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27-05-2014, 01:06 PM
(This post was last modified: 27-05-2014, 01:08 PM by opmi.)
(27-05-2014, 12:40 PM)Temperament Wrote: For a man-in-street, i have always think why all these years EPF returns always better than CPF? Correct me if I am wrong. Is it because their bank FD even now is > 3% therefore their EPF has to operate/invest differently. So it seems their G has to take the higher risk for EPF. And our G just want to sit on the fence?
EPF may be a 'later participants pay earlier participants' scheme...all the money concentrated in top stocks on Bursa. As long as everyone dont ask for the money back at once..
or the Bursa dont crash jialat jialat...e.g. Sarawak/Sabah seeking independence.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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I don't know why CPF vs EPF keeps on being talked about.
One offers riskfree return while the other offers equity linked return. If you want a equity linked return with your CPF, all you need to do is dump your CPF into an STI ETF (you can put 100% of investible limit).
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28-05-2014, 08:04 AM
(This post was last modified: 28-05-2014, 08:11 AM by Temperament.)
CPF vs EPF for man-in-street is the closest thing they can think of. And why it's always in their mind and can't go away i think the answer is in "Another thread on
CPF versus EPF. "
http://www.valuebuddies.com/thread-5116-page-5.html
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Why not allow CPF members to purchase Singapore Government Bond that offers more than existing CPF interest rate? Both are backed by Government but bond seems to offer higher rate? Maturity is not a concern, as you cannot draw out the money anyways.
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28-05-2014, 11:42 AM
(This post was last modified: 28-05-2014, 11:45 AM by specuvestor.)
^^ This was exactly what we talked about in the other thread. We have to adjust the returns by risk. Otherwise we will be naked when the tide goes out
http://www.valuebuddies.com/thread-5116-...l#pid82474
(28-05-2014, 09:56 AM)kagemusha Wrote: Why not allow CPF members to purchase Singapore Government Bond that offers more than existing CPF interest rate? Both are backed by Government but bond seems to offer higher rate? Maturity is not a concern, as you cannot draw out the money anyways.
Which tenor? Current SGS 1yr is 0.38% and 30 years is 3% yield
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)