Serious Saving $1m through CPF

[Narong Wongwan]

If he put the same amount into property and got a bigger unit, that capital would have appreciated substantially. When he retires all he has to do is to sell the property, down grade to a smaller property and he would have substantial cash. Marine Parade 5 room flats were sold for 35K when they were launched. Look at it now.

Property is one investment that you do not have to watch over, write in forums seeking advice, etc. Land is scarce and there is only one way to go. If you are living in your investment which is your home, you do not have to worry about property cycles. Due to the ratchet effect, the drop will never hit the previous low.

I concur
Buy land. They ain't making any more of the stuff.

I think the moron will murder his wife then commit suicide when he wakes up one day and found leegime's cpf Ponzi scheme collapse.

 

[Bigfuck]

I concur
Buy land. They ain't making any more of the stuff.

I think the moron will murder his wife then commit suicide when he wakes up one day and found leegime's cpf Ponzi scheme collapse.

That collapse will also be tied to your belief that land in short supply will keep value.

 

[Hans168]

I concur
Buy land. They ain't making any more of the stuff.

I think the moron will murder his wife then commit suicide when he wakes up one day and found leegime's cpf Ponzi scheme collapse.

last 10 yrs many bought landed or private prop............ all got fucked with properties left un-tenanted and pay loans thru the nose

 

[Hans168]

That collapse will also be tied to your belief that land in short supply will keep value.

those who bought landed or so in JB got plucked hard too

 

[Narong Wongwan]

That collapse will also be tied to your belief that land in short supply will keep value.

True but his money will be gone forever while I'll be able to stay on my land and grow vegetables until its value goes back up when opposition party takes over the government after leegime run road

 

[Bigfuck]

those who bought landed or so in JB got plucked hard too

Oh Malaysia property? Blackhole. The developers there like here build junk.　2 million USD can look like this http://www.mansionglobal.com/listings/316705-5777-la-gorce-dr-33140?mod=miami_top_market

 

[Narong Wongwan]

last 10 yrs many bought landed or private prop............ all got fucked with properties left un-tenanted and pay loans thru the nose

If you bought before 2010 still in the money. That's only 6 years not 10 years.

 

[scroobal]

Not for speculation or let out to rent. Your actual home becomes your investment. The mad lady who stopped her Ferrari in the middle of Orchard Rd is the wife of an ex PAP MP Heng Chiang Meng. He bought his bungalow in the early 80s for $1m and the property is now valued at $50m. Deen Shahul of the niteclub scene and Mano Sabnani both were busy in their day jobs that they simply acquired properties empty at times over the years and both now have a string of high end properties that they manage in their retirement.

Mano Sabnani was Editor of Business Time and used to run the famous Hock Low Siew column advising on equities and the man himself invested in properties.

If you want to dabble in the property marker for rent or speculation, you must have playing capital. And it is not for faint hearted. The safer way is buy the worst house in the best location.

last 10 yrs many bought landed or private prop............ all got fucked with properties left un-tenanted and pay loans thru the nose

 

[Papsmearer]

I find the best and safest method is to payoff your pigeon hole ASAP best before 35. After that transfer all your oa to sa , Same time top up with cash to the cpf ms. Still continue to add on to the oa from your slavery job. When reach 55, you store the ms with pappy. The balance u have the luxury to treat it like a bank. No other fom of investment can beat this with no risk

That is really bad advice. Don't quit your day job. Why the hell on earth would u pay down a 2.5% debt? U telling me that you cannot take that same amount of money and get a better return then that? There are many other things including debt (credit card for example), and other investments that will yield u more then 2.5%

 

[chootchiew]

That is really bad advice. Don't quit your day job. Why the hell on earth would u pay down a 2.5% debt? U telling me that you cannot take that same amount of money and get a better return then that? There are many other things including debt (credit card for example), and other investments that will yield u more then 2.5%

I took into account fluctuations risk, mgt fees, all sorts of conning fees, worrying fees and prefer to settle for a fixed decent returns. Don't forget the earlier we top up sa to the cap, streams of contribution still coming in to sa from the slavery job to earn 4%.
I set aside an amount which I use it for taking high risk instead - the gambling table

 

[Papsmearer]

my question is if hit 1M in cpf. then we can use that money? can withdraw and spend?

People like this Loo Cheng Chuan and Wilfred Ling are just part of the PAP propaganda. The whole piece has no real analysis, its a fluff piece by the prostitute press to promote the benefits of the CPF scam.

1) The interest rate in O and Special accounts fluctuate all the time. And usually, in a downward spiral. He cannot count on 4% or whatever rate forever. If the interest rate is lowered, he will not have his mythical $1 million

2) he does not take into account the inflation rate. If the inflation rate is 5% or higher, 4% means shit. U are suffering a negative return every year. In 21 years when he reaches 65, his $1 million dollar in 2016 purchasing power might only be able to buy $680,000 in 2037, when he gets to 65. Can he survive on this? If he wants to retire with $1 million in today's money, he have over $1.4 million in 2037 and not $1 million.

3) The article has not compared any other investment options. Stocks and mutual funds have traditionally done better then 4%. Even real estate is better then that. Properties are usually in synch with the inflation rate. the property market is low now, he can buy a private condo for under $1 million. If he can rent it out, so AirBnB, etc. it will be mostly paid off in 21 years and there is also a appreciation component on the property, not possible with a CPF special account.

