View Full Version : Youngsters can never reach Minumum Sum
Here is the simple calculation - assuming interest rates offset inflation.
Age Salary Cap (S$) SA Rate Amount Annual Accumulate
24 "$5,000 " 6.0% $300 3600 "$3,600 "
25 "$5,000 " 6.0% $300 3600 "$7,200 "
26 "$5,000 " 6.0% $300 3600 "$10,800 "
27 "$5,000 " 6.0% $300 3600 "$14,400 "
28 "$5,000 " 6.0% $300 3600 "$18,000 "
29 "$5,000 " 6.0% $300 3600 "$21,600 "
30 "$5,000 " 6.0% $300 3600 "$25,200 "
31 "$5,000 " 6.0% $300 3600 "$28,800 "
32 "$5,000 " 6.0% $300 3600 "$32,400 "
33 "$5,000 " 6.0% $300 3600 "$36,000 "
34 "$5,000 " 6.0% $300 3600 "$39,600 "
35 "$5,000 " 6.0% $300 3600 "$43,200 "
36 "$5,000 " 7.0% $350 4200 "$47,400 "
37 "$5,000 " 7.0% $350 4200 "$51,600 "
38 "$5,000 " 7.0% $350 4200 "$55,800 "
39 "$5,000 " 7.0% $350 4200 "$60,000 "
40 "$5,000 " 7.0% $350 4200 "$64,200 "
41 "$5,000 " 7.0% $350 4200 "$68,400 "
42 "$5,000 " 7.0% $350 4200 "$72,600 "
43 "$5,000 " 7.0% $350 4200 "$76,800 "
44 "$5,000 " 7.0% $350 4200 "$81,000 "
45 "$5,000 " 7.0% $350 4200 "$85,200 "
46 "$5,000 " 8.0% $400 4800 "$90,000 "
47 "$5,000 " 8.0% $400 4800 "$94,800 "
48 "$5,000 " 8.0% $400 4800 "$99,600 "
49 "$5,000 " 8.0% $400 4800 "$104,400 "
50 "$5,000 " 8.0% $400 4800 "$109,200 "
51 "$5,000 " 9.5% $475 5700 "$114,900 "
52 "$5,000 " 9.5% $475 5700 "$120,600 "
53 "$5,000 " 9.5% $475 5700 "$126,300 "
54 "$5,000 " 9.5% $475 5700 "$132,000 "
55 "$5,000 " 9.5% $475 5700 "$137,700 "
56 "$5,000 " 2.0% $100 1200 "$138,900 "
57 "$5,000 " 2.0% $100 1200 "$140,100 "
58 "$5,000 " 2.0% $100 1200 "$141,300 "
59 "$5,000 " 2.0% $100 1200 "$142,500 "
60 "$5,000 " 2.0% $100 1200 "$143,700 "
61 "$5,000 " 1.5% $75 900 "$144,600 "
62 "$5,000 " 1.5% $75 900 "$145,500 "
63 "$5,000 " 1.5% $75 900 "$146,400 "
64 "$5,000 " 1.5% $75 900 "$147,300 "
65 "$5,000 " 1.5% $75 900 "$148,200 "
66 "$5,000 " 1.0% $50 600 "$148,800 "
67 "$5,000 " 1.0% $50 600 "$149,400 "
68 "$5,000 " 1.0% $50 600 "$150,000 "
69 "$5,000 " 1.0% $50 600 "$150,600 "
70 "$5,000 " 1.0% $50 600 "$151,200 "
71 "$5,000 " 1.0% $50 600 "$151,800 "
72 "$5,000 " 1.0% $50 600 "$152,400 "
73 "$5,000 " 1.0% $50 600 "$153,000 "
74 "$5,000 " 1.0% $50 600 "$153,600 "
75 "$5,000 " 1.0% $50 600 "$154,200 "
76 "$5,000 " 1.0% $50 600 "$154,800 "
77 "$5,000 " 1.0% $50 600 "$155,400 "
78 "$5,000 " 1.0% $50 600 "$156,000 "
79 "$5,000 " 1.0% $50 600 "$156,600 "
80 "$5,000 " 1.0% $50 600 "$157,200 "
http://mycpf.cpf.gov.sg/Employers/Gen-Info/cpf-Contri/ContriRa.htm
Why take 6% only? I thought CPF contribution from both employer and employee is 36% and about 1/3 go into SA?
Here is the simple calculation - assuming interest rates offset inflation.
Age Salary Cap (S$) SA Rate Amount Annual Accumulate
24 "$5,000 " 6.0% $300 3600 "$3,600 "
25 "$5,000 " 6.0% $300 3600 "$7,200 "
26 "$5,000 " 6.0% $300 3600 "$10,800 "
27 "$5,000 " 6.0% $300 3600 "$14,400 "
28 "$5,000 " 6.0% $300 3600 "$18,000 "
29 "$5,000 " 6.0% $300 3600 "$21,600 "
30 "$5,000 " 6.0% $300 3600 "$25,200 "
31 "$5,000 " 6.0% $300 3600 "$28,800 "
32 "$5,000 " 6.0% $300 3600 "$32,400 "
33 "$5,000 " 6.0% $300 3600 "$36,000 "
34 "$5,000 " 6.0% $300 3600 "$39,600 "
35 "$5,000 " 6.0% $300 3600 "$43,200 "
36 "$5,000 " 7.0% $350 4200 "$47,400 "
37 "$5,000 " 7.0% $350 4200 "$51,600 "
38 "$5,000 " 7.0% $350 4200 "$55,800 "
39 "$5,000 " 7.0% $350 4200 "$60,000 "
40 "$5,000 " 7.0% $350 4200 "$64,200 "
41 "$5,000 " 7.0% $350 4200 "$68,400 "
42 "$5,000 " 7.0% $350 4200 "$72,600 "
43 "$5,000 " 7.0% $350 4200 "$76,800 "
44 "$5,000 " 7.0% $350 4200 "$81,000 "
45 "$5,000 " 7.0% $350 4200 "$85,200 "
46 "$5,000 " 8.0% $400 4800 "$90,000 "
47 "$5,000 " 8.0% $400 4800 "$94,800 "
48 "$5,000 " 8.0% $400 4800 "$99,600 "
49 "$5,000 " 8.0% $400 4800 "$104,400 "
50 "$5,000 " 8.0% $400 4800 "$109,200 "
51 "$5,000 " 9.5% $475 5700 "$114,900 "
52 "$5,000 " 9.5% $475 5700 "$120,600 "
53 "$5,000 " 9.5% $475 5700 "$126,300 "
54 "$5,000 " 9.5% $475 5700 "$132,000 "
55 "$5,000 " 9.5% $475 5700 "$137,700 "
56 "$5,000 " 2.0% $100 1200 "$138,900 "
57 "$5,000 " 2.0% $100 1200 "$140,100 "
58 "$5,000 " 2.0% $100 1200 "$141,300 "
59 "$5,000 " 2.0% $100 1200 "$142,500 "
60 "$5,000 " 2.0% $100 1200 "$143,700 "
61 "$5,000 " 1.5% $75 900 "$144,600 "
62 "$5,000 " 1.5% $75 900 "$145,500 "
63 "$5,000 " 1.5% $75 900 "$146,400 "
64 "$5,000 " 1.5% $75 900 "$147,300 "
65 "$5,000 " 1.5% $75 900 "$148,200 "
66 "$5,000 " 1.0% $50 600 "$148,800 "
67 "$5,000 " 1.0% $50 600 "$149,400 "
68 "$5,000 " 1.0% $50 600 "$150,000 "
69 "$5,000 " 1.0% $50 600 "$150,600 "
70 "$5,000 " 1.0% $50 600 "$151,200 "
71 "$5,000 " 1.0% $50 600 "$151,800 "
72 "$5,000 " 1.0% $50 600 "$152,400 "
73 "$5,000 " 1.0% $50 600 "$153,000 "
74 "$5,000 " 1.0% $50 600 "$153,600 "
75 "$5,000 " 1.0% $50 600 "$154,200 "
76 "$5,000 " 1.0% $50 600 "$154,800 "
77 "$5,000 " 1.0% $50 600 "$155,400 "
78 "$5,000 " 1.0% $50 600 "$156,000 "
79 "$5,000 " 1.0% $50 600 "$156,600 "
80 "$5,000 " 1.0% $50 600 "$157,200 "
Your calculation does not put additional yearly interest from Government/CPF
Here is the simple calculation - assuming interest rates offset inflation.
