Chitchat Hawkers Lose Money In Prudential Endowment Plan!

JohnTan · Apr 9, 2017

frenchbriefs said:
theres tons of bank accounts that gives high interest now,why put ur money in cpf and have it locked up?

Tons of bank accounts that give high interests? Such as?

Insurance endowment and savings plans are plans that lock away your money for decades too. And if you stop contributing for whatever reasons, you stand to lose most, if not all of your contributions. You don't lose your CPF money if you stop making monthly contributions.

chootchiew · Apr 9, 2017

frenchbriefs said:
theres tons of bank accounts that gives high interest now,why put ur money in cpf and have it locked up?

In order to enjoy the high interest for the banks, it also involves lockup one way or another. After I do more in depth research I still find CPF @55 as the best options but only for sinkie who are close to 55. Maybe at 50 they can start to find cpf attractive.
. There are also saving endowment products of 5, 8 , 10 years to compare with cpf but the interest offered is on par. I would rather choose cpf@55 .

frenchbriefs · Apr 9, 2017

JohnTan said:
Tons of bank accounts that give high interests? Such as?

Insurance endowment and savings plans are plans that lock away your money for decades too. And if you stop contributing for whatever reasons, you stand to lose most, if not all of your contributions. You don't lose your CPF money if you stop making monthly contributions.

2 to 3 percent is pretty common nowadays,theres tons floating around in the investment forum at edmw,maxigain citibank for one pays 80 percent of the sibor rate plus 0.1 percent per month for a total of 1.2 percent p.a.......

JohnTan · Apr 9, 2017

frenchbriefs said:
2 to 3 percent is pretty common nowadays,theres tons floating around in the investment forum at edmw,maxigain citibank for one pays 80 percent of the sibor rate plus 0.1 percent per month for a total of 1.2 percent p.a.......

My CPF SA pays roughly 4.5% per annum. Sinkies who took advantage of CPF SA years ago have withdrawn most of their CPF monies, leaving only the minimum sum to be slowly drawn down monthly.

It may surprise some of the samsters here that the minimum sum left behind by some of us will constitute only a small fraction of our actual CPF monies. The whining and bitching about the rise in MS affects mainly those who insist on wiping out their monthly CPF contributions to pay for housing.

There are some of us who currently have over $500k in our CPFs and that sum will continue to rise yearly by tens of thousands each year, thanks mainly to compound interest.

frenchbriefs · Apr 9, 2017

JohnTan said:
My CPF SA pays roughly 4.5% per annum. Sinkies who took advantage of CPF SA years ago have withdrawn most of their CPF monies, leaving only the minimum sum to be slowly drawn down monthly.

It may surprise some of the samsters here that the minimum sum left behind by some of us will constitute only a small fraction of our actual CPF monies. The whining and bitching about the rise in MS affects mainly those who insist on wiping out their monthly CPF contributions to pay for housing.

There are some of us who currently have over $500k in our CPFs and that sum will continue to rise yearly by tens of thousands each year, thanks mainly to compound interest.

rich people dont get their money from cpf,they make their money outside,yes i have seen a singaporean blogger with a 600k and 200k OA SA account,but thats only because he has a investment portfolio of 3 million in SG blue chips and reits and a fully paid condo,and did not use a single cent in his cpf for housing plus he made additional contributions to cpf.he made all his money from outside investments,not from putting it in cpf.

lets say u manage to hit the maximum contribution ceiling to cpf every month which is what?20 percent of $6000.lets say the average return of CPF is 3.5% both OA and SA,it would take at least 20 years before u can accumulate $450,000.

if u put the same amount of money $1200 per month into the S&P 500 back in march 2009,u would hit the same amount $450k in approximately 9 years or 2018 assuming market conditions last for another year.if u let in compound for 20 years,i predict u could have as much as 1.1 million if u factor in the massive 270 percent bullrun from 2009 to 2017.

Reddog · Apr 9, 2017

Should seek advice from our friendly neighbourhood insurance guru, Mr. Tan Kin Lian.

JohnTan · Apr 9, 2017

frenchbriefs said:
if u put the same amount of money $1200 per month into the S&P 500 back in march 2009,u would hit the same amount $450k in approximately 9 years or 2018 assuming market conditions last for another year.if u let in compound for 20 years,i predict u could have as much as 1.1 million if u factor in the massive 270 percent bullrun from 2009 to 2017.

I can assure you that vast majority of people with money to invest do not invest in the S&P 500. They rather buy property, punt a bit on the stock market, or invest it in some get-rich-quick scheme.

