that reminds me, do you do topups? how do you decide when to do topups? and how u decide how much? and if you did compare the 'risk free' rate with market yields (bonds/stocks), what are your steps in comparing? ;)
I think the most passive but not completely passive if we are strict about the term passive is: bank deposits during high inflation periods. (again you got caveats!)
one of the most investigative posts I came across by young bloggers (mostly, they just shoot off the mouth based on recent history which is a plus sometimes, these are blogs afterall, not editorials or gazetted e-zines ;)) is: http://sgyounginvestment.blogspot.sg/2013/07/the-history-of-post-office-savings-bank.html
I was warning friends against high leverage (before the fed kia and had their hands tied) when they asked me about the safest high yielding investments. I told them I didn't know whether we will get to see it during our lifetime: high yield bonds by merit of central bank.
so I told them the next best thing: bank deposits during high inflation periods and suddenly this young blogger came up with his post. kudos!
take note CPF also correlated closely with bank deposit rates because both are correlated with 10yr government yields. https://www.cpf.gov.sg/Assets/common/Documents/InterestRate.pdf just that CPF has a floor rate, that's all.
actually our government did a lot and it is good that they have been prudent. Just that their darts kept missing lately when it comes to the economy.
but deposits can withdraw anytime and CPF cannot. ;)
now, a bonus for you faithful cw8888 readers, can you guess my next question and the answer to it? ;) I don't want you to be too passive ;)
my goodness! sometimes tough measures are needed to protect the 'foolish' public from themselves. (foolish as in the https://en.wikipedia.org/wiki/Greater_fool_theory)
it's been 18 years since AFC. time flies! having witnessed that at 42 probably helped you for the better, uncle?
AFC is one of the most interesting recessions to study: its causes and long term effects. one of the lasting effects is that it also enabled singapore to have more breathing room which we have since squandered away regrettably.
the experiences of living through the AFC is also one of the devastating a married with children person could have.
FDs need to go to bank, redeposit the FD proceeds.
ReplyDelete;)
oh by the way, do you compare FD interest between banks? and take some time to decide on the tenure?
Deletehow do you decide on your tenure?
;)
by the way, CPF no need to sell because everyone doing it. mandatory contribution.
ReplyDelete;)
that reminds me, do you do topups? how do you decide when to do topups? and how u decide how much? and if you did compare the 'risk free' rate with market yields (bonds/stocks), what are your steps in comparing?
Delete;)
sianz!
DeleteOnly when we are dead we are passive. May be not after visiting Haw Par Villa Garden when I was kid. :-(
I think the most passive but not completely passive if we are strict about the term passive is:
ReplyDeletebank deposits during high inflation periods. (again you got caveats!)
one of the most investigative posts I came across by young bloggers (mostly, they just shoot off the mouth based on recent history which is a plus sometimes, these are blogs afterall, not editorials or gazetted e-zines ;)) is:
http://sgyounginvestment.blogspot.sg/2013/07/the-history-of-post-office-savings-bank.html
I was warning friends against high leverage (before the fed kia and had their hands tied) when they asked me about the safest high yielding investments. I told them I didn't know whether we will get to see it during our lifetime: high yield bonds by merit of central bank.
so I told them the next best thing: bank deposits during high inflation periods and suddenly this young blogger came up with his post. kudos!
take note CPF also correlated closely with bank deposit rates because both are correlated with 10yr government yields.
https://www.cpf.gov.sg/Assets/common/Documents/InterestRate.pdf
just that CPF has a floor rate, that's all.
actually our government did a lot and it is good that they have been prudent. Just that their darts kept missing lately when it comes to the economy.
but deposits can withdraw anytime and CPF cannot. ;)
now, a bonus for you faithful cw8888 readers, can you guess my next question and the answer to it?
;) I don't want you to be too passive ;)
Government did a good job by stricting CPFIS to 35% of investable balance in CPF OA after AFC.
DeleteOne ex-colleague retired after 1998 with few thousands left in his CPF OA and was scolded by his daughter for his foolishness.
my goodness! sometimes tough measures are needed to protect the 'foolish' public from themselves.
Delete(foolish as in the https://en.wikipedia.org/wiki/Greater_fool_theory)
it's been 18 years since AFC. time flies! having witnessed that at 42 probably helped you for the better, uncle?
Happening in AFC ...
ReplyDeleteRead? Not Interested In Investing or Too scared To Invest???
Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? - Revisit
In those days before AFC, one could lose job, CPF saving, and investment portfolio. It was real wipe out!
Govt did realize that it was far too risk to let people have free hand with their CPF.
Paper money so they would just whack!
AFC is one of the most interesting recessions to study: its causes and long term effects.
Deleteone of the lasting effects is that it also enabled singapore to have more breathing room which we have since squandered away regrettably.
the experiences of living through the AFC is also one of the devastating a married with children person could have.