyebrows....

    I see plus & minus for it. But even though it may be variable, I personally feel that there shld be a bottom 'cap' of sorts. Maybe fix the bottom cap like standard 4% (cover for inflation at the minimum level) to ensure CPF contributors are sufficiently protected in relatively bad times when interest rates are lowered to prevent a 1% or 0.25% interest rate incident from happening.

  7. #7

    Default Re: CPF: Fixed 4% or variable return

    Quote Originally Posted by reachme2003 View Post
    might as well surrender your life to the authorities. besides, it is our $ we are talking about.
    I did swear, i will surrender my life for this country during NS time.
    How patriotic i am.

    Don't worry.
    Gov will take care of our $$$.

    Everything will be fine.
    I'd absolute faith in our leaders.

    Life is great.


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