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

[Throttle2]

2 hours ago, Loki said:

I’m curious, for those who are over 55, what are you doing with your CPF money?  Do any of you just leave it in CPF or did you withdraw it to invest?

I’m not 55 yet but i can tell you i will just leave it there. Draw only interest unless i want to buy a Bugatti

[Kopites]

3 hours ago, Loki said:

I’m curious, for those who are over 55, what are you doing with your CPF money?  Do any of you just leave it in CPF or did you withdraw it to invest?

I will leave it with cpf for the compound interest.

[Ct3833]

4 hours ago, Loki said:

I’m curious, for those who are over 55, what are you doing with your CPF money?  Do any of you just leave it in CPF or did you withdraw it to invest?

It all depends,

1) if one has already had  enough cash deployed in the various investment instruments or have had additional property to generate passive income , then leave his money in the CPF just to earn the decent interest. 

2) if one does not know how to invest or have no confidence that his own investment will generate much higher returns than CPF interest, then leave his money in the CPF. 

3) after the various cash investment one still has spare cash that he does not know where to deploy or dares not to invest further  , then leave his money in the CPF. 

The three mentioned are to  preserve one's CPF money so that one will not lose his entire svaing if his investment does not turn out well. But remember , the CPF interest is not as high, and the money does not het hedged against inflation. 

If one dares to or knows how to invest, then why leave the money to earn 2% interest? Just bear in mind, his investment may shrink(likewise his balls) or even get evaporated if his investment plan gets messed  up. This have happened to many, just that those who have lost money do not speak openly about it, we only get to hear the uccess stories which can be misleading. 

In summary, to leave your CPF money or not depends on your cash position, your risk appetite and your investment capability. Look at your past 30 years investment history, if you are able to make more than 2% per anum from your cash investment, then maybe can consider taking out your CPF and invest as well.  Also, another important question,  do you need that  CPF money ?

Edited July 31, 2021 by Ct3833

[Loki]

8 hours ago, Ct3833 said:

It all depends,

1) if one has already had  enough cash deployed in the various investment instruments or have had additional property to generate passive income , then leave his money in the CPF just to earn the decent interest. 

2) if one does not know how to invest or have no confidence that his own investment will generate much higher returns than CPF interest, then leave his money in the CPF. 

3) after the various cash investment one still has spare cash that he does not know where to deploy or dares not to invest further  , then leave his money in the CPF. 

The three mentioned are to  preserve one's CPF money so that one will not lose his entire svaing if his investment does not turn out well. But remember , the CPF interest is not as high, and the money does not het hedged against inflation. 

If one dares to or knows how to invest, then why leave the money to earn 2% interest? Just bear in mind, his investment may shrink(likewise his balls) or even get evaporated if his investment plan gets messed  up. This have happened to many, just that those who have lost money do not speak openly about it, we only get to hear the uccess stories which can be misleading. 

In summary, to leave your CPF money or not depends on your cash position, your risk appetite and your investment capability. Look at your past 30 years investment history, if you are able to make more than 2% per anum from your cash investment, then maybe can consider taking out your CPF and invest as well.  Also, another important question,  do you need that  CPF money ?

Thanks all for your replies.  I don't intend to withdraw my SA money at all.  In fact I don't need it so will even leave the interest in there to be compounded until I stop working.  

[Ct3833]

2 hours ago, Loki said:

Thanks all for your replies.  I don't intend to withdraw my SA money at all.  In fact I don't need it so will even leave the interest in there to be compounded until I stop working.  

@loki, for your reference as well. 2018's survey sample though.

6 in 10 took out their money after 55.  But 51% of the 6 put back their money into bank for investment. 

https://www.todayonline.com/about-6-10-withdraw-cpf-savings-when-they-turn-55-cpf-board

[awhtc]

I intend to keep my CPF money inside and let it roll until $2 mil in my 60s 😁

[Throttle2]

14 hours ago, Ct3833 said:

It all depends,

1) if one has already had  enough cash deployed in the various investment instruments or have had additional property to generate passive income , then leave his money in the CPF just to earn the decent interest. 

2) if one does not know how to invest or have no confidence that his own investment will generate much higher returns than CPF interest, then leave his money in the CPF. 

3) after the various cash investment one still has spare cash that he does not know where to deploy or dares not to invest further  , then leave his money in the CPF. 