Age Salary Cap (S$) SA Rate Amount Annual Accumulate
24 "$5,000 " 6.0% $300 3600 "$3,600 "
25 "$5,000 " 6.0% $300 3600 "$7,200 "
26 "$5,000 " 6.0% $300 3600 "$10,800 "
27 "$5,000 " 6.0% $300 3600 "$14,400 "
28 "$5,000 " 6.0% $300 3600 "$18,000 "
29 "$5,000 " 6.0% $300 3600 "$21,600 "
30 "$5,000 " 6.0% $300 3600 "$25,200 "
31 "$5,000 " 6.0% $300 3600 "$28,800 "
32 "$5,000 " 6.0% $300 3600 "$32,400 "
33 "$5,000 " 6.0% $300 3600 "$36,000 "
34 "$5,000 " 6.0% $300 3600 "$39,600 "
35 "$5,000 " 6.0% $300 3600 "$43,200 "
36 "$5,000 " 7.0% $350 4200 "$47,400 "
37 "$5,000 " 7.0% $350 4200 "$51,600 "
38 "$5,000 " 7.0% $350 4200 "$55,800 "
39 "$5,000 " 7.0% $350 4200 "$60,000 "
40 "$5,000 " 7.0% $350 4200 "$64,200 "
41 "$5,000 " 7.0% $350 4200 "$68,400 "
42 "$5,000 " 7.0% $350 4200 "$72,600 "
43 "$5,000 " 7.0% $350 4200 "$76,800 "
44 "$5,000 " 7.0% $350 4200 "$81,000 "
45 "$5,000 " 7.0% $350 4200 "$85,200 "
46 "$5,000 " 8.0% $400 4800 "$90,000 "
47 "$5,000 " 8.0% $400 4800 "$94,800 "
48 "$5,000 " 8.0% $400 4800 "$99,600 "
49 "$5,000 " 8.0% $400 4800 "$104,400 "
50 "$5,000 " 8.0% $400 4800 "$109,200 "
51 "$5,000 " 9.5% $475 5700 "$114,900 "
52 "$5,000 " 9.5% $475 5700 "$120,600 "
53 "$5,000 " 9.5% $475 5700 "$126,300 "
54 "$5,000 " 9.5% $475 5700 "$132,000 "
55 "$5,000 " 9.5% $475 5700 "$137,700 "
56 "$5,000 " 2.0% $100 1200 "$138,900 "
57 "$5,000 " 2.0% $100 1200 "$140,100 "
58 "$5,000 " 2.0% $100 1200 "$141,300 "
59 "$5,000 " 2.0% $100 1200 "$142,500 "
60 "$5,000 " 2.0% $100 1200 "$143,700 "
61 "$5,000 " 1.5% $75 900 "$144,600 "
62 "$5,000 " 1.5% $75 900 "$145,500 "
63 "$5,000 " 1.5% $75 900 "$146,400 "
64 "$5,000 " 1.5% $75 900 "$147,300 "
65 "$5,000 " 1.5% $75 900 "$148,200 "
66 "$5,000 " 1.0% $50 600 "$148,800 "
67 "$5,000 " 1.0% $50 600 "$149,400 "
68 "$5,000 " 1.0% $50 600 "$150,000 "
69 "$5,000 " 1.0% $50 600 "$150,600 "
70 "$5,000 " 1.0% $50 600 "$151,200 "
71 "$5,000 " 1.0% $50 600 "$151,800 "
72 "$5,000 " 1.0% $50 600 "$152,400 "
73 "$5,000 " 1.0% $50 600 "$153,000 "
74 "$5,000 " 1.0% $50 600 "$153,600 "
75 "$5,000 " 1.0% $50 600 "$154,200 "
76 "$5,000 " 1.0% $50 600 "$154,800 "
77 "$5,000 " 1.0% $50 600 "$155,400 "
78 "$5,000 " 1.0% $50 600 "$156,000 "
79 "$5,000 " 1.0% $50 600 "$156,600 "
80 "$5,000 " 1.0% $50 600 "$157,200 "
Also must consider bonuses and other variable components. Those are not capped at 5000.
When MA reaches a certain sum around 50K, new sums go into OA and SA.
Actually if the youngster salary at 5K at 24 years old and maintains above that through life, half of MS should be reached quite soon, before 40.
The key is to reach half of MS and pledge property for the other half I think.
Don't understand, after all the money printing still think of putting money in the Bank, CPF ???????????
Rental income SGD 4200 + 2500 = SGD 6700.
The more property you have the more you get from inflation.
1550000/4200x12=30.75
640000/2500/x12=21.33
INVESTOPEDIA EXPLAINS 'PRICE-TO-RENT RATIO'
The price-to-rent ratio provides a comparison between owning and renting properties in certain cities. The ratio uses the average list price with average yearly rent on two-bedroom apartments, condos and townhomes that are listed on www.trulia.com, a real estate search website. The price-to-rent ratio is calculated by dividing the average list price by the average yearly rent price, as follows:
Price-to-rent ratio = Average list price / (Average Rent * 12)
Trulia establishes thresholds for the ratios as follows:
Price-to-rent ratio of 1 to 15 = much better to buy than rent
Price-to-rent ratio of 16 to 20 = typically better the rent than buy
Price-to-rent ratio of 21 or more = much better to rent than buy
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp
http://qz.com/289390/for-halloween-the-10-scariest-economic-charts-in-the-world/
http://img.qz.com/2014/10/yields-on-30-year-government-bonds-japan-germany_chartbuilder.png?w=1024
It’s alive.
The US Federal Reserve just finished creating “money” out of thin air and using it to buy financial assets. But the practice—known as quantitative easing—continues to drive global markets. The only difference is the sole source of the freshly created money isn’t the Eccles Building.
Case in point: This morning’s surprise announcement that Haruhiko Kuroda’s Bank of Japan would boost its already aggressive quantitative easing plan, by between ¥10 trillion and ¥20 trillion (that’s roughly between $90 billion and $180 billion) this year. The AP reported:
Kuroda said the increase was required to prevent a reversal into a “deflationary mindset” that the country’s leaders contend has stymied growth for many years. Countering such a trend is “the most important thing we can do,” Kuroda said. “Whatever we can do, we will.”
Japan’s monetary and fiscal authorities have been pushing hard to restart growth since Prime Minister Shinzo Abe retook office in December 2012, ushering the era of “Abenomics.”
But today’s announcement caught pretty much everyone flat-footed, generating sharp moves across a range of financial markets. The yen dropped sharply, hitting a six-year low against the US dollar. Japanese stocks rocketed up, with the Nikkei closing at a seven-year high. The momentum spilled over into the global markets too, driving European and US stocks up.
Japan isn’t the only central bank battling against the threat of falling prices. Broad-based price declines—deflation—might sound good to an individual. But for an economy as a whole, deflation is sort of like trying to drive with the emergency brake on. Falling prices, prompt people to delay purchases, make debts tougher to pay off, and create something of a vicious cycle that becomes a persistent headwind against growth. That’s the short version of why Japanese economic growth has been so poor over the last two decades. And that’s why the BoJ wants to break the “deflationary mindset.”
Now, Europe also seems to be on the verge of deflation. Many individual countries, including large countries like Spain and Italy, are already seeing outright declining prices. And that seems to be moving the European Central Bank closer—albeit painfully slowly—to undertake its own kind of quantitative easing program. (And not a bit too soon. As the chart, below, shows the ECB’s money creation efforts have lagged global efforts. And the European economy is paying the price.)
This is a good thing. The global economy desperately needs a vibrant Japan and Europe to help drive growth forward. After all, Japan is the world’s third largest economy. By some measures, the European Union is the world’s largest economic entity. Of course, monetary policy can’t do everything. But as the experience in the US has shown, they can do a lot when political powers are completely hamstrung. Tough reforms are even tougher if they’re done in the context of collapsing growth. Central banks can’t do everything. But they can do a lot while governments try to change gears. And they should.
I won't let you down.
https://www.youtube.com/watch?v=u1ZB_rGFyeU#t=14
Look at the goose.
https://www.youtube.com/watch?v=V2fpgpanZAw
Don't understand, after all the money printing still think of putting money in the Bank, CPF ???????????
Rental income SGD 4200 + 2500 = SGD 6700.
The more property you have the more you get from inflation.
