Read? I am on Retirement Sum Scheme (RSS) (3)
Does CPF RSS or CPF Life provide decent return on your forced savings for retirement?
Decent return on savings over 33 yrs?
Do we still hate or dislike CPF?
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34 minutes ago
CW,
ReplyDeleteWell, everything in context.
Once upon a time, some financially astute CPF members would "cry father, cry mother" the returns on CPF too low. Look! We can easily earn more OUTSIDE of CPF!
Big daddy probably agrees.
If not, why create CPFIS if they think CPF returns were adequate to fund our retirements??? (Pause and reflect)
OK, some more cynical ones may counter big daddy where got so "altruistic"?
CPFIS was created as the carrot to lure and support the fledgling fund management industry they trying to attract to Singapore. (Got HK friends in the fund management industry ask them what they think of our move at that time)
Anyone remember big daddy or anyone promoting voluntarily contributing to CPF during that time? (You wouldn't go against big daddy, would you?)
Fast forward to today. In this bizarro world of negative interest rates, the pendulum has swung over to the other side...
Now big daddy has "admitted" CPFIS is not fit for purpose... Whatever that meant!
We just know we don't want to be that guy who lost $350K using CPFIS, and is now blaming big daddy for his losses... Although CPFIS is a voluntary scheme...
CPF contribution is MANDATORY by law. There is nothing to like or hate.
But voluntarily taking money out using CPFIS, or voluntarily putting money in, well, that may depend on your mileage, my mileage.
We are all different.
Some calculate using nominal returns; some calculate using REAL returns (inflation adjusted).
Wink.
Hi Uncle8888,
ReplyDeleteOk, my "precision mode" coming out ... since you're withdrawing monthly over 23 years, the xirr would be closer to 4.7% rather than 2.8%
It's thanks to (1) low headline inflation, (2) minimum cpf rates by law, and (3) political difficulty in changing said law, that makes CPF such a "likeable" fellow to many people. ;)
Masses make for fickle fans though.
If local economy runs hot for an extended number of years & assets like stocks and properties keep melting up (like most of 1980s & first half of 1990s), the crowds will be howling a different tune. LOL.
Next GE, opposition campaign on Return Our CPF. Lol
DeleteIf passive income from other sources can cover expenses can delay under low return investment environment. :-)
ReplyDeleteI know of a kind old lady who can generate enough money from CPF to cover expense just from CPF alone. In her case, no need to worry about returns in percentage terms for CPF. No need to get too worried about getting higher returns from alternative investments outside CPF to beat inflation. Why worry about inflation down the road when one is already old and nearing life's journey? Why worry about the long-term when one may not even be around in the short-term?
ReplyDeleteMy advice to her is to enjoy the remainder of her life while she still has the health to do so, do whatever things she wanted to do when she was young, and stop worrying about her children. If she needs to worry about her children at her age, then something is seriously wrong about the children and if there's nothing seriously wrong with them, her constant worrying is an insult to her children. Don't worry, be happy.
Mother nature to worry over their children even Mothers in their 70s worry over their 50s yrs old children. All mothers must learn hard to let go Mother nature! :-)
Delete