I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.
Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.
@@skoopqueen. That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@eadad4371 look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located
@@skoopqueen. I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me .
Comparing between the Standard Plan and Basic Plan, I feel that the Basic Plan is the fairer plan at age 80 (as you still retain more than 50 percent of your RA value at age 65 due to the accumulated interest earn + principal) whereas the Standard Plan has no more CPF money left over for your loved ones should you pass on at age 80 (as the RA is paid for the insurance Premium which forego the right to earn any interest and any earned interest is pooled in an Annuity Pool to pay other people who live long long). At least if I conk off at that age 80, I can still pass on more than 50 percent of my CPF RA value at age 65 to my loved ones!
You will be informed before you turn 65 whether you will be automatically included in CPF LIFE. Check out the CPF link for more info : www.cpf.gov.sg/member/faq/retirement-income/monthly-payouts/what-is-the-latest-age-to-join-cpf-life
It sounds very good that it will continue to pay you beyond 80 years old. But is there a.back door clause for CPF.or govt to change the rule so that they don't have to continue paying you in the future if they somehow reason that they don'thave enough fund in the pool to continue payingthe rest of surviving members?
Good question. Even if there is a change, I think it would apply prospectively. So once we are enrolled into the plan, I don't think there will be drastic changes. - Just my two cents.
The dollar amount in CPF LIFE monthly payouts may be adjusted if CPF calculates the annuity pool does not have enough funds to cover more surviving members.
If you are on RSS, the payout is higher than if you are on CPF Life. Even if you pass on prematurely, your benefiary will receive every single cent from your RSS, that is principal + interest. Under CPF Life, your beneficiary will receive only the principal.
You are right, I am not interested in any private annuity. Personally, I prefer having the flexibility to spend my retirement monies. Hence, I would prefer to invest my monies in diversified investments. However, I do agree with you that CPF Life could be one of the best annuity out there for people who wants diversification, assurance or are not confident of their financial discipline.
By pledging the property, it doesn't affect how you are financing the property. The only impact of pledging your property is that if you do sell your property, the pledged amount will be returned to your CPF account, along with the CPF monies (and accrued interest) you used to pay for the property over the years.
When comparing CPF Life and RSS(old scheme), I will prefer RSS better. For RSS, At 65, $145,200, using just 4% to calculate, it will take slightly more than 23 year to deplete. Meaning RSS payout will least until 88 years old. Therefore under CPF Life, if the person does not live longer than 88 years old, the person actually lose out. Secondly If the person die at 80 years old, under CPF LIFE, there is no money left to for beneficiary. Under RSS, there will be remaining balance(since it last until 88 years old) to give to beneficiary.
My wife and me will keep ERS in our CPFRA. Might choose Escalating Plan when we reach 65 yo. Because of the lower initial payout of CPF LIFE, we bought few private annuity plans to cover the "loss".
Yes, 4% plus $900 assuming minimum CPF combined balance of $60k. CPF LIFE annuity plan also earns 4%. So the content at 08:55 where no interest is earned on the CPF LIFE Premium is incorrect.
Hi Evelyn. No doubt, every CPF members drawing down from their OWN pot of gold [capital (BRS/FRS/ERS @ age 55) + interest accumulated since day 1 of age 55 till as long as one reaches about age 81 (for standard & escalating plans) or about 91 (for basic plan)], and one only stand to gain “free” money if one lives PAST age 81 or 91 (depending on whicih CPF LIfe plan one chooses), it is still the BEST annuity plan, in my opinion, given that it is: (1) life long + (2) “RISK FREE” (barring changes from govt on the policy such as retirement/drawdown age) + (3) HIGH interest (not many other retirement policy actually pays 6% (1st $30k), 5% (2nd $30k) and 4% (excess $60k). I wonder why you say that you are NOT in favour of CPF Life, unless you can find a financial product out in the market accessible to mass public retail investors that fulfil all 3 critiera that I have highlighted above.
may be a "better" annuity but annuities are such a poor investment choice IMO. Too much opportunity cost. Locking up $145k and only $10k yearly payout for life is not gonna be sufficient especially factoring in inflation. Rather have my hard-earned savings in a diversified basket of blue chips and/or bonds..
