As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Friday, 29 March 2019

Who Loves My CPF???


  1. CW,

    Well, this person's CPF must be less than 25% of total networth. Hence even if forever cannot withdraw CPF also no problem! Can give to children as inheritance mah!

    Only 2 kinds of people will want to withdraw CPF ASAP:

    1. Money not enough - enough said.

    2. Those who can EARN MORE - can invest and get more than the CPF interests outside on our own. Based on track record and financial competence; not hope.

    1. CW,

      Those buying SIA bonds at 3.03% are in it for the capital gains if interest rates revert back to zero bound.

      They are not the same as those SAVE MORE so called "financially savvy" types - as if others can't see the yield differentials ;)

      Of course these yield hogs won't ask, "If triple A rated bonds are yielding lower than CPF interest rates, how sustainable LONG TERM can big daddy do it? Didn't they say they will peg the CPF interests to the 10 year Singapore Govt bond one day?"

      CPF is not a charity. Their investment returns must EXCEED the CPF interests they giving us. Unless its a subsidy.

      If its a subsidy, better look down below to ensure there's a continuous stream of new CPF members joining the scheme! More people voluntarily contributing to CPF even better!

      That said, if one wishes to achieve FIRE through the investing route, is voluntarily contributing to CPF a craft?

      That's not investing, and definitly not business ownership.

      We can only save what we earn.

      Its the Employed or Self-employed quadrants in Rich Dad, Poor Dad ;)

    2. GIC performance should still be able to cover the 4% and 5% rates over long term. The 6% portion may be trickier.

      CPF is useful to business people as cheap hedge against creditors. They'll max out their own, spouse's, childrens' and parents' CPF, LOL! Irrevocable trusts more expensive.

    3. Yalor. Don't anyhow poke at rich cpf members hot. They may know what they are doing.

      Bankrupt but CPF millionaire

    4. 1. CW,

      I think I heard a parrot went, "Yalor, yalor!"


      2. Spur,

      I think you are referring to rich "sheep" ;)

      Real business owners where need to go to such extent?

      Got company as a legal entity and limited liability good enough.

      During my time selling furniture at IMM, there's one company got financial problems still eagerly collecting deposits from customers. Then declare bankrupt. Next month open another furniture company in another name. Customers and suppliers LL...

      Retail "investors" less street smart have found out the same applies to public listed company too :(

      Company bonds can default, company shares can become zero and unlisted. Yet you can't touch the business owner with his many landed properties and his other private limited companies that are different legal entities from the listed vehicle...

      That's why Poor Dad Rich Dad exalts the Business Owner quadrant so much :)

    5. Hi SMOL,

      Under S'pore law company directors have fiduciary duty to creditors when company is having financial difficulties or approaching insolvency or already insolvent. Otherwise directors (which are almost always the owners for pte ltd) can be criminally charged & personally liable for debts. The behaviour you described definitely constitutes breaking fiduciary duty LOL. Those customers & suppliers just need to approach CAD.

      The scammers target many smaller parties with just a few hundred dollars each & hoping it will be too troublesome for them to go thru the whole process which can be time consuming. ;)

      For those more law abiding business people, they may still end up personally liable especially if bank loans. The primary debtor is the pte ltd company, but often they need to put themselves down as guarantors. This is usually the case if the business is still small, else bank loans/debts can be collaterised with company shares or plant & property etc.

    6. FORMER Nominated MP Chia Shi Teck on Wednesday lost his appeal against being made bankrupt but will hardly go through life as a pauper.

      In fact, in his own words, he will be a “million-dollar bankrupt.”

      This is because Chia, who just turned 55, will have a six-figure sum in his Central Provident Fund if he sells his terrace house in Loyang Rise, which was bought partly with his CPF savings.

      Since creditors cannot seize CPF funds, Chia can technically keep the money.

      Chia, once executive chairman of the Sesdaq-listed garment company Heshe Holdings, owed four banks about $17.5mil (RM37mil) and was declared a bankrupt on July 18.


      Bankrupt CPF millionaire

    7. So is Hyflux.

      Many still a millionaires.

  2. Alamak!

    That's how the very rich do.

    Still benefits the very rich most.

  3. Actually, we like to delay after 70 too if possible especially now FD rate sucks.

    If can't trust CPF, the whole of Singapore is condemned liu.

    i think in the past there was no dedicated age limit for withdrawal.

    Must be what Spur said to stop the very rich from making CPF better than an irrevocable trust.

    FOC some more.

  4. Just imagine if U live to 99+1.

    My BIL's father did with quite good health.

    That is another 30 years of CFP interest for the decendants.


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