The best way to prepare for retirement is to use less CPF $$

[lausai88]

Wah how your Wife manage to retire at that age? Can share share?

 

 simple, find a husband with multiple 700k, like the one leh 

[Pinobii]

simple, find a husband with multiple 700k, like the one leh

Where got so many with 700k de

[AT_AT1]

Wah how your Wife manage to retire at that age? Can share share?

Work hard, save.

Investment cashflow exceed her earned income and this gives us the choice. Decision is easier for us as we have no significant debt like investment property that we need to commit long term and be a house slave.

[Pinobii]

Work hard, save.

Investment cashflow exceed her earned income and this gives us the choice. Decision is easier for us as we have no significant debt like investment property that we need to commit long term and be a house slave.

Work hard is definitely, the only thing is that I m not financially savvy which in my view is really disadvantages

[AT_AT1]

Work hard is definitely, the only thing is that I m not financially savvy which in my view is really disadvantages

I can understand. I paid so much tuition fee and pigs do get slaughtered but i did not give up. Not everyone is suitable for investment due to emotional play on greed and fear. It is a journey and we only know how well we do when we eventually stop.

Just wanted to share an alternative view compared to mainstream.

[Pocy]

Is it a better choice to leave CPF money in its Retirement Acct or make moderate risk investment? What is worth to invest using CPF money withdrawn which is meant more for retirement?

[AT_AT1]

Is it a better choice to leave CPF money in its Retirement Acct or make moderate risk investment? What is worth to invest using CPF money withdrawn which is meant more for retirement?

For RA account which gives 4% (5% for 1st 60k risk free), i will keep it there. Already at retirement soon should not take more risk esp if one has not much experience.

[Pocy]

6% 1st $30K, 5% 2nd $30K and the rest 4% for RA. But interest earned cannot be withdrawn and will only increase the monthly payout amount commencing from 65yo. It's a mass retirement insurance plan.

 

Moderate risk Investments with potential 5% are worth considering, at least the money is in ownself pocket.

[AT_AT1]

6% 1st $30K, 5% 2nd $30K and the rest 4% for RA. But interest earned cannot be withdrawn and will only increase the monthly payout amount commencing from 65yo. It's a mass retirement insurance plan.

 

Moderate risk Investments with potential 5% are worth considering, at least the money is in ownself pocket.

Depends on one portfolio size.

If only has RA account to depend on for retirement, is it wise to dump into investment which is subject to volatility?

 

If one has a large portfolio, one is already taking significant risk in the market, is it wise to dump RA into more investment just to earn 1% more?

 

I made the decision to top up my parent min. sum account to max 60k for 5.5% interest and tax rebate. It gives me a piece of mind that she will be taken care of no matter what happens to me. This is priceless to me.

 

Without understanding one's portfolio and goals, any advices are dangerous.

[Pocy]

Here we are talking about CPF money less the min sum $83K (currently) and how to improve its returns. One has 10 years from 55yo to 65yo for its investment vs keeping the money with CPF for 4% of which the interest earned cannot be withdrawn.

 

As the CPF money withdrawn at 55yo is meant more for retirement, the investment risk appetite should not be more than moderate. Maybe SG blue chips would be one option in this case. Bonds, good dividend yielding shares, property shares .... ?

 

I reckon $60K in RA would yield monthly payout about $500 from 65yo.

[Showster]

Actually based on what you shared, I surmise:

 

1. It would have been more advantageous in your 30s to 40s then to have invested in property to allow the sum to roll till today. Although rent was lower, the price to buy was much lower. You could have reaped the rewards today buying a coffeeshop, shophouse, any landed or even non-landed property yesteryear.

 

2. But because of good debt avoidance, today which the property could have been almost fully paid, you must continue to invest in other forms and continually generate 4-5% whether in equities, RA etc...

 

Nonetheless, your strategy should work well if you have a good investment plan as well. If not enough to pay up about 60-80% for a property now, it is indeed risky for you to enter at this age. 40% loan allows you to further stretch debt repayment to another fresh 25 or 30 years even if above 65 years old, but there are risks too.

 

 

 

Work hard, save.
Investment cashflow exceed her earned income and this gives us the choice. Decision is easier for us as we have no significant debt like investment property that we need to commit long term and be a house slave.