On the other hand, all working adult sinkies have CPF accounts but far too many do not utilize it for savings. They followed poor advice from the government and rely too much on their CPF for their monthly mortgage payments.

After reading your post, are sinkies going to start investing in the S&P next week? On the other hand, they can immediately start to make adjustments to how they handle their CPF accounts.

So, comparing cpf to a long-term investment in the S&P seems strange.

Bad New Brown · Apr 9, 2017

I have my retirement goals in place and so far things had been progressing well.

I do not need any financial planners, insurance agents or bankers because I no longer believe in them :rolleyes:

frenchbriefs · Apr 9, 2017

JohnTan said:
I can assure you that vast majority of people with money to invest do not invest in the S&P 500. They rather buy property, punt a bit on the stock market, or invest it in some get-rich-quick scheme.

On the other hand, all working adult sinkies have CPF accounts but far too many do not utilize it for savings. They followed poor advice from the government and rely too much on their CPF for their monthly mortgage payments.

After reading your post, are sinkies going to start investing in the S&P next week? On the other hand, they can immediately start to make adjustments to how they handle their CPF accounts.

So, comparing cpf to a long-term investment in the S&P seems strange.

on the contrary,investors are becoming more and more sophisticated and educated thanks to the internet,indexing is at a all time high,just recently vanguard announced they just surpassed 4 trillion in assets,just 40 years ago no one knew what an index fund was........

index funds now makes up 30 percent of the market,more and more people are leaving the active investing arena because of the poor track record and once they leave they seldom go back.

go to bogleheads.com u will see alot of extremely high networth individuals in america discussing their portfolios.

to hell with sinkies,sinkies are a joke.

chootchiew · Apr 9, 2017

Bad New Brown said:
I have my retirement goals in place and so far things had been progressing well.

I do not need any financial planners, insurance agents or bankers because I no longer believe in them

well done and good for you. no choice I have to repeat this.
how dare people to be a financial planner. must be really thick skin. you dare to collect money from people and dare not guarantee returns.
insurance should be just bought over the counter .
bankers - see this title only better run far.
property agent are there to create more problems for buyers and sellers.

flatearther · Apr 9, 2017

chootchiew said:
When i turn 50 ? I'm thinking to dump in 300 to 500k cash to OA to earn the 2+% for next 5 years.

Unless I'm mistaken, the "CPF Annual Limit" is "$37,740":
cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionAllocation/ContributionAllocationCalculator
cpf.gov.sg/Members/FAQ/schemes/other-matters/cpf-contribution-for-employees#faq18099
so if no "mandatory contributions (MC)" are made, then your maximum amount of "voluntary contributions (VC)" every year would also be "$37,740".
So, if I were you, I would start this year (and not wait a few more years before you turn 50) to contribute at least S$30,000 every year to your CPF account (and after every voluntary contribution, maybe even transfer some funds from your OA to your SA every year). :wink:

chootchiew · Apr 9, 2017

flatearther said:
Unless I'm mistaken, the "CPF Annual Limit" is "$37,740":
cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionAllocation/ContributionAllocationCalculator
cpf.gov.sg/Members/FAQ/schemes/other-matters/cpf-contribution-for-employees#faq18099
so if no "mandatory contributions (MC)" are made, then your maximum amount of "voluntary contributions (VC)" every year would also be "$37,740".
So, if I were you, I would start this year (and not wait a few more years before you turn 50) to contribute at least S$30,000 every year to your CPF account (and after every voluntary contribution, maybe even transfer some funds from your OA to your SA every year).

I didn't heard about this before. thanks for this critical info.
I thought that cpf board welcome the more the merrier in OA.
you are right then I have to do an incremental transfer now .

frenchbriefs · Apr 9, 2017

chootchiew said:
well done and good for you. no choice I have to repeat this.
how dare people to be a financial planner. must be really thick skin. you dare to collect money from people and dare not guarantee returns.
insurance should be just bought over the counter .
bankers - see this title only better run far.
property agent are there to create more problems for buyers and sellers.

i dont think even God or warren buffet can guarantee returns.

besides everybody needs to make money and eat in this world.

can u tell the fruit seller not to charge u a profit?can u tell the zhi char hawker to only charge u for the cost of ingredients?

and nothing in the world is free,i would be worried if somebody gave me a packet of nasi lemak for free,i might feel used and dirty later.

flatearther · Apr 9, 2017

frenchbriefs said:
the massive 270 percent bullrun from 2009 to 2017.

