#76
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Re: How much money needed to Retire?
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I was thinking to top up for my sons but my concern is it will be 4-5 decades before they get the monthly payout as top up withdrawal are not allowed, l think.. Policy change and whether interest rate will remain unchanged are deterring factors. Other options like endowment etc returns are too low and not attractive. Am still thinking what to do
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Support "#MeTooNoCarrot" movement Last edited by zeefee71; 25-09-2020 at 10:04 PM. Reason: tt |
#77
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Re: How much money needed to Retire?
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(1) You can only transfer up to FRS (maybe I am wrong) and that FRS ceiling usually quite easy to hit (2) For that additional 1.5%, you lose the flexibility (cannot transfer back to OA). OA can be used for property, investment and education. (3) Interest could potentially change. I am surprised they didn’t cut cpf interest despite bank interest is almost 0%. Doesn’t really make sense unless they know this is just for show. Majority of the $ will be locked up after one turn 65. Assuming if one hits the ceiling of SA, I think the payout he/ she will get is about $1400 per month. (4) Policy changes. Quite likely will happen. Assuming if we are allowed to park our savings in any ETF listed in US, an IT ETf gives us returns of 20% annually and S&P500 will give us more than 10% annually. More shiok in my humble opinion. Using ur OA to buy bank shares and funds will earn more than 4% interest |
#78
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Re: How much money needed to Retire?
Most sinkees lost money in shares.
especially GLC shares lost till cpf dry. |
#79
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Re: How much money needed to Retire?
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(3) The 2.5% interest on OA is the minimum interest rate guaranteed by law. Meaning the G has to move a motion in parliament and pass it if it wants to lower it. The lock up is only till 55. One can withdraw any amount exceeding BRS when he pledges his property. As one gets older, the risk appetite lowers. This govt has a triple A international credit ratings by Moodys and S&P. Her reserves is larger than Germany. It is hard to find a safer instrument that pays out 4% guaranteed interest. Stocks is risky. We have all lost money in it before. It is something we have no knowledge and control over. While you are happily plonking money into a company, whats to say the CEO is not on the ledge of a building ready to jump down bec he made a few poor decisions. Oil trading star Hin Leong is a fine example. Beautiful on the outside even to their bankers, a mess inside. I have worked for listed companies before. I know how they cook the books to report to MAS. Investing retirement funds into stocks is like the American retirement system - the 401k. Economy up, their retirement funds are on track. Economy down, too bad for you. Their lives are always on tenterhooks. Think they envy our 4% guaranteed interest rate |
#80
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Re: How much money needed to Retire?
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#81
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Re: How much money needed to Retire?
No, we just live a bit longer .... and get screwed longer by our G with this thing called CPF
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#82
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Re: How much money needed to Retire?
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Can you share more about the international insurance? |
#83
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Re: How much money needed to Retire?
Side track a bit... Maybe U want to consider topping up their MA instead?
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If an issue can be settle with $, then it is not a real issue But the issue is... I have no $ 如果可以用钱决绝的问题,那就不是真正的问题 但是我的问题是...我没钱 |
#84
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Re: How much money needed to Retire?
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__________________
If an issue can be settle with $, then it is not a real issue But the issue is... I have no $ 如果可以用钱决绝的问题,那就不是真正的问题 但是我的问题是...我没钱 |
#85
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Re: How much money needed to Retire?
You need to know the distribution of topping up CPF. Not all goes to SA. You have to check with CPF when your topping up will all goes to Retirement Account. There is some age limitations.
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#86
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Re: How much money needed to Retire?
Taken off from a Financial Consultant's website:
You can then decide whether using CPF to invest will give you any benefits. QUOTE Why the Financial Industry Encourages You to Invest Your CPF Money If you are familiar with the world of CPF, then you must have encountered many incentives offered by the Financial Industry to get you to invest your CPF money. This begs the question, “why?” We have always known that our CPF savings are only accessible to us; and that its interests, profits, and returns are guaranteed by the Singapore Government. This means no other financial entity or individual makes money from your decision. The reason the financial industry does this is because they make money when you decide to invest your CPF money. This results into a tumbleweed effect once you agree to do so. It goes like this: Brokerage firms will generate revenue from the buying and selling of stocks that you made. Insurance companies will earn profits from ILPs or investment-linked insurance products or endowment plans that you buy. The agents from these insurance companies get their commission from selling you these plans. Fund managers will then earn management fees when you buy into their unit trusts. With everything explained above, it is therefore not difficult to understand why the financial industry is so eager to have you invest your CPF money. They will do literally anything to entice you to invest with them. Since the funds in CPF rarely gets used unless for specific purposes like retirement, most Singaporeans find investing their money as an easy option. For them, it feels like investing money is not much compared to the cold hard cash in their bank accounts. But the thing is, the CPF actually earns a higher return than the money they have in their banks. That is why it is important to take care of their CPF funds. You should make sure that the decisions you made are both wise and logical. After all, your retirement fund is on the line. UNQUOTE Quote:
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#87
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Re: How much money needed to Retire?
Depends on your age group.
Previously, CPF allow only once SA withdrawal per year. Now you can do more than one withdrawal per year. Next refer to the other part where, when you deposit money in CPF to earn more money, the picture show the allocation of money to the three CPF accounts. As you have said "below 55 years", then the CPF will get distributed into three accounts. If you are in the age group where the money need not go into Medisave (you have meet the minimum amount) and Retriement Account (meet minimum amount), it all goes to Ordinary Account. Then use this as a "bank". Deposit money into Ordinary Account. You earn compounded interest. You can withdraw multiple times per year. If not sure, just go to CPF and talk to them. They can even work out theoretical interest you earn, etc. |
#88
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Re: How much money needed to Retire?
You are right.
If you can reach CPF Enhanced Retirement Account then you can expect about $2,000 per month. CPF Interest Rates Almost everyone would agree that CPF pays a really reasonable interest rate. These are as follows: Ordinary Account (OA) – up to 3.5% per year, minimum 2.5% Special Account (SA) – up to 5% per year, minimum 4% Medisave Account (MA) – up to 5% per year, minimum 4% Retirement Account (RA) – up to 5% per year, minimum 4% These interest rates include an extra 1% interest paid on the first $60,000 of a member’s combined balances (with up to $20,000 from the OA). That means if your Ordinary Account has $20,000, and the other accounts have a combined $40,000 total, you earn an additional 1% interest rate. Ordinary Account (OA) – 3.5% Special Account (SA) – 5% Medisave Account (MA) – 5% Retirement Account (RA) – 6% (for those aged 55 and above) Quote:
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#89
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Re: How much money needed to Retire?
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#90
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Re: How much money needed to Retire?
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Quote:
If we keep the apron strings, they will never grow up |
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