 

[AT_AT1]

Actually based on what you shared, I surmise:

 

1. It would have been more advantageous in your 30s to 40s then to have invested in property to allow the sum to roll till today. Although rent was lower, the price to buy was much lower. You could have reaped the rewards today buying a coffeeshop, shophouse, any landed or even non-landed property yesteryear.

 

2. But because of good debt avoidance, today which the property could have been almost fully paid, you must continue to invest in other forms and continually generate 4-5% whether in equities, RA etc...

 

Nonetheless, your strategy should work well if you have a good investment plan as well. If not enough to pay up about 60-80% for a property now, it is indeed risky for you to enter at this age. 40% loan allows you to further stretch debt repayment to another fresh 25 or 30 years even if above 65 years old, but there are risks too.

I still have >2 decades to reach the retirement age. In my situation, I see no need to invest property to plan for retirement in 20-30 years time cos I will have a choice soon.

Here we are talking about CPF money less the min sum $83K (currently) and how to improve its returns. One has 10 years from 55yo to 65yo for its investment vs keeping the money with CPF for 4% of which the interest earned cannot be withdrawn.

 

As the CPF money withdrawn at 55yo is meant more for retirement, the investment risk appetite should not be more than moderate. Maybe SG blue chips would be one option in this case. Bonds, good dividend yielding shares, property shares .... ?

 

I reckon $60K in RA would yield monthly payout about $500 from 65yo.

 

From CPF website: sum above BRS's ($83K) earned interest can be withdrawn

 

From 55:

After setting aside your Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge, you can choose to withdraw the remaining CPF balances (excluding top-up monies, government grants, and interest earned in your Retirement Account), or continue to keep your savings in CPF to earn attractive interest. 

[Enye]

Actually based on what you shared, I surmise:

 

1. It would have been more advantageous in your 30s to 40s then to have invested in property to allow the sum to roll till today. Although rent was lower, the price to buy was much lower. You could have reaped the rewards today buying a coffeeshop, shophouse, any landed or even non-landed property yesteryear.

 

2. But because of good debt avoidance, today which the property could have been almost fully paid, you must continue to invest in other forms and continually generate 4-5% whether in equities, RA etc...

 

Nonetheless, your strategy should work well if you have a good investment plan as well. If not enough to pay up about 60-80% for a property now, it is indeed risky for you to enter at this age. 40% loan allows you to further stretch debt repayment to another fresh 25 or 30 years even if above 65 years old, but there are risks too.

ermm... his investment cash flow 5% leh

 

can replace wife's income for the last decade

 

war chest must be easily $2m

 

who says not enough for property?

 

 

[Showster]

I still have >2 decades to reach the retirement age. In my situation, I see no need to invest property to plan for retirement in 20-30 years time cos I will have a choice soon.

 

 

ermm... his investment cash flow 5% leh

 

can replace wife's income for the last decade

 

war chest must be easily $2m

 

who says not enough for property?

 

 

Edited March 5, 2017 by Showster

[Voodooman]

Just need to read his post carefully. Anyway, it's personal preference. I have shown earlier in another post how the property yield is comfortably 6% based on 2% interest rate even if price does not budge over 10 years. Maybe I should do a separate calculation with an annual gain of 1% over 10 years. The results will be mind boggling.

Where is the post? Love to read the assumptions behind. I thought yield its dependent on rental if there is no price appreciation.

[Showster]

Where is the post? Love to read the assumptions behind. I thought yield its dependent on rental if there is no price appreciation.

Ok let me do an excel for reference.

 

It's hard to locate specific ex posts.

 

Nowadays buy to sit only for the ultra rich buying collectors item properties.

 

For the rest of private, all have to consider buy to rent or buy to assume rent strategies.

[BanCoe]

Come to the church of JC and

 

park all your money with me.

 

I can offer you 10 fold, 100 fold,

 

a 1000 fold. CPF SA is nothing to me.

 

Can share your office address ?? Shenton Way or Geylang Branch ?? Also office hours ; Many in MCF will want to stampede ..... pls pls share fast fast

[Angcheek]

 simple, find a husband with multiple 700k, like the one leh 

 

I think 700K not enough the way inflation is going