Amazing, Manulife also promises a 2% payout, so this is the market norm. Then just say so, why try to confuse people by mentioning the irrelevant 4-6% accumulation stage rate?
Is it trying to confuse, or trying to mislead, or trying to speak half-truth or ?????????
Is this the true definition of half-truth?
Don't forget, Manulife exist as a "profit-making" organization, and if they pay 2% payout guaranteed with another 1.8% variable payout, why is CPF Life paying just 1.x% payout (which is all non-gauranteed)? Don't tell me CPF regards CPF Life as "profit-making" entity like Manulife and hence want to earn more than Manulife???
Last edited by teddybear; 31-08-16 at 21:56.
A young graduate with a starting Salary of $2500 at age 25 is enough for you to retired with $1m in your CPF at age between 55 to 57. You dont need to be a HIGH INCOME EARNER OF $10k/mth. $2500 per mth at age 25 with 3% yearly till age 55 is enough. You just need plan & manage your CPF wisely by just transfering from CPF-OA (2.5%-3.5%) to CPF-SA (4%-5%) when you are young at age 25.
Just look at the $1m in your CPF at age 55-57 breakdown
============================================
325k (20% your own Salary accumulated for 30 yrs) + 276k(17% employer accumulated for 30 yrs )+ est 600k (accumulated compounded interest for 30 yrs).
Look at the 600k compounded interest you will earn for the next 30 yrs if you leave untouch + transfer from CPF-OA to CPF-SA.
You dont have to voluntary cash contribution unless you want your CPF acct to grow even bigger $1.2M to $1.6m on top of what you & your employer contribution.
So CPF is the best scheme for you to plan & manage wisely for the next 30 yrs for your retirement.
FYI, your take home pay est $1.3m accumulated for 30 yrs. Enough for a 4rm BTO flat est 250k to 350k (not yet include HDB grant of 8k to 80k).
Currently, the min full retirement sum (FRS) is $161k for yr 2016. By 2046, the FRS will be probably between $350k to $400k.
We need to thank our GREAT LEADER LKY ensuring with have more than enough clean water. Even if there is a drought, S'pore is prepared for it
WE ARE NOT AFRAID OF DROUGHT. How did our great leader done it ?
FOUR NATIONAL TAP
=================
1) Local Catchment Water,
2) Imported Water,
3)Reclaimed water (known as NEWater)
4) and Desalinated water
When I plan for my retirement at age 60. I make sure I have at least TWO sources of income.
1) CPF - The safest of all. But it require to think & plan long term to achieve it. You need to trust the system.
It is earning high interest , risk FREE & guarantee. Since CPF is the safest. You can say I AM NOT AFRAID OF ANOTHER BIG CRISIS.
2) property - rental . But it is not always smooth sailing (up & down & others problem)
3) Fixed income . either individual investment grade bond or bond fund etc
It will be enough for me to retire at a comfort level. Not luxury.
It is a risk for husband & wife both work in the same company. If it happen that the company is not doing well. Both will be retrenched.
So there is a saying that never put everything in one basket eg all asset in S'pore property. Our CPF $ is invested GLOBALLY
all over the world. So No concentrating risk .
Let say you have 761k (OA+SA) in your CPF at age 55. After minus the min full retirement sum (FRS) of 161k which will transfer
in your new RA acct. You left will 761k-161k = 600k. You withdraw a lump of $600k out & invest in ppty again even though u
already invested (maybe 1 or 2). Then you are put yourself into a CONCENTRATION RISK. The safest CPF money is gone
into another ppty. Trouble may come if interest rate raise very fast or a bad reccession comes.
(1) "Currently, the min full retirement sum (FRS) is $161k for yr 2016. By 2046, the FRS will be probably between $350k to $400k."
I think you raise an interesting issue here. $161k FRS will give payout of $1300 pm for man. Say by 2046 FRS is $350k-400k, why need so high FRS? Isn't the monthly subsidy for the poor only $300 pm, and if this is considered enough by the Government for a person to survive, why need to insist the rest to put aside $1300 pm?
(2) "1) CPF" - "You need to trust the system. It is earning high interest".
Again, what you said do not tally with reality.
You could use the calculator on this webpage to help you calculate your CPF Life annuity return (no talk only and no bullshit here):
http://www.investopedia.com/calculator/arannuity.aspx
Present Value ($) = 251000 (CPF Retirement Account at 65 years old assuming you have $161,000 at 55 years old)
Payment ($) = 1300 (monthly payout for men)
Time Period = 180 (in months or 15 years till 80 years old)
CPF Payout return (assuming a man can live till 80 years old) = -0.94% (NEGATIVE INTEREST RATE, NOT HIGH INTEREST RATE!)
