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This guy has 800K in his CPF. (AK responds to HWZ Forum.)

A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que...

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7 things a reader did after visiting ASSI.

Wednesday, December 16, 2015

It is always very heart warming to receive thoughtfully written emails from readers and I would like to share another one here.

Hi AK, 

My name is C and I am Pig too (younger batch though).  :P  

I was introduced to your blog 2 months ago by a friend who is a avid stock trader/investor, a month before my birthday, hence I see it as a God-given birthday gift because it really is.  

I initially suspected his intention of pestering me to invest in shares since he has lost quite a sum of money in stock market (due to Ezra).  "Why would he pull me down the muddy water" I thought to myself before, as I have always been frugal and risk-averse (which means I am those kind that sitting on cash).   However I started to appreciate his intention after reading your blog posts and others (Tan Kin Lian and some of your guest bloggers).

These are what happened to me after reading your blogs:     
1) I realised that I have double cover for H&S (Aviva My Shield Plus and AIA HealthShield Gold Prestige) from 2 different insurance agents.  Excess payment of $1400.  I am cancelling AIA one. 

2) Liquidated unit trusts which I placed through my insurance agent, paying 5% front-load fee and other charges which I ended up suffering capital loss of $2xx.  Plus $2k loss of CPF-OA 2.5% compounded interests, not to mention the future compounded interests on this interest lost.  *heartache* 

3) Open OCBC 360 account to maximise idle cash while waiting for opportunities 

4) Open CIMB trading account and nibbled on OCBC counter at $8.70.  Thinking of nibbling on FCT and Ascendas REITS. 

5) Contemplating of cashing out Tokio Marine life insurance which I bought 5 years ago and buy term life instead.  $2k annual premium for 25 years for $200k sum assured upon death/TPD/CI seems insufficient.  Guaranteed return is low at 1.5% IRR while non-guaranteed is between 2.5% to 4% upon 67 years old, while the benefits illustration stated 3.75% to 5.25%  *roll eyes*

6) Thinking of transferring some money from CPF-OA to SA and leave the rest for my first property at age 35.  May consider MS top up of $7k to benefit from tax relief.  But CPF website is down, couldn't do bank transfer for the time being.  Duh -__- 

7)  Your blog posts on property investment broke the old beliefs I had.  Used to think that house is an investment even if it is owner-occupied and I used to want a big house.  Now, I feel blessed renting than buying, as the rental cost $600 p.m. is cheaper than the monthly mortgage instalment.  Not sure if property market will revert to 2009-2010 pricing in near future, but it changed my mindset when comes to house-hunting in the near term. 

Although you always say that blogging is a hobby and you are just talking to yourself, your knowledge and experience sharing undoubtedly serves a higher purpose- helping those financially-illiterate folks like myself to seriously look into own finances and make full use of the limited cash to achieve financial independence and better, financial freedom.  After-all, aren't we all striving for a better life and money is a mean to get to that?  

I guess it is fated that it is a year of massive change for me - not only that I was introduced your blogs and I diligently reading it, I have just joined a new company few months ago, and there are female colleagues that are also into stock/ppty investment and one of them even threw a question on why I paid so much for my whole life insurance for that sum assured!?!?!?

All these events are like a nudge for me to review my own finances and make good of what was lacking, and then seriously put money to work, to benefit from the beauty of compounding interest and probably the deep correction in stock market, if it ever happen.  

Not to mention that I feel ashamed for making so many mistakes in personal financial management, especially so that I am a Chartered Accountant.  Like my sister said: "Accountant also lost money? that's a mission impossible."  

Anyway, I have come to term that I made silly mistakes and I still could make things right.  I am writing just to let you know that PLEASE keep on blogging, you wouldn't know how many ppls you have helped indirectly along the way.  Thank you, AK!    

Keep in touch, 
~ C

I could talk to myself until the cows come home but we must want to make changes to be better off financially.

To everyone who has taken the first step, soldier on and you will thank yourself in future.

Related posts:
1. Get the most out of ASSI.
2. Beef up and attain financial freedom.
3. Don't thank AK but yourself.
4. UOB ONE or OCBC 360 Account?
5. Free ILP or Term Life Policies?
6. Free medical insurance in our old age?
7. A lot of money in my CPF-SA...
8. Buying an apartment: Considerations.


AK71 said...

The CPF Board (CPFB) on Tuesday (Dec 15) restored CPF e-services catering to more than 90 per cent of CPF online transactions, it announced in a media release.

Members who were previously unable to access e-services such as changing monthly housing payments, making voluntary contributions and updating personal particulars can now do so.

"The remaining e-services and CPF Tools app will progressively be made available," CPFB said.

On Monday, the Board identified the root cause of the disruption - an integration component used by the website had malfunctioned when faced with heavy traffic.


jojo said...

Dear AK,
Here's wishing you and your loved ones a Blessed Christmas and a Healthy, Happy, Harmonious New Year!
I totally agree with all that this reader said, and more ... :)

You may or may not already know this but you truly are a hero to many readers. So please don't ever stop blogging. Many readers do tune into your blog.

On behalf of your many readers, I would like to thank you for all that you have done.

AK71 said...

Hi jojo,

Thank you for your kind encouragement. I truly appreciate it.

I hope that readers will not think of me as a hero but just as a fellow investor who is just as likely to get things wrong as anyone else although I have been lucky to get things right more often than wrong so far. :)

AK71 said...

"How I wished that I could have read about your blog earlier. I only started learning about proper investing last year because of some bad investing experience (lost 50k in some land banking scheme). I thought as someone with no financial background, i could trust financial advisors and experts. But i learnt the hard way that nobody bothers about your money as much as you. I have since reviewed my finances and done a couple of things mentioned in your blog e.g. transferring all my OA to my SA (my flat is fully paid up for), contributing max 7k to my SA, opening a SRS account to reduce my taxable income, cashing out an ILP that gave me a meagre 17% returns over 10 years and a unit trust plan (luckily broke even) recently."

AK71 said...

Reader said...
I have friends and colleagues to complain that they are unable to do the things they like because of their existing commitments such as children cost, insurance premium, car repayment. housing loan repayment etc. The recent increase in the premium payment by the insurance companies increases their commitment. This is one of such factor which contributes to their inability to retire early. They indicated that they are stuck in the rat race and destined to work for the rest of their life. They can only stop work only when it is time for them to kick the bucket. I highlighted to them that they can do somethings about their current situation by implementing some measures such as converting their life insurance plan to term plan, downgrade to HDB flat, ditch the cars and go for the public transports. They dismiss such suggestions and indicate that such measures are meant for "losers" and not applicable to Singapore context. These losers are considered as outcast for Singapore society and should not be deemed fit for ppl of their status. Upon hearing such comments, I know that it is futile attempt to persuade them. I believe that they know what they want. They choose their path.
Instead, they insist that I follow their example and this is the right way befitting the status of a successful Singaporean.

AK said...
If we are unhappy with what we have now, complaining loudly while keeping the status quo will not change anything. It seems that some will have to work till they die.

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