Earning more than your boss? (2)

Read? Earning more than your boss?

Time for Ah Q thinking and smiles!

CPF balance higher than our boss?

Be much better CPFIS investor than our boss; and one day our CPF balance will catch up and overtake them! LOL!

SundayTimes : Use Cash, not CPF if you want to invest

Nowadays;  more and more Fund Managers are thinking on ways to fatten their commissions or AUM/AUA fees by telling you investing CPF fund is so easy and PASSIVE! Show you the fund performance! Bom pi pi return as we are still in secular Bull Run since 2009 GFC!

Uncle8888 fully agreed! Read this? Your CPF Investment Account : Uncle8888's foolish advice again!!! (5)

Proved to yourself that you can consistently perform better than CPFIS 2.5% CAGR interests growth with your cash investment before touching your CPFIS!

CPF money is paper money before 55; but when you reach 55 this or next year you smile. CPF OA 2.5% is currently the best FD without any lock up period. Anytime you want to withdraw interests to spend freely; CPF can PayNow! Within 15 sec! Money into your pocket now! Hee Hee!

 

Read? Posts relating to CPFIS

Becoming Successful CPFIS DIY Retail Investors???

 Our CPF OA 

The Ordinary Wage (OW) Ceiling limits the amount of OW that would attract CPF contributions. The OW Ceiling is capped at $6,000 currently. For example, if an employee’s OW for a calendar month is $6,500, his CPF contribution would be computed based on an OW of $6,000; CPF contribution is not required on the remaining $500.

Read? CPF Contribution and Allocation Rates


Median Income in Singapore

Read? Income growth slows in Singapore; median salary now above S$4,500: MOM report

Read? ​Summary Table: Income

The nominal median income of Singapore residents on full-time employment increased this year to S$4,563 from the S$4,437 recorded in 2018, the Ministry of Manpower (MOM) report said.


How big is our CPFIS as war chest for market timing for the next few STI crashes?

Assuming $6K monthly CPF cap and 2 months bonus i.e. total 14 months of CPF OA and 35% of CPFOA to grow CPFIS as war chest.

From the numbers,  it seen that most of us may not have high 6 digits in CPFIS as war chest.

So what is the other strategy to deploy our CPFIS fund into the SGX other than investing in managed fund as retail investor?

Read? Relating to CPFIS

Should I Use CPF OA or Cash To Pay My Home Mortgages???

OT834 January 2018 at 12:24:00 GMT+8

Hi Uncle CW,

Huat ah! Power! But nowaday all use CPF to pay house. Even mandatory contribution also doesn't have much compounding effect already.

Hmm .... may be how some of you or many of you also think like OT.

Should I use CPF OA or cash to pay my home mortgages?

Three scenarios for home mortgages here:

1. No spare cash so no choice has to pay home mortgages with CPF OA

2. Use spare cash to pay home mortgages and CPF OA to earn compounding 2.5%  interests

3. Use CPF OA pay home mortgages and spare cash to earn compounding investment return

1. No spare cash so no choice has to pay home mortgages with CPF OA 

"But nowaday all use CPF to pay house. Even mandatory contribution also doesn't have much compounding effect already."

The response from Uncle8888 to the above statement is No hor!

The compounding effect of CPF OA 2.5% interests is intact. It is just compounding inside the value of your residential home and out of CPF OA account!

How come and why like that?

In this case; you are using your CPF OA and accrued 2.5% compounding interests as your investing capital for home mortgages.

When you decided to sell unlock the net capital gains of your home property after deducting the cost of (1) fully paid replacement home,  (2) total mortgages using CPF OA and (3) accrued interests and (4) any other fees

2. Use spare cash to pay home mortgages and CPF OA to earn compounding 2.5%  interests

Your spare cash as capital invested in your home property. Same as Case 1 you will earn net capital gains after deducting the cost of (1) fully paid replacement home,  (2) total mortgages and (3) any other fees

Your CPF OA will continue to earn 2.5% compounding interests

3. Use CPF OA pay home mortgages and spare cash to earn compounding investment return



For CPF OA; it is same as in Case 1!

For cash, you will earn compounding investment return.


Technically and Mathematically; your CPF OA will continue to earn 2.5% compounding interests till you decided to fund your retirement income with either your CPF OA account itself or through CPF OA refund on mortgages and accrued interests.


Any significant Pros or Cons?

If any; it will lie in your heart!

The financial difference will be capital appreciation of your home property and your investing skills across market cycles in whichever scenario you have taken.

HOW MUCH MONEY CAN YOU WITHDRAW FROM YOUR CPF AT 55???

If we need to know how much money we can withdraw from our CPF at 55; we MAY have failed in our retirement planning unless we already plan to retire after 55.

So far what Uncle8888 knows from his peers who are 55 and above; NONE of them bother about how much they can withdraw at 55 as they plan to touch their CPF only after their retirement at 62/65 to 67. 

So how much can we withdraw at 62/65 to 67?


No worry!

By then; it is already done deal!

It is whatever we have in our CPF SA and CPF OA. It is just that simple!

After 55

Soon I will be working for less!

Average CPF member is not stock market savvy?

Read? Resident wants ban on CPF cash for investments

"Allowing people to buy shares with their CPF money is like sending lambs to the slaughterhouse." 'The average CPF member is not stock market savvy." -  Ngiam Tong Dow

This is what Mr. Ngiam thinks; but how does an average CPF member thinks of his/her investing skills?

Probably like drivers on the road most of them will think that they are above-average.