CPF changes...anyone understand the changes?

[Nolicense]

I read the papers also don't understand... maybe i stupid so ask if any bros and sis can explain better than the sh*t times.

Edited September 18, 2007 by Nolicense

[Blackyv]

seriously, after watching the news and same as u, blur like sotong, i didnt bother to try understand it or no interest to find out more at all cause i think it's not to help much...their usual practice, want to do something but come with many rules and regulation..in short--> half cook effort.

[So_nice]

i understand! in short, u wont get wat u earned!

[Christan]

that's the whole idea. Makes simple thing looks complicated so that people do not know what to ask

[Guest Julio369]

this one not so bad...while i'm driving, heard about a news... a MP explaining why ERP must increase & the woes of drivers living in Yishun must pay high ERP...what flow of traffic..speed must maintain... ERP must increase..cost of usage etc etc etc ..

 

wah lau erh!...I heard until blur like sotong man!!!

Edited September 18, 2007 by Julio369

[Bmwcar]

Ha Ha !

 

I also blur like sotong and don't understand

 

Today newspaper whole page and really difficult to absorb what they plan to do

[Nolicense]

ever hear about the saying, "if they can't convince you, confuse you"?

[Guest Julio369]

the last resort...con you.

[Cheekg98]

hidden meaning ... your 4% is not guaranteed anymore

[Nine_eleven]

what is it that you dun understand?

[Gantan88]

Maybe not... coz i saw from Tv:

 

3% + 1% + 1% or something like that.... where is the '4' ???

[Nolicense]

things i don't understand:

 

1. why peg interest rate to 10 yr bonds + 1% and apply only to first 60K and cap 20K? what is that all about?

2. which accounts (medisave or special accounts?) apply?

3. why some experts say the cpf of people over 50 or 60 will lose out?

4. where the gahmen give you money, they will take more else where, so don't see where the take away part will be.. maybe the low bond rate, maybe the cap on interest to the 60K? Don't understand the workings plain and simple.

5. why is it cannot invest cpf money liao.

6. why we cannot use cpf buy ETF.

Edited September 18, 2007 by Nolicense

[Nine_eleven]

let me attempt...

 

1. why peg interest rate to 10 yr bonds + 1% and apply only to first 60K and cap 20K? what is that all about?

people complain that 2.5% for OA and 4% for SA is low mah... so they try to give more lor... after all, our beloved govt uses our CPF money to invest all over the world via Temasek. so to have more secure interest rates, bonds are the way to go.

 

60k: the max sum that u can have higher interest on.

20k: the max sum in OA that u need to maintain to get extra interest.

 

2. which accounts (medisave or special accounts?) apply?

 

all accounts apply, only OA cap 20k. the rest can contribute up to the remainder, or even up to 60k if ur OA is invested or used for property.

 

 

3. why some experts say the cpf of people over 50 or 60 will lose out?

 

havent read much about the implications yet

 

4. where the gahmen give you money, they will take more else where, so don't see where the take away part will be.. maybe the low bond rate, maybe the cap on interest to the 60K? Don't understand the workings plain and simple.

 

by doing this, the govt can plan more easily how to invest the CPF money, by making everyone keep 60k (ideally) in their accounts, the govt can plan for longer term investments without risk of cpf members using the money (to invest in unit trust, property or what nots. previously, they can't predict when u'll take out your money to use...

 

5. why is it cannot invest cpf money liao.

the first 20k in your OA plus whatever is in your SA can't be used to buy unit trust (for example) coz they will freeze it come jan 2008. BUT you can pre-empt it now, by using it now!

 

6. why we cannot use cpf buy ETF.

 

ETF too high risk for CPF board's risk acceptance mandate from govt.

[Nolicense]

Thanks, but points 1 & 2 still catch no ball about OA and other accounts

bond rates ever drop to 1 plus % before btw

 

point 4, i don't even have 30K what 60K in OA, PCN, all the money got also give hdb suck up.

 

point 5, don't even have 20K, PCN again

 

point 6, ETF at least better than unit trust, every year pay 2-3% fee plus 5% transaction and buy at offer, sell at bid, PCN again.

 

kiam chye mia

[Nine_eleven]

well, for most singaporeans...their OA are usually empty.... so all these say liao also LPPL...

[Penthousepauper]

that's the whole idea. Makes simple thing looks complicated so that people do not know what to ask

 

lawyers make documents difficult for laymen to digest. gahmen make statements even more complicated so as to confuse lawyers, let alone laymen.

[Blackyv]

and the best part, they r trying to help the poor which normally is the laymen group since the rich can take care of themselves...so, wonder how many laymen or elderly understand the changes,,

[Tommyjen]

i think the most logical reason is because the growing group of citizen age nearing 55 soon.. .. so come out with all this rubbish so that they can't get all the money so soon.

 

Imagine, in few years time (maybe 10 yrs), alot of ppl one time withdraw their CPF money, then govt how?? Empty liao.. how to invest???