The three mentioned are to  preserve one's CPF money so that one will not lose his entire svaing if his investment does not turn out well. But remember , the CPF interest is not as high, and the money does not het hedged against inflation. 

If one dares to or knows how to invest, then why leave the money to earn 2% interest? Just bear in mind, his investment may shrink(likewise his balls) or even get evaporated if his investment plan gets messed  up. This have happened to many, just that those who have lost money do not speak openly about it, we only get to hear the uccess stories which can be misleading. 

In summary, to leave your CPF money or not depends on your cash position, your risk appetite and your investment capability. Look at your past 30 years investment history, if you are able to make more than 2% per anum from your cash investment, then maybe can consider taking out your CPF and invest as well.  Also, another important question,  do you need that  CPF money ?

Yes.

CPF is but pure safety net for me.   
 

 

[Wt_know]

6 minutes ago, Throttle2 said:

Yes.

CPF is but pure safety net for me.   
 

 

CPF is SSB for me ... so i did not buy any bonds at all ... lol

Edited August 1, 2021 by Wt_know

[Kopites]

6 hours ago, Loki said:

Thanks all for your replies.  I don't intend to withdraw my SA money at all.  In fact I don't need it so will even leave the interest in there to be compounded until I stop working.  

Bear in mind your SA will be depleted with the transfer of FRS to RA. Around 200k plus by the time you turn 55. 

Shielding is the way to go. Shield OA, SA and top up RA to FRS with cash.

 

[Volvobrick]

7 minutes ago, Kopites said:

Bear in mind your SA will be depleted with the transfer of FRS to RA. Around 200k plus by the time you turn 55. 

Shielding is the way to go. Shield OA, SA and top up RA to FRS with cash.

 

Don't say out so loud..... CPF spies reading this thread! Hope they don't close the loophole till I shield! 

[Loki]

10 minutes ago, Kopites said:

Bear in mind your SA will be depleted with the transfer of FRS to RA. Around 200k plus by the time you turn 55. 

Shielding is the way to go. Shield OA, SA and top up RA to FRS with cash.

 

Thanks.  Shielded already!  Shielded both SA and OA. Then topped up my RA with cash

[Volvobrick]

3 minutes ago, Loki said:

Thanks.  Shielded already!  Shielded both SA and OA. Then topped up my RA with cash

How much of the OA can be shielded? 

[Throttle2]

28 minutes ago, Wt_know said:

CPF is SSB for me ... so i did not buy any bonds at all ... lol

Perfect

[Wt_know]

10 minutes ago, Volvobrick said:

How much of the OA can be shielded? 

if you have $500K in OA, can shield $480K and remain the min balance $20K ...  

if you have another $500K in SA, can shield $460K ...  

1 week before 55, whack DBS ... 1 day after 55 ... can sell all DBS ...

if DBS price goes up another 2% ... huat until siao ah! ... lol

Edited August 1, 2021 by Wt_know

[Throttle2]

So tell me, how is $10k per month today not the poor? MCF all 1M50 (individual) not like some haolian 1M65 (couple) still want to go around teaching and mocking people

Edited August 1, 2021 by Throttle2

[Ct3833]

On 8/1/2021 at 1:23 PM, Volvobrick said:

Don't say out so loud..... CPF spies reading this thread! Hope they don't close the loophole till I shield! 

no worries, let Ho Sin work harder, she has so much time, keep posting facebook. 

[Voodooman]

Throwing out a question on retirement adequacy using CPF life.

By maxing out CPF life (primary residence fully paid and kids financially independent), which should yield at least $4k a month (current sum) for me and wifey after 70 (delayed draw) and with payout amount rising by 2% a year to cover inflation, anyone thinks that won't be enough to take care of life after 70 (save for perhaps rising medical insurance premium)? 

We doubt we will travel, eat and spend as much at that age.  My parents' expenses after 70 are also really negligible. Plus the house will be the safety buffer and can be monetized if necessary.

If above 70 is largely taken care of, then the maths from voluntary retirement age to 70 is pretty easy to work out (ie desired lifestyle).

Thoughts? 

Edited August 15, 2021 by Voodooman

[Volvobrick]

4k (48k a year) for a couple seems on the low side. You will have to forgo many things you are used to. 

But I am sure you have other investments or savings other than CPF life.