CPF Special Account

[Falc]

Only policy that is change-free is CANNOT take out CPF until xx date which seems getting longer all the time.

[Sabian]

why don't u go to Starry's site?

 

i think there's a wealth of info there.much like the car info here/ opinions here.

 

as with any forum, u make the decisions yourself with info u deem to be ok.

 

i think reality is staring you in the face.

 

if the longevity is not an issue and the 4% is the SA can work wonders. u won't see the MIW trying to force this annuity BS down everyones'throat.

[Nine_eleven]

there is nothing wrong with just leaving it in the CPF account. just as long as you're comfortable in it.

[Falc]

What's the website? TIA

[Sabian]

sgfunds.com

[Falc]

Looks like this CPF issue generated quite a few discussion there too.

 

Ultimately this de-peg of 4% to bond market (indirectly and largely controlled by govt also) mean we have to "trust" the govt to maintain high SA rate for our retirement. Without this "faith", better don't transfer OA to SA.

 

Now, how many how of 66.6% will put their faith into action and transfer OA to SA?

Edited September 26, 2007 by Falc

[Sabian]

the pple in that forum are quite similar in this forum[:p]

 

here, we dun like the AD to tell us what engine oil to put into our rides...there, we also dun like it when the AD tell us what to put into our portfolio...

 

sorry...after watching miss vivian in "action", listening to hearing impaired jibes and stewpig excuses from a prof abt someone actually will bother to discuss politics with u in ECP while u are cycling...

 

u want me to trust them???

 

i rather take my chances in bespin city with the asthma kia with the force and his bounty hunter...

Edited September 26, 2007 by Sabian

[Falc]

They like to do all these things after a good election year and since economy booming, little risk of backlash.

[Sabian]

i think they forget now got internet...what they do/ don't do now will echo in eternity

 

the goodwill earned by the old guards all kena squandered by the hiphoppers...

[Nighthawkcity]

  Quote

my father did..

100+k in SA

now 53

sigh..

 

It is not risk free as stated, it is very risky. Policies always change, in the end, can never take out.....Worst Off

 

 

yah.. how he knows will change in 1 yr.. haha..

he din even tell me....

[Nighthawkcity]

  Quote

i suppose it caught a lot unawares.. for over 55, 4% is a safe place to park $$$ in, with more than banks' and OA's measly returns. it seemed natural to park excess there.

but who the hell knows gahmen change the returns/payout just like that..

 

dun think they would even allow these $$$ can be allowed returned to OA as an option.

just hope for the best that the returns won't go below 3%..

 

one thing i dun understand, since they 'sincerely' wanted to help ppl retire with enough $$$, why not peg the interest rate to perhaps Temasek's returns?

that's what 'civil service' is supposed to mean..

 

also not safe.. haha.. with temasek's returns last yr, only the IPOs in china is doing fantastic..

 

invited IPO, how not to do well.. ur china fund also more than doubled this 1 yr or so rite???

[Nighthawkcity]

  Quote

150 basis pt is not "alot" if one don't compound it over a long time.

 

Looks like most people just don't see CPF as a good means of building retirement funds, more like source of fund to spend on property, education, other funds etc What a good job our gabermen is doing!

 

[Fddd]

Don't think the CPF changes is going to help the retirees much.Will only force them to work longer till we all die.The lowest for the bond rate is <2% in the past.If any economic storms occur during our lifetime, that it!!!It is just another cheap way to let GOVT to earn revenune and pay their high salaries to the ministers and they will dispense abit to the citizens at their mercy (Election). We have to beg them every time to release the reserve to save us. Let's go to work and forget about getting to retire any soon.

[Nighthawkcity]

yes.. as you can see, my time of posting is not very natural.. haha.. work until die..

work at home.. work at office.. conference calls with US..

[Dumb]

  Quote

my father did..

100+k in SA

now 53

sigh..

 

Are u sure he can transfer 100+ to SA?

 

I am quite certain he can't coz the max he can have in SA is 99.6k for the current year to Jun 2008.

[Dumb]

  Quote

With the recent CPF change, what is the most attractive option now?

 

For those with few years to 55 and have no intention of using their OA for purchase of properties, investments etc should transfer the max amount to SA as early as possible. If you don't, eventually you are forced to transfer the money to RA when you reach 55.

 

So why not transfer early to earn 4% (fixed for year 2008 and 2009) compared to OA at 2.5%.

 

Note that even if you want to transfer OA to SA, the max SA can have is 99.6k up to Jun 2008. After Jun 2008, the max amount will be adjusted to the prevailing min sum.

 

After 2009, the rate for SA, including MA and RA (or SMRA) will be pegged to the average yield of 10-year bonds plus 1%. Currently, the 10-year bonds yield is about 3.5%. So we should be getting about 4.5%.

 

If yield goes down we are guranteed a base of 2.5%. Whether in the long run, the rate at average yield of 10-year bonds plus 1% for SMRA will be better than the fixed 4% is difficult to know. The gahmen thinks it will be better.

 

I know several ppl who withdrew their cpf at 55 having hard time trying to get return that match OA rate of 2.5%. Most of them place the cpf withdrawn in FDs as most do not want to take risk with their money. So my advice to those who are not familiar with investment, leave your money with CPF Board when you reach 55. You can still withdraw it anytime you want after 55, but the withdraw to subject to one withdrawal a year. Once you withdrew, you cant put it back.

 

Again note that if you want to put cash into your cpf, there is an annual limit. You cant suka suka dump 100k into your CPF. CPFB don't need your money. CPFB also dont allow you to put more than the min sum into you RA.

 

So I am wondering why ppl are imagining that CPFB is running out of money.

 

How I wish that the CPFB dont limit the amount of money one can put into the OA, SA or RA. If CPFB is running out of money, it should remove the limits.

[Dumb]

  Quote

my father did..

100+k in SA

now 53

sigh..

 

It is not risk free as stated, it is very risky. Policies always change, in the end, can never take out.....Worst Off

 

 

yah.. how he knows will change in 1 yr.. haha..

he din even tell me....

 

The way you say, nothing is risk free. You keep you money under your pillow, there is risk. You put your money in shares, there is risk. You put money in the banks, there is risk.

 

Which is more risky? Even bank policies can change. So money guaranteed by banks or gahmen better?

[Dumb]

  Quote

[reply]i suppose it caught a lot unawares.. for over 55, 4% is a safe place to park $$$ in, with more than banks' and OA's measly returns. it seemed natural to park excess there.

but who the hell knows gahmen change the returns/payout just like that..

 

OA rate of 2.5% is not measly. Name me bank that pays better than OA guaranteeing a min of 2.5%.