1550000/4200x12=30.75
640000/2500/x12=21.33
INVESTOPEDIA EXPLAINS 'PRICE-TO-RENT RATIO'
The price-to-rent ratio provides a comparison between owning and renting properties in certain cities. The ratio uses the average list price with average yearly rent on two-bedroom apartments, condos and townhomes that are listed on www.trulia.com, a real estate search website. The price-to-rent ratio is calculated by dividing the average list price by the average yearly rent price, as follows:
Price-to-rent ratio = Average list price / (Average Rent * 12)
Trulia establishes thresholds for the ratios as follows:
Price-to-rent ratio of 1 to 15 = much better to buy than rent
Price-to-rent ratio of 16 to 20 = typically better the rent than buy
Price-to-rent ratio of 21 or more = much better to rent than buy
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp
http://qz.com/289390/for-halloween-the-10-scariest-economic-charts-in-the-world/
SA cannot be used for housing except for first HDB as far as I am aware.
The bigger the ratio (i.e. above 21) the better it is to rent (ie be a tenant) based on the website info shared.
The context is quite different nowadays with the ultra low interests.
Let me seek your opinion on this. If have several units with the ratio under 20, is it better to do nothing or to exchange for a much more expensive one with ratio of say 30?
Don't understand, after all the money printing still think of putting money in the Bank, CPF ???????????
Rental income SGD 4200 + 2500 = SGD 6700.
The more property you have the more you get from inflation.
1550000/4200x12=30.75
640000/2500/x12=21.33
INVESTOPEDIA EXPLAINS 'PRICE-TO-RENT RATIO'
The price-to-rent ratio provides a comparison between owning and renting properties in certain cities. The ratio uses the average list price with average yearly rent on two-bedroom apartments, condos and townhomes that are listed on www.trulia.com, a real estate search website. The price-to-rent ratio is calculated by dividing the average list price by the average yearly rent price, as follows:
Price-to-rent ratio = Average list price / (Average Rent * 12)
Trulia establishes thresholds for the ratios as follows:
Price-to-rent ratio of 1 to 15 = much better to buy than rent
Price-to-rent ratio of 16 to 20 = typically better the rent than buy
Price-to-rent ratio of 21 or more = much better to rent than buy
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp
http://qz.com/289390/for-halloween-the-10-scariest-economic-charts-in-the-world/
https://www.youtube.com/watch?v=qOw44VFNk8Y&list=RDV2fpgpanZAw&index=30
The bigger the ratio (i.e. above 21) the better it is to rent (ie be a tenant) based on the website info shared.
The context is quite different nowadays with the ultra low interests.
Let me seek your opinion on this. If have several units with the ratio under 20, is it better to do nothing or to exchange for a much more expensive one with ratio of say 30?
It depend on whether you are high income earner or low.
People like me going down the hill and have limited shelf life working will be better to do nothing.
Whereas young and high income should max what they can.
Allthepies
01-11-14, 22:53
Nowadays graduate youngsters working in government sector can reach minimum sum by year 10 : )
Nowadays graduate youngsters working in government sector can reach minimum sum by year 10 : )
You must be referring either to SA reaching half of minimum sum or OA plus SA reaching the full minimum sum.
Based on TS calculations, only SA counted.
This price to rent ratio is the inverse of rental yield formula. So after conversion, it suggests that the following should be followed :
rental yield > 6.7% = buy
rental yield 4.7 - 6.7% = better to rent
rental yield < 4.7% = rent
Expressed this way, does it make much sense?
INVESTOPEDIA EXPLAINS 'PRICE-TO-RENT RATIO'
The price-to-rent ratio provides a comparison between owning and renting properties in certain cities. The ratio uses the average list price with average yearly rent on two-bedroom apartments, condos and townhomes that are listed on www.trulia.com, a real estate search website. The price-to-rent ratio is calculated by dividing the average list price by the average yearly rent price, as follows:
Price-to-rent ratio = Average list price / (Average Rent * 12)
Trulia establishes thresholds for the ratios as follows:
Price-to-rent ratio of 1 to 15 = much better to buy than rent
Price-to-rent ratio of 16 to 20 = typically better the rent than buy
Price-to-rent ratio of 21 or more = much better to rent than buy
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp
http://qz.com/289390/for-halloween-the-10-scariest-economic-charts-in-the-world/
This price to rent ratio is the inverse of rental yield formula. So after conversion, it suggests that the following should be followed :
rental yield > 6.7% = buy
rental yield 4.7 - 6.7% = better to rent
rental yield < 4.7% = rent
Expressed this way, does it make much sense?
Yes definitely. But I believe the concept was developed for countries with moderate interest rates, where capital appreciation was not that crazy and when inflation wasn't so bad, and lesser degree of QE effects.
Not that practical in SG contexts. Other than HDBs, very few other properties here have over 6.7% yield or price to rent ratio under 15.
Here is the simple calculation - assuming interest rates offset inflation.
Age Salary Cap (S$) SA Rate Amount Annual Accumulate
24 "$5,000 " 6.0% $300 3600 "$3,600 "
25 "$5,000 " 6.0% $300 3600 "$7,200 "
26 "$5,000 " 6.0% $300 3600 "$10,800 "
27 "$5,000 " 6.0% $300 3600 "$14,400 "
28 "$5,000 " 6.0% $300 3600 "$18,000 "
29 "$5,000 " 6.0% $300 3600 "$21,600 "
30 "$5,000 " 6.0% $300 3600 "$25,200 "
31 "$5,000 " 6.0% $300 3600 "$28,800 "
32 "$5,000 " 6.0% $300 3600 "$32,400 "
33 "$5,000 " 6.0% $300 3600 "$36,000 "
34 "$5,000 " 6.0% $300 3600 "$39,600 "
35 "$5,000 " 6.0% $300 3600 "$43,200 "
36 "$5,000 " 7.0% $350 4200 "$47,400 "
37 "$5,000 " 7.0% $350 4200 "$51,600 "
38 "$5,000 " 7.0% $350 4200 "$55,800 "
39 "$5,000 " 7.0% $350 4200 "$60,000 "
40 "$5,000 " 7.0% $350 4200 "$64,200 "
41 "$5,000 " 7.0% $350 4200 "$68,400 "
42 "$5,000 " 7.0% $350 4200 "$72,600 "
43 "$5,000 " 7.0% $350 4200 "$76,800 "
44 "$5,000 " 7.0% $350 4200 "$81,000 "
45 "$5,000 " 7.0% $350 4200 "$85,200 "
46 "$5,000 " 8.0% $400 4800 "$90,000 "
47 "$5,000 " 8.0% $400 4800 "$94,800 "
48 "$5,000 " 8.0% $400 4800 "$99,600 "
49 "$5,000 " 8.0% $400 4800 "$104,400 "
50 "$5,000 " 8.0% $400 4800 "$109,200 "
51 "$5,000 " 9.5% $475 5700 "$114,900 "
52 "$5,000 " 9.5% $475 5700 "$120,600 "
53 "$5,000 " 9.5% $475 5700 "$126,300 "
54 "$5,000 " 9.5% $475 5700 "$132,000 "
55 "$5,000 " 9.5% $475 5700 "$137,700 "
56 "$5,000 " 2.0% $100 1200 "$138,900 "
57 "$5,000 " 2.0% $100 1200 "$140,100 "
58 "$5,000 " 2.0% $100 1200 "$141,300 "
59 "$5,000 " 2.0% $100 1200 "$142,500 "
60 "$5,000 " 2.0% $100 1200 "$143,700 "
61 "$5,000 " 1.5% $75 900 "$144,600 "
62 "$5,000 " 1.5% $75 900 "$145,500 "
63 "$5,000 " 1.5% $75 900 "$146,400 "
64 "$5,000 " 1.5% $75 900 "$147,300 "
65 "$5,000 " 1.5% $75 900 "$148,200 "
66 "$5,000 " 1.0% $50 600 "$148,800 "
67 "$5,000 " 1.0% $50 600 "$149,400 "
68 "$5,000 " 1.0% $50 600 "$150,000 "
69 "$5,000 " 1.0% $50 600 "$150,600 "
70 "$5,000 " 1.0% $50 600 "$151,200 "
71 "$5,000 " 1.0% $50 600 "$151,800 "
72 "$5,000 " 1.0% $50 600 "$152,400 "
73 "$5,000 " 1.0% $50 600 "$153,000 "
74 "$5,000 " 1.0% $50 600 "$153,600 "
75 "$5,000 " 1.0% $50 600 "$154,200 "
76 "$5,000 " 1.0% $50 600 "$154,800 "
77 "$5,000 " 1.0% $50 600 "$155,400 "
78 "$5,000 " 1.0% $50 600 "$156,000 "
79 "$5,000 " 1.0% $50 600 "$156,600 "
80 "$5,000 " 1.0% $50 600 "$157,200 "
Your `simple' calculation is really too simple. You have left out end of year interest of 4% currently (and compounded) and bonuses which will significantly add to the SA. Actually, the reality is most would have reached the min sum before they hit 35 or 40 if include OA. Assuming some empty their OA for 1st pty, your calculation of SA is prudent but still flawed due to reasons above.
