Thursday, December 11, 2008
'Tis The Season To Top Up?
Is CPF misrepresenting and misSelling with advertisement like this that appeared on Sunday Times.
"Save More! In today's market, CPF is the safe way to grow your money. Top-up* your and your loved ones' CPF accounts to earn up to 5% interest, risk-free.
*You can top up to the prevailing Minimum Sum of $106,000. Minimum Sum is updated annually in July. The top-up will go to the recipients' Special Account if they are below the age of 55 or their retirement account if they are 55 years or older.
Pardon my concern, but why is there no notice given that once topped up, recipients cannot withdraw their money like from a bank. Recipients can only withdraw their money in drips and draps by instalment only after age 62, 67 or 85, whatever age CPF thinks fit. CPF can change withdrawal age (shift the goalposts) anytime they like. When I was first forced to deposit in the 60's, they promised me that I could get it all at 55. When I reached 55, they told me a different story!
What I'm concern with is:
This advertisement reminds me of misrepresentation and misselling which is such a hot number since the Lehman and DBS fiasco.
Is the CPF so broke that it needs to advertise for more funds to be in its kitty?
Has CPF gone down the slippery slope like GIC, Temasek and Town Councils in getting their hands burned with toxic investment?
Is it wise of CPF to spend so much money (tens of thousand dollars) in a full page, full colour ad to attract depositors?
What are the returns (ROI?) for such ads?
Is it just me being concerned about my fellow citizens being mis-sold by a "great leaders' idea" or have I touched on a "pappy knows best" unmentionable subject?
I don't know. All I know is money put in CPF is damned bloody difficult to get out. Even if I'm old, jobless and sick with major and chronic illnesses like heart attack, stroke, lipid disorder, hypertension, they only allow me to withdraw a maximum of of $300 per year for my medicines and doctors' consultation. Don't they understand that my Medisave is my hard earned money to take care of myself when I'm sick and not theirs to have and to hold or to lend it to elite borrowers to gamble away in toxic products!
Giving lucky draws to tempt aunties and uncles to top up Medisave (in previous Sunday Times) and advertisment such as above seems to show the desperation of CPF to fill their vaults with more money. For why, I'll never know.
Some may feel that CPF has the altruism of helping Singaporeans save for their retirement and old age. I don't know. If there's a kind heart, they would not charge me an additional administrative fee over and above what I need to pay for my outpatient charges and medicines. I guess they break your legs first, then they force you to walk. Since you can't walk, they charge you a fee to use their crutches. You've got no other choice.
I'm no financial or CPF expert. I'm writing based on my personal experience.
feedmetothefish.
'Tis The Season To Top Up?
Is CPF misrepresenting and misSelling with advertisement like this that appeared on Sunday Times.
"Save More! In today's market, CPF is the safe way to grow your money. Top-up* your and your loved ones' CPF accounts to earn up to 5% interest, risk-free.
*You can top up to the prevailing Minimum Sum of $106,000. Minimum Sum is updated annually in July. The top-up will go to the recipients' Special Account if they are below the age of 55 or their retirement account if they are 55 years or older.
Pardon my concern, but why is there no notice given that once topped up, recipients cannot withdraw their money like from a bank. Recipients can only withdraw their money in drips and draps by instalment only after age 62, 67 or 85, whatever age CPF thinks fit. CPF can change withdrawal age (shift the goalposts) anytime they like. When I was first forced to deposit in the 60's, they promised me that I could get it all at 55. When I reached 55, they told me a different story!
What I'm concern with is:
This advertisement reminds me of misrepresentation and misselling which is such a hot number since the Lehman and DBS fiasco.
Is the CPF so broke that it needs to advertise for more funds to be in its kitty?
Has CPF gone down the slippery slope like GIC, Temasek and Town Councils in getting their hands burned with toxic investment?
Is it wise of CPF to spend so much money (tens of thousand dollars) in a full page, full colour ad to attract depositors?
What are the returns (ROI?) for such ads?
Is it just me being concerned about my fellow citizens being mis-sold by a "great leaders' idea" or have I touched on a "pappy knows best" unmentionable subject?
I don't know. All I know is money put in CPF is damned bloody difficult to get out. Even if I'm old, jobless and sick with major and chronic illnesses like heart attack, stroke, lipid disorder, hypertension, they only allow me to withdraw a maximum of of $300 per year for my medicines and doctors' consultation. Don't they understand that my Medisave is my hard earned money to take care of myself when I'm sick and not theirs to have and to hold or to lend it to elite borrowers to gamble away in toxic products!
Giving lucky draws to tempt aunties and uncles to top up Medisave (in previous Sunday Times) and advertisment such as above seems to show the desperation of CPF to fill their vaults with more money. For why, I'll never know.
Some may feel that CPF has the altruism of helping Singaporeans save for their retirement and old age. I don't know. If there's a kind heart, they would not charge me an additional administrative fee over and above what I need to pay for my outpatient charges and medicines. I guess they break your legs first, then they force you to walk. Since you can't walk, they charge you a fee to use their crutches. You've got no other choice.
I'm no financial or CPF expert. I'm writing based on my personal experience.
feedmetothefish.
