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Thread: Any Ceiling for contribution of CPF OA?

  1. #646

    Default

    Quote Originally Posted by teddybear View Post
    IMHO, the MOST STUPID thing to do is to leave your CPF-OA with CPF earning 2.5% p.a., which is below inflation rate and your money is getting smaller and smaller (literally)..............

    "AAA" or not, FACT is, your money is "SHRINKING" in purchasing power!
    What is good about "AAA" rating?
    The only good thing is to the issuer, who can pay you very low interest! (which is what is happening now)

    Better use your CPF-OA to invest, even if in property is better than leaving with CPF..............

    BUT don't invest in OCR private properties now because you will be buying at the THOUSAND-YEARS historical PEAK PRICE! (not sure whether you will break-even within next 10 years or even 20 years in future when the property bubble burst (if you buy at current price)!
    Diversification
    =========
    Diversification is a familiar term to most investors. "Don't put all of your eggs in one basket.
    The idea is to create a portfolio that includes multiple investments in order to reduce risk.


    If that company's stock suffers a serious downturn (eg Construction stock or oil & gas etc ) , your portfolio will sustain the full brunt of the decline.
    It is the same for physical property. You cannot have big portion of your money into property. If SG economies will to go down due to OBOR (one belt one road - 10 to15 yrs later) or terrorists attack from neighbouring countries etc etc. you will suffer.


    CPF fund is a truely global fund which invest all over the world. Our CPF $ is rated AAA with high interest (2.5% to 5%) & guarantee. Loan shark or bank cannot touch your CPF even if you are bankrupt. FYI, Singapore dollar deposits of non-bank depositors placed with the Bank are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000


    CPF $ is a very important for your future retirement. Govt only asks you to contribute 20% of your Salary. The other 17%, your employer will contribute for you. The rest of the 80% is up to you to buy property or stock or do biz or lend to you relatives or friends etc. Govt does not care how
    you manage your 80% of your cash.


    Water is very critical to SG survival. So we cannot depend on one source. It must be a diversify souruces.
    Rain, water from Msia , NEWater and desalination. So it is all about diversification.


    I have multi income.
    CPF - My tgt is to reach $1m in my CPF acct before age 60. Achievable

    Bond - $130k to $150k/yr with less leveraging. So far so good

    rental - $2300/mth. So lucky to have it renew.

    FX - I traded 60+ times profit est 30k. But just one bad treat (GBP/SGD - 12% down) , it has wiped out by 30k profit.
    But the 30k loss is just on paper as I use the converted pound to invest in Pound denominate bond (5.875%) at 87. now 96.

    Private equity - Done quite well.

  2. #647
    Join Date
    May 2012
    Posts
    3,233

    Default

    Good advice for the masses.

    But not for all.

    Imagine Joseph Schooling is told he must diversify and train in all sports, get a certain safe and good educational path before he specialises in swimming etc etc. We would have lost our only Olympic Gold medal.

    If one has an uncanny strength and intuition in a certain area, why not?

    For example, I remember Proud Owner who has huge success in Forex, why should he use our way slower strategies?

    Quote Originally Posted by cbsh38584 View Post
    Diversification
    =========
    Diversification is a familiar term to most investors. "Don't put all of your eggs in one basket.
    The idea is to create a portfolio that includes multiple investments in order to reduce risk.


    If that company's stock suffers a serious downturn (eg Construction stock or oil & gas etc ) , your portfolio will sustain the full brunt of the decline.
    It is the same for physical property. You cannot have big portion of your money into property. If SG economies will to go down due to OBOR (one belt one road - 10 to15 yrs later) or terrorists attack from neighbouring countries etc etc. you will suffer.


    CPF fund is a truely global fund which invest all over the world. Our CPF $ is rated AAA with high interest (2.5% to 5%) & guarantee. Loan shark or bank cannot touch your CPF even if you are bankrupt. FYI, Singapore dollar deposits of non-bank depositors placed with the Bank are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000


    CPF $ is a very important for your future retirement. Govt only asks you to contribute 20% of your Salary. The other 17%, your employer will contribute for you. The rest of the 80% is up to you to buy property or stock or do biz or lend to you relatives or friends etc. Govt does not care how
    you manage your 80% of your cash.


    Water is very critical to SG survival. So we cannot depend on one source. It must be a diversify souruces.
    Rain, water from Msia , NEWater and desalination. So it is all about diversification.


    I have multi income.
    CPF - My tgt is to reach $1m in my CPF acct before age 60. Achievable

    Bond - $130k to $150k/yr with less leveraging. So far so good

    rental - $2300/mth. So lucky to have it renew.

    FX - I traded 60+ times profit est 30k. But just one bad treat (GBP/SGD - 12% down) , it has wiped out by 30k profit.
    But the 30k loss is just on paper as I use the converted pound to invest in Pound denominate bond (5.875%) at 87. now 96.

    Private equity - Done quite well.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  3. #648
    Join Date
    Mar 2009
    Posts
    10,260

    Default

    Diversification - there are many avenues all with higher returns than CPF's 2.5%:

    1) stocks
    2) bonds
    3) Futures
    4) Options
    5) Forex
    6) properties (both local and overseas)
    7) ETFs
    8) private equities
    9) venture capitals
    10) hedge funds
    11) (what else?).......

    So many avenues, so no, CPF is not in my list.


    Quote Originally Posted by cbsh38584 View Post
    Diversification
    =========
    Diversification is a familiar term to most investors. "Don't put all of your eggs in one basket.
    The idea is to create a portfolio that includes multiple investments in order to reduce risk.


    If that company's stock suffers a serious downturn (eg Construction stock or oil & gas etc ) , your portfolio will sustain the full brunt of the decline.
    It is the same for physical property. You cannot have big portion of your money into property. If SG economies will to go down due to OBOR (one belt one road - 10 to15 yrs later) or terrorists attack from neighbouring countries etc etc. you will suffer.


    CPF fund is a truely global fund which invest all over the world. Our CPF $ is rated AAA with high interest (2.5% to 5%) & guarantee. Loan shark or bank cannot touch your CPF even if you are bankrupt. FYI, Singapore dollar deposits of non-bank depositors placed with the Bank are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000


    CPF $ is a very important for your future retirement. Govt only asks you to contribute 20% of your Salary. The other 17%, your employer will contribute for you. The rest of the 80% is up to you to buy property or stock or do biz or lend to you relatives or friends etc. Govt does not care how
    you manage your 80% of your cash.


    Water is very critical to SG survival. So we cannot depend on one source. It must be a diversify souruces.
    Rain, water from Msia , NEWater and desalination. So it is all about diversification.


    I have multi income.
    CPF - My tgt is to reach $1m in my CPF acct before age 60. Achievable

    Bond - $130k to $150k/yr with less leveraging. So far so good

    rental - $2300/mth. So lucky to have it renew.

    FX - I traded 60+ times profit est 30k. But just one bad treat (GBP/SGD - 12% down) , it has wiped out by 30k profit.
    But the 30k loss is just on paper as I use the converted pound to invest in Pound denominate bond (5.875%) at 87. now 96.

    Private equity - Done quite well.

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