4) As for risk mitigation, if I am not mistaken, certain life insurance products like whole life and universal life are also not touchable by creditors. In other words, even if you are bankrupt, the creditors cannot force you to sell your insurance policy to pay them back. I suppose they forgot to mention this little fact.

 

[Papsmearer]

me and my partner every year top up special account 7k.

we stupid?

Yes, u are

 

[Papsmearer]

Yes the profit can be withdrawn.

They will change that rule down the road.

 

[Papsmearer]

There are people who actually truly enjoy the process of living in poverty secretly and seeing the bank account grows . The sense of achievement surpass enjoyment from food and entertainment

They are called Jews.

 

[Papsmearer]

last 10 yrs many bought landed or private prop............ all got fucked with properties left un-tenanted and pay loans thru the nose

That is impossible if you buy in Singapore

 

[Papsmearer]

those who bought landed or so in JB got plucked hard too

U move to JB, commute to work in Singapore and rent out your HDB/Condo flat in singapore.

 

[garlic]

No justification can be had from a paltry 4% return that locks the capital up till 65 and returns to you in dribs and drabs. Each year 7k into a Index fund will net you at least 6% returns even through the 1998, 2008 crisis. All these are backed by stats. On top of that, you can divest everything in one hour when you need to sell and take advantage of say, a property downturn for that steal price on a property.

If one has to depend on CPF to retire, THEN he is MOST DEFINITELY not ready to retire.... CPF can only be a supplement to your retirement plans, putting everything in is definitely not wise. This Mr. Loo must have some other investments he did not say, im quite sure. He is right in paying off his primary residence first... that frees one up to do alot of stuff, investment-wise.

P.S. This is just my 2c and this thread has the potential to be a very informative thread. Please do not degrade this thread to a badgering thread and trying to one-up all others to prove one's worth.

 

[chootchiew]

No justification can be had from a paltry 4% return that locks the capital up till 65 and returns to you in dribs and drabs. Each year 7k into a Index fund will net you at least 6% returns even through the 1998, 2008 crisis. All these are backed by stats. On top of that, you can divest everything in one hour when you need to sell and take advantage of say, a property downturn for that steal price on a property.

If one has to depend on CPF to retire, THEN he is MOST DEFINITELY not ready to retire.... CPF can only be a supplement to your retirement plans, putting everything in is definitely not wise. This Mr. Loo must have some other investments he did not say, im quite sure. He is right in paying off his primary residence first... that frees one up to do alot of stuff, investment-wise.

P.S. This is just my 2c and this thread has the potential to be a very informative thread. Please do not degrade this thread to a badgering thread and trying to one-up all others to prove one's worth.

I agree 65 or 67 or even higher age in future seems to be a ponzi scheme. But the ms i am treating it like a bonus .
I am looking at 55 I can cash out a pretty large amount based on my earning capabilities. But I learnt that we can choose to keep it there and withdraw any amount we like at anytime. That is better than banks.

 

[SNTCK]

No justification can be had from a paltry 4% return that locks the capital up till 65 and returns to you in dribs and drabs. Each year 7k into a Index fund will net you at least 6% returns even through the 1998, 2008 crisis. All these are backed by stats. On top of that, you can divest everything in one hour when you need to sell and take advantage of say, a property downturn for that steal price on a property.

If one has to depend on CPF to retire, THEN he is MOST DEFINITELY not ready to retire.... CPF can only be a supplement to your retirement plans, putting everything in is definitely not wise. This Mr. Loo must have some other investments he did not say, im quite sure. He is right in paying off his primary residence first... that frees one up to do alot of stuff, investment-wise.

P.S. This is just my 2c and this thread has the potential to be a very informative thread. Please do not degrade this thread to a badgering thread and trying to one-up all others to prove one's worth.

hi garlic

we top up SA for 2 reason, 1st the return 2nd for tax relief.
now seem like SRS account then use for investment better choice?

or??

 

[Papsmearer]

No justification can be had from a paltry 4% return that locks the capital up till 65 and returns to you in dribs and drabs. Each year 7k into a Index fund will net you at least 6% returns even through the 1998, 2008 crisis. All these are backed by stats. On top of that, you can divest everything in one hour when you need to sell and take advantage of say, a property downturn for that steal price on a property.

If one has to depend on CPF to retire, THEN he is MOST DEFINITELY not ready to retire.... CPF can only be a supplement to your retirement plans, putting everything in is definitely not wise. This Mr. Loo must have some other investments he did not say, im quite sure. He is right in paying off his primary residence first... that frees one up to do alot of stuff, investment-wise.

P.S. This is just my 2c and this thread has the potential to be a very informative thread. Please do not degrade this thread to a badgering thread and trying to one-up all others to prove one's worth.

Yes, agree on the index fund para. He certainly could have gotten more then 4% if he went that way.

CPF cannot be used as a retirement fund. The way that it is set up now, it should be used for daily operating account and a separate investment vehicle used for retirement. Every financial advisor in the world, except for the retards in singapore, will tell you that you should never dip into your retirement fund every month for your monthly expenses like mortgage and housing payments. These must be paid via after tax dollars. How can u retire when you keep depleting you CPF every month? CPF withdrawal is roughly 50% of deposits on an annual basis. What kind of shit savings plan is that when u keep withdrawing half of what you put in every year? Coupled with the low return on CPF, its better to use the CPF to pay the monthly mortgage and deplete it that way. And use any other money for a different investment vehicle.

As for paying off the primary residence, dumb move. why pay down a 2.5% debt. Its like saying you are able to get only 2.5% on your money.