So, question: How to trust the CPF system when they keep CLAIMING that they give you 4-6% return p.a. BUT in reality they are giving you NEGATIVE return when in above case a man can live till average age of 80 years old (meaning that about 50% of people or even many more will get NEGATIVE return from CPF Life!)
Originally Posted by teddybear
Last edited by teddybear; 31-08-16 at 23:33.
“Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
― Martin Luther King, Jr.
OUT WITH THE SHIT TRASH
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The most important issue is: It is their money, and if $300 pm payout is deemed sufficient (by the very people dictating CPF retirement account quantum) for a person to survive, why then should these very people dictate that the rest MUST put so much extra $ into CPF to get $1300 pm payout, for what?
For the man on the street, if he/she want to leave extra $ in the bank rather than in the CPF and he is happy with that, what right do you or others have to tell them that they must put in CPF?
Furthermore, actually they are the smart ones if they put extra $ in the bank rather than CPF Life because the CPF Life is giving NEGATIVE return if they can only live till average age of 80 years old (for men) and 85 years old (for women)!
From above, we know you are just talking cock and making some bull-shit.............
For consective 3 weeeks, The Sunday times has been highlighting the important as well as the benefit of the CPF scheme.
As I said many times, you dont have to be a HIGH INCOME earner of 8k to 20k/mth to achieve $1m in your CPF acct by age
55 to age 57.
A fresh graduate earning $2500 at age 25 witha yealy 3% increment till age 55 will be able to achieve $1m by age 55 to 57.
But you need to wisely transfer your CPF-OA (2.5% to 3.5%) to CPF -SA *4% to 5%) every mth or yr. If you dont have
the financial mean at young age. U still can do it when you financial status improve. Dont need it when your min full retirement sum
is reached (now $161k) around age ate 40s. Do it as young as possible.
If U think that CPF life is not a attractive scheme by the govt. Just set aside the min FRS ($161k now) or even the very basic retirement
sum ($80.5k now ) with your 2-4rm HDB flat pledge. Not the Enhanced FRS (now $241k). The rest just leave to to earn between 2.5% to 4%
at OA & SA.
Some of them using CPF as
=====================
1. For Children local university (age 18 onward). The parent will hv to VC early at early age of 1 to 5.
2. For Children housing especially if they happen to marry early. The parent will hv to VC early at early age of 1 to 5.
3. For their children emergency fund in case when they grow up & decide to self employed & happen to be struggling.
At least they still have CPF in their acct which will SNOWBALL into hundred of thousand at age >30+.
4. Want to retire with $1m at age 55 to 60. RETIRED . HELLO PENSION. GOODBYE TENSION.
5. Legacy for KIDS as reported in today SUNDAY TIMES.
Pls plan & wisely manage your CPF at your comfort level. Dont drag it. SO DID THE WELL AHEAD BEFORE YOU ARE THIRSTY.
Procastination is the grave in which opportunity is buried.
Action is the measured of intelligence by NAPOLEAN
RETIRED. HELLO PENSION. GOODBYE TENSION
After the next generation see 1M in their CPF account 30 years later (which only has purchasing power of $300K in today's money), they will regret for not using that money to buy one more properly.
If someone keeps advertising (and yet the underlying investment is reporting a loss recently), you know what is your best option.
Money doesn't come from thin air, be CPF or any investment, it needs to earn the return.
Bear in mind, the next financial crisis has not arrived yet, what would be the losses when it hits - track record of 2007-2008 round is something you could reflect.
If someone is dreaming that he can retire with 30 years later future value of 1M, he better uses his $600 skillsfuture credit to attend some basic financial training.
My relative recently got her CPF withdrawal at 65.
The amount was huge and exactly as promised 45 years ago after all her years of working.
$100,000.
Can you imagine how much that meant to people 30 years ago?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
There is no free lunch in this world...............
If so good no need to advertise people will also find out and grab quickly.................
Need to advertise so much and still only tell half-truth, people will soon find out the full-truth..........
Actually, on the other hand, good things for the layman like mortgage loan to 80 years old, LTV 80% regardless of number of properties you own, etc, all these good things were sooner or later being stopped or removed, so good things don't need advertisement and also don't last, only non-good-things need advertising and will persist for long long time..........
If u had $100k 45 years ago, you could buy a property in D10?
People can really get confused about present value and future value of money when it spans 30-45 years!