Thus it's incorrect to suggest youngsters cannot reach min sum....even if just consider SA. If include OA, can easily reach min-sum way before 65 and I'm not talking about pledging 50% of pity value. You have to refine your statement e.g. Some youngsters cannot reach.....
Your `simple' calculation is really too simple. You have left out end of year interest of 4% currently (and compounded) and bonuses which will significantly add to the SA. Actually, the reality is most would have reached the min sum before they hit 35 or 40 if include OA. Assuming some empty their OA for 1st pty, your calculation of SA is prudent but still flawed due to reasons above.
Thus it's incorrect to suggest youngsters cannot reach min sum....even if just consider SA. If include OA, can easily reach min-sum way before 65 and I'm not talking about pledging 50% of pity value. You have to refine your statement e.g. Some youngsters cannot reach.....
Some effort needed to present also. Just point out shortcomings in calculation.
Allthepies
02-11-14, 09:09
You must be referring either to SA reaching half of minimum sum or OA plus SA reaching the full minimum sum.
Based on TS calculations, only SA counted.
Yup im basing on OA + SA... if SA alone should be quite hard..
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Some of the smartest people in their respective fields are on Quora, and they provide an insightful and thoughtful glimpse into their world. Recently US President Barack Obama became a Quora user, signing up to answer two questions on his healthcare proposals. Mark Zuckerberg apparently has a Quora account as well, although for the moment his activity is seemingly limited to posting rather than answering questions.
Most of the answers on Quora are relatively short and make for an easy read. They make for a good distraction while waiting for the train or while waiting in the queue. (There is only so many times you can update your facebook feed). And I always leave Quora feeling that I have learnt something new, that my mind has been stretched and expanded.
A few days ago I was mindlessly browsing Quora and came across the following question.
What secret sides to human nature do therapists see that non-therapists would be surprised by?
I have always been a big fan of human behaviour. I like to find out what makes people tick and why they make the decisions they make. I am curious about why people do the things they do. My curiosity was piqued and I read on.
The number one answer was by Rick Cormier, a semi-retired psychotherapist, with more than 500 upvotes. His reply is produced in full as follows
I’ll give you my favourite one: People CREATE precisely what they try hardest to avoid
Germophobes put paper on public toilet seats and let it fall on the floor when they’re finished because they don’t dare to touch it. They don’t flush because they refuse to touch the toilet handle. So when you walk into a public restroom with toilet paper all over the floor and a toilet full of wretched feces you blame the low class snobs but it is actually the neat freaks who make the mess.
People who are afraid of unfairness will unintentionally treat people unfairly in order to ensure that no one is taking advantage of them.
It is a fascinating phenomenon I have seen in hundreds of people for decades.
People create precisely what they try hardest to avoid.
I was immediately reminded of a dear friend, whom upon arriving at a ‘marriageable’ age, set out with a vengeance to find a boyfriend and husband by making her presence felt on online matchmaking sites and attending countless dating sessions. She met so many people that she became confused. And more than one prospect became put off by her relentless social activities. We create what we try hardest to avoid.
I was also reminded of ourselves as parents. In wanting to ensure that our two year old is accepting of his little sister, we make an effort to speak with him about the new addition. We bought him books about baby sisters and constantly remind him that he is big brother now. Sometimes I wonder if the attention is doing more harm than good. The jealousy doesn’t seem to be abating and I wish he could speak and tell us if we are doing right. Or is it us that has created precisely what we try hardest to avoid.
But I feel the most for investors.
Investors who are trying to avoid the effects of inflation. In fact, many are not even ‘investors’ per se but just regular people who work hard and have built up an egg nest. The thought of inflation eroding their hard earned savings sends shivers down their spine and they seek out higher returns.
Unfortunately many in this group have little financial knowledge and they end up falling prey to dubious schemes and dodgy scams, losing their money in the process. Did they create precisely what they try hardest to avoid?
Many investors also try hard to grow their portfolio in good times and bad by timing the market. They want to avoid their portfolio shrinking during a market downturn. Well informed investors who read the news, follow the global markets, study the economic cycles might think that they can beat the markets and make a killing when the opportunity presents.
In reality, many are driven by greed, buying when the markets are raging, hoping to make a killing. When the markets collapses, fear descends on them and they make a run for safer assets. They buy high and sell low. Losing money in the process. Did they create precisely what they try hardest to avoid?
There are also investors who avoid stocks because they claim that stocks are high risk and unsafe. Some of them still have money tied up in that underperforming counter purchased many years ago.
Many believe properties make for better investments and they pile into properties even when prices are at an all time high. When the markets correct and their properties become impossible to sell they lament their bad timing and rotten luck. Did they create precisely what they try hardest to avoid?
And finally, I feel for Investors who try their best to avoid being scammed. They have had bad experiences before, their money being taken from them in the most cruel fashion. They want to feel protected. They bray for more regulation from the government.
Yet in depending on the government and others to regulate and protect, they themselves fail to fill up the knowledge void. No amount of protection is sufficient against crooks intent on making investors part with their money. In asking for protection, are they asking precisely for what they try hardest to avoid?
Do you have that experience?
As a worker or a boss, a friend or a parent, a trader or investor, are you creating precisely what you try hardest to avoid?
http://www.bigfatpurse.com/2014/11/are-you-creating-what-you-try-hardest-to-avoid/
Yup im basing on OA + SA... if SA alone should be quite hard..
If OA plus SA then it really depends on how much CPF used for housing. It's highly variable. But assuming no housing pullback should be able to reach full MS in ten years for employee with wages at those level.
Not advisable to not use for any housing though. Should use at least for 1 place of residence.
Great article, can re read 3 times.
Quora.com is a question and answer site built around user generated content. Users post questions on the site, and registered members would take turns to have a go at answering the question. The best replies gets voted upwards and commands a higher presence than a mediocre answer.
The questions and answers on Quora ran the gamut from dead serious to seriously funny. The genre includes just about everything; from politics to business, travel to education to psychology and maths and technology and of course investing.
Some of the smartest people in their respective fields are on Quora, and they provide an insightful and thoughtful glimpse into their world. Recently US President Barack Obama became a Quora user, signing up to answer two questions on his healthcare proposals. Mark Zuckerberg apparently has a Quora account as well, although for the moment his activity is seemingly limited to posting rather than answering questions.
Most of the answers on Quora are relatively short and make for an easy read. They make for a good distraction while waiting for the train or while waiting in the queue. (There is only so many times you can update your facebook feed). And I always leave Quora feeling that I have learnt something new, that my mind has been stretched and expanded.
A few days ago I was mindlessly browsing Quora and came across the following question.
What secret sides to human nature do therapists see that non-therapists would be surprised by?
I have always been a big fan of human behaviour. I like to find out what makes people tick and why they make the decisions they make. I am curious about why people do the things they do. My curiosity was piqued and I read on.
The number one answer was by Rick Cormier, a semi-retired psychotherapist, with more than 500 upvotes. His reply is produced in full as follows
I’ll give you my favourite one: People CREATE precisely what they try hardest to avoid
Germophobes put paper on public toilet seats and let it fall on the floor when they’re finished because they don’t dare to touch it. They don’t flush because they refuse to touch the toilet handle. So when you walk into a public restroom with toilet paper all over the floor and a toilet full of wretched feces you blame the low class snobs but it is actually the neat freaks who make the mess.
People who are afraid of unfairness will unintentionally treat people unfairly in order to ensure that no one is taking advantage of them.
It is a fascinating phenomenon I have seen in hundreds of people for decades.
People create precisely what they try hardest to avoid.
I was immediately reminded of a dear friend, whom upon arriving at a ‘marriageable’ age, set out with a vengeance to find a boyfriend and husband by making her presence felt on online matchmaking sites and attending countless dating sessions. She met so many people that she became confused. And more than one prospect became put off by her relentless social activities. We create what we try hardest to avoid.
I was also reminded of ourselves as parents. In wanting to ensure that our two year old is accepting of his little sister, we make an effort to speak with him about the new addition. We bought him books about baby sisters and constantly remind him that he is big brother now. Sometimes I wonder if the attention is doing more harm than good. The jealousy doesn’t seem to be abating and I wish he could speak and tell us if we are doing right. Or is it us that has created precisely what we try hardest to avoid.
But I feel the most for investors.
Investors who are trying to avoid the effects of inflation. In fact, many are not even ‘investors’ per se but just regular people who work hard and have built up an egg nest. The thought of inflation eroding their hard earned savings sends shivers down their spine and they seek out higher returns.
