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Many CPF investors get their fingers burnt MOST investors who use Central Provident Fund (CPF) savings to invest would have been better off leaving their money in their Ordinary Accounts, according to the CPF Investment Scheme's (CPFIS) annual profit and loss report. This is despite the good performance of investment funds included in the scheme. In the financial year ended Sept 30 last year, 902,300 investors sold their CPFIS investments. Only 15 per cent of them made a profit larger than the guaranteed annual 2.5 per cent interest rate for Ordinary Account savings. Another 45 per cent made profits of up to 2.5 per cent. The remaining 40 per cent made a loss. Under the scheme, members can invest in CPFIS-included funds such as approved unit trusts and equity funds, as well as other investment products such as stocks and shares. The CPFIS-included funds themselves have performed well. They posted an average return of 5.17 per cent in the first three months of this year, according to a report by research firm Lipper last month. The funds have grown by about 29 per cent over the past three years. But individual investors may perform poorly as a result of investing in riskier instruments instead of CPFIS-included funds, said experts. The gap could reflect a difference in financial knowledge, investment skills and discipline, said Mr Lance Tay, chief executive officer of Tokio Marine Life Insurance Singapore. "This can be improved with increased financial literacy and discipline, or with guidance from financial advisers," he added. Barclays senior economist Leong Wai Ho noted that stocks and shares were subject to many more market fluctuations. "It's better that people stick to professionally guided products like approved funds," he said. "That's more appropriate for something that's supposed to be a person's store of value, their life savings." Earlier this year, Institute of Policy Studies research fellow Christopher Gee argued that the default risk-return balance on CPF savings is good enough for most members. "A lack of adequate financial literacy among CPF members and potential retirees may result in sub-optimal decision-making," he noted. On the one hand, fewer CPFIS investors are making losses now compared with the past decade. From 2004 to 2013, 47 per cent of them incurred realised losses, more than the 40 per cent who made a loss last year. On the other hand, more investors used to earn profits above the 2.5 per cent Ordinary Account interest rate. From 2004 to 2013, 18 per cent of investors did better, compared with 15 per cent in the last financial year. More than 25 per cent did from 1993 to 2004. - See more at: http://business.asiaone.com/news/many-cpf-investors-get-their-fingers-burnt#sthash.QvQulhsB.dpuf

New York - American business magnate Warren Buffett's earnings of US$37 million (S$47 million) a day has made him the billionaire who made the most money in 2013, according to research company Wealth-X. The legendary investor raked in a gain of US$12.7 billion during the year and his net worth currently stands at US$59.1 billion. Even though he made the most gains in 2013, Microsoft co-founder and chairman Bill Gates still holds the title of the wealthiest billionaire in the world. In 2013, Gates' personal fortune increased by US$11.5 billion, with his assets totalling up to US$72.6 billion, said Wealth-X. Followed (Following) closely behind in the third spot is American casino tycoon Sheldon Adelson who made a profit of US$11.4 billion from his gambling properties in Las Vegas, Macau and Singapore. Wealth-X reported that his personal net worth is estimated to be more than US$35 billion. The Asians who made it in the list include Japanese Masayoshi Son from SoftBank and Hong Kong casino magnate Lui Chee Woo, with financial gains of US$10.3 billion and US$8.3 billion respectively. Son was named sixth in the list, and Lui came in at ninth. On average, Wealth-X said the billionaires in the list made approximately US$29 million per day in 2013 and increased their wealth by 41.6 per cent. The 10 individuals collectively gained US$101.8 billion in 2013, bringing their combined wealth to US$347 billion, an increase from US$245 billion in January 2013, reported Wealth-X. Even though Warren Buffett made the most gains in 2013, Microsoft co-founder Bill Gates still holds the title of the wealthiest billionaire in the world. Here's the full list, ranked by billions made from Jan. 1 to Dec. 11, 2013: 10. Carl Icahn made $7.2 billion The corporate raider had a big year after bets on Netflix and Herbalife (HLF) yielded Icahn Capital Management $800 million and $500 million profits, respectively. He tweeted his thanks to Netflix (NFLX) CEO Reed Hastings and Kevin Spacey, star of the streaming service's hit show, "House of Cards." 9. Lui Chee Woo made $8.3 billion The founder of Galaxy Entertainment Group became Asia's second-richest man in 2013 as gambling revenue grew at a record pace in Macau. Lui is looking to expand his flagship casino in the city's Cotai area, which is known by many as the Asian version of the Las Vegas Strip. 8. Larry Page made $9.3 billion Google's co-founder and CEO made $3 billion in 24 hours when Google (GOOG) stocks hit an all-time high in October, breaking $1,000 for the first time. Android became the world's most popular operating system, running on 43 percent of the globe's smartphones. 7. Sergey Brin made $9.3 billion Brin, Google co-founder and head of special projects with Google X, made $2.9 billion in the October stock surge. As of Dec. 11, Brin is worth an estimated $30 billion, a 4.8 percent percent increase over the year. 6. Masayoshi Son made $10.3 billion The founder of Softbank, Asia's top Internet and telecommunications corporation, lost $70 billion in the dot-com crash, but he's surging back in a big way. The purchase of Sprint (S) and a large investment in Finnish game-maker Supercell are highlights in a year that saw Son's personal net worth more than double, growing from $8.8 billion to $19.1 billion. 5. Mark Zuckerberg made $10.5 billion Facebook (FB) stock hit an all-time high in October, and revenue continues to grow despite questions about the longevity of the product. 4. Jeff Bezos made $11.3 billion The founder and CEO of Amazon (AMZN), which made $17.1 billion in net sales in the third quarter, raised some eyebrows when he bought the Washington Post for $250 million this summer. 3. Sheldon Adelson made $11.4 billion According to Wealth-X, the casino mogul's personal net worth grew to an estimated $35.3 billion this year thanks to profits from his gambling properties in Las Vegas, Macau, and Singapore. 2. Bill Gates made $11.5 billion The world's wealthiest man ended the year with a personal net worth of $72.6 billion, up nearly 19 percent from $61.1 billion in 2012. 1. Warren Buffett made $12.7 billion Berkshire Hathaway's (BRK-A) (BRK-B) CEO personally made about $37 million a day in 2013, a year that saw the company's acquisition of Heinz and Nevada's NV Energy.