Kelpie 2nd Gear May 25, 2011 Share May 25, 2011 Hi all, Just an assumption for an average Joe (Salaried man). What if today, you have an option to opt out from CPF? Do you think you will stand to loose more versus if you can bring home full sum of your salary each month? More cash may means you have to pay more income tax. Given such choice, do you prefer a company that pays you S$5000 in hard cash monthly or you prefer to stick to CPF scheme where you bring home less but only to withdraw the sum gradually when you get old? If you choose to get S$5000, do you think you will set aside some money for prudent investment (Unit trust), FD or investment linked insurance policies? Are our people matured enough to make providence for old age? Regards, ↡ Advertisement Link to post Share on other sites More sharing options...
Relacklabrudder 1st Gear May 25, 2011 Share May 25, 2011 Hi all, Just an assumption for an average Joe (Salaried man). What if today, you have an option to opt out from CPF? Do you think you will stand to loose more versus if you can bring home full sum of your salary each month? More cash may means you have to pay more income tax. Given such choice, do you prefer a company that pays you S$5000 in hard cash monthly or you prefer to stick to CPF scheme where you bring home less but only to withdraw the sum gradually when you get old? If you choose to get S$5000, do you think you will set aside some money for prudent investment (Unit trust), FD or investment linked insurance policies? Are our people matured enough to make providence for old age? Regards, cash is always better than black hole called cpf. its my $ anyway 5k yes i can set aside. qn should be direct at those lower income like 1.8k, can they set aside? but still it is better for them to have more cash than useless cpf $ Link to post Share on other sites More sharing options...
Jman888 Moderator May 25, 2011 Share May 25, 2011 More people will be homeless, and jumping off MRT track ... Link to post Share on other sites More sharing options...
Evillusion Supersonic May 25, 2011 Share May 25, 2011 most thing started as well intentioned practices until somebody decided to milk the system and shift the goalpost! Link to post Share on other sites More sharing options...
Rosschang 1st Gear May 25, 2011 Share May 25, 2011 I think I will opt out... at least if I sell my property I dun have to pay CPF + 4% more (according to friend who sold their HDB, CPF ask for 4% more but when u left in ord acc u only get 2.5%... and the money u take, is from ord acc... smell a rat??)... Link to post Share on other sites More sharing options...
Rosschang 1st Gear May 25, 2011 Share May 25, 2011 most thing started as well intentioned practices until somebody decided to milk the system and shift the goalpost! [LIKE]... Link to post Share on other sites More sharing options...
Joseph22 Turbocharged May 25, 2011 Share May 25, 2011 I think I will opt out... at least if I sell my property I dun have to pay CPF + 4% more (according to friend who sold their HDB, CPF ask for 4% more but when u left in ord acc u only get 2.5%... and the money u take, is from ord acc... smell a rat??)... your friend lying to you Link to post Share on other sites More sharing options...
Ultramega 1st Gear May 25, 2011 Share May 25, 2011 More people will be homeless, and jumping off MRT track ... I was thinking along this line too. Nowadays even with CPF savings, already many people cannot afford to buy a HDB flat. Without CPF, the problem will be worse. Link to post Share on other sites More sharing options...
Mllcg 3rd Gear May 25, 2011 Share May 25, 2011 I was thinking along this line too. Nowadays even with CPF savings, already many people cannot afford to buy a HDB flat. Without CPF, the problem will be worse. just set aside a monthly amount for housing lor. simple. the rest can save/spend. better than cpf. Link to post Share on other sites More sharing options...
Ultramega 1st Gear May 25, 2011 Share May 25, 2011 just set aside a monthly amount for housing lor. simple. the rest can save/spend. better than cpf. That's easy to say. Like i said, with CPF, some people already can't afford. Can't afford means CPF + cash also not enough. Means they spend too much of their cash. With no CPF, all cash in hand, do you think they will save? Some people are spenders by nature. How about only allow those with a residential property in their names to opt out. Link to post Share on other sites More sharing options...
