With more young personal financial investment influencers coming on board the investment blogosphere. We are seeing this dilemma exhibited quite clearly in the cyber space! The wonder of compounding interests of additional 1.5% over the next 30 to 40 years in CPF SA to secure retirement well in advance vs the potent power of investment return in CPFIS across market cycles. This potent power of investment return in CPFIS can generate either gigantic return or destroy wealth. With CPFIS, CPF members may be better off doing Bar Bell investing approach across market cycles by earning compounding interests at 2.5% safely during peace times and when opportunity arises; they take higher risk and moves over to the other end of the Barbell for investing return. Of course; it all depends on your investing skills; but have you put in 10,000 hours before the next opportunity arises? BUT; many CPF members may wrongly treat CPFIS as money paper; and hence have no patience for investment return. Since Government have already put in place hard limit as risk control and management i.e. 65% at 2.5% and 35% from negative to positive return so the ball is at our court. May be this is why we have this dilemma. Uncle8888 also once had this dilemma. But; somehow he has managed to overcome it since he was very determined to become an active competent investor over market cycles even though he didn't have 30 years ahead of him as he was already 40+; but he still managed to kill his dilemma! He has to arrive richer to retire earlier or poorer to continue to work until dead!
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
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