The market is very hungry for yield. You can see price opens 1.04 after launch.
The yield has came down post BrExit.
September rate hike is now out, Dec rate hike I think will be out as well with BrExit and RMB devaluation, Yen strengthening.
The market is very hungry for yield. You can see price opens 1.04 after launch.
The yield has came down post BrExit.
September rate hike is now out, Dec rate hike I think will be out as well with BrExit and RMB devaluation, Yen strengthening.
Don't know is it call print money.
Correction, number input to the computer system call money, now they don't even need to print.
The $100 Trillion Bond Market’s Got Bigger Concerns Than Brexit.
If you do not like uncertainty & the high volatility movement of the stock which cost you stress & always make a painful
wrong decision time again & again. Then you should not be investing in the stock mkt . Access your past investing
or trading behaviour & make a change in your investment portfolio.
A fixed income (bond) provides you with price stability & a regualr twice half year coupon.As long you do not go for high
yield JUNK & perp bond & dont leverage (less greed) . You should be fine with a decent recent of 3%+. Just hold till
maturity.
Althernatively, If you are in the late 40s , why not conribute cash into your CPF "AAA BOND" (max $37.7k/yr) if you already have met
your min SA=161k & MA=49.8k. By age 55, you can just withdraw all after you have set aside the min SA & MA sum.
Control your emotions or they will control you. Know your emotional weakness if not, they will control you.
A leopard never changes its spots.A person cannot change who they are (their character), no matter how hard
they try. MORE GREED , VERY IMPATIENCE, INABILITY to CUT LOSS etc.
Ezion annouces Right Issue. GOOD for bondholders. But for shareholders.
Gap down when open.Any penny stocks that come with right sure die.
Very bad for those who use CPF $ to buy Ezion as u need to subscribe the
right using your CPF $ which earn 2.5%. U are going to be a long term investor.
If u use CPF $ to buy Ezion which has been bleeding since last yr. Cut lost is really too painful to you. I suggest you sell
Ezion (use CPF $) & return back to your CPF acct to earn 2.5%. Then buy back using cash.
Bought Unicredit @ 97.7 in Mar 13 and sold for 90.55. Still make some $ on the coupon collected but nothing fantastic
This is a non coco bond. So the risk is much lower.
The brexit will make FED less likely to raise rate. The uncertainty of the brexit make voluntray cash contribute to CPF a better choice to avoid high volality in
this current mkt. High interest rate & guarantee. No SDIC (S'pore deposit insurance corp ) for CPF unlike the bank which guarantee only $50k of your deposit.
Make sure your Original + special acct is able to set aside min retirement sum @$161k (for 2016).
What loses?
Thought Temasek claimed to have returned >17% since inception (as good, if not better than Warren Buffett)?
This is just 1 year loss only (after so much profits), and they are supposed to be long-term investor and make back all losses + more profit in future?
I really do not know. Just look at the CPF interest rate history for some guidance.
https://www.cpf.gov.sg/Assets/common...terestRate.pdf
If U are in late 40s & above & already meet your min retirement sum of $161k. No harm put
some cash in CPF to earn RISK FREE guarantee higher interest. At age 55, you can leave it
to continue to earn higher interest or WITHDRAW the balance in one lump sum.
A minorities of the S'porean who have the job stability s & financial capablity have already transfered
the OA (2.5% to 3.5%) to full retirement amt to SA=$161k(4% to 5%) at a early below age 35.
Age 35 , SA=161k. Age 65 it will grow to $565k
http://www.moneychimp.com/calculator...calculator.htm
After meeting the SA=161k (for 2016). You are no longer allow internal transfer from OA to SA . Only your
mandatory contribute (20% of your Salary + employer 17%) plus your own cash will still continue to channel
into your OA,SA + MA. . Max is only $37.7k/yr. Any extra cash (>$37.7k/yr) will be returned back to you with ZERO interest,
Some prefer to plan their retirement early using CPF " GUARANTEE BOND" as a retirement tool. The smart one will just focus on
meeting the min retirement sum goal ($161k) as early as age 35. Then just let it auto run earning RISK FREE high interest rate (4 to 5%)
till age 65. From $161k at age 35 to $$565k at age 65.
One retirement worry being taken care at early age of 35. Now he/she can just concentrate building more CPF/cash to buy his or her "WANT"
like car, property (HDB/Private) , holiday etc which would like to enjoy. Not the other way. Spend like no worry & later start to think & plan
for retirement at later age of 40+ . Enjoy the benefit of the power of compounded interest if you start early.
