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Talking Point >>> Is your CPF enough for retirement?

Wt_know

By Wt_know,
in Investment & Financial Matters

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Ct3833

Ct3833

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On 6/2/2026 at 9:22 AM, Volvobrick said:

16% is not sustainable. They will pay you using the capital and you will see the unit value drop steadily. Even 8% wasn't sustainable after layers of fees. 

Unless the fund itself borrows a lot to improve the yield, then the risks skyrocket. 

This will blow up. 

 

I browse the info a little bit , looks like a combination of private credit and private equities but they call it PR, there is a quite long lock in period. Anyway 16% is too high for PR. I dont mind if it is a semi liquid PE with smaller bute size, if 200k min commit, i will skip

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Voodooman

Voodooman

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On 6/2/2026 at 9:22 AM, Volvobrick said:

16% is not sustainable. They will pay you using the capital and you will see the unit value drop steadily. Even 8% wasn't sustainable after layers of fees. 

Unless the fund itself borrows a lot to improve the yield, then the risks skyrocket. 

This will blow up. 

 

I have a friend working in a Singapore based private credit fund, they typically lend at 10-15% but very often at 8-10%. 16% is for very risky deals. 

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Mkl22

Mkl22

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On 6/2/2026 at 10:12 AM, Voodooman said:

I have a friend working in a Singapore based private credit fund, they typically lend at 10-15% but very often at 8-10%. 16% is for very risky deals. 

at 16% with all the funny conditions, i rather gamble in AI shares... 😁

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mersaylee

mersaylee

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On 6/2/2026 at 10:38 AM, Freeder said:

Already all in in DBS.. collecting div and waiting for $100... 

Think will there very soon ..

Good to stay simple and focused...but all eggs in one basket has opportunity cost and risk also...some more an overpriced basket...taokay soh offload some recently no? 😜

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Ct3833

Ct3833

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On 6/2/2026 at 10:06 AM, Voodooman said:

Thanks for sharing. Global usually means US centric. I have seen some US private credit deals and I don't think I like the risk, terms and multiples they are lending at. Decades of QE means there are much excesses in the US.

Some Australian centric private credit funds may be a bit more conservative but at my age, I find it hard to lock in for 5/10 years and to take big losses should the world economy goes down. Like what you said, invest small amount but then the return, after all the fees, will likely not  move the needle much.  

Just curious what is out there, hence my question. My RM have not recommended such products to me yet, maybe they know my kiasi risk appetite. 

In early years, private equity is better when opportunities are plentiful. Private credit is capped at usury/ Ah Long rate. 

While both PE and PR are of higher risk, the returns are typically higher. If one assigns a reasonable % as part of his asset allocation, and it is an amount that one could afford, spread them over a few funds, the outcome should be manageable. Key is try to look for funds that  have good track records and are neutrally correlated to public equities , then it will serve a better income stream purpose.  Meaning when market is bad, the PE or PR would continue to provide its desire outcome. Of course it is easier said than done. Another place to look at is hedge fund. 😅

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Mkl22

Mkl22

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(edited)
On 6/2/2026 at 1:17 PM, Ct3833 said:

While both PE and PR are of higher risk, the returns are typically higher. If one assigns a reasonable % as part of his asset allocation, and it is an amount that one could afford, spread them over a few funds, the outcome should be manageable. Key is try to look for funds that  have good track records and are neutrally correlated to public equities , then it will serve a better income stream purpose.  Meaning when market is bad, the PE or PR would continue to provide its desire outcome. Of course it is easier said than done. Another place to look at is hedge fund. 😅

My only worry is when all hell break loose how much money can get out. 
I’m not at all well versed in this, hence for me I don’t wanna touch. 
already with insurance companies pay out is difficult and they make it difficult.  
my gut feel is all companies also start to learn from USA and become more and more gangster. Also majority of these should be US based. 

