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Thread: Any Ceiling for contribution of CPF OA?

  1. #631
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    Default James Bond star Roger Moore dies aged 89


  2. #632
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    Quote Originally Posted by cbsh38584 View Post
    This is how our precious CPF is gone down the drain through really bad investment. GREED

    Rowsley is a approved CPF stock. In Sep 12, it was just <0.10.
    Rowsley share price peak at S$0.68 in Sep2013 following the RTO announcement in Dec 12. One year later , Rowsley share price dropped from the peak (0.68 in Sep 13) to 0.28 (Sep 14). My friend told to look into Rowsley stock as it has a very big potential upside due to Peter Lim big project in Isankar on healthcare, education etc etc. He bought at $0.25 (200 lots @ $50k) in 2014. Today , the share price is 0.10. Lesson learnt. Never Never use your precious CPF OA to buy speculative penny stocks. There are hundred of CPF approved Penny stocks under water. Some of them is already delisted or under suspension.

    My former classmate bought $50k HSBC unit trust using CPF OA. 18 years later, it just breakeven. If he will to transfer his $50k CPF OA (2.5%) to CPF SA (4%). His CPF $50k in CPF SA will grow from $50k to $100k.

  3. #633
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    http://www.thestar.com.my/news/natio...rading-for-me/
    Quote Originally Posted by cbsh38584 View Post
    What happens to your CPF-OA  money used to buy a very OLD HDB flat when the lease ends?

    Leasehold means there is a limited life (99 yrs) .Theoretically, the value of an HDB flat at the end of the lease is zero.
    Once it is gone, your CPF-OA used to service HDB loan may also be gone.

    If the CPF-OA used to pay your HDB loan is gone due to lease end (zero). I believe you may or may not  have to pay back the CPF-OA accured interest depending whether  you have met the min full retirement sum.

    Let say you take a 30 yrs HDB loan & your mortgage loan amt is $800/mth or $9600/yr using your CPF-OA.  So 30 yrs X 9600 X 2.5% compounded annually =  $432k which your own CPF-OA $ include the accured interest.  So you may need to pay $432k or a portion of $432k using your cash back to your CPF-OA if you did not meet the min full retirement sum (if u are still alive)

    Pray that there is some hope of Sers (the Selective En bloc Redevelopment Scheme) in the future or else make sure dont overpay for the very OLD HDB flat.

  4. #634
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    Never never use your CPF-OA for stocks , unit trusts or insurance investment link products (ILP). You only use your CPF-OA for housing when
    u have not enough cash & you really need to. If you have the ablility to pay through cash. Use it for your mortgage loan instead of your CPF-OA.
    Your AAA rating CPF money is primary for your old age retirement needs.

    人无远虑, 必有近忧. If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    It seem like every 10 yrs cycle , there will be a very major crash (1987 , 1997/98 , 2008/09 , 2018 ?). If it comes, prepare your bullets (cash) or maybe your CPF-OA if you have the courage to use it & consider blue chip or good unit trust.


    Invest like you are taking revenge .君子报仇,十年未晚 – Wise men are never in a hurry. To be a wise investor, ten years is not late to wait; one should bide one’s time and wait for the right opportunity to seek max gain.

  5. #635
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    Change or Die.

    Change is difficult.Not changing is Fatal

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    I prefer to use, then withdraw back into CPF after good gains, stay put for a while, then use to invest again.

    That way, no need to wait 10 years at 2.5% gains. Every year can gain 10% or more and then rest. Blue chip play only just in case.

    Quote Originally Posted by cbsh38584 View Post
    Never never use your CPF-OA for stocks , unit trusts or insurance investment link products (ILP). You only use your CPF-OA for housing when
    u have not enough cash & you really need to. If you have the ablility to pay through cash. Use it for your mortgage loan instead of your CPF-OA.
    Your AAA rating CPF money is primary for your old age retirement needs.

    人无远虑, 必有近忧. If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    It seem like every 10 yrs cycle , there will be a very major crash (1987 , 1997/98 , 2008/09 , 2018 ?). If it comes, prepare your bullets (cash) or maybe your CPF-OA if you have the courage to use it & consider blue chip or good unit trust.


    Invest like you are taking revenge .君子报仇,十年未晚 – Wise men are never in a hurry. To be a wise investor, ten years is not late to wait; one should bide one’s time and wait for the right opportunity to seek max gain.
    The three laws of Kelonguni:

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

  7. #637
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    Quote Originally Posted by Kelonguni View Post
    I prefer to use, then withdraw back into CPF after good gains, stay put for a while, then use to invest again.