Thanks. Looks unchanged for the last 17 years.
As long as overall and over time GIC continues to earn, we should be safe.
Amount allowed is now up to 241K for those above 55 years old. But no tax relief higher than 161K.
https://www.iras.gov.sg/IRASHome/Ind...Top-up-Relief/
1. The full retirement sum (FRS) for an individual who is below age 55 and has CPF Special Account (SA) is capped at $161,000.
2. From 1 Jan 2016, an individual who is at least 55 years old can top-up his Retirement Account (RA) to a maximum sum of $241,500 (i.e. enhanced retirement sum, ERS).
3. There is no tax relief for cash top-up if the FRS of the individual/recipient's RA is already $161,000.
Last edited by Kelonguni; 08-07-16 at 15:59.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Here is also a counter that someone has written. I think there are some truths in them as well.
For 1, if alternative investment strategies have been tried and proven to easily earn 5% (for some), then perhaps the liquidity is also useful to have.
But for those who have taken very little risk and are risk averse and in very stable jobs with very stable mentality, then pumping in for retirement may work just as well, if not better.
http://investmentmoats.com/uncategor...inary-account/
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
For any amount about $60k, you just earn 2.5%.........
There are many investment avenues that can easily beat 2.5% return............
Basically if you put money into CPF, you allow people to take your money to earn much higher return and in return they just give you fixed 2.5%, that is all............ And not only that, your money got stuck until 65 years old! Ops!!!!!!!!!!!
“Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
― Martin Luther King, Jr.
OUT WITH THE SHIT TRASH
https://www.facebook.com/shutdowntrs
Basically, the idea is that...
For those who don't need money but only need the excess money to earn more interests, throw as much as you like into OA / SA.
If you are likely to need the money and don't have excess, it's highly risky to lock money up.
It's an odd logic as CPF supposed to help more those who actually need the money, but end up benefiting more those who may actually not need it. Ha...
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
My relative was in airline in till late 30s & decided to become a property agent in the 90s as he was sick of traveling.
He has done quite well in his property line for the last 16 yrs. Two of my ppty transaction were through him.
I told him to contribute cash into his CPF . He told me that he does not believe in govt & they may shift the
goal posts.Exactly what U have said. SHIFTING GOAL POSTS. Many have been BRAIN WASH about CPF SHIFTING GOAL POST
Guess what he lost more than $200k in stock. The most recent (last yr) is speculating US OTC stock which he claimed
it is a insider info. I told him not to but anyway he went ahead.. 1st round make $5k. Then become GREEDY. At the end,
lost $50k within six mths. The US OTC stock has been suspended.
Also with alot of cash, he started to upgrade to Chevrolet 2litre car. He sold within 12 mths as the new car keep giving problem.
Lost quite a lot of money in this US made Chevrolet car. He also gives his young son to speculate in FX just to let him learn the
"danger of FX". $20k gone within 2 weeks. I cant believe.
When we have alot of cash. We, being normal human tend to seek for more PLEASURE , Riches by investing & "WANT" like car,
expensive holiday etc. We tend to forget about the need to plan for our retirement as our 1st priority.
He started to regret his action. He still have cash avail but now cannot contribute cash in CPF as his cash level is not as much
as before. With a slow down in ppty, he needs to control his expenses. Not sure whether he can retired at 65 with a mthly payout
of min $2k/mth.
1. For those who don't need money but only need the excess money to earn more interests, why should they "throw as much as you like into OA / SA" when they can earn more outside of OA/SA?
You think Government pay you more than they earn using your money? The answer is obvious!
2. If you are likely to need the money and don't have excess, it's highly risky to lock money up.
Yes, that is the case!
3. It's an odd logic as CPF supposed to help more those who actually need the money, but end up benefiting more those who may actually not need it. Ha...
Don't think CPF ever help those who actually need the money, because: read this............
if they really want to help, just remove GST and that will help them tremendously!!!!!!!!
People should read this article before they do anything about topping up their CPF account with cash or transfer from OA to SA...........
6 Reasons not to Voluntary Top Up your CPF Special Account with cash or CPF Ordinary Account
I suppose 1 swallow doesn't make a summer?
I have known of many who have earned much more than 5% by investing somewhere than putting their cash in CPF..........
Basically, CPF money was invested through GIC and Temasek, then they give you 4% (or 5% for first $60k in SA). Thus, GIC and Temasek have to earned more than 4% for your SA and 2.5% for your OA, which is not high hurdle rate anyway...........