After reading somewhere in the Cyber world; huh! So far; Uncle8888 hasn't met any retail investors who are still in the stock market and have admitted that they can't beat CPF OA interest rate of 2.5% CAGR. For his generation of seniors in their late 50s and 60s who have admitted; they have chopped their fingers and move on and never touch the stock market again. Real People. Real outstanding HDB loan. One ex-colleague who sat in his same ex-office has lost so much cash & CPFIS fund during AFC. At last known, he still have several years of HDB loan to pay off. He couldn't met his minimum sum requirement and CPF automatically pledged 50% of his 5-rm HDB flat. Every retail investors believe they will become above average retail investors when they are working hard at acquiring more financial knowledge and improving their investing skills; but where do the winners get their wealth from? Read? Where Does The Money In The Stock Market Come From? (Time for a fresh as it is timeless!) 4 Aiming For Zero Debt It’s normal to think that being debt-free should be a key financial goal. Who doesn’t want to own a home that is fully paid for already? Yet at the same time, clearing your home loan prematurely may not necessarily be the best use of your money. A HDB loan charges an interest rate of 2.6% per annum, a mere 0.1% higher than the base interest rate given by the CPF Ordinary Account. Other bank loans may charge a lower interest. Instead of clearing his loan, an investor may be better off making his money work harder through investing. If an investor can earn a return that is higher than 2.6%, or whatever the interest on his home loan may be, then it makes more sense to invest rather than to clear his debt.
Last updated : 14 Sep 2020
I am 64 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 21 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 2041 @ 85 yrs old.
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