I say send in the accountants and see if the CPF boards are installing any gold taps.
Looking at history will give us a gauge on how well has our investments performed.
If not what makes you say that our current CPF returns are good? What did you compared it with, the bank spot rates or what?
How much should I be compensated for giving up using my 120k (minimum sum) for 30 years?
How do you workout a fair compensation rate, based on what?
You also have to remember at the end of 30 years, you don't get back your 120k in a lump sum. We are going to receive it in the form of annuity, and the money may out last our life.
In this sense how much do you think we should be compensated for this risk?
If I am correct, Citibank is offering 2% interest for its step up saving account, comes with free checking account, free remittance service, no minimum sum charges, no service charges for overseas withdrawal.
How do you compare it with our CPF returns?
Last edited by Silence Sky; 21st September 2007 at 09:58 AM.
nxt question you have to ask is how reliable is the singapore government? will there be a day where they default on payment in to yor CPF? Compare that with equivalent assets on the market... mainly singapore sovereign bonds... what rate of return will you get on 30 yr sovereign bonds?
When you retire you get back everything in your CPL OA and SA less the minimum sum.... altough you don't get back your money in a lump sum, interest will still be credited... the minimum sum is retained for your own good... though there are ppl that are careful with their money there are also those that will squander it within a year.... if you are the government and you want to protect the wellbeing of your ppl wouldn't you do the same? btw you do not need the whole minimum sum to buy the annuity.... some estimates put the cost at about 8-10k, the rest of the minimum sum will be distributed to you over 20 years... after which the annuity will take care of you for life...
all this talk about getting GIC to invest the money is also flawed.... do you realise how high an equity mix you need to able to get a yied of more than 8%? Although some ppl would say that they'll gladly take on underperformance and downside risk to tap higher returns what about the others? The silent majority that just wants a stable predictable stream of payments in to their CPF?
Last edited by zj2000; 21st September 2007 at 11:30 AM.
Condo might cause me even more plus possible topping up of real cash on top of that subjected to, of course, what standard of condo price range I am looking at lah. The property market is still very fickle and it's long term. You can't really free up your money that way without adding more expenses and inconvenient. For my mom and without a car, where I live it is so easy for them and me. Condo is too far from most of those stuff. that's what I feel lah. I am not an accounting or number person so I don't envision it in a monetary sense. To think about restart another long "slave" loan from a freaking bank for another 10 to 30 yrs. If they will lend to a person like me at 45 yrs for the maximum length of term(20 or 30yrs)..I doubt so. All this send chills down my spine.
My best solution is to earn as much as I can. BE as creative with ways to improve my career (or jget a second job) to earn as much to stay one step ahead of inflation cost of living in Singapore. By the time I can't work no more and if I feel I can't afford to stay here at even the most basic level of comfort with what I have in my saving, insurance and investment then I will move back to Malaysia... give up my passport. heheh I bitch about such stuff but I am trying to be pro-active with looking for solutions lah. You have too..no one and I DO MEAN no one is going to help you if you don't help yourself . Thanks for the input though heh.
Gold has went up.
Euro has went up.
GST has went up.
All went up except.....
i don't know what you mean by T-bonds, i think you mean treasury bills.... do you know what the returns are on AAA rated bonds? definitely lower than what is paid in to your SA.... Gold is no longer safe... it is considered volatile....
no time... talk later...
Everyone's appetite for risk is different. You may feel that the CPF current return is good but I may feel that the rate is inadequate.
A simple example:
In 1980 a four room flat cost $35k.
I give up the chance to buy the flat and park the money with CPF.
27 years later, a similar flat cost $250k.
Is the CPF money + interest earned enough to buy the same flat 27 years later?
I expect the GIC to be top performer when comes to investing, and not always stick to the safest investment products. Out source the investing Job to Warren Buffet, he knows what to do in a recession, there is always a put option.
When risks are properly diversified, and over a long period of time, every investment should ride out of any recession comfortably. From history, which world recession last more than two years?
In the recession period we still pay 2.6% for the home loan right?
Pardon me, yes it is T-Bill. I have forgotten alot of things liao.
Last edited by Silence Sky; 21st September 2007 at 11:12 PM.
Actually, there is one simple solution to the CPF minium sum problem.
If the selling price of a HDB flat comes down by half, everything will be sloved.....
Old people no need to wash toilet.
The man is definitely planning to safe guard your money and will do so for a very long time. He is also extremely concern about it to the point that he believes that people at the age of 55 are still not sufficiently mature to handle his money … perhaps people will truly be matured at 67 or so … kekekek
I am trying to understand you better here …commodities and FX are volatile but are you saying that one should not take a long term view for better returns for these asset categories? Also, do you mean that one should only look at the returns of a triple A bond in isolation from the market rate of return to determine if it is “a really good deal”?
Btw, still very on keen your views on the sg equity market in short, medium and long term.
(Aside: T-bond stands for U.S. Treasury Bond just in case you are not aware of it - even though Silence Sky meant treasury bills)
Last edited by CSlye; 22nd September 2007 at 01:09 AM.
For what it's worth... I think that one shouldn't play with foreign currencies unless you are playing with large enough an amount to influence the market forces. Heh.
I do not think that the govt will default payment of CPF, but by them holding the money till I possibly die, I do not see the difference.
You mentioned that there is a silent majority who would want a stable stream of payments and go with the govt. plans, I don't know if you did any survey on that; assuming that might be true, I'm wondering why there isn't an opt-out option for the "vocal minority"?
Sometimes, I just want the freedom to do what I wish with my own money, risk or no risk. A life that is totally safe, is not necessary more fulfilling than one is not as safe but has the power of decision.
Last edited by ahbian; 22nd September 2007 at 03:22 PM.
The CPF policy still not fixed yet...still have some changes...
I'm sure there are some options to it.