    That way, no need to wait 10 years at 2.5% gains. Every year can gain 10% or more and then rest. Blue chip play only just in case.
    Correct.

    Make the initial pile of money with the help of CPF, and reset the account by reimbursement. Thereafter, only deploy CPF for short term investment for capital gain target. Reimburse to CPF account once target is met.

    It is beneficial to the forum if you will explain in greater details this concept.

    The opportunity to reset is available only when there is a buoyant resale market which is quite lacking at the moment. Another reason why I am not exactly thrilled when most purchases are channeled toward new launches.

  8. #638
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    Referring to stocks (blue chips) at the moment.

    Buy opportunities surface from time to time, no need to wait for crash.

    Quote Originally Posted by Hakuho View Post
    Correct.

    Make the initial pile of money with the help of CPF, and reset the account by reimbursement. Thereafter, only deploy CPF for short term investment for capital gain target. Reimburse to CPF account once target is met.

    It is beneficial to the forum if you will explain in greater details this concept.

    The opportunity to reset is available only when there is a buoyant resale market which is quite lacking at the moment. Another reason why I am not exactly thrilled when most purchases are channeled toward new launches.
    The three laws of Kelonguni:

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

  9. #639
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    ‘A ticking time bomb’

    https://www.theedgeproperty.com.sg/c...old-properties

    According to the Department of Statistics, the home ownership rate among Singapore resident households is 90.9%. Today, 80% of Singapore residents live in HDB flats. Another 14.4% live in condos and apartments, with 5.2% in houses or landed property.

    Assuming just half the people in private housing are holding on to 99-year leasehold properties, that implies that 90% of the resident population will be affected by a shortening lease at some point, says SLP’s Mak. “What is going to happen in the future when more of these 99-year leasehold developments age?” he asks. “It’s a bit of a ticking time bomb if the current situation continues.”

    Owners of ageing 99-year leasehold condos and privatised HUDCs can still exit via a collective sale, though. “They can generally expect a premium of 30% to 60% over the existing value in a collective sale,” says JLL’s Tan.

    Owners of ageing HDB flats need not worry too much, though, says mortgage adviser Huang. “You may not make money, but you will not be sitting on a property with zero value,” he says. “After all, 80% of Singaporeans’ wealth is tied up in their HDB flats.”

  10. #640
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    Stupid comments:
    Owners of ageing HDB flats need not worry too much, though, says mortgage adviser Huang. “You may not make money, but you will not be sitting on a property with zero value,” he says. “After all, 80% of Singaporeans’ wealth is tied up in their HDB flats.”

    Anyway, it is NOT an issue only because those people will die when their 99-years leasehold property's value goes to $ZERO and a new batch of greater fool will take over by buying NEW 99-years leasehold properties recycled from those whose lease has expired...............

    Quote Originally Posted by Hakuho View Post
    ‘A ticking time bomb’

    https://www.theedgeproperty.com.sg/c...old-properties

    According to the Department of Statistics, the home ownership rate among Singapore resident households is 90.9%. Today, 80% of Singapore residents live in HDB flats. Another 14.4% live in condos and apartments, with 5.2% in houses or landed property.

    Assuming just half the people in private housing are holding on to 99-year leasehold properties, that implies that 90% of the resident population will be affected by a shortening lease at some point, says SLP’s Mak. “What is going to happen in the future when more of these 99-year leasehold developments age?” he asks. “It’s a bit of a ticking time bomb if the current situation continues.”

    Owners of ageing 99-year leasehold condos and privatised HUDCs can still exit via a collective sale, though. “They can generally expect a premium of 30% to 60% over the existing value in a collective sale,” says JLL’s Tan.

    Owners of ageing HDB flats need not worry too much, though, says mortgage adviser Huang. “You may not make money, but you will not be sitting on a property with zero value,” he says. “After all, 80% of Singaporeans’ wealth is tied up in their HDB flats.”

  11. #641
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    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)!


    Quote Originally Posted by cbsh38584 View Post
    Never never use your CPF-OA for stocks , unit trusts or insurance investment link products (ILP). You only use your CPF-OA for housing when
    u have not enough cash & you really need to. If you have the ablility to pay through cash. Use it for your mortgage loan instead of your CPF-OA.
    Your AAA rating CPF money is primary for your old age retirement needs.

