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CPF Interests has grown at 11% CAGR from 2005 to 2020 over the last 15 years with ZERO market volatility!
Passive income for retirement!
Posts
Uncle8888,
ReplyDeleteDon't want to burst your bubble, but for the sake of clarity ... CPF interests growth rate depends on CPF principal growth rate! ;)
So for those still climbing the mountains, look after your career & active income if you want a high CPF interest growth rate LOL!
PS: Active income can be active investing & then VC-ing the gains into CPF.
LOL! Snake oil style article on passive income!
DeleteCW,
DeleteOh good! Some body has come poked you oredi!
I just woke up, face haven't wash, teeth never brush.
Blur, blur, saw your headline and thought:
"This cannot be!? CPF interest rates only 2.5% or 4%. The most add another 1% more for the first $60K...
How can CAGR be 11% after 15 years? The math doesn't add up..."
LOL! So its snake oil style of writing!
And homemade own self makeup own self invented way of measuring CAGR!!!
You har!
P.S. Interesting there are people who swallowed hook, line, and sinker... LOL!
Ha Ha! No poke. No fun! Safe to poke!
DeleteCW,
DeleteYou're a good sport!
Imagine putting $10K under our mattresses as our "investment portfolio".
We do it for the next 15 years, $10K every year.
Then tell the world how much our initial $10K has "grown" after 15 years!
Look everyone! This is my CAGR!!!
No need say can beat Temasek. Can proudly say we have beaten Warren Buffett!!!
The best thing of all? Its passive!
We just have to sleep on it ;)
LOL!
Congrats !! 11% CAGR is much better than most of the active fund manager :D
ReplyDeleteHappy New Year 2021 !! Cheers.
:-) Happy New Year and Good Health!
DeleteThis comment has been removed by the author.
ReplyDeleteThat is gigantic passive income from CPF! Well done!
DeleteThis comment has been removed by the author.
ReplyDeleteOh dear,
DeleteI realised I made a big mistake in my earlier post.
My bad. I meant have a pandemic FREE 2021!
Gosh. Must have been the new year wine we have been trying to finish up.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHi CW,
ReplyDeleteIf CPF is so good, why you forsake CPF and buy annuity from Wonder Woman RM? Lol.
Wonder Woman RM can sell Ice to Iskimo. LOL!
DeleteWonder Woman sold the difference between CPF Life and Annunity is .. How much we can get back at the End of the Day or surrender
Annunity surrender value is fixed and guaranteed from Day One and more after Point X any bonuses declared are also guaranteed.
For CPF Life , the "surrender" value is approaching zero towards End of Day.
Hi Uncle8888 & hyom,
DeleteThe bancassurance product & CPF Life are different species of animals.
One focuses on savings, while the other focuses on current income.
I wouldn't consider that bancassurance product an "annuity" ... it's more of a cash-back endowment. What were known as cashback endowments in the 2000s have been renamed as so-called annuities in 2010s.
Annuity is a hedge against living a long time ... you hope to live forever, LOL! While endowments have maturity dates ... and you hope to live to see that date!
Although they are not apple-to-apple, but if you fix the time horizon & start at CPF-payout age of 65, you can do an XIRR comparison.
i.e. 20 years of cashflow for this bancassurance versus 20 years of CPF Life cashflow.
Cashflows refer to payments/fees into the 2 products, the payouts from the products, and the maturity amount or bequests at the end of 20 years.
It's a good maths problem for lower-Secondary student. Simple but a bit tedious with Excel/OpenOffice.
Hi Spur,
DeleteThank you for your explanation.
What attracts me about CPF is that creditors have no claims to the money inside CPF if the CPF holder goes bankrupt. This safety feature emboldens me to take more risk to make my life more colorful, though I have to remind myself to stay prudent and cautious from time to time. No other financial product in the world has this safety feature.
Hyom,
DeleteOnce the $$$$ leaves CPF, either lumpsum withdrawal or monthly payouts, it can be subject to creditors.
At the very least it can come under the Official Assignee who will determine how much you can keep for daily survival & how much for creditor repayments.
FORMER Nominated MP Chia Shi Teck on Wednesday lost his appeal against being made bankrupt but will hardly go through life as a pauper.
ReplyDeleteIn 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.
On Wednesday, his lawyer Jimmy Yim argued that it would not serve the creditors – DBS Bank, OCBC Bank, Maybank and Bank of China (BOC) – any good to have him made a bankrupt.
But Rebecca Chew of Rajah and Tann, who represented creditor BOC, painted a different picture.
Hi Spur,
ReplyDeleteA few years ago, I read that CPF Life monthly payout is protected from creditors. Someone did a screen-shot of CPF page stating so.
https://forums.hardwarezone.com.sg/money-mind-210/bankruptcy-cpf-5743475-3.html#post112071951
I can no longer find it on CPF webpage today. Not sure if there's been a rule change.
Hi hyom,
DeleteUnder the law, for undischarged bankrupts, all assets & cashflow must be reported to the Official Assignee. If they start receiving CPF Life or RSS payouts, they will also need to give notice. As CPFB and Ministry of Law are all "kaki lang", hence likely CPFB will automatically report it to the O.A.
If the monthly payouts are just a few hundred dollars, the O.A. may just let it slide. But if it's in the thousands, then the O.A. has the right & the responsibility to the creditors to see whether some of the payment stream should go towards debt repayment.
As long as the $$$$ is out of CPF, it is no longer protected from creditors.
For lumpsum withdrawal of CPF after 55, for sure the O.A. will come after undischarged bankrupts. So effectively, the money in CPF can see no touch for these people.
Unless all 3.4M Sinkies bang table & change the law LOL. It's a balancing act between rights of debtors versus rights of creditors. And I think most regular readers of this blog will side the creditors / asset owners etc. 🤣
Hi Spur,
DeleteThanks for the reminder and warning that once money is out of CPF, it is no longer protected from creditors.
The law will be reasonable to both creditor and bankruptee. Touch wood. In the very unlikely event that I become bankrupt, I believe the OA will retain enough of the monthly payout so that I have enough financially to survive without being a burden to family. That's all I ask.