Regular readers know that I have a big weakness for ice cream.
1. CapitaMalls: Providing value for money deals.
Have a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
Regular readers know that I have a big weakness for ice cream.
Posted by AK71 at 9:14 PM 20 comments
Q:
For the Medisave balance in excess of the Medisave Minimum Sum (MMS), i.e.[MCC] $48,500 – [MSS]$43,500=$5,000, would CPF automatically transfer this amount to the member’s OA when he/she reaches 55 years old or would CPF allow the member to maintain his/her Medisave balance up to the MCC of $48,500?
A:
CPF LIFE Information Booklet
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Posted by AK71 at 8:35 PM 0 comments
EY asked the CPF Board some questions.
Q:
Posted by AK71 at 6:00 PM 0 comments
I have heart to heart "talks" with readers sometimes and those whom I have "talked" to know that the conversations could last an hour or more sometimes.
Although I am not a financial planner nor a trained counsellor, I try my best to put things in perspective for everyone and, hopefully, throw some light on issues.
I know that Singapore can be a bit of a figurative pressure cooker sometimes and a topic that is evergreen in our very green garden city has the same color.
Green is the color of money or so they say.
Yes, the topic is "money".
Posted by AK71 at 8:45 PM 32 comments
Labels:
money,
passive income,
wealth
-------------------------
This is my reply to a comment by a reader and because I want as many people to read this as possible, I am publishing this as a regular blog post.
See qook's full comment: here.
".... I just ran some numbers and they were illuminating. If I'd done the same as AK, I would have hit my minimum sum too!"
AK's voluntary contribution in March 2014. |
Posted by AK71 at 10:50 AM 28 comments
A reader sent this message to me in FB and agreed to have me share it in my blog:
Hi AK,
Many thanks for your blog post "How to grow my wealth as I approach 40 years of age" and the other cpf related posts.
After poking around our cpf site, finally decided to move my entire 2013 OA contributions into SA. While it is nowhere near the MS, i feel it's a step in the right direction despite the fact that i am closer 40 than 20!
Thank you for always sharing your thoughts, journey AND nagging at us
P
P.S.
CPF website has an "Ordinary Account-Special Account Savings Transfer Calculator". It estimates how much MORE interest we earn by moving $x amt from OA to SA account. Unfortunately, it only calculates up to age 55 and not the 65 you mentioned. However, it is still a great gauge. Perhaps this may be useful for your readers to convince themselves of how wonderful this 4/5% interest is!
Here's the link:
https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/oa2sa/oa2sa_cal.asp
if you feel it will help others, please (share)
the exchange between you, Endrene and a few others were very helpful to me.
If you like what you read here, there are still a couple of weeks left before the year ends.
Related posts:
1. How to grow my wealth as I approach 40 years of age?
2. How to upsize $100K to $225K in 20 years?
Posted by AK71 at 2:40 PM 11 comments
Some time back, a reader said it must be a good feeling to be out and about and overhearing people talking about AK71 without them knowing that AK71 was listening in. I replied saying that it had never happened before and AK71 was not as popular as he thought.
Well, you know what they say about never saying never.
Posted by AK71 at 3:11 PM 38 comments
Labels:
investment,
passive income,
Sembcorp
I have been a shareholder of Hock Lian Seng's since 2010.
I accumulated a core position in the stock and also did a bit of trading for extra pocket money.
In the last couple of years, however, I have mostly been accumulating the stock because I thought Mr. Market was too pessimistic.
The last time I bought more of the stock was in February 2014 at 25.5c a share.
Before that, I bought more in May 2013, at 26c a share.
As some readers might have guessed, I developed an interest in Hock Lian Seng because of its attractive dividend payouts.
Hock Lian Seng pays out about 40% of its earnings as dividends to shareholders every year and the yield is upwards of 5%.
Click to enlarge. |
Posted by AK71 at 11:55 PM 19 comments
Labels:
hock lian seng
What did I have for lunch today?
I had some leftover waffle made by my sister but instead of having them with maple syrup and butter, a style more in keeping with breakfast, I decided to prepare a savory version instead for lunch:
Heat up both sides of the waffle on a frying pan. |
Layer on cheese, cucumber slices and cherry tomatoes. |
Voila! A warm and savory waffle sandwich is served! |
Bon appetit! |
Posted by AK71 at 3:03 PM 4 comments
Labels:
meal
"Big money prefers practicality over opulence."
This is my reply to a recent email from a reader approaching the big 4 in life:
Welcome to my blog. :)
I have to say that I am not a financial advisor. So, I can only share with you what I think makes sense to me.
There are a few issues here:
1. Emergency fund - Generally, people keep 6 to 12 months worth of routine expenses in this fund. Personally, I keep a lot more, about 24 months. So, ask if your emergency fund is excessive. Could the amount actually be lower?
2. 2 room BTO flat - I gather from your email that you are a single. So, I think this is a super choice for a home. Good value for money and most practical. You will be paying for this with your CPF-OA funds, I guess. Of course, you want to set aside some money for furnishing and stuff. Call this your renovation fund or something. For me, I think $10K is probably enough.
3. Endowment policies - These sound like they are going to behave like annuities (for you). Sounds like good retirement income tools although without further details, it is hard to tell if the returns are attractive. If the returns are attractive enough for you and they give you peace of mind, just keep them.
4. Take a look at your CPF-SA. You can do minimum sum top ups yearly up to $7,000 a year. Try to hit the MS ceiling as soon as possible. Let the magic of compounding do the rest. It will ensure that you have a meaningful monthly income from your CPF Life annuity from age 65. It could be as much as $1,300 a month (for now).
5. As for investments, the first rule is that you must only use money you can afford to lose. This means that you should be able to suffer short term losses on paper without having to worry. Money that has been earmarked for specific purposes or might be needed in an emergency should not be used. Then, you have to read up. Pick up some knowledge. If you do not have the inclination to do this, you could consider regular investment plans offered by OCBC or POSB.
Many of the things I have mentioned in this reply are found in my blog. So, just do a search and you will find them. ;)
Best wishes,
AK
All genuine and constructive comments are welcome. No direct or indirect advertisements, please. Thank you.
Related posts:
1. Why emergency fund is important?
2. Affordability and value for money.
3. About life insurance and grapes.
4. $100K to $225K? (CPF-Life)
5. POSB Invest-Saver account.
Posted by AK71 at 11:28 AM 31 comments
Labels:
ASSI,
insurance,
investment