tag:blogger.com,1999:blog-1602023866179666640.post8261105956283944251..comments2024-03-22T00:30:54.666+08:00Comments on Create Wealth Through Long-Term Investing and Short-Term Trading: 1M65 CPF OA Possible Or Not??? (2)Createwealth8888http://www.blogger.com/profile/08563834016250153049noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1602023866179666640.post-17531131315176002922021-07-30T09:31:18.985+08:002021-07-30T09:31:18.985+08:00First of all, it is really remarkable for the 67 y...First of all, it is really remarkable for the 67 yo lady to be able to maintain such high CPF savings and still contributing to it yearly at her age. For the vast majority of people, they would be already drawing down on their CPF money the moment they turned 55 ! So, salute to her!<br /><br />And indeed, earning more is an important factor to have such healthy numbers in one's CPF.<br /><br />Increasingly though, I am seeing younger and younger people attaining such numbers in their CPF savings. For example, at 60, I have the same numbers as the lady (ie at 1.7M60) and if I continue to be able to contribute the maximum ($37,740) each year, I will attain 2M64. But if I stop work now, my contribution will stop too and I will start to draw out the interests.<br /><br />And a younger relative told me that he will attain 2M60. All this happens as the sentiments towards the CPF turns positive with more and more people seeing the benefits of having a solid CPF savings foundation.<br /><br />And given the knowledge of CPF savings hacks, it is no longer just about earning more. It is also about leveraging on the compounding interests of the CPF and the time horizon.<br /><br />For eg. if a person tops up his child's CPF to the full of the SA and MA, ie $186,000 to the SA and $63,000 to the MA for the child at age 25, in 40 years' time, the child's CPF would grow to $1,195,000! <br /><br />That's a "gain" of $946,000 from Ah Gong for a small investment of $186,000 + $63,000 = $249,000 !<br /><br />You can understand why there are people happily topping up their children's CPF!! I am guilty of doing this for my children. Could not afford to top up to the full FRS and BHS, but in the low tens of thousands. <br /><br /><br /><br />mysecretinvestmenthttps://www.blogger.com/profile/16700632508434787208noreply@blogger.comtag:blogger.com,1999:blog-1602023866179666640.post-20084835805769328482021-07-25T16:29:40.470+08:002021-07-25T16:29:40.470+08:00Hi Uncle8888,
A lot of late-Boomer & early-Ge...Hi Uncle8888,<br /><br />A lot of late-Boomer & early-Gen X have been "discovering" CPF as their go-to stash for packing away $$$$, particularly refunding housing withdrawals & maxing out SA/RA.<br /><br />A poly grad can hit $1M total in CPF by late-50s just by salary contribution, provided -- here's the kicker -- don't use CPF for housing, lol.<br /><br />Pretty unrealistic in S'pore. And also unattractive ... until that person is in his late 40s or 50s.<br /><br /><br />A simple rule of thumb for retirement savings is to "save" 15% of salary ... but this is provided the savings are always invested e.g. S&P500 fund.<br /><br />For CPF where there's no proper & mandatory investment, for average joes to depend on CPF for retirement, it means the average 28% allocation to OA and SA should not be touched if a person wants the amount to be enough by 55-60 yrs old.Spurhttps://www.blogger.com/profile/11824813457786462446noreply@blogger.comtag:blogger.com,1999:blog-1602023866179666640.post-69102689566016224772021-07-25T12:11:25.670+08:002021-07-25T12:11:25.670+08:00CW,
This kind of meant well, if I can so can you ...CW,<br /><br />This kind of meant well, if I can so can you articles, merely serves to highlight the elephant in the room:<br /><br />Earn more.<br /><br /><br />The math couldn't be simpler. <br /><br />Just save $50K per year under the mattress, in 20 years we'll be millionaires. <br /><br />No need any compounding interests some more!<br /><br /><br />Just don't ask HOW you can save $50K when you are earning the median wage and below...<br /><br />Unless you want to be patronised with:<br /><br />Save more.<br /><br /><br /><br />Singapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.com