Serious Saving $1m through CPF

[SNTCK]

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.

how much is the minimum sum now?

 

[SNTCK]

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.

till now, i still not understand what is cpf about lo, now only using it to pay housing loan.
looks a complicated scheme to me leh.

 

[Papsmearer]

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.

U are all over the map on this. Is this retirement money or bonus? The 2 are not the same. I don't think u gave the slightest idea at all.

 

[Bigfuck]

till now, i still not understand what is cpf about lo, now only using it to pay housing loan.
looks a complicated scheme to me leh.

It is complicated and easily solved and definitely not complex. PAP brains are simple.

 

[chootchiew]

U are all over the map on this. Is this retirement money or bonus? The 2 are not the same. I don't think u gave the slightest idea at all.

Bonus may not be the correct word to use. I simply did not treat this amount exist unless I can live till the age If I survive there is still money kept by government. So long I find at 55 I can enjoy my hard earned $ is more important to me.
Of course my method will not suit everyone. Just sharing my plan which I find better than living with uncertainty with some extra % earned.

 

[enterprise2]

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

Think it must be some kind of illness! I prefer looking at my million $ condo than looking at my million $ bank a/c! Of course one of our multi million $ ministar says he feels so rich looking at his CPF statement. That's because he can enjoy both - asset rich and cash rich. How many of us can say the same ?

 

[Papsmearer]

till now, i still not understand what is cpf about lo, now only using it to pay housing loan.
looks a complicated scheme to me leh.

Its not a complicated scam. They throw many shits into it, like medishield and what not and many rules and regulations. In the past, there was no special account or any of this shit. That is what makes it look complicated.

Its a very simple plan. U have to understand how the govt wants to play it. Your employer puts money in, you put money in, the govt puts nothing in. From the money that goes in, u can use it for housing payments and medisave. And lets say your mortgage payment is $1500 per month. you would have the mortgage payment taken our of your CPF. Instead of buying AXA health insurance, u are forced to buy Medisave. So, if your mortgage payments and health insurance payments comes out of your CPF, it frees the money up to put into your retirement. If you are really disciplined, the $1500 that goes out of your CPF O account that goes to your monthly house payments has an opportunity cost 2.5%, you will then substitute it dollar for dollar with $1500 into another investment, say a mutual fund, this mutual fund will be your retirement fund as the CPF accounts gets depleted monthly. U will for certain earn more then 2.5% on this mutual fund, hence growing your real retirement account faster and bigger then CPF can. U are basically inventing your own retirement fund and swapping out a low 2.5% yield for a higher one.

 

[Hans168]

Yes the profit can be withdrawn.

ie AD ........... after death

 

[chootchiew]

how much is the minimum sum now?

Current at 161k . I predict by my turn should be 200k or there. Backup plan if goes too high or draw down age aka goal pole shift too far is to run road to maryland

 

[Leongsam]

Current at 161k . I predict by my turn should be 200k or there. Backup plan if goes too high or draw down age aka goal pole shift too far is to run road to maryland

Anyone that only has 200k in their CPF accounts at the age of 55 would be in big trouble if it was released to them in one go because they are obviously low skilled and financially illiterate.

 

[Bigfuck]

Anyone that only has 200k in their CPF accounts at the age of 55 would be in big trouble if it was released to them in one go because they are obviously low skilled and financially illiterate.

That is unfortunately true. If cost of living was still 1.2 SGD for noodles, it would be fine, but... now it is 4-6 sgd for noodles as a norm.

 

[Leongsam]

That is unfortunately true. If cost of living was still 1.2 SGD for noodles, it would be fine, but... now it is 4-6 sgd for noodles as a norm.

The cost of noodles is not the issue. The problem with releasing a 6 figure sum to someone who has been on a low income and very little savings is that they will be ill prepared to manage such a huge amount.

All it takes is a couple of foolish decisions and they'll be wiped out at least 2 decades before they kick the bucket. What will society do with someone who does not have a penny to his name who is only in his mid 50s?

 

[chootchiew]

The cost of noodles is not the issue. The problem with releasing a 6 figure sum to someone who has been on a low income and very little savings is that they will be ill prepared to manage such a huge amount.

All it takes is a couple of foolish decisions and they'll be wiped out at least 2 decades before they kick the bucket. What will society do with someone who does not have a penny to his name who is only in his mid 50s?

I know someone without any savings on hand , but with 300k in cpf already planning how to use the money which will be in in 2 years time :*:

 

[Leongsam]

I know someone without any savings on hand , but with 300k in cpf already planning how to use the money which will be in in 2 years time :*:

How is he going to use the money?

 

[chootchiew]

How is he going to use the money?

And you profiled it correctly. A low income earner just like myself.
Plans for holidays with family members. Children educations funds, post dated in laws maintenance fee and the current deprivation of a proper lifestyle.

 

[Narong Wongwan]

It seems you spend most of your productive life living like a beggar so that you can store a big nest egg, only to find that by that late age, you have no mood for good food, sex, travel and bad health due to scrooging.. If you have kids, they can enjoy for you.

Spent productive life living like begger.
Saved up $1 million then still must budget live simply until end of their lives. He think his $1 mill bigger than bullock cart wheel?
CB live until so kankor might as well go jump bedok reservoir. Use money buy insurance let kids enjoy the payout

 

[JohnTan]

By age 36, I had already maxed out my SA and Medisave accounts, with some balance left in my OA. All it takes is financial prudence, spending within your means and not overpaying for your HDB apartment. By now, thanks to compound interest, my CPF account has around $800k. It's my 'Alamo' money if I cheat on my wife and in turn get cheated by some hooker from Batam or Shenzhen, and I have nothing left to fall back on.

Thanks to PAP, I am set for life.

 

[JohnTan]

The cost of noodles is not the issue. The problem with releasing a 6 figure sum to someone who has been on a low income and very little savings is that they will be ill prepared to manage such a huge amount.

All it takes is a couple of foolish decisions and they'll be wiped out at least 2 decades before they kick the bucket. What will society do with someone who does not have a penny to his name who is only in his mid 50s?

Some years back, there was some keling lady with 3 kids from Jiuhu who received $1M of donations from the public because her dead beat husband got run over by some mad PRC driver. Within a year, she squandered all of that money and penniless. Even she expressed amazement how she could have lost $1M just like that. She didn't even manage to save $10k of that money by simply putting into the bank. No, she spent some of that money, gave away some of it to relatives as gifts and invested the remaining into her brother's harebrained bus business idea which went bust within months.

 

[Leongsam]

And you profiled it correctly. A low income earner just like myself.
Plans for holidays with family members. Children educations funds, post dated in laws maintenance fee and the current deprivation of a proper lifestyle.

200k won't last 5 years if that's how you're going to manage the windfall.

 

[frenchbriefs]

i saw another 1 million by 65 CPF story on another investment forum.......Temasek and GIC must be desperate for money......