    人无远虑, 必有近忧. If one has no long-term considerations, he can hardly avoid troubles every now and then.; He who has no anxious thoughts for the future will find trouble right at hand.; If a man is not farsighted, he is bound to encounter difficulties in the near future.; Those who do not plan for the future will find trouble at their doorstep


    It seem like every 10 yrs cycle , there will be a very major crash (1987 , 1997/98 , 2008/09 , 2018 ?). If it comes, prepare your bullets (cash) or maybe your CPF-OA if you have the courage to use it & consider blue chip or good unit trust.


    Invest like you are taking revenge .君子报仇,十年未晚 – Wise men are never in a hurry. To be a wise investor, ten years is not late to wait; one should bide one’s time and wait for the right opportunity to seek max gain.

  12. #642
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    Quote Originally Posted by teddybear View Post
    Stupid comments:
    Owners of ageing HDB flats need not worry too much, though, says mortgage adviser Huang. “You may not make money, but you will not be sitting on a property with zero value,” he says. “After all, 80% of Singaporeans’ wealth is tied up in their HDB flats.”

    Anyway, it is NOT an issue only because those people will die when their 99-years leasehold property's value goes to $ZERO and a new batch of greater fool will take over by buying NEW 99-years leasehold properties recycled from those whose lease has expired...............
    LOL.

    I was certain that you would say this.

  13. #643
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    I have a few colleagues who would use cash instead of using CPF for housing. They dont like the idea of investments as it is too risky. Some are like that. So there is always pros and cons. So there is no right or wrong. Actually, my relatives are mostly like that. I shared with them my investment thought but being their nature, they still trust CPF as it is better than the bank's FD.

    TB is an investment guru but not everyone is as smart and garang as him.

    cbsh38584 is just sharing his thought that if one is not an investement guru, better leave the CPF untouch and I agree.

  14. #644
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    We actually need most people to be like them so the CPF coffers are so filled that Govt has to think thrice before actually contemplating raising CPF rates. We also need most people to be savers with the banks as well, based on that same logic.

    I have given up asking anyone to invest.

    Quote Originally Posted by stl67 View Post
    I have a few colleagues who would use cash instead of using CPF for housing. They dont like the idea of investments as it is too risky. Some are like that. So there is always pros and cons. So there is no right or wrong. Actually, my relatives are mostly like that. I shared with them my investment thought but being their nature, they still trust CPF as it is better than the bank's FD.

    TB is an investment guru but not everyone is as smart and garang as him.

    cbsh38584 is just sharing his thought that if one is not an investement guru, better leave the CPF untouch and I agree.
    The three laws of Kelonguni:

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

  15. #645
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    Before 2010 I also like that, die die must pay the mortgage until zero.

    Now, if Bank can loan me money I will go and buy more.

  16. #646
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    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.

  17. #647
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    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.

  18. #648
    teddybear's Avatar
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    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.

  19. #649
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    Quote Originally Posted by teddybear View Post
    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.
    And becoz u said so? As usual comparing Pears and Durians. Other then Grade AAA Bonds the other so call "options" do they bear the same capital protection and risk? All are much higher risk.. some are even result in 100% wiped out. !

    So dont come bullshit lah!
    “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

  20. #650
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    Wow, minority the BIGGEST LIAR is still around and want to LIE again!!!

    Since you are still around, why you can't answer my questions in response to your LIES?:

    1) You said PUB loses $69.3M.
    Then you now telling us PUB needs to pay GCF & TAXES for its' losses???? What a JOKE!

    2) May be you can tell us which other company in Singapore reported LOSSES in Income and still NEED to pay TAXES?


    Ha ha ha! Caught YOU!


    Quote Originally Posted by minority View Post
    And becoz u said so? As usual comparing Pears and Durians. Other then Grade AAA Bonds the other so call "options" do they bear the same capital protection and risk? All are much higher risk.. some are even result in 100% wiped out. !

    So dont come bullshit lah!

    Quote Originally Posted by teddybear View Post
    minority,

    You said PUB loses $69.3M.
    Then you now telling us PUB needs to pay GCF & TAXES for its' losses???? What a JOKE!
    May be you can tell us which other company in Singapore reported LOSSES in Income and still NEED to pay TAXES?
    Quote Originally Posted by minority
    Done come and bullshit lah..

    2016 nett income 1.257B operating expenses 1.239.3B Finance expenses 87.6M negative 69.3M

    What bullshit you want ? DO YOU EVEN KNOW WHAT IS GCF??? ITS GCF & TAXES 34.3M !!! so dont come and omit the GCF!!!

    BLOODY LIAR!