Unfortunately many in this group have little financial knowledge and they end up falling prey to dubious schemes and dodgy scams, losing their money in the process. Did they create precisely what they try hardest to avoid?
Many investors also try hard to grow their portfolio in good times and bad by timing the market. They want to avoid their portfolio shrinking during a market downturn. Well informed investors who read the news, follow the global markets, study the economic cycles might think that they can beat the markets and make a killing when the opportunity presents.
In reality, many are driven by greed, buying when the markets are raging, hoping to make a killing. When the markets collapses, fear descends on them and they make a run for safer assets. They buy high and sell low. Losing money in the process. Did they create precisely what they try hardest to avoid?
There are also investors who avoid stocks because they claim that stocks are high risk and unsafe. Some of them still have money tied up in that underperforming counter purchased many years ago.
Many believe properties make for better investments and they pile into properties even when prices are at an all time high. When the markets correct and their properties become impossible to sell they lament their bad timing and rotten luck. Did they create precisely what they try hardest to avoid?
And finally, I feel for Investors who try their best to avoid being scammed. They have had bad experiences before, their money being taken from them in the most cruel fashion. They want to feel protected. They bray for more regulation from the government.
Yet in depending on the government and others to regulate and protect, they themselves fail to fill up the knowledge void. No amount of protection is sufficient against crooks intent on making investors part with their money. In asking for protection, are they asking precisely for what they try hardest to avoid?
Do you have that experience?
As a worker or a boss, a friend or a parent, a trader or investor, are you creating precisely what you try hardest to avoid?
http://www.bigfatpurse.com/2014/11/are-you-creating-what-you-try-hardest-to-avoid/
Quora.com is a question and answer site built around user generated content. Users post questions on the site, and registered members would take turns to have a go at answering the question. The best replies gets voted upwards and commands a higher presence than a mediocre answer.
The questions and answers on Quora ran the gamut from dead serious to seriously funny. The genre includes just about everything; from politics to business, travel to education to psychology and maths and technology and of course investing.
Some of the smartest people in their respective fields are on Quora, and they provide an insightful and thoughtful glimpse into their world. Recently US President Barack Obama became a Quora user, signing up to answer two questions on his healthcare proposals. Mark Zuckerberg apparently has a Quora account as well, although for the moment his activity is seemingly limited to posting rather than answering questions.
Most of the answers on Quora are relatively short and make for an easy read. They make for a good distraction while waiting for the train or while waiting in the queue. (There is only so many times you can update your facebook feed). And I always leave Quora feeling that I have learnt something new, that my mind has been stretched and expanded.
A few days ago I was mindlessly browsing Quora and came across the following question.
What secret sides to human nature do therapists see that non-therapists would be surprised by?
I have always been a big fan of human behaviour. I like to find out what makes people tick and why they make the decisions they make. I am curious about why people do the things they do. My curiosity was piqued and I read on.
The number one answer was by Rick Cormier, a semi-retired psychotherapist, with more than 500 upvotes. His reply is produced in full as follows
I’ll give you my favourite one: People CREATE precisely what they try hardest to avoid
Germophobes put paper on public toilet seats and let it fall on the floor when they’re finished because they don’t dare to touch it. They don’t flush because they refuse to touch the toilet handle. So when you walk into a public restroom with toilet paper all over the floor and a toilet full of wretched feces you blame the low class snobs but it is actually the neat freaks who make the mess.
People who are afraid of unfairness will unintentionally treat people unfairly in order to ensure that no one is taking advantage of them.
It is a fascinating phenomenon I have seen in hundreds of people for decades.
People create precisely what they try hardest to avoid.
I was immediately reminded of a dear friend, whom upon arriving at a ‘marriageable’ age, set out with a vengeance to find a boyfriend and husband by making her presence felt on online matchmaking sites and attending countless dating sessions. She met so many people that she became confused. And more than one prospect became put off by her relentless social activities. We create what we try hardest to avoid.
I was also reminded of ourselves as parents. In wanting to ensure that our two year old is accepting of his little sister, we make an effort to speak with him about the new addition. We bought him books about baby sisters and constantly remind him that he is big brother now. Sometimes I wonder if the attention is doing more harm than good. The jealousy doesn’t seem to be abating and I wish he could speak and tell us if we are doing right. Or is it us that has created precisely what we try hardest to avoid.
But I feel the most for investors.
Investors who are trying to avoid the effects of inflation. In fact, many are not even ‘investors’ per se but just regular people who work hard and have built up an egg nest. The thought of inflation eroding their hard earned savings sends shivers down their spine and they seek out higher returns.
Unfortunately many in this group have little financial knowledge and they end up falling prey to dubious schemes and dodgy scams, losing their money in the process. Did they create precisely what they try hardest to avoid?
Many investors also try hard to grow their portfolio in good times and bad by timing the market. They want to avoid their portfolio shrinking during a market downturn. Well informed investors who read the news, follow the global markets, study the economic cycles might think that they can beat the markets and make a killing when the opportunity presents.
In reality, many are driven by greed, buying when the markets are raging, hoping to make a killing. When the markets collapses, fear descends on them and they make a run for safer assets. They buy high and sell low. Losing money in the process. Did they create precisely what they try hardest to avoid?
There are also investors who avoid stocks because they claim that stocks are high risk and unsafe. Some of them still have money tied up in that underperforming counter purchased many years ago.
Many believe properties make for better investments and they pile into properties even when prices are at an all time high. When the markets correct and their properties become impossible to sell they lament their bad timing and rotten luck. Did they create precisely what they try hardest to avoid?
And finally, I feel for Investors who try their best to avoid being scammed. They have had bad experiences before, their money being taken from them in the most cruel fashion. They want to feel protected. They bray for more regulation from the government.
Yet in depending on the government and others to regulate and protect, they themselves fail to fill up the knowledge void. No amount of protection is sufficient against crooks intent on making investors part with their money. In asking for protection, are they asking precisely for what they try hardest to avoid?
Do you have that experience?
As a worker or a boss, a friend or a parent, a trader or investor, are you creating precisely what you try hardest to avoid?
http://www.bigfatpurse.com/2014/11/are-you-creating-what-you-try-hardest-to-avoid/
Bro Arcachon
Like the article, very apt to our current life mentality. Keep it coming pls.
https://www.youtube.com/watch?v=cOYiWOu-8iw
Warning to MTB, don't MTB again.
http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-jungle/discovery-channels-video-shows-spore-skylines-incredible-change-throughout-the#xtor=CS1-2
http://farm6.static.flickr.com/5214/5487500760_e4b1af69f8_z.jpg
http://www.asianurbanepicenters.com/wp-content/uploads/2012/05/map_pan_big.jpg
https://www.youtube.com/watch?v=j4TR5eQFqpA
When there are job we have more PR, when there are less job, they are the first to go True or False?
https://www.youtube.com/watch?v=gE3fTzmdH04
This reminds me of what I had learntover a decade ago; what we resists persists.
That's why when I point out the many contradictions in life...to the people around me..like marrying stingy spouses when they swore that they will never be like their scrooge parents, jobs, children etc etc
Human lar.. Even if we know or aware.. we still fell for it. Walking contractions..
Quora.com is a question and answer site built around user generated content. Users post questions on the site, and registered members would take turns to have a go at answering the question. The best replies gets voted upwards and commands a higher presence than a mediocre answer.
The questions and answers on Quora ran the gamut from dead serious to seriously funny. The genre includes just about everything; from politics to business, travel to education to psychology and maths and technology and of course investing.
Some of the smartest people in their respective fields are on Quora, and they provide an insightful and thoughtful glimpse into their world. Recently US President Barack Obama became a Quora user, signing up to answer two questions on his healthcare proposals. Mark Zuckerberg apparently has a Quora account as well, although for the moment his activity is seemingly limited to posting rather than answering questions.
Most of the answers on Quora are relatively short and make for an easy read. They make for a good distraction while waiting for the train or while waiting in the queue. (There is only so many times you can update your facebook feed). And I always leave Quora feeling that I have learnt something new, that my mind has been stretched and expanded.
A few days ago I was mindlessly browsing Quora and came across the following question.
What secret sides to human nature do therapists see that non-therapists would be surprised by?
I have always been a big fan of human behaviour. I like to find out what makes people tick and why they make the decisions they make. I am curious about why people do the things they do. My curiosity was piqued and I read on.
The number one answer was by Rick Cormier, a semi-retired psychotherapist, with more than 500 upvotes. His reply is produced in full as follows
I’ll give you my favourite one: People CREATE precisely what they try hardest to avoid
Germophobes put paper on public toilet seats and let it fall on the floor when they’re finished because they don’t dare to touch it. They don’t flush because they refuse to touch the toilet handle. So when you walk into a public restroom with toilet paper all over the floor and a toilet full of wretched feces you blame the low class snobs but it is actually the neat freaks who make the mess.
