More CPF savings with new rules

[FourZero]

  On 1/3/2016 at 5:51 AM, Spring said:

Fully agreed that if one has other streams of income, one should leave the funds intact in the CPF to earn higher interest. Trouble is some people still have the wrong mindset that govt don't have enough funds n thus withdraw as much as possible once they reach the eligible age.

 

I know of a friend who insists on withdrawing as much as possible n leave it in the paltry FD just cos he feels better having money in his own hands. Inflation will put paid to his savings so just don't understand his thinking.

Totally agree with u

[Gitanic]

  On 1/4/2016 at 9:40 AM, Turboflat4 said:

You have a one-track mind.

 

Luckily, it's a track I happen to like.

 

at 41 you shd be commenting on a girl instate 

[Spring]

  On 1/4/2016 at 9:58 AM, FourZero said:

Totally agree with u

[Unltd]

  On 1/3/2016 at 6:00 AM, Spring said:

Yes I believe funds in excess of minimum sum will remain in OA n that earns 2.5% interest minimum.

Unless u Have use for the funds ie business needs n good investments, IMO it's better to leave it there.

 

The friend I'm talking about doesn't have either but he stills wants to withdraw the money cos he's worried that CPF will have no money to pay him in later years. Leaves it in FD to earn much less than

2.5% but he's happy. From an economic perspective, he's silly to do this but maybe from a peace of mind perspective, he feels safer this way?

 

My unprofessional view on this is

 

1) FD rules are fixed, you put it in for 5 years, you get back that and the promised interest in 5 years. Bank will not tell you 5 years later cannot take back or stop you. Worse case bank close down.

 

2) We had seen stuff like minimum sum and withdrawal age increase, not sure what could come next. Maybe higher interest and CPF special bonus with withdraw at 45 or use all to buy funds and stocks whereby if there are profits you can cash out the profits? Who knows, it is anyone's guess but seems like most think it would just be delayed further or come with more onerous conditions for withdrawal.

 

3) Gov cannot pay you $? What is SGD? It is printed paper in a sense, it is a digit in the bank account. There is no such thing for a Government as "not enough local currency to repay", if needed can maybe issue more? Print more? But the real value is?

 

It is really your call what you want to do with your money and the money in CPF (if you can touch it), it is all relative, what do you believe in? Where you place your money so you feel safer is also your decision, maybe 5 years own the road he may be laughing at your logic or vice versa.

 

When CPF started, I am sure everyone thought 55 years withdraw money with better than FD interest rates are great! Better than pension man! :)

[Gitanic]

  On 1/4/2016 at 12:01 PM, Unltd said:

My unprofessional view on this is

 

1) FD rules are fixed, you put it in for 5 years, you get back that and the promised interest in 5 years. Bank will not tell you 5 years later cannot take back or stop you. Worse case bank close down.

 

2) We had seen stuff like minimum sum and withdrawal age increase, not sure what could come next. Maybe higher interest and CPF special bonus with withdraw at 45 or use all to buy funds and stocks whereby if there are profits you can cash out the profits? Who knows, it is anyone's guess but seems like most think it would just be delayed further or come with more onerous conditions for withdrawal.

 

3) Gov cannot pay you $? What is SGD? It is printed paper in a sense, it is a digit in the bank account. There is no such thing for a Government as "not enough local currency to repay", if needed can maybe issue more? Print more? But the real value is?

 

It is really your call what you want to do with your money and the money in CPF (if you can touch it), it is all relative, what do you believe in? Where you place your money so you feel safer is also your decision, maybe 5 years own the road he may be laughing at your logic or vice versa.

 

When CPF started, I am sure everyone thought 55 years withdraw money with better than FD interest rates are great! Better than pension man! :)

 

you nvr touch this impact on employer who has to pay $200 more per mth.

 

if i were still working i would bring in an extra biz that wld contribute $200 to the company every mth.

 

not be a burden to my company,but an asset.

[Ingenius]

Cpf is richer than some people thought. I know because I used to work in cpf for few years. Put it another way , no one has ever been unable to withdraw money from cpf when it is due because cpf has no money to pay. Also aaa+ proves that our financial system is sound , add to that our currency appreciate. If like Malaysia their coffers is empty more than full, that's why their currency depreciate so much. So the saying that cpf has no money and therefore need to increase contribution is totally flawed.