Even more massive was the over 600% gold bullrun from 2001 to 2011:
kitco.com/charts/historicalgold.html

virus · Apr 9, 2017

JohnTan said:
CPF actually is amongst the best. .

amongst?? your lack of faith is disturbing.

virus · Apr 9, 2017

flatearther said:
Unless I'm mistaken, the "CPF Annual Limit" is "$37,740":
cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionAllocation/ContributionAllocationCalculator
cpf.gov.sg/Members/FAQ/schemes/other-matters/cpf-contribution-for-employees#faq18099
so if no "mandatory contributions (MC)" are made, then your maximum amount of "voluntary contributions (VC)" every year would also be "$37,740".
So, if I were you, I would start this year (and not wait a few more years before you turn 50) to contribute at least S$30,000 every year to your CPF account (and after every voluntary contribution, maybe even transfer some funds from your OA to your SA every year).

sinkie garbarment is bag of sh1t... there is no limit to their greed.

frenchbriefs · Apr 9, 2017

flatearther said:
Even more massive was the over 600% gold bullrun from 2001 to 2011:
kitco.com/charts/historicalgold.html

screw gold,its just a bubble and already its lost half the value.

halsey02 · Apr 9, 2017

johnny333 said:
Not surprised by this. Plenty of funny business like CLOB, the CPF investment scheme, mini bond fiasco, changes in the CPF scheme, ....

This is why I have given up on investing in Spore. You never know rules what rules & regulations they will change next

The world is till waiting on the "ONE" who mentioned that we will, bring KLSE to the ICJ...( International Court of Justice), when KLSE pulled the plug on MALAYSIAN SHARES ON CLOB & they passed regulations to "kill" the Asing Accounts...if you have lived through those times...

It is now, all swept "under the carpet" & people's memory had been erased by "Dumbodore" who, spun his "memory spell"....all these changes in whatever...are HONEST MISTAKES, no one committed harakiri, but many whose life savings in CPF had been "bakar"....died, unnatural or prematured deaths...

johnny333 · Apr 9, 2017

halsey02 said:
The world is till waiting on the "ONE" who mentioned that we will, bring KLSE to the ICJ...( International Court of Justice), when KLSE pulled the plug on MALAYSIAN SHARES ON CLOB & they passed regulations to "kill" the Asing Accounts...if you have lived through those times...

It is now, all swept "under the carpet" & people's memory had been erased by "Dumbodore" who, spun his "memory spell"....all these changes in whatever...are HONEST MISTAKES, no one committed harakiri, but many whose life savings in CPF had been "bakar"....died, unnatural or prematured deaths...

Back then I was a newbie but nowadays I'm more seasoned & avoid investing in Spore or anything related to Spore :smile:

Unfortunately the hard lessons I learned about the PAP system cost me $.

I'm still invested in Malaysia & making $$$ but I now use a Malaysian broker i.e. Maybank. So if anyone is interested in investing for the future I recommend they take a look at Malaysia, US, ... etc

Investing in Malaysia is now cheap because of the weak ringgit. So even the "lesser mortals" can invest there. There are many large well run companies that are not gov't linked e.g. Nestle, Public Bank, Maybank, Dutch Lady, ... which provide decent dividends
http://www.malaysiastock.biz/Report-Analysis/Top-KLSE-Dividend-Stock.aspx

MyMother · Apr 9, 2017

johnny333 said:
Back then I was a newbie but nowadays I'm more seasoned & avoid investing in Spore or anything related to Spore
Unfortunately the hard lessons I learned about the PAP system cost me $.

I'm still invested in Malaysia & making $$$ but I now use a Malaysian broker i.e. Maybank. So if anyone is interested in investing for the future I recommend they take a look at Malaysia, US, ... etc

Investing in Malaysia is now cheap because of the weak ringgit. So even the "lesser mortals" can invest there. There are many large well run companies that are not gov't linked e.g. Nestle, Public Bank, Maybank, Dutch Lady, ... which provide decent dividends
http://www.malaysiastock.biz/Report-Analysis/Top-KLSE-Dividend-Stock.aspx

Do you mean use a Maybank Kim Eng account to buy and hold these Malaysian stocks? Thank you for this suggestion. I'm only familiar with SGX ... Is there a CDP equivalent in Malaysia or how does it work there?

Chitchat Hawkers Lose Money In Prudential Endowment Plan!

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