Edited by Mkl22
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inlinesix

inlinesix

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On 6/2/2026 at 1:29 PM, Mkl22 said:

My only worry is when all hell break loose how much money can get out. 
I’m not at all well versed in this, hence for me I don’t wanna touch. 
already with insurance companies pay out is difficult and they make it difficult.  
my gut feel is all companies also start to learn from USA and become more and more gangster. Also majority of these should be US based. 

So far, no issue.

Both Motor and Health insurance.

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Freeder

Freeder

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On 6/2/2026 at 12:25 PM, mersaylee said:

Good to stay simple and focused...but all eggs in one basket has opportunity cost and risk also...some more an overpriced basket...taokay soh offload some recently no? 😜

Old liao just one shot one kill..

Too many focus sure lost focus one..

DBS $100 not far off lah..

2 yrs max…

ST also have.. $30 is my focus 🤭

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Wt_know

Wt_know

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(edited)
On 6/2/2026 at 2:06 PM, Freeder said:

Old liao just one shot one kill..

Too many focus sure lost focus one..

DBS $100 not far off lah..

2 yrs max…

ST also have.. $30 is my focus 🤭

DBS $100

ST $20

SGX $30

SCI $10

can retire in Thailand liao ... LOL

Edited by Wt_know
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TangoCharlie

TangoCharlie

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On 6/2/2026 at 8:55 AM, Ct3833 said:

The private credit AUM globally is about S$5 trillion in size,  it depends on the nature of loan. There are some PR with quite reasonable  track records like zero default, consistent >8% returns etc but this is not a future gurantee. I dare not to speak about PE though.  DBS is rolling out a Private Credit about 16% to 20% to their private clients, i think the return is way too high though the srructure looks more like private equities, not sure how it is able to clear their internal product compliance. 

Payout So high sounds like pang siao biz....😅

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Ct3833

Ct3833

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On 6/2/2026 at 2:39 PM, TangoCharlie said:

Payout So high sounds like pang siao biz....😅

Private credit is essentially pang siao, they are targetting clients that are unable to secure loan from bank. So assuming banks take the first tier,  the more credible private credits will take the 2nd tier, then the rest will take the 3rd and lower tiers , of course, at even higher interest. 

On 6/2/2026 at 1:29 PM, Mkl22 said:

My only worry is when all hell break loose how much money can get out. 
I’m not at all well versed in this, hence for me I don’t wanna touch. 
already with insurance companies pay out is difficult and they make it difficult.  
my gut feel is all companies also start to learn from USA and become more and more gangster. Also majority of these should be US based. 

Agree too, when trouble does not trouble  you, dont go trouble trouble,  maciam backside itchy. 😁

 

On 6/2/2026 at 2:08 PM, Wt_know said:

DBS $100

ST $20

SGX $30

SCI $10

can retire in Thailand liao ... LOL

Of course the large caps and finance sectors are a given, the question is beyond all these, what else. 

 

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Ct3833

Ct3833

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(edited)
On 6/2/2026 at 3:24 PM, Ghgan said:

Most of us don't qualify liao, except for medi-save come year end. 

I always tell my freinds to feel blessed when they dont get chicken wings. Mai kpkb 🤣

不要埋怨你没得到什么，多珍惜你你已经拥有的。

All MCFers who buy car with full cash lagi no talk. 😄

Edited by Ct3833
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Throttle2

Throttle2

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(edited)
On 6/2/2026 at 4:01 PM, Ct3833 said:

I always tell my freinds to feel blessed when they dont get chicken wings. Mai kpkb 🤣

不要埋怨你没得到什么，多珍惜你你已经拥有的。

All MCFers who buy car with full cash lagi no talk. 😄

very thankful and contented, that i am one of the few single income / solebreadwinners in my age group.

Very thankful that I can retire at age 50.  

Very thankful that I have no loans whatsoever.

Very thankful I have two cars to use, as and when needed

Very thankful that i dont pay Income Tax anymore

Thank you 

Thank you

Edited by Throttle2
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