[Gitanic]

  On 1/4/2016 at 7:31 AM, Kb27 said:

CPF is a tax.

They take your money first,

Then they decide if they want to return it to you on their terms.

And they decide to change the terms whenever they want and you have no say.

 

on surface it may look so.

 

but you enjoy free facilities,paths,infrastructure etc so that you make more money.

 

not saying cpf goes there before returning to you.

 

on national level,we are one.

[Mockngbrd]

  On 1/4/2016 at 2:51 PM, Ingenius said:

Cpf is richer than some people thought. I know because I used to work in cpf for few years. Put it another way , no one has ever been unable to withdraw money from cpf when it is due because cpf has no money to pay. Also aaa+ proves that our financial system is sound , add to that our currency appreciate. If like Malaysia their coffers is empty more than full, that's why their currency depreciate so much. So the saying that cpf has no money and therefore need to increase contribution is totally flawed.

but internet say one

[Kusje]

  On 1/5/2016 at 3:31 AM, Mockngbrd said:

but internet say one

 

I think it has been posted many times already but people on the internet just don't get it.

 

1. CPF cannot become insolvent as long as the government intends to stay in power.

2. Your CPF savings are in SGD (fiat currency) and the government can print as much of it as they want

 

So end result is that your CPF is damn safe but how much you can buy with it is another issue.

[Hamburger]

so the bottom line is...

 

whats the percentage of contribution between individuals and boss? 

[Enye]

my colleague turning 55 this year, will be withdrawing cpf monies for a nice holiday in europe/us and buying new car

 

cpf is good for elite! not just feel good reading statement only hor.

 

 

 

 

[Ingenius]

  On 1/5/2016 at 4:29 AM, Enye said:

my colleague turning 55 this year, will be withdrawing cpf monies for a nice holiday in europe/us and buying new car

 

cpf is good for elite! not just feel good reading statement only hor.

 

That's why it is good to have minimum sum and annuity. People tend to spend their cpf money very fast.

[Wt_know]

  On 1/5/2016 at 4:39 AM, Ingenius said:

That's why it is good to have minimum sum and annuity. People tend to spend their cpf money very fast.

after that cry papa cry mama to govt for more subsidy and grant ... best is free coe with all kind of family excuses ... Edited January 5, 2016 by Wt_know

[Porker]

  On 1/5/2016 at 3:37 AM, Kusje said:

...

2. Your CPF savings are in SGD (fiat currency) and the government can print as much of it as they want

 

So end result is that your CPF is damn safe but how much you can buy with it is another issue.

 

Kinda contradicting statement isn't it? If government can print as much as they want and the SGD devalues then how safe can the CPF be?

[Enye]

  On 1/5/2016 at 4:39 AM, Ingenius said:

That's why it is good to have minimum sum and annuity. People tend to spend their cpf money very fast.

 

people slogged 30 plus years, spend a little to pamper themselves also cannot?

 

[Kusje]

  On 1/5/2016 at 6:16 AM, Porker said:

Kinda contradicting statement isn't it? If government can print as much as they want and the SGD devalues then how safe can the CPF be?

 

The dollar value is safe.

 

If you have 500k there, you will definitely get 500k back. But maybe your 500k can only buy half a loaf of bread 

[Ingenius]

  On 1/5/2016 at 6:18 AM, Enye said:

people slogged 30 plus years, spend a little to pamper themselves also cannot?

 

Like that can la, I mean that money goes quickly while it is slow to save.  Frankly after slogging for long it is right to pamper oneself but just have to keep for rainy days and retirement.  Just don't spend on xmm. 

Edited January 5, 2016 by Ingenius

[Wt_know]

or give son/daughter to buy $1M hdb or 700sqft mickey mouse condo?

say want to stay together but also want "privacy" ... LOL

son & daughter waiting papa mama cpf until neck long liao ...

better pamper ownself first and keep extra in cpf ... muahahaha

 

  On 1/5/2016 at 6:21 AM, Ingenius said:

Like that can la, I mean that money goes quickly while it is slow to save.  Frankly after slogging for long it is right to pamper oneself but just have to keep for rainy days and retirement.

 

Edited January 5, 2016 by Wt_know