Hi Jason, Thanks for your insights. I am not a financial advisor so I may not be familiar with other annuity plans. But I am not a fan of annuity plans and prefers investing in safe stocks because I don't like to have my money locked up like in the case of CPF LIFE or any other annuity plans which give low returns. But I do agree CPF life is a safe retirement approach and suitable for people who are not confident of their financial discipline, not familiar with investing and does not want complications when they are old.
@@felixt6335 Totally agree with you! After I know how to invest, I've never looked at annuities the same way again. Stocks allow me to grow money at a much faster rate.
Hi, you will not be able to make CPF transfers to your Special Account (SA) after you turn 55. You can only transfer your Ordinary Account savings to your RA.
Very comprehensive and enlightening. Indeed, this plan is suitable for those who are not good in investment. But forgoing the interest for 15yrs is hard to swallow. It seems that you are being punished if you have short life span, being shorter life span is already a punishment, a double punishment?! Govt does not encourage betting, but this CPF Life is all abt betting, u hv to bet whether u will live short or long to decide on the RA amt and types of plans to enroll in.
Couldn't agree more with you. I guess from govrn's POV, this is a basic insurance that they want us to have when we are old. But perhaps it would be good if they could give an option for people who are able to meet a certain level financial independence to opt out of this scheme.
It’s a bit like Annuity given it’s guaranteed and no risk. CPF life may not be sufficient for a family. We should look at CPF LIFE as a basic minimum amount that’s secured for as long as we live. On top of that we will use our other investments(which will have some form of risk). The advantage of CPF Life is the security and guarantee you get for a basic amount that will secure a simple life. There is something called sequence of return risk when we depend purely on investments to sustain our post retirement period.. CPF life helps to protect from those with guaranteed income. Ofcourse it’s true, those who are financially savvy can find ways to manage. But, for the large part of people, they can’t.
As you get much older, you may not be able to manage your investment as well /or have the energy. Putting some in cpf life .. might be good .. as a form of diversification and no need to bother with mkt volatility .
CPF Life is just one of the layers in retirement. It could provide some financial stability and cushion any black swan events, if we have investments in stocks. As seen in the COVID-19 situation (black swan), dividend-paying stocks like REITs are badly affected, so for retirees, CPF Life could be a blessing in disguise. I think how we could think of retirement is ensuring we don't put all eggs into one basket and there're multiple income streams. Personally, I think FRS will be sufficient for me, since I also have stock investments.
For the investment savvy ones, cpf life sucks... Bec it's your own money paying yourself. Free money from garmen only kicks in after 80. 🤭 For the old uncles and aunties who does not know what Qqq stands for, 😁😁, then cpf life is a life saver for them. Like what evenlyn says, leave the bare minimum and stake the excess somewhere that will make you happy, including going for the long overdue vacation.. After all, money is as equally precious as memory. 😀 Happy retiring, folks.....!
I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing!
Very inspiring! I love this.
Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.
@@skoopqueen. That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@eadad4371 look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located
@@skoopqueen. I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me .
Comparing between the Standard Plan and Basic Plan, I feel that the Basic Plan is the fairer plan at age 80 (as you still retain more than 50 percent of your RA value at age 65 due to the accumulated interest earn + principal) whereas the Standard Plan has no more CPF money left over for your loved ones should you pass on at age 80 (as the RA is paid for the insurance Premium which forego the right to earn any interest and any earned interest is pooled in an Annuity Pool to pay other people who live long long).
At least if I conk off at that age 80, I can still pass on more than 50 percent of my CPF RA value at age 65 to my loved ones!
It's only "unfair" if one doesn't factor how important the general society's retirement sustainability financially and just focusing on self interests
Will cpf ask me about 1-2 months before my 65 aged to decide which CPF LIFE plan to opt for?
