1. Mandatory CPF contributions as full-time employee
2. Becoming one patient and discipline CPFIS investor who is only active during STI bear markets
3. Compounding interests at CPF OA 2.5% rate
Read? More CPF investors beat guranteed risk-free returns in fiscal 2016
Read? One Uncommon Way To Top Up CPF OA Through CPFIS
Yup, one workable strategy.
ReplyDeleteThe question is how big is your OA war chest? Many Gen Y may have not very much OA due to high mortgage payment.
Just a diary note.
Statistically based on median income, likely many of us will have small war chest in cpfis after mortgage and that is why we have to be very patient and wait for growth dividend and capital gains opportunity. But many are just happy with yield beating CPF OA 2.5% can Liao. Why wait?
DeleteFrom CPF 2016 annual report ...
ReplyDeleteAs at 31 December 2016, there were 917,373 CPF members who invested under the CPFIS-OA Scheme, an increase of 0.7% from 911,322 CPF members as at 31 December 2015. However, the total amount of OA savings invested decreased by 4.9% to $18,139.6 million as at 31 December 2016, from $19,070.9 million as at 31 December 2015.
As at 31 December 2016, there were 343,796 CPF members who invested under the CPFIS-Special Account (CPFIS-SA) Scheme, a decrease of 6.5% from 367,818 CPF members as at 31 December 2015. The total amount of SA savings invested decreased by 4.3% to $5,025.7 million as at 31 December 2016, from $5,251.6 million as at 31 December 2015.
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So, average $19,773 per person invest their OA in 2016 ($18,139.6 million / 917,373)
However, it did not state what was the % of CPFIS.
Page 39, under CPF INVESTMENT SCHEME (CPFIS)
Deletehttps://www.cpf.gov.sg/Assets/Common/Documents/ViewAnnualReport2016inPDF.pdf
RETIREMENT SUM TOPPING-UP SCHEME
ReplyDeleteThere were a total of 146,340 cash and CPF top-ups amounting to $1.8 billion to RA and SA in 2016. This represented an increase of 30.0% and 96.0% in the number of top-ups and top-up amount respectively, compared to 2015.
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More people now builds their retirement nets. Is a long journey, a sure one (IMO).
Thinking back. Somehow I managed to wayang long enough for wife to give up.
ReplyDeleteEncountering At Least One Major Economic or Market Crisis Is Good For Our Future Prospectives!!! (Time for a re-fresh)
Sir, perhaps uninterrupted 39 year long career tells me how you accumulated a 6 digit number in pension account.
ReplyDeleteWhat would be the reduction in pie if none of the amount is invested (in other words left to pension interest) in the stocks?
Can remove up to 35% of the Pie if CPFIS fund is not invested
DeleteI think the CPF contribution of employee and employer are much higher during the period 70s to 90s. I recalled the contribution was 20%-20% from both side with either no cap or higher cap.
ReplyDeleteYou are right that CPF was higher pre-AFC and Rules has changed after that. When I started working as technician, my gross monthly pay was $310. Those days there was no such thing as bell curve appraisal system and performance bonus.
DeleteIt was just 13th month AWS.
Work life was much slower and after office hours we were not contactable. Lol!