People who are afraid of unfairness will unintentionally treat people unfairly in order to ensure that no one is taking advantage of them.
It is a fascinating phenomenon I have seen in hundreds of people for decades.
People create precisely what they try hardest to avoid.
I was immediately reminded of a dear friend, whom upon arriving at a ‘marriageable’ age, set out with a vengeance to find a boyfriend and husband by making her presence felt on online matchmaking sites and attending countless dating sessions. She met so many people that she became confused. And more than one prospect became put off by her relentless social activities. We create what we try hardest to avoid.
I was also reminded of ourselves as parents. In wanting to ensure that our two year old is accepting of his little sister, we make an effort to speak with him about the new addition. We bought him books about baby sisters and constantly remind him that he is big brother now. Sometimes I wonder if the attention is doing more harm than good. The jealousy doesn’t seem to be abating and I wish he could speak and tell us if we are doing right. Or is it us that has created precisely what we try hardest to avoid.
But I feel the most for investors.
Investors who are trying to avoid the effects of inflation. In fact, many are not even ‘investors’ per se but just regular people who work hard and have built up an egg nest. The thought of inflation eroding their hard earned savings sends shivers down their spine and they seek out higher returns.
Unfortunately many in this group have little financial knowledge and they end up falling prey to dubious schemes and dodgy scams, losing their money in the process. Did they create precisely what they try hardest to avoid?
Many investors also try hard to grow their portfolio in good times and bad by timing the market. They want to avoid their portfolio shrinking during a market downturn. Well informed investors who read the news, follow the global markets, study the economic cycles might think that they can beat the markets and make a killing when the opportunity presents.
In reality, many are driven by greed, buying when the markets are raging, hoping to make a killing. When the markets collapses, fear descends on them and they make a run for safer assets. They buy high and sell low. Losing money in the process. Did they create precisely what they try hardest to avoid?
There are also investors who avoid stocks because they claim that stocks are high risk and unsafe. Some of them still have money tied up in that underperforming counter purchased many years ago.
Many believe properties make for better investments and they pile into properties even when prices are at an all time high. When the markets correct and their properties become impossible to sell they lament their bad timing and rotten luck. Did they create precisely what they try hardest to avoid?
And finally, I feel for Investors who try their best to avoid being scammed. They have had bad experiences before, their money being taken from them in the most cruel fashion. They want to feel protected. They bray for more regulation from the government.
Yet in depending on the government and others to regulate and protect, they themselves fail to fill up the knowledge void. No amount of protection is sufficient against crooks intent on making investors part with their money. In asking for protection, are they asking precisely for what they try hardest to avoid?
Do you have that experience?
As a worker or a boss, a friend or a parent, a trader or investor, are you creating precisely what you try hardest to avoid?
http://www.bigfatpurse.com/2014/11/are-you-creating-what-you-try-hardest-to-avoid/
Yup im basing on OA + SA... if SA alone should be quite hard..
Not at all. SA alone is doable. TS's computation is incorrect. Total wage ceiling you can contribute to CPF is (today) 5k * 17 = 85k (search for "Additional Wage" if you are lost). On which 16% (before you reach 50) will get contributed to SA+MA. MA will reach cap very quickly, after which excess will all go to SA (correction to one earlier comment: excess does not go to OA). So the simplest way to compute is to see when SA+MA=210k. Ignoring all interests earned (as OT asserted "interest compensates for inflation"), a simplistic compute will give you 210k / (85k*16%) = 15.5yrs. So SA alone to reach minimum sum is completely doable. In fact I know many ppl have already done that before reaching early 40s.
So TS please correct your thread title to avoid any more misinformation spreading around. (I noticed you never respond to your own thread when ppl are correcting you)
Thanks for the informative clarifications.
Not at all. SA alone is doable. TS's computation is incorrect. Total wage ceiling you can contribute to CPF is (today) 5k * 17 = 85k (search for "Additional Wage" if you are lost). On which 16% (before you reach 50) will get contributed to SA+MA. MA will reach cap very quickly, after which excess will all go to SA (correction to one earlier comment: excess does not go to OA). So the simplest way to compute is to see when SA+MA=210k. Ignoring all interests earned (as OT asserted "interest compensates for inflation"), a simplistic compute will give you 210k / (85k*16%) = 15.5yrs. So SA alone to reach minimum sum is completely doable. In fact I know many ppl have already done that before reaching early 40s.
So TS please correct your thread title to avoid any more misinformation spreading around. (I noticed you never respond to your own thread when ppl are correcting you)
Ur min sum requirement is halved when u own at least 1 property. So 77.5K (half of today's min sum of 155K) is still doable even fully from SA.
Thanks for pointing out that the additional wage cap is indeed 17 months (a handsome 5 months bonus!)
http://mycpf.cpf.gov.sg/NR/rdonlyres/EA75B1EA-E0D4-431D-9104-8BD0F2B72162/0/ExamplesonAdditionalWageCeilingComputation.pdf
Equivalent to 17 months x $5,000
So let's learn from the "rich"!
I have re-calculated with the additional information:
a person earning x12 month salary who is NEVER out of job with interest (5% for the first S$60K and 4% for the rest).
a person earning x17 month salary who is NEVER out of job with interest (5% for the first S$60K and 4% for the rest).
a Rich Child who has S$161,000 in his SA account and NEVER needs to work (no contribution at all - just to earn the 4-5% interest on the initial S$161K and let the money to grow!)
