Annual CPF withdrawals historical graph

[Belg]

Hi chialc88,
Are you serious about your No. 2?
Why buy now?

ai yo, T.
cy says hypothetical mah.
so, just play with the scenario based on my instinct law.

if not, what's your recommendation for 2)?
cy wrote: 2) How much is he allowed to invest assuming he decides to invest in an equal weightage basket of SGX, Keppel Corp, Jardine C&C and DBS?

Love Compassion

p.s. the following CPF statistics on member who owns HDB vs member who owns multiple properties

pps: ok, ok, I know it's a lot and probably you're one of the statistics too.

Oh no don't get me wrong! Your No. 2 are all current very good stocks. Only time factor. We all know from 2009 till now how much S&P has climbed. Therefore these stocks are not really "attractive now" at today prices. At least to me hoh!

Ha Ha !
Price is what we pay, value is what we get.
Value is all in the mind of people. The 80% of people who will always be the 80% who didn't make much are the ones who bought high, intending to sell higher. That is the dismayed mentality of a property speculator and obviously for those housing agents.

Like what our mods - City farmer has said, Patience....Patience. Rings so true.

[ghchua]

...CPF's withdrawal limit to invest in stocks and ETFs...
Therefore I have two questions: A hypothetical situation where an individual has 200k in OA, 60k in MA, 80k in SA.

1) How much is an individual allowed to withdraw to invest in STI ETF?
2) How much is he allowed to invest assuming he decides to invest in an equal weightage basket of SGX, Keppel Corp, Jardine C&C and DBS?

Thank you for your help. A breakdown of what can be withdrawn from OA and SA under the 2 scenarios will be great as well

cy,
CPF SA can not be use to buy stocks or ETF.

1) From your hypothetical situation, $200k can be use/withdraw to invest in STI ETF.
For your actual situation, logon to cpf.gov.sg using your singpass.
Choose My Statement - Section C -> Professionally Managed Products.
Look at Ordinary Account (OA) column = the amount you can use/withdraw for STI ETF.

2) From your hypothetical situation, $70k (aka $200k*35%) can be use/withdraw to invest in stocks.
I love Jardine C&C so buy 1 lot = $47,200
then, I'll take keppel, 1 lot = $10, 810
lastly, SGX 1 lot = $7,040
Balance = $ 4800 (est.)
DBS have to wait.

Love Compassion

Looks like an essay question? Just for fun, let me "mark" chialc88's answers.

1) Should be $180K of your OA allowed to withdraw to invest in STI ETF. First $20K of your CPF OA cannot be invested. Your SA and MA cannot be used for STI ETF. No marks for chialc88 as he got it wrong.

2) $70k answer given by chialc88 is correct. He gets some marks for this part. However, the answer is not complete as he also asked about SA and MA. SA and MA cannot be invested in stocks and therefore no funds from SA and MA can be invested in SGX, Keppel Corp, Jardine C&C and DBS.

For the 2nd part, the key word is "equal weightage". If you just want equal weightage, just do a $70k/4=$17.5K for each stock. You do not need to buy a full lot of Jardine C&C as you can use the unit share market to buy less than one lot. Therefore, you might end up with some odd lots here and there.

Worked example (ignoring commision)
$17.5K/$47.20=370 shares of Jardine C&C
$17.5K/$10.81=1618 shares of Keppel
$17.5K/$7.04=2485 shares of SGX
$17.5K/$16.58=1055 shares of DBS

No marks for chialc88 as he got this part wrong.

[HitandRun]

Chialc88

I think there is something wrong with this graph, if the message is that 64% of active members own private properties plus HDB. I would have presume that it should be less than 20%. Let me do more research to see whether I can refute that statement.

[chialc88]

@ghchua - thanks for marking my answers... I learn a lot today.
@HitandRun - the picture is from CPF AR 2012. thanks for checking out.

Love Compassion

[Temperament]

...CPF's withdrawal limit to invest in stocks and ETFs...
Therefore I have two questions: A hypothetical situation where an individual has 200k in OA, 60k in MA, 80k in SA.

1) How much is an individual allowed to withdraw to invest in STI ETF?
2) How much is he allowed to invest assuming he decides to invest in an equal weightage basket of SGX, Keppel Corp, Jardine C&C and DBS?

Thank you for your help. A breakdown of what can be withdrawn from OA and SA under the 2 scenarios will be great as well

cy,
CPF SA can not be use to buy stocks or ETF.

1) From your hypothetical situation, $200k can be use/withdraw to invest in STI ETF.
For your actual situation, logon to cpf.gov.sg using your singpass.
Choose My Statement - Section C -> Professionally Managed Products.
Look at Ordinary Account (OA) column = the amount you can use/withdraw for STI ETF.

2) From your hypothetical situation, $70k (aka $200k*35%) can be use/withdraw to invest in stocks.
I love Jardine C&C so buy 1 lot = $47,200
then, I'll take keppel, 1 lot = $10, 810
lastly, SGX 1 lot = $7,040
Balance = $ 4800 (est.)
DBS have to wait.

Love Compassion

Looks like an essay question? Just for fun, let me "mark" chialc88's answers.

1) Should be $180K of your OA allowed to withdraw to invest in STI ETF. First $20K of your CPF OA cannot be invested. Your SA and MA cannot be used for STI ETF. No marks for chialc88 as he got it wrong.

2) $70k answer given by chialc88 is correct. He gets some marks for this part. However, the answer is not complete as he also asked about SA and MA. SA and MA cannot be invested in stocks and therefore no funds from SA and MA can be invested in SGX, Keppel Corp, Jardine C&C and DBS.

For the 2nd part, the key word is "equal weightage". If you just want equal weightage, just do a $70k/4=$17.5K for each stock. You do not need to buy a full lot of Jardine C&C as you can use the unit share market to buy less than one lot. Therefore, you might end up with some odd lots here and there.

Worked example (ignoring commision)
$17.5K/$47.20=370 shares of Jardine C&C
$17.5K/$10.81=1618 shares of Keppel
$17.5K/$7.04=2485 shares of SGX
$17.5K/$16.58=1055 shares of DBS

No marks for chialc88 as he got this part wrong.

If only we have DRIP for most companies have in US, then we can MIMIC (DIY) STI ETF. If we can mimic is it better or cheaper then buying STI ETF outright?

[HitandRun]

@HitandRun - the picture is from CPF AR 2012. thanks for checking out.

Love Compassion

Chialcc88-san

The following statements were extracted from the same report:

During the year, $6,271.9 million was withdrawn by 562,015 CPF members to pay for their HDB flats financed with HDB housing loans, while $2,705.6 million was withdrawn by 190,725 CPF members to pay for their HDB flats financed with bank loans.

During the year, $4,986.5 million was withdrawn by 164,704 CPF members to pay for their private properties and HDB’s executive condominiums.

Which I cannot reconcile to the graphs...

P.S. Incidentally, there are approximately 1.79 million active CPF members in 2012

[CY09]

Hi all,

Thanks for the answers. So for SA we cant invest in into an STI ETF? Isn't it strange when endowment insurance are allowed, isn't that like giving money to insurers because STI ETF outperforms endowments over the long run (using past data)?