If you are looking at safe, capital protected, low returns, and high liquidity, why not just leave it in CPF OA? at 55, after meeting your FRS sum, it's much like an ATM that gives you a guaranteed 2.5% return... instead of considering all those funds/insurance products that are not guaranteed
Isn’t leaving money into the 2.5% OA better than buying another annuity with no or lower guaranteed returns? When you need cash, you can withdraw from OA post 55, but you will suffer a very big penalty when you surrender your insurance policy.
Hi Lynn, thank you for sharing your thoughts. May I refer you to my previous two videos? The first video titled "CPF at 55: Why I'm Keeping Only the Full Retirement Sum FRS" talked about why I decided to withdraw (out of OA) excess funds above FRS. In the second video titled "CPF at 55: 2 Alternatives I’m Considering for My Lump Sum Withdrawal", Simon Chan from PhillipCapital proposed 2 plans that are suitable for my situation and what I hope to achieve with my funds. The criteria for withdrawing funds was also spelt out.
Everyone's lifespan differs but CPF is one size fits all. How brutal! Life is not about how much you saved untouched but how the savings is used to fulfill your dreams before your life ends . A billionaire typically left a huge portion of his billions never touched and dies like that old dictator.
Hi Mr Ku. If you are 70 with ERS under MSS scheme. Will you join cpf life or stay with MSS or join cpf life at age 79 pse share your thoughts. Thank you.
I throw this to you smart sgrean alexs for rebuttals and responses: 1. How much is the total Lost? You Don't Know lah. This free question I answered for you. 2. If a bank has lost a lot of money, can it return the depositors large sums of withdrawal? Politically safe answer is I have no clue. You tell me. This is a hypothetical question though. Why? Cos we don't know secrets. So the moral of the story is we need transparency , check and balance to secure the future of your children.
I'm surprised that long dated Temasek bonds were not in the consideration when liquidity & safety is of utmost importance. If you can do your sums and find that buying it in USD is still ok, then one can get an effective yield to call/maturity of close to 5%pa. Unless you find that Temasek's bond rating of AAA is still risky, I have nothing to say. Yes, there will be fluctuations along the way but the bond's price should not be any concern since your calculations are based on receiving it back at par value on maturity. Only factor would be exchange rates back to SGD at that point. Such long dated issues have the advantage of selling at a profit anytime (when exchange rate and bond price in your favour). Or should USD funding rates drop to say below 4% one day, you could even leverage for a positive carry if you like
Totally dont agree with you on the way you handle your financial planning. Sorry… Your cpf is for your own retirment. Not for your extended family. Scared get cancer that eats into your $, buy insurance.
Please draw whatever when hit 55..u left it in cpf not knowing u might die if accident in any next minute..come on, the fk u study study study work work work save save save for what?
Honest comprehensive, pl have more of such videos
If you are looking at safe, capital protected, low returns, and high liquidity, why not just leave it in CPF OA? at 55, after meeting your FRS sum, it's much like an ATM that gives you a guaranteed 2.5% return... instead of considering all those funds/insurance products that are not guaranteed
Comprehensive on the possible scenarios
Isn’t leaving money into the 2.5% OA better than buying another annuity with no or lower guaranteed returns? When you need cash, you can withdraw from OA post 55, but you will suffer a very big penalty when you surrender your insurance policy.
Hi Lynn, thank you for sharing your thoughts. May I refer you to my previous two videos? The first video titled "CPF at 55: Why I'm Keeping Only the Full Retirement Sum FRS" talked about why I decided to withdraw (out of OA) excess funds above FRS. In the second video titled "CPF at 55: 2 Alternatives I’m Considering for My Lump Sum Withdrawal", Simon Chan from PhillipCapital proposed 2 plans that are suitable for my situation and what I hope to achieve with my funds. The criteria for withdrawing funds was also spelt out.
Thanks
This is pure financial decision. Don’t mix with other life decisions.
Everyone's lifespan differs but CPF is one size fits all. How brutal! Life is not about how much you saved untouched but how the savings is used to fulfill your dreams before your life ends . A billionaire typically left a huge portion of his billions never touched and dies like that old dictator.
Hi Mr Ku.
If you are 70 with ERS under MSS scheme. Will you join cpf life or stay with MSS or join cpf life at age 79 pse share your thoughts. Thank you.
I will only leave BRS, cause the garmen keep on changing and changing...I don't trust them at all with my hard earned money
I throw this to you smart sgrean alexs for rebuttals and responses:
1. How much is the total Lost?
You Don't Know lah. This free question I answered for you.
2. If a bank has lost a lot of money, can it return the depositors large sums of withdrawal?
Politically safe answer is I have no clue. You tell me.
This is a hypothetical question though. Why? Cos we don't know secrets. So the moral of the story is we need transparency , check and balance to secure the future of your children.
I'm surprised that long dated Temasek bonds were not in the consideration when liquidity & safety is of utmost importance. If you can do your sums and find that buying it in USD is still ok, then one can get an effective yield to call/maturity of close to 5%pa. Unless you find that Temasek's bond rating of AAA is still risky, I have nothing to say. Yes, there will be fluctuations along the way but the bond's price should not be any concern since your calculations are based on receiving it back at par value on maturity. Only factor would be exchange rates back to SGD at that point. Such long dated issues have the advantage of selling at a profit anytime (when exchange rate and bond price in your favour). Or should USD funding rates drop to say below 4% one day, you could even leverage for a positive carry if you like
Pse share where to buy this Temasek US$ bond. Thank you
Totally dont agree with you on the way you handle your financial planning. Sorry…
Your cpf is for your own retirment. Not for your extended family.
Scared get cancer that eats into your $, buy insurance.
Please draw whatever when hit 55..u left it in cpf not knowing u might die if accident in any next minute..come on, the fk u study study study work work work save save save for what?
Get to the point…