  21. #651
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    Quote Originally Posted by teddybear View Post
    Wow, minority the BIGGEST LIAR is still around and want to LIE again!!!

    Since you are still around, why you can't answer my questions in response to your LIES?:

    1) You said PUB loses $69.3M.
    Then you now telling us PUB needs to pay GCF & TAXES for its' losses???? What a JOKE!

    2) May be you can tell us which other company in Singapore reported LOSSES in Income and still NEED to pay TAXES?


    Ha ha ha! Caught YOU!
    Hey Idiot

    Do you know wtf is GST and how GST work?

    As long as Net GST collect verses Net GST Paid is positive GST have to be paid.

    And having postie GST dont mean you are making a profit.

    https://www.iras.gov.sg/irashome/upl...Businesses.pdf

    WTF DUMB LIAR YOU ARE....
    “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

  22. #652
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    Many self employed (50s) only required to contribute cash to medisave acct . They did not have much CPF in their CPF-OA or CPF-SA.
    They thought that using cash to buy a Leasehold (cheaper) 1 bedder in hope to collect rental betweem 2k-3k/mth for their retirement. Most of
    these group of ppty investors are now in real trouble as the rental income is way too low even pay for their mortgage loan / ppty tax / maintenace fee etc.
    Worst of all, cannot rent out at all. They are likely to postpone their retirement & continue to work.


    If these group of self employed are to be better advise or informed to contribute CASH into their CPF life cpf annuity scheme. They are so much better off.
    Eg Enhanced cpf lifesum of JUST ONLY $241k has a payout of est $1900 to $2000/mth for life start from age 65. If u have extra cash avail, you may buy from insurance annuity plan (NUUC , GE , AIA etc) if u think the enhanced CPF life payout of $1900-2000/mth cannot allow you to live a comfortable life after age 65.


    .

  23. #653
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    GIC managed our CPF $$$
    ================

    GIC bets big on Chinese debt (BOND) - Jun 2014
    GIC -using our part of our CPF money to invest in Chinese Bond ?
    SINGAPORE sovereign wealth fund GIC is making waves in the Asian debt markets with a series of unusually big investments in bonds from China.
    According to market sources, in recent weeks, GIC has bought US$700m of unrated 4.7 per cent bonds due 2019 from computer maker Lenovo, a US$400m 2019 private placement from property developer Vanke, and a HK$2 billion (US$258 million) 3.2 per cent 2020 note from internet group Tencent Holdings.

    Adding to the sudden increase in activity, the fund is said to have been behind the anchor order for the US$350 million reopening of China Resources Land, as well as a big buyer in several other transactions.

    The investments in unrated bonds and private placements mark a newly aggressive approach from GIC. It also contrasts with the liquidity-driven investment philosophy of other sovereign wealth funds, which typically prefer to invest taxpayers' money in high-rated and well-traded securities. "A US$700m order for an unrated bond is a big thing for a sovereign wealth fund," said one banker.

  24. #654
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    Quote Originally Posted by cbsh38584 View Post
    CPF is more than enough for retirement Planning if you manage it wisely - Starting pay $2500 @age25
    =============================================================================
    There are 3 type of min retirement sum as from 2016 Figure.

    2016 retirement sum figure for BRS (80.5k) , FRS ($161k) & ERS ($241k)
    2020 retirement sum figure for BRS (90.5k) , FRS ($181k) & ERS ($271k) inflation est 2.5%

    1. Basic Retirement Sum(BRS) = $80.5k with 2/3/4 rm HDB pledged
    Monthly payout for life@65 = $660-$720

    2. Full Retirement Sum (FRS) = $161k (No 2/3/4 rm HDB pledged)
    Monthly payout for life@65 = $1220-$1320

    3.Enhanced Retirement Sum (ERS) = $241,500
    Those who wish to put more saving in CPF life - optional
    Monthly payout for life@65 = $1770-$1920.

    Max contribution to your CPF for 2015 = $31.45k / yr (20% of your Salary + 17% employer + voluntary cash)
    Max contribution to your CPF for 2016 = $37.75k / yr (20% of your Salary + 17% employer + voluntary cash)


    Many of them are unaware of how their annual income + CPF adds up over 30 years of working (age 25 to age 55).

