tag:blogger.com,1999:blog-9030393386211233084.post7359961049704163131..comments2023-06-21T20:40:16.951+08:00Comments on Up$ide of Simplicity: Why young people should NEVER invest their CPF savings?Gary Tayhttp://www.blogger.com/profile/11510610273391750416noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-9030393386211233084.post-80343679824692402062012-12-26T16:07:50.473+08:002012-12-26T16:07:50.473+08:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-29934367723790882462012-12-25T21:40:20.391+08:002012-12-25T21:40:20.391+08:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-57401483212569852832012-12-25T21:38:50.436+08:002012-12-25T21:38:50.436+08:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-315863303081401732012-12-19T20:40:30.187+08:002012-12-19T20:40:30.187+08:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-19060515199931809662012-09-28T18:42:46.309+08:002012-09-28T18:42:46.309+08:00Used up CPF money to invest will affects your prop...Used up CPF money to invest will affects your property ownership in the future.<br />Using CPF money to invest in property is safer than stocks provided you have sufficient calculated risk. <br />http://startwealthy.blogspot.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-79479331040806243722011-08-22T00:43:10.819+08:002011-08-22T00:43:10.819+08:00Check out SM Goh's comments on CPF investments...Check out SM Goh's comments on CPF investments<br /><br />http://www.asiaone.com/Business/News/My+Money/Story/A1Story20100330-207579.htmlGary Tayhttps://www.blogger.com/profile/11510610273391750416noreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-27524611729424297342011-08-22T00:30:58.303+08:002011-08-22T00:30:58.303+08:00Hi Samuel,
Appreciate your comments, the scenario...Hi Samuel,<br /><br />Appreciate your comments, the scenarios you highlighted are relevant although it is based on certain assumptions. Thanks for bringing them up. Allow me to explain the 5 points you have brought up:<br /><br />1) CPF board revises their interest rates for OA, SA & MA every quarterly, so no one knows whether the floor rate of 4% for SA will be maintained come 1st Jan, 2012. The average yield of the 10YSGS plus 1%, from 1 June 2010 to 31 May 2011, still works out to be 3.35%, which is still decent in a RECORD LOW interest rate environment today.<br /><br />2) Yes, Government published inflation as of May 2011 is 5.2% however the historical inflation rate is about 2.73%. This is a grey area as inflation experienced by an average Singaporean may be higher than that of the CPI figures.<br /><br />3) The same question can be asked if investing CPF funds guarantee that one can can meet minimum sum at retirement? In fact, there is also a chance it will perform much worse compared to if one let their monies compound at a 2.5% interest. <br /> <br />4)Contributions to CPF can be withdrawn as cash if one's balance exceed CPF minimum sum at age 55, it can also be left as an estate for loved ones when the CPF member pass on. <br /><br />5) The opportunity cost of leaving monies in CPF in economic terms is the POTENTIAL higher returns from investing, so whether it is high or not depends on the actual returns. <br /><br />Examples of CPF members who made substantial losses include pre-retirees who bought technology funds at the height of the dot com bubbble in 1999, most of them lost 70-80% and are unable to recover until today.Gary Tayhttps://www.blogger.com/profile/11510610273391750416noreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-91483700054636124302011-08-22T00:02:20.054+08:002011-08-22T00:02:20.054+08:00Ultimately I feel it depends on the shares that yo...Ultimately I feel it depends on the shares that you buy and the approach of your investment strategy. I do agree that younger working adults below age of 30 should not invest for the sake of investing. However if we have sufficient in our CPF (more than 60k combined) we should explore other means of getting more than 2.5% fixed returns which CPF confirm is giving us. We can choose to buy shares like SPH, M1, Starhub etc which pays dividends which are more than the annual 2.5% we get when leaving in CPF and it will mean making our money work for us.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9030393386211233084.post-51537434106880257172011-08-21T15:42:03.265+08:002011-08-21T15:42:03.265+08:00Gary, just a few points:
1. CPF SA rates of 4% ar...Gary, just a few points:<br /><br />1. CPF SA rates of 4% are valid till 31 Dec 2011 only. <br />(http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_16March2011.htm)<br /><br />2. Even if existing rates remain, it would not be able to match up to inflation. <br /><br />3. By the time you reach the drawdown age, the Minimum Sum (MS) could well exceed whatever amount left in your CPF account. <br /><br />4. Contributions to CPF are irreversible. Even if your money grows well in CPF, other than paying the mortgage, you cannot utilise it. <br /><br />5. The opportunity cost is too high to leave monies in CPF.Samuelnoreply@blogger.com