Age Salary Cap (S$) SA Rate Amount Annual (x12) Accumulate Interest Accumulate (with Interest) Annual (x17) Accumulate with Interest (x17) Rich Child
24 "$5,000 " 6.0% $300 3600 "$3,600 " $180 "$3,780 " "$5,100 " "$5,355 " "161,000"
25 "$5,000 " 6.0% $300 3600 "$7,200 " $369 "$7,749 " "$5,100 " "$10,978 " "168,040"
26 "$5,000 " 6.0% $300 3600 "$10,800 " $387 "$11,736 " "$5,100 " "$16,882 " "175,362"
27 "$5,000 " 6.0% $300 3600 "$14,400 " $587 "$15,923 " "$5,100 " "$23,081 " "182,976"
28 "$5,000 " 6.0% $300 3600 "$18,000 " $796 "$20,319 " "$5,100 " "$29,590 " "190,895"
29 "$5,000 " 6.0% $300 3600 "$21,600 " "$1,016 " "$24,935 " "$5,100 " "$36,424 " "199,131"
30 "$5,000 " 6.0% $300 3600 "$25,200 " "$1,247 " "$29,782 " "$5,100 " "$43,600 " "207,696"
31 "$5,000 " 6.0% $300 3600 "$28,800 " "$1,489 " "$34,871 " "$5,100 " "$51,135 " "216,604"
32 "$5,000 " 6.0% $300 3600 "$32,400 " "$1,744 " "$40,215 " "$5,100 " "$59,047 " "225,868"
33 "$5,000 " 6.0% $300 3600 "$36,000 " "$2,011 " "$45,826 " "$5,100 " "$67,313 " "235,503"
34 "$5,000 " 6.0% $300 3600 "$39,600 " "$2,291 " "$51,717 " "$5,100 " "$75,910 " "245,523"
35 "$5,000 " 6.0% $300 3600 "$43,200 " "$2,586 " "$57,903 " "$5,100 " "$84,850 " "255,944"
36 "$5,000 " 7.0% $350 4200 "$47,400 " "$2,895 " "$64,998 " "$5,950 " "$95,032 " "266,782"
37 "$5,000 " 7.0% $350 4200 "$51,600 " "$3,200 " "$72,398 " "$5,950 " "$105,621 " "278,053"
38 "$5,000 " 7.0% $350 4200 "$55,800 " "$3,496 " "$80,094 " "$5,950 " "$116,634 " "289,775"
39 "$5,000 " 7.0% $350 4200 "$60,000 " "$3,804 " "$88,097 " "$5,950 " "$128,088 " "301,966"
40 "$5,000 " 7.0% $350 4200 "$64,200 " "$4,124 " "$96,421 " "$5,950 " "$139,999 " "314,645"
41 "$5,000 " 7.0% $350 4200 "$68,400 " "$4,457 " "$105,078 " "$5,950 " "$152,387 " "327,830"
42 "$5,000 " 7.0% $350 4200 "$72,600 " "$4,803 " "$114,081 " "$5,950 " "$165,271 " "341,544"
43 "$5,000 " 7.0% $350 4200 "$76,800 " "$5,163 " "$123,445 " "$5,950 " "$178,669 " "355,805"
44 "$5,000 " 7.0% $350 4200 "$81,000 " "$5,538 " "$133,182 " "$5,950 " "$192,604 " "370,638"
45 "$5,000 " 7.0% $350 4200 "$85,200 " "$5,927 " "$143,310 " "$5,950 " "$207,096 " "386,063"
46 "$5,000 " 8.0% $400 4800 "$90,000 " "$6,332 " "$154,442 " "$6,800 " "$223,052 " "402,106"
47 "$5,000 " 8.0% $400 4800 "$94,800 " "$6,778 " "$166,020 " "$6,800 " "$239,646 " "418,790"
48 "$5,000 " 8.0% $400 4800 "$99,600 " "$7,241 " "$178,060 " "$6,800 " "$256,904 " "436,142"
49 "$5,000 " 8.0% $400 4800 "$104,400 " "$7,722 " "$190,583 " "$6,800 " "$274,852 " "454,187"
50 "$5,000 " 8.0% $400 4800 "$109,200 " "$8,223 " "$203,606 " "$6,800 " "$293,518 " "472,955"
51 "$5,000 " 9.5% $475 5700 "$114,900 " "$8,744 " "$218,050 " "$8,075 " "$314,257 " "492,473"
52 "$5,000 " 9.5% $475 5700 "$120,600 " "$9,322 " "$233,072 " "$8,075 " "$335,825 " "512,772"
53 "$5,000 " 9.5% $475 5700 "$126,300 " "$9,923 " "$248,695 " "$8,075 " "$358,256 " "533,883"
54 "$5,000 " 9.5% $475 5700 "$132,000 " "$10,548 " "$264,943 " "$8,075 " "$381,585 " "555,838"
55 "$5,000 " 9.5% $475 5700 "$137,700 " "$11,198 " "$281,841 " "$8,075 " "$405,846 " "578,671"
56 "$5,000 " 2.0% $100 1200 "$138,900 " "$11,874 " "$294,915 " "$1,700 " "$424,448 " "602,418"
57 "$5,000 " 2.0% $100 1200 "$140,100 " "$12,397 " "$308,511 " "$1,700 " "$443,794 " "627,115"
58 "$5,000 " 2.0% $100 1200 "$141,300 " "$12,940 " "$322,652 " "$1,700 " "$463,913 " "652,800"
59 "$5,000 " 2.0% $100 1200 "$142,500 " "$13,506 " "$337,358 " "$1,700 " "$484,838 " "679,512"
60 "$5,000 " 2.0% $100 1200 "$143,700 " "$14,094 " "$352,652 " "$1,700 " "$506,600 " "707,292"
61 "$5,000 " 1.5% $75 900 "$144,600 " "$14,706 " "$368,258 " "$1,275 " "$528,789 " "736,184"
62 "$5,000 " 1.5% $75 900 "$145,500 " "$15,330 " "$384,488 " "$1,275 " "$551,867 " "766,231"
63 "$5,000 " 1.5% $75 900 "$146,400 " "$15,980 " "$401,368 " "$1,275 " "$575,868 " "797,480"
64 "$5,000 " 1.5% $75 900 "$147,300 " "$16,655 " "$418,923 " "$1,275 " "$600,828 " "829,980"
65 "$5,000 " 1.5% $75 900 "$148,200 " "$17,357 " "$437,180 " "$1,275 " "$626,788 " "863,779"
66 "$5,000 " 1.0% $50 600 "$148,800 " "$18,087 " "$455,867 " $850 "$653,343 " "898,930"
67 "$5,000 " 1.0% $50 600 "$149,400 " "$18,835 " "$475,301 " $850 "$680,961 " "935,487"
68 "$5,000 " 1.0% $50 600 "$150,000 " "$19,612 " "$495,513 " $850 "$709,683 " "973,507"
69 "$5,000 " 1.0% $50 600 "$150,600 " "$20,421 " "$516,534 " $850 "$739,555 " "1,013,047"
70 "$5,000 " 1.0% $50 600 "$151,200 " "$21,261 " "$538,395 " $850 "$770,621 " "1,054,169"
71 "$5,000 " 1.0% $50 600 "$151,800 " "$22,136 " "$561,131 " $850 "$802,930 " "1,096,936"
72 "$5,000 " 1.0% $50 600 "$152,400 " "$23,045 " "$584,776 " $850 "$836,531 " "1,141,413"
73 "$5,000 " 1.0% $50 600 "$153,000 " "$23,991 " "$609,367 " $850 "$871,476 " "1,187,669"
74 "$5,000 " 1.0% $50 600 "$153,600 " "$24,975 " "$634,942 " $850 "$907,819 " "1,235,776"
75 "$5,000 " 1.0% $50 600 "$154,200 " "$25,998 " "$661,540 " $850 "$945,616 " "1,285,807"
76 "$5,000 " 1.0% $50 600 "$154,800 " "$27,062 " "$689,201 " $850 "$984,924 " "1,337,840"
77 "$5,000 " 1.0% $50 600 "$155,400 " "$28,168 " "$717,969 " $850 "$1,025,805 " "1,391,953"
78 "$5,000 " 1.0% $50 600 "$156,000 " "$29,319 " "$747,888 " $850 "$1,068,322 " "1,448,231"
79 "$5,000 " 1.0% $50 600 "$156,600 " "$30,516 " "$779,004 " $850 "$1,112,539 " "1,506,761"
80 "$5,000 " 1.0% $50 600 "$157,200 " "$31,760 " "$811,364 " $850 "$1,158,524 " "1,567,631"
For rich child (with S$161K in the SA today) who NEVER needs to work at all, she will NEVER need to worry about Minimum Sum at all, by age 80, she will have S$1.5M (future value) in SA.
For the high flyer who started with 0 in SA, but earns x17 months per year, she will have S$1.1M in SA - still cannot beat the rich child who doesn't need to work at all.
(Another hint, the current rate of increasing Minimum Sun is roughly at the rate of the Rich Child rate).
That gives you a clue whether the youngsters can meet the Minimum Sun - even you are a high flyer.
For the "normal" worker earning x12 months per year (and so lucky NEVER losses job). Her SA will be S$811K (future value). She better consider getting half of the CPF Life payout as the forumer has suggested.
http://mycpf.cpf.gov.sg/NR/rdonlyres/CAB8360B-C600-438F-84E7-0EC5F9DCDD4B/0/MakingatopuptotheSpecialorRetirementAccountundertheMinimumSumToppingUpScheme.pdf
Top-up quickly to Minimum Sum seems to be one of the strategies. But let's wait until early next year to see what the new rules the Review Committee will come up with.
Re-post using Comma-delimited, not sure why it doesn't accept Excel format.