You will be informed before you turn 65 whether you will be automatically included in CPF LIFE. Check out the CPF link for more info : www.cpf.gov.sg/member/faq/retirement-income/monthly-payouts/what-is-the-latest-age-to-join-cpf-life
It sounds very good that it will continue to pay you beyond 80 years old. But is there a.back door clause for CPF.or govt to change the rule so that they don't have to continue paying you in the future if they somehow reason that they don'thave enough fund in the pool to continue payingthe rest of surviving members?
Good question. Even if there is a change, I think it would apply prospectively. So once we are enrolled into the plan, I don't think there will be drastic changes. - Just my two cents.
The dollar amount in CPF LIFE monthly payouts may be adjusted if CPF calculates the annuity pool does not have enough funds to cover more surviving members.
If you are on RSS, the payout is higher than if you are on CPF Life. Even if you pass on prematurely, your benefiary will receive every single cent from your RSS, that is principal + interest. Under CPF Life, your beneficiary will receive only the principal.
Thanks for sharing !
To me not all will live to 65....if possible i will withdrawl as much as possible when i turn 55.The rest is history !!!!
Yeah. Withdraw first, at least get to spend it all by ourselves! Or save, invest, whichever we like.
Such a clear explanation! Thank you!
any consequence if i peg my hdb property to meet the BRS?
any consequence to sale of my hdb, price valuation, rental, rental approval etc ?
When the property is sold, the amount of the pledge will be returned to your CPF account from the proceeds of the sale.
I heard CPF Life is the best annuity out there. Dislike it means you are not interested in any private annuity ? Like to hear your thoughts.
You are right, I am not interested in any private annuity. Personally, I prefer having the flexibility to spend my retirement monies. Hence, I would prefer to invest my monies in diversified investments.
However, I do agree with you that CPF Life could be one of the best annuity out there for people who wants diversification, assurance or are not confident of their financial discipline.
To pledge the property .. How it works? Does it means I don't have an outstanding loan ? thanks
By pledging the property, it doesn't affect how you are financing the property.
The only impact of pledging your property is that if you do sell your property, the pledged amount will be returned to your CPF account, along with the CPF monies (and accrued interest) you used to pay for the property over the years.
When comparing CPF Life and RSS(old scheme), I will prefer RSS better. For RSS, At 65, $145,200, using just 4% to calculate, it will take slightly more than 23 year to deplete. Meaning RSS payout will least until 88 years old. Therefore under CPF Life, if the person does not live longer than 88 years old, the person actually lose out. Secondly If the person die at 80 years old, under CPF LIFE, there is no money left to for beneficiary. Under RSS, there will be remaining balance(since it last until 88 years old) to give to beneficiary.
My wife and me will keep ERS in our CPFRA. Might choose Escalating Plan when we reach 65 yo. Because of the lower initial payout of CPF LIFE, we bought few private annuity plans to cover the "loss".
great explanation and insights!
Great video and good effort.
Glad you enjoyed it :)
Does your RA earn interest of 4% after 65
Yes it does, if there is still remaining balance in the RA. Do note that when CPF LIFE is enrolled, the premium is deducted from your RA.
Yes, 4% plus $900 assuming minimum CPF combined balance of $60k. CPF LIFE annuity plan also earns 4%. So the content at 08:55 where no interest is earned on the CPF LIFE Premium is incorrect.
Hi Evelyn.
No doubt, every CPF members drawing down from their OWN pot of gold [capital (BRS/FRS/ERS @ age 55) + interest accumulated since day 1 of age 55 till as long as one reaches about age 81 (for standard & escalating plans) or about 91 (for basic plan)], and one only stand to gain “free” money if one lives PAST age 81 or 91 (depending on whicih CPF LIfe plan one chooses), it is still the BEST annuity plan, in my opinion, given that it is: (1) life long + (2) “RISK FREE” (barring changes from govt on the policy such as retirement/drawdown age) + (3) HIGH interest (not many other retirement policy actually pays 6% (1st $30k), 5% (2nd $30k) and 4% (excess $60k).