Another two relatives will retire in a few years time.
One has close to zero CPF because he has has a viable business and much more income than me. The other will not meet minimum sum so may be able to withdraw 5k.
Damn, why my relatives all so CPF poor.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Here are some hard numbers you can ask your primary school kids to memories:
100k today, after 45 years (the est working life span), it will become:
Rate: 2%, close to 250k
Rate: 3%, close to 400k
Rate: 4%, close to 600k
Rate: 5%, close to 900k
Rate: 6%, close to 1.4M
Rate: 8%, 3M+
Rate: 10%, 7M+
Our current primary school education is focused on teaching plus, minus, mutiple and divide, but the real world works in exponential.
Last edited by richwang; 04-09-16 at 14:12.
Well, the reality is most audlts will be surprised when you show these figures. So there is no harm for young kids to memories these "facts" while they are good at it. They can then "understand" the calculation at a later stage in study and life.
For those gifted, let me add two more:
Rate: 15% 50M+
Rate: 20% 300M++
Not to mention kids, even adults also don't know that:
CPF FRS = $161,000 at 55 years old will give Capital = $251,000 at 65 years old;
Monthly payout = $1300;
If payout terminates 15 years later (when you are 80 years old),
actual return = -0.9% (and not 4-6% that they were told or assumed to be)!
No wonder so many never get rich because they can't even get their figures right!
http://www.investopedia.com/articles...nsequences.asp
Negative Interest Rates: 4 Unintended Consequences:
1. Hoarding of Cash
2. Changes to Spending Behavior
3. Asset Bubbles as Banks "Pay Your Mortgage"
4. Currency Wars
Dont come and talk cock lah. The government dont do anything and u have a 85yr old who threw all his $ away by 70 depending begging u will say the same? yeah he was happy throwing his $$ ard from 55 to 70. after that? whos problem will that be? u will KPKB government must help!!! so dont come talk cock lah government have a social responsibility to ensure everyone can help themselves and help those who fall through. so dont come say becoz 10% or the so call financially educated should kpkb the system is no good. daming the rest of the 90% to crap. when when that happen kpkb blame government.
WORM like you do not deserve to reside in Singapore. LEAVE lah.. if here is so bad. WHY AER U STILL HERE WASTING THE LAND SPACE?
“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
minority,
Government helping Singaporeans is it?
You could use the calculator on this webpage to help you calculate your CPF Life annuity return (no talk only and no bullshit here):
http://www.investopedia.com/calculator/arannuity.aspx
Present Value ($) = 251000 (CPF Retirement Account at 65 years old assuming you have $161,000 at 55 years old)
Payment ($) = 1300 (monthly payout for men)
Time Period = 180 (in months or 15 years till 80 years old)
CPF Payout return (assuming a man can live till 80 years old) = -0.94% (NEGATIVE INTEREST RATE, NOT HIGH INTEREST RATE!)
OK, so minority, you are saying that government is "helping" Singaporeans by taking away their retirement money from their CPF Life (hence resulting in NEGATIVE return) if they can only live till 80 years old (about 50% of men) is it????
Is this the reason why they need to keep increasing CPF Min Sum saying it is not enough?
“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
minority,
Oh ho ho, now you finally admit that just because you think you pay interest to people for locking in their CPF money of $161k from 55 years old to 65 years old, then you can start to DON'T pay interest from 65 years old for their $250k until they die at or before 80 years old and even start taking money away from their CPF Life???
minority, you lied! Caught you lying again!
minority,
CPF Life payout until death? Oh ho ho, don't come bullshit again! Why not you tell us the truth about "pay out until death"?
About 50% of men can only live till 80 years old, and they not only will NOT get paid any more interest from 65 years old onwards but they will have their CPF Life capital deducted by CPF if they die at or before 80 years old! So sickening! Still dare to tell half-truth that CPF Life pays 4% interest!
minority,
tell us, how many people will get 4% interest from their CPF Life's fund?
Ok, correct me if I am wrong:
(1) About 1% of men will get 4% interest from CPF Life.
(2) About 50% of men will have to pay CPF interests for dying at 80 years old or younger.
(3) About 49% of men will probably get interests of only 1.x% for all their money in their CPF Life as most will die younger than 93 years old.
Look at the statistics and figures above, seems that there are a lot of profits that CPF can made indeed!
Is this the real reason why they refused to create a separate financial account that need audits for CPF Life?
The above just show that you, minority, lied! Caught you lying again!
Last edited by teddybear; 06-09-16 at 20:42.