Mllcg 3rd Gear May 25, 2011 Share May 25, 2011 That's easy to say. Like i said, with CPF, some people already can't afford. Can't afford means CPF + cash also not enough. Means they spend too much of their cash. With no CPF, all cash in hand, do you think they will save? Some people are spenders by nature. How about only allow those with a residential property in their names to opt out. like how? by the time the property becomes "yours", u are already 40+. opt out then? Link to post Share on other sites More sharing options...
Ultramega 1st Gear May 25, 2011 Share May 25, 2011 like how? by the time the property becomes "yours", u are already 40+. opt out then? No need wait till fully paid... once downpayment made can opt out already. Since the downpayment is the biggest problem for those ppl. Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged May 25, 2011 Share May 25, 2011 just set aside a monthly amount for housing lor. simple. the rest can save/spend. better than cpf. talk sure easy.... you can even say you save 4k out of 5k every month... but the reality is there for all to see... look at the no. of repossessed cars, credit card debts and bankrupts every week. Link to post Share on other sites More sharing options...
Speedsun Clutched May 25, 2011 Share May 25, 2011 Most of the people I know do not have the discipline of saving. I believe if CPF is not compulsory, they would have difficulties to get their own house. Link to post Share on other sites More sharing options...
Darthrevan Supercharged May 25, 2011 Share May 25, 2011 I think I will opt out... at least if I sell my property I dun have to pay CPF + 4% more (according to friend who sold their HDB, CPF ask for 4% more but when u left in ord acc u only get 2.5%... and the money u take, is from ord acc... smell a rat??)... bro its 2.6% only Link to post Share on other sites More sharing options...
Lethalstrike Turbocharged May 26, 2011 Share May 26, 2011 Hi all, Just an assumption for an average Joe (Salaried man). What if today, you have an option to opt out from CPF? Do you think you will stand to loose more versus if you can bring home full sum of your salary each month? More cash may means you have to pay more income tax. Given such choice, do you prefer a company that pays you S$5000 in hard cash monthly or you prefer to stick to CPF scheme where you bring home less but only to withdraw the sum gradually when you get old? If you choose to get S$5000, do you think you will set aside some money for prudent investment (Unit trust), FD or investment linked insurance policies? Are our people matured enough to make providence for old age? Regards, Of course take the $5k without CPF, if we are to look at CPF strictly from an investment perspective. With CPF scheme and a salary of 5k a month, 12k will be locked by CPF by the end of 1 year. Just imagine, without CPF, i can easily invest 24k in a diversified portfolio of unit trusts, FDs and investment linked insurances all together after working for 2 years. The issue i am highlighting here is the opportunity costs. I am sure not many are happy with the fact that cold hard cash are being locked up every month rather than be used for more money making opportunities, such as starting a small business. Link to post Share on other sites More sharing options...
Donut Supercharged May 26, 2011 Share May 26, 2011 No, I disagree. Although I don't like alot of garment policies, including CPF, but it is a very useful tool for the people. We need compulsory savings. It's worse now, because of our 2 IRs. People will squander the money away. Then what happens? While I like CPF, what I dislike is the garment is too stingy in letting us to use the money. They shld be more flexible in allowing to use in more medical fees and retirement age. If only they can do that, CPF will be a perfect policy Link to post Share on other sites More sharing options...
Kiario 5th Gear May 26, 2011 Share May 26, 2011 (edited) No, I disagree. Although I don't like alot of garment policies, including CPF, but it is a very useful tool for the people. We need compulsory savings. It's worse now, because of our 2 IRs. People will squander the money away. Then what happens? While I like CPF, what I dislike is the garment is too stingy in letting us to use the money. They shld be more flexible in allowing to use in more medical fees and retirement age. If only they can do that, CPF will be a perfect policy +1 like. the policy was started with very good intention as mentioned by one of the bro here, just that as the pap start to worry too much about us growing old and squandering our $, they started to come up with more crap such as raising the drawout age, minumum sum etc. Edited May 26, 2011 by Kiario ↡ Advertisement Link to post Share on other sites More sharing options...
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