I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday 24 September 2017

One Uncommon Way To Top Up CPF OA Through CPFIS

Read? CPF Contribution and Allocation Rates

Read? 2016 : Key Fact of Household Income In Singapore

Read? Government to review CPF Investment Scheme: DPM Tharman

Read? The Dilemma Of Young Personal Financial Investment Influencers

Few points to take note:

1. The CPFIS was set up to offer CPF members a way to earn higher returns on their savings but it is "not fit for purpose", Mr Tharman told an audience at the Economic Society of Singapore's annual dinner. 

Over the past 10 years, more than 80 per cent of the CPF members who put their savings into an investment product via the CPFIS would have been better off just leaving their money in the Ordinary Account, which earns a guaranteed 2.5 per cent each year, Mr Tharman noted.

Some 45 per cent of those who made use of the CPFIS even made losses over the same period.

2. Maximum CPF allocation to CPF OA is 23% of wage

3. The Ordinary Wage (OW) Ceiling limits the amount of OW that would attract CPF contributions. The OW Ceiling is capped at $6,000 currently. (Before 1 Jan 2016, OW Ceiling was $5,000)

4. Assuming 3 months year end bonus.

5. Median gross monthly income in 2016 is $4,056 and i.e. 68% of OW Ceiling of $6,000

How much can we possibly have in our CPFIS as war chest?

By simplifying the Maths

Maximum mandatory contribution to CPF OA as employees at OW Ceiling = 23% x $6,000 x 15 = $20,700 per year

For 10 years : $207,000 in CPFOA or  35% for CPFIS = $72, 450

For 20 years : $414,000 in CFP OA or 35% for CPFIS = $144,900

For many of us, if not most of us as employees will not have large CPFIS as war chest. Right?

So how to win this CPFIS war game?

Understand their wise words

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros

In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! 

It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit. 

And their experience invariably matched mine -- that is, they made no real money out of it. 

I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”

Men who can both be right and sit tight are uncommon


Many financial investment writers out there in the cyber world like to share on theories and concepts so it is about time for Uncle8888 to share with you the story of Coca Cola - The Real Thing!

Hmm .. may be too young to know this past long running advertisement of Coca Cola.

It is harder to tune to the whisper of lone voice among the loud Pipers' call in the social media of investing circus  showing amazing acts with CPF accounts for retirement; but finally we still have to choose our own poison to act!

That is equivalent of $17.8K top up to his CPF OA per year for 17 years since Uncle8888 started as serious retail investor from Jan 2000 to 2017.

On top of $303K, each refund back to CPF OA will continue to earn 2.5% compound interests for X to 1X years.

Total investment gains will include another $XX,XXX interests and the best part is that counting of investment gains is not ending soon. 

For how many more good years to count? Don't know!

PS: The current CPF Annual Limit is $37,740 since 2016.

Hmm ..

Effective top up to his CPF OA$20,700 + 17,836 = $38,536.


CPF OA has exceeded CPF Annual Limit of $37,740 for voluntary CPF Top up!


  1. CW,

    High five!

    Now we're talking!!!

    This is what we meant by EARN MORE ;)

  2. Heheh ... timing is important ... many who plonked their money in 2006/2007 & didn't do any money or risk mgmt during 2008/2009 would have suffered ... as mentioned by Tharman 10 years later. :)

    Even more sickening as many S'pore stocks still haven't recovered & exceeded their pre-GFC highs compared to many of their foreign counterparts...

    1. Spur,

      Exactly! If anyone and everyone can do it, where's the winnings coming from?

      Those 20% of CPF members who made money from CPIS, its from the wool, milk, and meat from bei kambings.

      The biggest beneficiaries are the banks, insurance companies,and brokers. Its not even a zero-sum game. Its a negative sum game! The casinoes have the house advantage.

      Profitable invesrtors/traders are not vegetarians.

  3. Replies
    1. Whoa .... didn't know you already explicitly mentioned this liao! :)

      My sentiments exactly too ....

      The best time to invest (especially CPFIS monies) is when nobody is interested to SALES PITCH you ... All the financial advisors, bankers, insurance agents, remisiers, brokers, bloggers, etc either retrenched or too busy hitting on their contacts for alternative jobs... Hohoho!!!

  4. Exactly or Absolutely! Anyone and everyone can do it - transfer OA to SA and/or do CPF voluntary top up to grow at prevailing CPF compounding rate. But, not anyone and everyone can commit time, effort, determination, patience, and discipline to learn this investing craft.

    Earning more, save more and compounding interests is not wrong too!

  5. War chest from CPF-OA (CPFIS)...

    In reality, many people may not able to accumulate substantial CPF-OA as they use up all the OA money for property mortgage payment.

    For the baby boomer, to accumulate OA money is much easier as the flat price was relatively cheap (affordable). For the gen Y, they usually max out the OA usage... end result is little left in OA.

    Just a daily note.


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