    Starting pay $2500 (3% Salary increment yearly till age 55).Do nothing to your CPF acct
    ==================================================================
    At age 25 - OA=$7.1k. SA=$1.9k MA=$2.5k

    By age 35, OA=$112k. SA=33k. MA=41k

    By age 45 - OA=$268k. SA=120k. MA=97k

    By age 55 - OA=$479k. SA=354k. MA = $138k

    ** When MA (now call BHS) ceiling is reached ($49.8k) Excess goes to SA. But if SA (4%) min FRS ($161k) is also reached. MA (4%) excess goes to OA (2.5%)

    NET CASH Income (take home pay) earned accumulated for 30 years of working (age 25 to age 55)= $1.3 million dollars very very more than enough
    for the HDB BTO 4rm HDB flat $350k (income >$8k no HDB grant) . I did not include variable or performance bonus which range from 0.5 mth to 3 mths
    & also your partner income whic may be also $1.3m if she/he has the same earning power.

    If you have the job stability & the financial capablilty . Consider on How To Manage Your CPF Money by Shift all your money from Ordinary Acct to Special Acct as
    YOUNG as possible. You will get extra >60k to 100k more with no sweat involved at all.Just transfering OA-SA every Year . It MUST BE DONE when you are young.


    Shift CPF-OA (2.5%-3.5%) to SA (4-5%) at YOUNG age & start to transfer OA (2.5% to SA(4%)
    ------------------------------------------------------------------------------------------------------------------------------
    At age 25 - OA=$7.1k. SA=$1.9k. MA=$2.5k.

    By age 35, OA=0 (vs 112k). SA=156k (vs 33k) . MA=41k

    By 45 - OA=$85k.(vs 268k) SA=347k (vs 120k). MA=93k

    By 55 - OA=$341k (vs$479k) @SA=$550k to 600k. (vs $354k). @MA=$100k - 135k

    @ SA=550k to $600k depend on the CPF board yearly adjustment of the min sum retirement % increment. Range from 2.5% to 3.5%.

    @ MA= $100k to $135k also depend on the CPF board yearly adjustment on the MA & your medishield life selection from Govt b2 to private A class
    MA (now call BHS) ceiling is reached. MA Excess goes to SA. But if SA min sum is also reached. MA excess goes to OA

    Remember, you are not voluntary CASH contribution in the CPF. Just only your 20% of your Salary + 17% from your employer.

    ================================================================================================================
    I believe only the minorities have the financial capablity , determination & discipline to prorities their retirement need when young & transfer from OA
    to SA to see the magic of compouned interest in their special acct. Young prefer WANTS 1st & ignore the NEEDS. if they mismanage the CASH & CPF,
    they will be in trouble when they grow old. Low cash & low CPF.

    I do not recommend to voluntary contribute cash into CPF when young unless you really have more more than enough cash either from your parent or you yourself.
    Maybe when your reach late 40s & your children are age 21 & start working . You have extra cash. Can consider voluntary cash into CPF if min sum is met.
    By age 55, you can withdraw all after meeting the min sum (161k). Eg OA=200k SA=201k MA=49.8k(cannot touch). U can withdraw all OA=200k + SA=40k
    (201k minus 161k) if you chose FRS ($161k).


    Since most of the young couple likely to marry late between age 30-40. Why not set yourself a tgt to hit your Special acct min $100k at age 35
    (By age 35, OA=$112k. SA=33k --- Move 67k from your OA to SA (33k + 67k ) to increase your SA to 100k tgt.


    Once your SA=100k is reached by age 35. You know that the BIG WORRY min retirement need is SETTLED & can concentrate to build your OA .
    Any extra contribution to your SA is extra extra bonus.



    $100k compounded 4% interest for 30 yrs. U will have at least 325k at age 65. A very basic retirement est 2.5k/mth at age 65 for life.
    http://www.moneychimp.com/calculator...calculator.htm



    FYI, those wiives who decided to become a homemaker to take care of children & self employed . You better start to think now about your retirement as you have much lesser CPF for retirement. A umarried man or women. You are also need to plan early as MAID is the only person which you need to depend on when you grow old.

    Use your CPF-OA (1st 20k-3.5%- Excess above 20k - 2.5%) or cash to pay for your home ?
    =========================================================
    Do not use your CPF-OA to pay for your housing loan if you have the financial capability to use cash to serve your loan.
    U only use your CPF if there is no alternative & hopefully it is just a temporary for a few yrs. Switch back to cash once
    you have build up enough liquid cash through years of saving. Just leave your force saving 20% of your Salary + 17%
    from your employer untouch. Let the magic of compounded interest grow your retirement fund.

