MPs offer ideas to improve CPF

[specuvestor]

June 24 (Bloomberg) -- Norway’s $880 billion wealth fund,
the world’s largest, will expand its scope of investments to
target “frontier markets” and add more currencies to generate
higher returns.
The fund will broaden its “exposure to different sources
of return and seek to exploit time-varying investment
opportunities,” Norges Bank Investment Management, which
manages the fund, said in a strategy report published today.
NBIM expects to invest 1 percent of the fund in private real
estate in each of the next three years, it said.
“New frontier markets will be added to our equity
investments, and the scope of our fixed-income investments will
be widened to include additional currencies,” NBIM said in the
report, which sets its strategy through 2016.
Frontier markets, also called pre-emerging markets, have
equity markets that are less established than in emerging
markets. These include countries such as Argentina, Ukraine and
Kazakhstan, according to MSCI Inc. The MSCI Frontier Market
Index is up 16 percent this year compared with a 5 percent gain
for the MSCI World Index of developed market shares.
The fund, which owns 1.3 percent of the world’s equities,
has returned less than 4 percent on average since it started
investing in the late 1990s. Norges Bank Governor Oeystein
Olsen, who oversees the fund, has said it must take on more risk
to increase returns. In addition to infrastructure and private
equity, he advocates increasing stock holdings to 70 percent
from the current 60 percent limit.

Plug Deficits

It will also increase the number of employees to about 600
from 370 now, mostly outside Norway, including 200 for its real
estate division, the fund said today.
The goal of a 4 percent real return over time will be
“better served if a larger share of the fund is invested with
the global economy,” the fund said. NBIM will “prepare the
organization for a change in this direction,” it said.
The fund is allowed to hold 35 percent in bonds and 5
percent in real estate. Since being freed to expand into the
property market in 2011, the asset class makes up about 1
percent of its total portfolio.

Larger Stakes

The fund is looking to expand into real estate in Asia and
reiterated its interest in “global cities outside Europe and
the U.S.” While real-estate investments from London to San
Francisco have mostly taken the form of joint ventures, the fund
is now preparing to manage fully-owned properties with a more
active role in development, it said.
“Larger ownership stakes in listed real-estate companies
and public-to-private transactions will be considered,” the
fund said.
Norway, western Europe’s biggest oil and gas producer,
channels its petroleum income into the wealth fund to shield the
$500 billion economy from overheating. The fund got its first
capital in 1996, added stocks in 1998, emerging markets in 2000
and real estate in 2011. The government is allowed use the
targeted 4 percent return to plug budget deficits.

[tanjm]

Just .... Oh I don't know.... Adding fuel to fire. 8-)

http://www.bloomberg.com/news/2014-06-24...t-age.html

[chialc]

naughty, naughty.

i don't mind doing what I'm doing until 70 years old,
but, I just couldn't stand the thought of growing so old.
white hairs (or no hair?), my skin...



Love Compassion

Just .... Oh I don't know.... Adding fuel to fire. 8-)

[Temperament]

Ha! Ha!
This reminds me a penny in your own pocket maybe really worth 2 in someone's pocket.
Whatever!
Reaction is usually inferior to "strike while the iron is hot" (as if only you can see it's hot)
But it may not be better than the saying in Cantonese, "Chan Foa Ta Kip" (pardon me for my poor Hanye Pingin)

But sometimes it's really not up to you.
Every one has their own G to consider.
You, Australian?
G'day mate!

[Temperament]

Article from http://www.bloomberg.com/news/2014-06-24...t-age.html
////////////////
“Not everyone wants to or can work for that long,” said Chapple, who is now 63 and looking forward to retiring in two years from her job as an executive assistant for a government infrastructure department. “What’s stopping the politicians from later changing the age to 75? How far can they go?”

Ha! Ha!
It look and sounds funny, isn't it? But in future if science discovers how to prolong life to 100, is it still funny?

"Oh! What'da you say?"
By then it's not up to you to say anything.
100! 75! 100! 75! 100! 75!

[Freenasi]

One question always puzzle me. Why OA is 2.5% SA 4.0% & MA 4.0 and recently the 1st 60K of OA+SA+MA enjoy +1% more. Why OA must be so specially lower than the rests.

One can transfer the OA to retirement to enjoy the higher interest of 4%. However that means u cannot touch the money (cannot use for housing etc) until 55/65 yrs old. But for the PRs/FTs, its worth doing so. As they can withdraw the money once they decide to leave here. A privilege only for PRs/FTs hopefully attract them.

[tanjm]

Article from http://www.bloomberg.com/news/2014-06-24...t-age.html
////////////////
“Not everyone wants to or can work for that long,” said Chapple, who is now 63 and looking forward to retiring in two years from her job as an executive assistant for a government infrastructure department. “What’s stopping the politicians from later changing the age to 75? How far can they go?”

Ha! Ha!
It look and sounds funny, isn't it? But in future if science discovers how to prolong life to 100, is it still funny?

"Oh! What'da you say?"
By then it's not up to you to say anything.
100! 75! 100! 75! 100! 75!