I wonder why you say that you are NOT in favour of CPF Life, unless you can find a financial product out in the market accessible to mass public retail investors that fulfil all 3 critiera that I have highlighted above.
may be a "better" annuity but annuities are such a poor investment choice IMO. Too much opportunity cost. Locking up $145k and only $10k yearly payout for life is not gonna be sufficient especially factoring in inflation. Rather have my hard-earned savings in a diversified basket of blue chips and/or bonds..
Hi Jason,
Thanks for your insights.
I am not a financial advisor so I may not be familiar with other annuity plans. But I am not a fan of annuity plans and prefers investing in safe stocks because I don't like to have my money locked up like in the case of CPF LIFE or any other annuity plans which give low returns.
But I do agree CPF life is a safe retirement approach and suitable for people who are not confident of their financial discipline, not familiar with investing and does not want complications when they are old.
@@felixt6335 Totally agree with you! After I know how to invest, I've never looked at annuities the same way again. Stocks allow me to grow money at a much faster rate.
@@evelynthoughts it would be good if you could create a youtube video that shows how you invest.
Evelyn should not have wasted her time making videos. Investment is the key.
You should be spending time baby sitting your investments, so why are you 'wasting time' coming here?
Can i top-up my SA from transfer from OA ? I am 73 years and have reached FRS.
Hi, you will not be able to make CPF transfers to your Special Account (SA) after you turn 55. You can only transfer your Ordinary Account savings to your RA.
@@evelynthoughtstechically both are same right ?!
Very comprehensive and enlightening. Indeed, this plan is suitable for those who are not good in investment. But forgoing the interest for 15yrs is hard to swallow. It seems that you are being punished if you have short life span, being shorter life span is already a punishment, a double punishment?! Govt does not encourage betting, but this CPF Life is all abt betting, u hv to bet whether u will live short or long to decide on the RA amt and types of plans to enroll in.
Couldn't agree more with you. I guess from govrn's POV, this is a basic insurance that they want us to have when we are old. But perhaps it would be good if they could give an option for people who are able to meet a certain level financial independence to opt out of this scheme.
It’s a bit like Annuity given it’s guaranteed and no risk. CPF life may not be sufficient for a family. We should look at CPF LIFE as a basic minimum amount that’s secured for as long as we live. On top of that we will use our other investments(which will have some form of risk). The advantage of CPF Life is the security and guarantee you get for a basic amount that will secure a simple life. There is something called sequence of return risk when we depend purely on investments to sustain our post retirement period.. CPF life helps to protect from those with guaranteed income.
Ofcourse it’s true, those who are financially savvy can find ways to manage. But, for the large part of people, they can’t.
@@evelynthoughts Already at that old age liao still wanna earn so much money for what? Can bring together with you ar? lol
As you get much older, you may not be able to manage your investment as well /or have the energy. Putting some in cpf life .. might be good .. as a form of diversification and no need to bother with mkt volatility .
Yup agree. Based on personal preference. CPF life is suitable for people who dislike complexity when they are old.
Safe investment.
@@renatang7275 There is no such thing as a safe investment instrument.
@@jinngeechia9715 For eg. Fully paid up FH property is an ultra safe investment right?
@Nigel still no. You are still subject to whims of the property market. Nothing is safe. Even your SDIC protected monies. Inflation eats it.
CPF Life is just one of the layers in retirement. It could provide some financial stability and cushion any black swan events, if we have investments in stocks. As seen in the COVID-19 situation (black swan), dividend-paying stocks like REITs are badly affected, so for retirees, CPF Life could be a blessing in disguise. I think how we could think of retirement is ensuring we don't put all eggs into one basket and there're multiple income streams. Personally, I think FRS will be sufficient for me, since I also have stock investments.
For the investment savvy ones, cpf life sucks... Bec it's your own money paying yourself.
Free money from garmen only kicks in after 80. 🤭
For the old uncles and aunties who does not know what Qqq stands for, 😁😁, then cpf life is a life saver for them.
Like what evenlyn says,
leave the bare minimum and stake the excess somewhere that will make you happy, including going for the long overdue vacation..
After all, money is as equally precious as memory. 😀
Happy retiring, folks.....!
Well said, cpf life not so Fair