    Have patience. The intial stage is bitter.The final stage will be sweet. GOODBYE to tension. Hello to Pension


    Below age 55. CPF-OA (2.5% to 3.5%)
    CPF-SA (4% to 5%)

    Above age 55 CPF RA (1st 20k is 5%. Next 20k is 6%)

  25. #655
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    Quote Originally Posted by cbsh38584 View Post
    Use your CPF-OA (1st 20k-3.5%- Excess above 20k - 2.5%) or cash to pay for your home ?
    =========================================================
    Do not use your CPF-OA to pay for your housing loan if you have the financial capability to use cash to serve your loan.
    U only use your CPF if there is no alternative & hopefully it is just a temporary for a few yrs. Switch back to cash once
    you have build up enough liquid cash through years of saving. Just leave your force saving 20% of your Salary + 17%
    from your employer untouch. Let the magic of compounded interest grow your retirement fund.

    Have patience. The intial stage is bitter.The final stage will be sweet. GOODBYE to tension. Hello to Pension


    Below age 55. CPF-OA (2.5% to 3.5%)
    CPF-SA (4% to 5%)

    Above age 55 CPF RA (1st 20k is 5%. Next 20k is 6%)
    Thanks for sharing.

  26. #656
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    Quote Originally Posted by cbsh38584 View Post
    Many self employed (50s) only required to contribute cash to medisave acct . They did not have much CPF in their CPF-OA or CPF-SA.
    They thought that using cash to buy a Leasehold (cheaper) 1 bedder in hope to collect rental betweem 2k-3k/mth for their retirement. Most of
    these group of ppty investors are now in real trouble as the rental income is way too low even pay for their mortgage loan / ppty tax / maintenace fee etc.
    Worst of all, cannot rent out at all. They are likely to postpone their retirement & continue to work.


    If these group of self employed are to be better advise or informed to contribute CASH into their CPF life cpf annuity scheme. They are so much better off.
    Eg Enhanced cpf lifesum of JUST ONLY $241k has a payout of est $1900 to $2000/mth for life start from age 65. If u have extra cash avail, you may buy from insurance annuity plan (NUUC , GE , AIA etc) if u think the enhanced CPF life payout of $1900-2000/mth cannot allow you to live a comfortable life after age 65.


    .

    He turned 55 and am still working. He lives in a 3 room HDB flat fully paid for. He purchased a 2-bedder private condo in the east for investment purpose and renting it out since mid 2015. The rental is covering his mortgage loan but the other expenses such as property tax, home/fire insurance and maintenance/sinking fund amount to $7000. he is thinking of letting go this property. Many cases like him. Herd instinict ppty investor. He planned to fail & go into high debt.

  27. #657
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    Quote Originally Posted by cbsh38584 View Post
    He turned 55 and am still working. He lives in a 3 room HDB flat fully paid for. He purchased a 2-bedder private condo in the east for investment purpose and renting it out since mid 2015. The rental is covering his mortgage loan but the other expenses such as property tax, home/fire insurance and maintenance/sinking fund amount to $7000. he is thinking of letting go this property. Many cases like him. Herd instinict ppty investor. He planned to fail & go into high debt.
    This is what I will do.

    Turn 55 still working, upgrade to the biggest HDB I can afford.

    Buy the smallest and cheapest condo.

    Stay in condo, rent out HDB.

  28. #658
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    Quote Originally Posted by cbsh38584 View Post
    He turned 55 and am still working. He lives in a 3 room HDB flat fully paid for. He purchased a 2-bedder private condo in the east for investment purpose and renting it out since mid 2015. The rental is covering his mortgage loan but the other expenses such as property tax, home/fire insurance and maintenance/sinking fund amount to $7000. he is thinking of letting go this property. Many cases like him. Herd instinict ppty investor. He planned to fail & go into high debt.
    As long as he rented out the unit he is not going high debt. Any place in sg can rent out, the only thing is how much one want to rent out.

  29. #659
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    teddybear is offline Global recession is coming....
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    This must have been one of the biggest fallacy of all times!

    When shit hits the fence, Hillview 3BR $1200 pm also can't rent out, what more about other OCR private condos?


    Quote Originally Posted by star View Post
    As long as he rented out the unit he is not going high debt. Any place in sg can rent out, the only thing is how much one want to rent out.

  30. #660
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    Quote Originally Posted by teddybear View Post
    This must have been one of the biggest fallacy of all times!

    When shit hits the fence, Hillview 3BR $1200 pm also can't rent out, what more about other OCR private condos?
    Serious, like that I rent then rent out my HDB still got spare cash.

    You are right, was told by one of the Condo buyers, he is paying people to stay in his condo.

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