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(05-09-2013, 12:47 PM)felixleong Wrote: (05-09-2013, 11:48 AM)freedom Wrote: actually, I never understand the urge of taking out CPF money. The money is safe and it is yours eventually. What's the point of taking it out if you are not going to use it?
The returns on your cpf is very low, if given a choice it might be wiser to invest it into equities which historically gives a compounded return of about 10% for a long term holding period of 20 years. If I could choose i would rather have all my cpf $ in the sti etf than getting 2.5-4%
There is CPFIS. if you want to invest, you can do it through CPFIS. That's not a valid reason to take out CPF money.
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06-09-2013, 09:02 AM
(This post was last modified: 06-09-2013, 09:02 AM by shoeboxlife.)
(05-09-2013, 12:02 PM)Temperament Wrote: (05-09-2013, 11:24 AM)shoeboxlife Wrote: (03-09-2013, 11:19 AM)Temperament Wrote: (03-09-2013, 09:35 AM)shoeboxlife Wrote: (02-09-2013, 08:44 PM)Temperament Wrote: Not really. Investing in stocks when it's to your advantage to do so. And selling when it's time to sell. Of course you must consider the "pow chiat" 2.5 % interest rate you have to forgo when you invest in the market. But the "time factor" is to your advantage since you can't take out your money until at 55 years old.
i have been there. And still trying to do it even at 65+. But in case, Papies lose their majority in the next GE 2015/2016.....? What's going to happen to our CPF's money???
Or you think Papies is "WAN SHUI, WAN, WAN, SHUI"
Because of 4Ks Singaporeans are always more than "Boh K" Singaporeans?
Anyone any idea or opinion?
Thanks
Correct me if wrong. Only a percentage of OA can be used for stocks and not all of it right. I already empty my OA in ppty.
(02-09-2013, 10:19 PM)NTL Wrote: Don't even need to divest. Just use CPF to pay for the monthly installment, rent out, and collect monthly CASH in return. An almost "CPF-to-Cash" conversion.
Ya. I tot this is quite no brainer and many people doing this. Only risk is nobody wanna rent it.
Just got this. Good sign of impending doom. LOL
<ADV> Fr DBS: Apply for Cashline & get upto 3 months interest free.T&Cs apply. Visit www.dbs.com.sg/personal/cashline for details!To unsub,sms <UNSUB> to 76060 Quote:Quote:Correct me if wrong. Only a percentage of OA can be used for stocks and not all of it right. I already empty my OA in ppty.
Unquote:
Yap! CPF BOARD (PAPIES) "chow kwan one". Even at age 60+ you can only use a certain amount of OA for stocks, gold, etc... Actually you can withdraw the total OA (for 60+) but then where to park your money especially now to earn 2.5% risk free rate. You see there is really no "free lunch".
Got la. Kim Yam Rd. lol Ha! Ha!
Just the word "KIM" means risk free meh?
No no. Kim Yam Rd the temple very popular - gives out free lunches really!
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Someone got to pay, even if not those who seek charity.
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if you think about the real inflation levels in singapore, even the 2.5% doesn't help protect one's purchasing power.
life is tough in sg
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06-09-2013, 10:27 AM
(This post was last modified: 06-09-2013, 10:28 AM by AlphaQuant.)
here's the time series for the inflation in singapore.
it's hard to see what the "normal" rate of inflation will be going fwd, but given that the inflation was <2% only during the late 90s-early 2000s where countries like china was importing the global inflation through low labor costs, it looks like 3%-ish inflation will be the norm going fwd, esp if the foreign labor squeeze does not ease. 2.5% CPF OA is certainly not going to maintain the purchasing power of your monies.
Also interesting is to note the effect of shocks:
inflation soared during the 1973 period due to the Oil shock
and deflation set in mildly during each financial shock in 1985, 1997, 2007, 2011 (yellow portions)
[Image: singapore-inflation-cpi.png?s=sicpiyoy&d...2=20131231]
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(06-09-2013, 09:59 AM)felixleong Wrote: if you think about the real inflation levels in singapore, even the 2.5% doesn't help protect one's purchasing power.
life is tough in sg
Why would the government provide risk-free inflation-protected investment? Where does the cost come from?
You want to beat inflation, then take more risk. It is only fair that way.
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06-09-2013, 10:40 AM
(This post was last modified: 06-09-2013, 10:42 AM by KopiKat.)
(06-09-2013, 10:32 AM)freedom Wrote: (06-09-2013, 09:59 AM)felixleong Wrote: if you think about the real inflation levels in singapore, even the 2.5% doesn't help protect one's purchasing power.
life is tough in sg
Why would the government provide risk-free inflation-protected investment? Where does the cost come from?
You want to beat inflation, then take more risk. It is only fair that way.
Some discussion last year, but I guess our govt wasn't too keen on the idea?
Inflation Bonds May Ease Singapore Price Pinch
Bloomberg Oct 10, 2012
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(06-09-2013, 10:40 AM)KopiKat Wrote: (06-09-2013, 10:32 AM)freedom Wrote: Why would the government provide risk-free inflation-protected investment? Where does the cost come from?
You want to beat inflation, then take more risk. It is only fair that way.
Some discussion last year, but I guess our govt wasn't too keen on the idea?
Inflation Bonds May Ease Singapore Price Pinch
Bloomberg Oct 10, 2012
to be able to do that, government must raise tax on GDP to pay for the cost of inflation-protection.
It will raise substantial cost of doing business in Singapore.
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(06-09-2013, 09:02 AM)shoeboxlife Wrote: (05-09-2013, 12:02 PM)Temperament Wrote: (05-09-2013, 11:24 AM)shoeboxlife Wrote: (03-09-2013, 11:19 AM)Temperament Wrote: (03-09-2013, 09:35 AM)shoeboxlife Wrote: Correct me if wrong. Only a percentage of OA can be used for stocks and not all of it right. I already empty my OA in ppty.
Ya. I tot this is quite no brainer and many people doing this. Only risk is nobody wanna rent it.
Just got this. Good sign of impending doom. LOL
<ADV> Fr DBS: Apply for Cashline & get upto 3 months interest free.T&Cs apply. Visit www.dbs.com.sg/personal/cashline for details!To unsub,sms <UNSUB> to 76060 Quote:
Unquote:
Yap! CPF BOARD (PAPIES) "chow kwan one". Even at age 60+ you can only use a certain amount of OA for stocks, gold, etc... Actually you can withdraw the total OA (for 60+) but then where to park your money especially now to earn 2.5% risk free rate. You see there is really no "free lunch".
Got la. Kim Yam Rd. lol Ha! Ha!
Just the word "KIM" means risk free meh?
No no. Kim Yam Rd the temple very popular - gives out free lunches really! Oh yes! There's one more Sikh temple at Bukit Merah opposite SGH. But i think temples only free lunches are all vegetable based. Actually i like to try one of those free meals.
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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Blessed Sacrament Church in Queenstown also give away free lunches irregardless of race or religion.
Thye Hua Kwan Moral Society (THK) also have their free meal centres.
The Buddhist Lodge at Kim Yam road brings back fond memories of my ah ma - she used to bring me there when I was young.
Yes, there are free lunches in Singapore. Glad not everyone thinks in cost/benefits or with profit incentive only.
It's good to be colour blind when it comes to race, religion, and creed.
Just google singapore man of leisure
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