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.
Change or Die.
Change is difficult.Not changing is Fatal
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
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.
‘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.”
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...............
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)!
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.
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.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
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.
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.
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?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
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.
“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
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!
Originally Posted by minority
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
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.
.
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.
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%)
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.