Read? The Difference Between Smart Financial Advice and Smart Financial Advice For You (4)
Plenty of smart financial advices coming from the Forum if you ask whether should you top up your CPF SA to earn that 4% compounding interests!
It is world of difference between smart financial advice in general and smart financial advice that fits our own shoe!
How great is 1M40 or 1M45 or even 1M50 if we haven't reach the financial stage to convert any rich asset to cash flow?
COVID-19 is unexpected!
It also meant that anything in our life can happen; and we suddenly need that extra cash flow!
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Lol! Similar also for SRS?
ReplyDeleteAt least got option to pay penalty & tax for premature withdrawal.
In the US, there are some younger 401K millionaires who actually willing to pay penalty & income tax to get the cash before age 59.5. They must have earned enough from meme stocks or bitcoin-related stocks lol.
But generally is a very inefficient way to get your cash. Should be mentally prepared that money put into retirement vehicles can only be accessed after the stipulated age.
That's why real FIRE'ers use cash accounts. :P
CW,
ReplyDeleteThose who plan far far into the future often forget life is not a straight line extrapolation (it would be so boring).
My sibling just shared with me he just chatted with a former Singaporean hotel manager who worked in China and Turkey. Due to Wuhan virus, he has been sitting at home for a year...
Finally capitulates and just got himself trained as those swap testers for Wuhan virus.
And it not even fulltime job! Its on call whenever needed...
He is 48 years young.
CPF is far water; not very helpful when your house is burning in the here and now.
Someone who has regular contact with CPF can suggest using CPF for Jobshield like medishield and eldershield.
DeleteCW,
DeleteYou don't spoil market!
When big daddy give out wage compensations to workers affected from the Wuhan virus, its from our reserves. We'll have to pay it back, but youths are the ones on hook the most. To old fogeys like us, its getting a bit of the taxes we've paid in the past back ;)
Jobshield from CPF your head! That's taking our own savings (different from taxes paid OK?) to "compensate" ourselves for income lost. Hello!?
Must ban you from union positions.
You working for big daddy in secret right?
LOL!
DeleteWell, 2 approaches:
1) Unemployment insurance. Premiums will be deducted direct from employer, or deducted from monthly salary, or from CPF. Jobshield sounds like this :P
Western countries now try to keep the premiums low by making it very basic e.g. maximum 6 months duration, only after working for at least 1 year, $100-$200 a week, must show proof of job search & no rejecting job offers that pays at least min wage.
2) Allow people to withdraw a certain amount or % from CPF during tough job recessions. Some countries have allowed this during 2020 (from their pension). Not sure if they need to pay back into their pension. Danger is that this will lead to inadequate pension payout later on for some people, and will cause social issues. But will be problem for future politicians & future society LOL.
We've seen countries use one or both during this Covid time.
And of course politicians using taxpayer funds or debts (more likely) to give extra e.g. extending payouts beyond 6 months, or the extra $300 a week in the US. Politicians also need to secure their jobs lol!