Age,Salary Cap (S$),SA Rate,Amount,Annual (x12),Accumulate,Interest,Accumulate (with Interest),Annual (x17),Accumulate with Interest (x17),Rich Child
24,"$5,000 ",6.0%,$300 ,3600,"$3,600 ",$180 ,"$3,780 ","$5,100 ","$5,355 ","161,000"
25,"$5,000 ",6.0%,$300 ,3600,"$7,200 ",$369 ,"$7,749 ","$5,100 ","$10,978 ","168,040"
26,"$5,000 ",6.0%,$300 ,3600,"$10,800 ",$387 ,"$11,736 ","$5,100 ","$16,882 ","175,362"
27,"$5,000 ",6.0%,$300 ,3600,"$14,400 ",$587 ,"$15,923 ","$5,100 ","$23,081 ","182,976"
28,"$5,000 ",6.0%,$300 ,3600,"$18,000 ",$796 ,"$20,319 ","$5,100 ","$29,590 ","190,895"
29,"$5,000 ",6.0%,$300 ,3600,"$21,600 ","$1,016 ","$24,935 ","$5,100 ","$36,424 ","199,131"
30,"$5,000 ",6.0%,$300 ,3600,"$25,200 ","$1,247 ","$29,782 ","$5,100 ","$43,600 ","207,696"
31,"$5,000 ",6.0%,$300 ,3600,"$28,800 ","$1,489 ","$34,871 ","$5,100 ","$51,135 ","216,604"
32,"$5,000 ",6.0%,$300 ,3600,"$32,400 ","$1,744 ","$40,215 ","$5,100 ","$59,047 ","225,868"
33,"$5,000 ",6.0%,$300 ,3600,"$36,000 ","$2,011 ","$45,826 ","$5,100 ","$67,313 ","235,503"
34,"$5,000 ",6.0%,$300 ,3600,"$39,600 ","$2,291 ","$51,717 ","$5,100 ","$75,910 ","245,523"
35,"$5,000 ",6.0%,$300 ,3600,"$43,200 ","$2,586 ","$57,903 ","$5,100 ","$84,850 ","255,944"
36,"$5,000 ",7.0%,$350 ,4200,"$47,400 ","$2,895 ","$64,998 ","$5,950 ","$95,032 ","266,782"
37,"$5,000 ",7.0%,$350 ,4200,"$51,600 ","$3,200 ","$72,398 ","$5,950 ","$105,621 ","278,053"
38,"$5,000 ",7.0%,$350 ,4200,"$55,800 ","$3,496 ","$80,094 ","$5,950 ","$116,634 ","289,775"
39,"$5,000 ",7.0%,$350 ,4200,"$60,000 ","$3,804 ","$88,097 ","$5,950 ","$128,088 ","301,966"
40,"$5,000 ",7.0%,$350 ,4200,"$64,200 ","$4,124 ","$96,421 ","$5,950 ","$139,999 ","314,645"
41,"$5,000 ",7.0%,$350 ,4200,"$68,400 ","$4,457 ","$105,078 ","$5,950 ","$152,387 ","327,830"
42,"$5,000 ",7.0%,$350 ,4200,"$72,600 ","$4,803 ","$114,081 ","$5,950 ","$165,271 ","341,544"
43,"$5,000 ",7.0%,$350 ,4200,"$76,800 ","$5,163 ","$123,445 ","$5,950 ","$178,669 ","355,805"
44,"$5,000 ",7.0%,$350 ,4200,"$81,000 ","$5,538 ","$133,182 ","$5,950 ","$192,604 ","370,638"
45,"$5,000 ",7.0%,$350 ,4200,"$85,200 ","$5,927 ","$143,310 ","$5,950 ","$207,096 ","386,063"
46,"$5,000 ",8.0%,$400 ,4800,"$90,000 ","$6,332 ","$154,442 ","$6,800 ","$223,052 ","402,106"
47,"$5,000 ",8.0%,$400 ,4800,"$94,800 ","$6,778 ","$166,020 ","$6,800 ","$239,646 ","418,790"
48,"$5,000 ",8.0%,$400 ,4800,"$99,600 ","$7,241 ","$178,060 ","$6,800 ","$256,904 ","436,142"
49,"$5,000 ",8.0%,$400 ,4800,"$104,400 ","$7,722 ","$190,583 ","$6,800 ","$274,852 ","454,187"
50,"$5,000 ",8.0%,$400 ,4800,"$109,200 ","$8,223 ","$203,606 ","$6,800 ","$293,518 ","472,955"
51,"$5,000 ",9.5%,$475 ,5700,"$114,900 ","$8,744 ","$218,050 ","$8,075 ","$314,257 ","492,473"
52,"$5,000 ",9.5%,$475 ,5700,"$120,600 ","$9,322 ","$233,072 ","$8,075 ","$335,825 ","512,772"
53,"$5,000 ",9.5%,$475 ,5700,"$126,300 ","$9,923 ","$248,695 ","$8,075 ","$358,256 ","533,883"
54,"$5,000 ",9.5%,$475 ,5700,"$132,000 ","$10,548 ","$264,943 ","$8,075 ","$381,585 ","555,838"
55,"$5,000 ",9.5%,$475 ,5700,"$137,700 ","$11,198 ","$281,841 ","$8,075 ","$405,846 ","578,671"
56,"$5,000 ",2.0%,$100 ,1200,"$138,900 ","$11,874 ","$294,915 ","$1,700 ","$424,448 ","602,418"
57,"$5,000 ",2.0%,$100 ,1200,"$140,100 ","$12,397 ","$308,511 ","$1,700 ","$443,794 ","627,115"
58,"$5,000 ",2.0%,$100 ,1200,"$141,300 ","$12,940 ","$322,652 ","$1,700 ","$463,913 ","652,800"
59,"$5,000 ",2.0%,$100 ,1200,"$142,500 ","$13,506 ","$337,358 ","$1,700 ","$484,838 ","679,512"
60,"$5,000 ",2.0%,$100 ,1200,"$143,700 ","$14,094 ","$352,652 ","$1,700 ","$506,600 ","707,292"
61,"$5,000 ",1.5%,$75 ,900,"$144,600 ","$14,706 ","$368,258 ","$1,275 ","$528,789 ","736,184"
62,"$5,000 ",1.5%,$75 ,900,"$145,500 ","$15,330 ","$384,488 ","$1,275 ","$551,867 ","766,231"
63,"$5,000 ",1.5%,$75 ,900,"$146,400 ","$15,980 ","$401,368 ","$1,275 ","$575,868 ","797,480"
64,"$5,000 ",1.5%,$75 ,900,"$147,300 ","$16,655 ","$418,923 ","$1,275 ","$600,828 ","829,980"
65,"$5,000 ",1.5%,$75 ,900,"$148,200 ","$17,357 ","$437,180 ","$1,275 ","$626,788 ","863,779"
66,"$5,000 ",1.0%,$50 ,600,"$148,800 ","$18,087 ","$455,867 ",$850 ,"$653,343 ","898,930"
67,"$5,000 ",1.0%,$50 ,600,"$149,400 ","$18,835 ","$475,301 ",$850 ,"$680,961 ","935,487"
68,"$5,000 ",1.0%,$50 ,600,"$150,000 ","$19,612 ","$495,513 ",$850 ,"$709,683 ","973,507"
69,"$5,000 ",1.0%,$50 ,600,"$150,600 ","$20,421 ","$516,534 ",$850 ,"$739,555 ","1,013,047"
70,"$5,000 ",1.0%,$50 ,600,"$151,200 ","$21,261 ","$538,395 ",$850 ,"$770,621 ","1,054,169"
71,"$5,000 ",1.0%,$50 ,600,"$151,800 ","$22,136 ","$561,131 ",$850 ,"$802,930 ","1,096,936"
72,"$5,000 ",1.0%,$50 ,600,"$152,400 ","$23,045 ","$584,776 ",$850 ,"$836,531 ","1,141,413"
73,"$5,000 ",1.0%,$50 ,600,"$153,000 ","$23,991 ","$609,367 ",$850 ,"$871,476 ","1,187,669"
74,"$5,000 ",1.0%,$50 ,600,"$153,600 ","$24,975 ","$634,942 ",$850 ,"$907,819 ","1,235,776"
75,"$5,000 ",1.0%,$50 ,600,"$154,200 ","$25,998 ","$661,540 ",$850 ,"$945,616 ","1,285,807"
76,"$5,000 ",1.0%,$50 ,600,"$154,800 ","$27,062 ","$689,201 ",$850 ,"$984,924 ","1,337,840"
77,"$5,000 ",1.0%,$50 ,600,"$155,400 ","$28,168 ","$717,969 ",$850 ,"$1,025,805 ","1,391,953"
78,"$5,000 ",1.0%,$50 ,600,"$156,000 ","$29,319 ","$747,888 ",$850 ,"$1,068,322 ","1,448,231"
79,"$5,000 ",1.0%,$50 ,600,"$156,600 ","$30,516 ","$779,004 ",$850 ,"$1,112,539 ","1,506,761"
80,"$5,000 ",1.0%,$50 ,600,"$157,200 ","$31,760 ","$811,364 ",$850 ,"$1,158,524 ","1,567,631"
no need 155K coz 50% can be pledge form property. so 75K can liao.
Minimum Sum means "Minimum". It you can hit it, there will be consequences:
1) Your property will be pledged - meaning when you sell your property, the money goes to top up the Minimum Sum first (to the FULL, not just half), and you get the left over;
2) More importantly, the CPFLife payout will be reduced accordingly. If you can only hit half of the Minimum Sum, your CPFLife payout will only be HALF. Good luck to survive on S$1200/2=S$600 (fixed, not adjusted with inflation) when you are 80 years old.
(Assuming a 3.5% inflation, S$600 in 20 years would be S$300 in today's money).
Minimum Sum means "Minimum". It you can hit it, there will be consequences:
1) Your property will be pledged - meaning when you sell your property, the money goes to top up the Minimum Sum first (to the FULL, not just half), and you get the left over;
2) More importantly, the CPFLife payout will be reduced accordingly. If you can only hit half of the Minimum Sum, your CPFLife payout will only be HALF. Good luck to survive on S$1200/2=S$600 (fixed, not adjusted with inflation) when you are 80 years old.
(Assuming a 3.5% inflation, S$600 in 20 years would be S$300 in today's money).
Naturally... thats fair.
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