Uncle8888 also joins in the Fun!
Assuming you have the flexibility to pay home mortgage with either CPF or Cash; Uncle8888 will vote for CPF. Why?
If you are decades away from 55; your CPF is just Rich Asset making you feeling good! Every year you smile when you login into CPF online to check CPF interests. Passive income!
Passive income?
Chun bo?
Unfortunately; you kena retrenched and month after month still cannot find a job. Your CPF interests still passive income?
Before 55; CPF is NOT King. Your Cash is King!
You can use your Cash to invest 100% or less! Up to you! Your skills and investment outcome should be telling you whether you should continue to be investing MORE or saving MORE!
During emergency or unfortunately kena retrenched; your Cash is Handsome King!
When your investment outcome clearly indicates that you should be taking up the Saver route; then you start to refund your housing loan back to CPF OA. Finally, one day you realized your mistakes of listening to investment warriors in the cyber world to invest to become rich. Instead of becoming rich in the market; you are slaves in the market making them richer!
By this time of awakening; you should be nearer to 55 when you started to refund your housing loan to CPF OA.
When you reach 55; your CPF is Handsome King!
Posts
CW,
ReplyDeleteI always cheer youths - your strength is you do not know what cannot be done!
Even when wrong, there's always - crash got sound!
So its all good provide one can profit from our own mistakes ;)
Of course those of us with a bit of life experience eating lots of salt will nod in agreement with you.
When I see youths turning $10K into $1 million with cryptos, I would rather cheer them on even though I am too old for taking such risks... Even if they lose everything, how much can do lose? Its better to have loved and lost than never loved at all ;)
But when I see youths spending time sweating the small stuffs trying to squeeze 1-2% extra from CPF... Money gone can recover; youth once gone is forever gone. There's always time enough to do old fogey stuffs at around age 55. CPF hacks are plan Z when all else have failed. Its not even an "investment".
Not sure whether we need more math or more literature. Just visualise your retirement. Do you prefer to have CPF as a big chunk of your total assets or just a tiny sliver?
Doesn't matter use cash or CPF. Just make sure your home doesn't consume more than 25% of it ... unless you're treating your home as a piggy bank or capital speculation. ;)
ReplyDeletePS: People shld have emergency funds irrespective of using cash or CPF. No fun kena retrenched & all your money in stocks that have also crashed. In fact for those who max out their OA for property, they shld have larger emergency funds.
Spur,
DeleteGood point.
You definitely not those so called property "gurus" who are advising their students (captive audience) to sell their HDB flat to "invest" in 2 condo units. I wouldn't be surprised these "gurus" are working for the condo developers! LOL!
But when youths have goals to reach FIRE by age 35, or save more old fogeys trying to makeup for lost time, any cash lying around is dead weight so to them there is no such thing as emergency fund - there is only opportunity fund ;)
I was feeling "invincible" passing health checks year after year, that's until a few years back when I'm diagnosed as pre-diabetic... Only then do I start cutting down on sugary drinks and have kopi kosong. Good luck trying to advise me to cutdown on bubble tea before I knew I was pre-diabetic!
We only start to care when the pin actually pricks our skins ;)
SMOL,
DeleteBrown rice reduces diabetes risk. Me and my whole family eat brown rice. Any extra money spent on proven healthy stuff is money worth spending on.
You need health to remain as a man of leisure. At least outlive mama.
https://www.webmd.com/diabetes/news/20100614/brown-rice-vs-white-rice-which-is-better
hyom,
DeleteI walk in the evenings. During the day, there's walk here, walk there too ;)
City walker mah!
No diet change except cutting down on my favourite soft drinks and switching to kopi kosong.
Then there's intermittent fasting with 2 meals a day. Sometimes in the mood will do OMAD - one meal a day.
Other than that, I still eat rice, noodles, and everything else.
Weight came down. My blood test 6 months ago has shown improvement in my resting blood sugar.
Its all good :)
From early 20s to mid 50s, why save up in an untouchable account at the expense of touchable savings account? It's more logical to spend using the untouchable account to build up the touchable savings account first. At least up to a point where one has a comfortable safety net for rainy days. Quite unavoidable to have some rainy days between 20s to mid 50s.
ReplyDeleteWell said!
Deletehyom,
DeleteI would like to think we are the silent majority ;)
Going by the amount of postings in both the media and blogosphere about CPF hacks, one can be forgiven to think we can't get better returns OUTSIDE of CPF!?
What's the point of pursuing financial literacy then? Isn't it about earning more? And protecting what we've earned from the effects of inflation?
Then again, with pay cuts, retrenchments, and "early" retirements, contributions into CPF may drop, but money out through CPF Life will only increase from aging population.
So its good, better, best that others are willing to voluntarily contribute into CPF.
I sleep better knowing more money goes into CPF than out ;)
"Going by the amount of postings in both the media and blogosphere about CPF hacks, one can be forgiven to think we can't get better returns OUTSIDE of CPF!?
ReplyDeleteWhat's the point of pursuing financial literacy then? Isn't it about earning more? And protecting what we've earned from the effects of inflation?"
Yalor! (But, don't poke me for parroting)
Read? The Dilemma Of Young Personal Financial Investment Influencers
CW,
ReplyDeleteWhen monkeys and parrots were raving about the Emperor's new clothes, the ant and grasshopper stopped arguing for a moment, turned and looked at each other, "The Emperor got wear any clothes meh?"
:-)
Delete