^^^ Remember AIG who is AAA rated?? I agree with CY09 that insurance is the "closest" comparison though the payout profile and flexibility is still quite different, and tanjm has also highlighted the flexibility to buy insurance products with CPF.
But looking at the fact that RA weighted average rate of SSGS is 4% (see link below),
most likely most people have exhausted their OA account anyway To be totally blunt people basically are now aiming for their SA rather than OA. This kind of psychology sounds very familiar to me.
(09-06-2014, 08:49 AM)Temperament Wrote: i also don't understand why people who are happy and contented with CPF need to join in this CPF forum. And makes people who are not so happy with some aspects of CPF suspect something is amiss with people who are happy with CPF.
I'm equally confused by your statement. Why do you suggest only "cons" are allowed? Does this idea extends to the other company threads? 中庸之道 evaluate both sides is still the best approach in understanding an issue in its ENTIRETY IMHO
(09-06-2014, 10:23 AM)flinger Wrote: There are many issues been discussed here and thus it would best to be specific on the issue you are talking.
It sparked off with Roy accusation of PM that than led to many other related topics . These are the issues been discussed as far as I can see .
1) Roy Accusing PM of stealing.
2) PM suing of Roy
3) Some people want their CPF to be returned after they reach 55.
4) Some people want higher % of interest for the CPF accounts.
5) Why is the Minimum sum increasing every year ?
6) Some people can't afford to reach the required amount of minimum sum to get the maximum payout?
7) Some people want to be able to use their CPF in the way they deem fit as they feel it is their money and they should be able to decide what they do with it.
8) How does the CPF work and how is the CPF money been invested?
If there is anything wrong in my breaking down of the issues, please inform and I will correct it.
1a Roy took down post
1b Instead posted summary of what he posted before and made a video (?)
1c Offered $5k compensation
My opinions below:
1. Roy deserve it based on the above chronological event.
2. LHL was right to sue him pragmatically but failed miserably politically:
http://www.valuebuddies.com/thread-5216-...l#pid85431
3. Windfalll mentality:
http://www.valuebuddies.com/thread-5262-...l#pid85614
5&6. I already posted here that the hard truth is that any sane person can do a calculation on how much is actually needed for retirement:
http://www.valuebuddies.com/thread-5216-...l#pid84504
7. Think we can simplify matters to let those in excess of MS to invest the balance:
http://www.valuebuddies.com/thread-5216-...l#pid84812
8. Flinger already posted here:
http://www.valuebuddies.com/thread-5216-...l#pid85439. Chart shows weighted average of SSGS is 4%.
I think I have roughly gone through most of the issues. Now waiting for others to come out with alternatives. NB until now I don't think any forumer thinks the public can stomach negative returns for CPF for a year or 2 if returns correlate with GIC.
BTW GIC 20 years return of 6.5% is in USD and 4% in USD real return.
http://www.gic.com.sg/en/faqs/search/199...returns#28
May the real truth sets us free, and not "drunken drivers have the right of way; loudest have the last say"
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)