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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Saturday, 10 October 2020

Investing Your CPFIS - Not So Easy!

Read?  New CPFIS fee caps should mean better investment outcomes


Over $27B in 2008 and under $17B in Q2 2020. 

A drastic drop of more than 37% despites CPF member balances have grown significantly!

Probably; more and more CPFIS investors learnt through hard investing lesson. It is NOT easy to beat 2.5% compounding interests over market cycles!

Read? What you will never hear at any investment seminars?




17 comments:

  1. Of my 3 accounts, SRS, cash and CPF.

    CPF seems to be doing the best because it is only fired after cash, after SRS

    ReplyDelete
    Replies
    1. Let see we can have more data points on cash, SRS and CPFIs here.

      Delete
    2. U see, the sequence of time (as a factor) is always very tellingly important.

      As one grows older, one has less time to wait or waste; the irony is now i find myself less Kan Cheong Spider.

      i have become more discerningly patience.

      But that made me missed out buying all the way down in March.

      Which in my younger day it would never happens.

      i misread/forget about the FED. Res. will come into action- especailly under TRUMP.

      The thing is always remember as long as U have gun powder, there is always another battle to fight when there is war.

      Delete
  2. Reasons for drastic drop of more than 37% in CPFIS
    - Poor investment performance
    - CHEAPER AND BETTER alternatives such as index funds/ETFs
    - Easier access to unbiased advice on internet such as investment community forums, objective financial blogs with no snake-oil agenda. One example is https://createwealth8888.blogspot.com :)

    ReplyDelete
  3. Hi Uncle8888,

    Not easy to beat 2.5% CPF rate as stomach is weaker than the brain.

    Take the following possible CPFIS fund as an example. Even if suay suay invested at the peak in Oct 2007, the CAGR till today is still 6%. Over the last 10 years the CAGR is 10%.

    It looks easy on hindsight, but many would have sold & bailed on many occasions e.g. GFC, 2012 Euro Crisis, 2015 China/oil crash, 2018 Trade war, 2020 Covid etc.

    My wife & I are invested in a similar fund. Unfortunately the returns are slightly less spectacular but also less volatile. Our stomachs cannot tahan!

    ReplyDelete
    Replies
    1. Hmm .. not easy to be investors as need both strong brain and stomach.

      Delete
  4. Do U think Trump should make a good investor?

    Too bad he's better at CONs than investing.

    By temperament, he should be a good investor, i think.

    ReplyDelete
  5. It is the same here,

    My wife's CPFIS has made much more money than me(my portfolio) because her CPFIS soldiers are reserved battalion from the beginning till now.

    But when the coast is clear, her battallion becomes commandos - 1st to anything. Go back home first.

    Left behind are my old soldiers trying to survive in difficult terrian.

    LOL.

    ReplyDelete
  6. We have never used our CPF money for shares investment. So, cannot comment on the CPFIS. However, we used almost all our OA money for property investment until at one point, I had only $7,000 left in my OA when I was in my 40s.

    Now, closer to 60, we have since returned all the money used for property back to our CPF OA. At this point in our life (strolling down the mountain), we are happy just to receive the OA 2.5% interest and SA 4% interest from Ah Gong yearly. That adds up to a tidy sum of $55,000 last year combined for the misses and me - no Mr Market risk. Looking forward to this year's post Christmas gift from Ah Gong!

    ReplyDelete
  7. I took the opportunity use CPF OA to accumulate bank stocks since March Covid19 for a longer term of 10 years.

    ReplyDelete
    Replies
    1. Yes if WITHIN this targeted 10 years anytime DBS HITS NEW PEAK PRICE, will U sell?

      For me i will.

      Because, there will be another ten years and who knows what's going to happen next?

      u never can tell.

      Delete
    2. Because Tua HO, Tua Pai type of investment.

      Delete
  8. Read China started 4 ETF funds but not open to outsider.

    May be possible indirectly if U have trade through an HK's broker.

    ReplyDelete
  9. Please beware there are many fake cryptocurrrency investment platforms out there, I got scammed twice before I met a genius hacker who helped retrieve my bitcoin. The whole plan was so smooth I could not doubt it. Bitcoin is actually a great investment option but one thing I discovered over time is that it is not possible to mine bitcoin so don’t be deceived. I invested 15BTC on a particular website called FoxBtc, I monitored the profit yielding but got locked out of the account before I could withdraw. I went online and met this recovery expert at recoverywealthnow360 on google mail who helped me retrieve my bitcoins back in few hours. He saved my life , he can save yours.

    ReplyDelete
  10. i will not be in bitcoins or any coins until i am "forced" into it by the World Central banks. Of course our G is into it too.

    And almost everbody - i rather be a late bloomer here.

    ReplyDelete

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