I don't know about you, but I'm definitely planning my savings and investments as though I will retire at 55 and live till 90, not counting the house I live in (which is my buffer).

I personally plan to maximize my CPF life (with full minimum sum) and even consider buying private deferred annuities.

If I turn out to have a shorter life, well I won't live to regret it ! :-). But if I do live so long, I'll be glad I planned for it.

The world is not standing still and short sighted people who complain about moving goal posts, and who are able to self-help otherwise, may just get what they deserve.

[Temperament]

Article from http://www.bloomberg.com/news/2014-06-24...t-age.html
////////////////
“Not everyone wants to or can work for that long,” said Chapple, who is now 63 and looking forward to retiring in two years from her job as an executive assistant for a government infrastructure department. “What’s stopping the politicians from later changing the age to 75? How far can they go?”

Ha! Ha!
It look and sounds funny, isn't it? But in future if science discovers how to prolong life to 100, is it still funny?

"Oh! What'da you say?"
By then it's not up to you to say anything.
100! 75! 100! 75! 100! 75!

I don't know about you, but I'm definitely planning my savings and investments as though I will retire at 55 and live till 90, not counting the house I live in (which is my buffer).

I personally plan to maximize my CPF life (with full minimum sum) and even consider buying private deferred annuities.

If I turn out to have a shorter life, well I won't live to regret it ! :-). But if I do live so long, I'll be glad I planned for it.

The world is not standing still and short sighted people who complain about moving goal posts, and who are able to self-help otherwise, may just get what they deserve.

Good for you. You have the foresight. You also have the talent. i tend to agree with you. But spare a thought for people who may or may not have the foresight but not the talents. i think these groups of people (at 55) will be like Alice asking the Queen, "When can we have the jam today"?
(Alice through the looking glass)

The paradox of life and irony is, it is exactly this group of people who need defer annuity most. But how are they going to live now at 55. No jam today? Can't take it anymore.

[tanjm]

Article from http://www.bloomberg.com/news/2014-06-24...t-age.html
////////////////
“Not everyone wants to or can work for that long,” said Chapple, who is now 63 and looking forward to retiring in two years from her job as an executive assistant for a government infrastructure department. “What’s stopping the politicians from later changing the age to 75? How far can they go?”

Ha! Ha!
It look and sounds funny, isn't it? But in future if science discovers how to prolong life to 100, is it still funny?

"Oh! What'da you say?"
By then it's not up to you to say anything.
100! 75! 100! 75! 100! 75!

I don't know about you, but I'm definitely planning my savings and investments as though I will retire at 55 and live till 90, not counting the house I live in (which is my buffer).

I personally plan to maximize my CPF life (with full minimum sum) and even consider buying private deferred annuities.

If I turn out to have a shorter life, well I won't live to regret it ! :-). But if I do live so long, I'll be glad I planned for it.

The world is not standing still and short sighted people who complain about moving goal posts, and who are able to self-help otherwise, may just get what they deserve.

Good for you. You have the foresight. You also have the talent. i tend to agree with you. But spare a thought for people who may or may not have the foresight but not the talents. i think these groups of people (at 55) will be like Alice asking the Queen, "When can we have the jam today"?
(Alice through the looking glass)

The paradox of life and irony is, it is exactly this group of people who need defer annuity most. But how are they going to live now at 55. No jam today? Can't take it anymore.

which is why I qualified my statement about people who are able to self-help. That applies, by definition to the people in this forum, who complain about moving goal posts.

[Temperament]

"hai so desu ka"

Article from http://www.bloomberg.com/news/2014-06-24...t-age.html
////////////////
“Not everyone wants to or can work for that long,” said Chapple, who is now 63 and looking forward to retiring in two years from her job as an executive assistant for a government infrastructure department. “What’s stopping the politicians from later changing the age to 75? How far can they go?”

Ha! Ha!
It look and sounds funny, isn't it? But in future if science discovers how to prolong life to 100, is it still funny?

"Oh! What'da you say?"
By then it's not up to you to say anything.
100! 75! 100! 75! 100! 75!

I don't know about you, but I'm definitely planning my savings and investments as though I will retire at 55 and live till 90, not counting the house I live in (which is my buffer).

I personally plan to maximize my CPF life (with full minimum sum) and even consider buying private deferred annuities.

If I turn out to have a shorter life, well I won't live to regret it ! :-). But if I do live so long, I'll be glad I planned for it.

The world is not standing still and short sighted people who complain about moving goal posts, and who are able to self-help otherwise, may just get what they deserve.

Good for you. You have the foresight. You also have the talent. i tend to agree with you. But spare a thought for people who may or may not have the foresight but not the talents. i think these groups of people (at 55) will be like Alice asking the Queen, "When can we have the jam today"?
(Alice through the looking glass)

The paradox of life and irony is, it is exactly this group of people who need defer annuity most. But how are they going to live now at 55. No jam today? Can't take it anymore.

which is why I qualified my statement about people who are able to self-help. That applies, by definition to the people in this forum, who complain about moving goal posts.

"hai so desu ka"