tag:blogger.com,1999:blog-7944902213075756335.post237669410958202760..comments2024-03-29T19:12:08.223+08:00Comments on A Singaporean Stocks Investor (ASSI): An(other) open letter to the Prime Minister.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger48125tag:blogger.com,1999:blog-7944902213075756335.post-605105616187644362015-09-05T14:14:46.296+08:002015-09-05T14:14:46.296+08:00Justice League:
AK, I am not your fan but occasi...<b>Justice League:</b><br /><br /> AK, I am not your fan but occasionally just drop by to see your invaluable sharing with your followers on financial knowledge. On CPF, these are issues that bother me:<br /><br />i) Our contribution is way too high. Using Hong Kong as an example since we are quite similar in terms of economy size, they only mandate min. 5% of their gross income for their AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-76201750285604856782015-09-04T23:05:36.662+08:002015-09-04T23:05:36.662+08:00In response to a comment in FB:
I don't see w...In response to a comment in FB:<br /><br />I don't see why being non-partisan should prevent me from commenting on policies which are in place and policies which are being proposed as well as the people behind them in the General Election.<br /><br />I blog about the CPF and housing matters all the time. They are not things I suddenly chose to talk about because of the General Election.<br />AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42802647821995875262014-06-14T17:45:52.730+08:002014-06-14T17:45:52.730+08:00Hi Ling,
Thanks for this but I don't think I ...Hi Ling,<br /><br />Thanks for this but I don't think I will send the letter to the PM. Haha... I have not said anything profound. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-32952646128753989602014-06-14T15:11:29.592+08:002014-06-14T15:11:29.592+08:00Hi Ak,
Prime minister direct email address can be...Hi Ak, <br />Prime minister direct email address can be found here: http://app.sgdi.gov.sg/listing.asp?agency_subtype=dept&agency_id=0000004564#LEE_Hsien_Loong__<br /><br />so are all the singapore government officials.Linghttps://www.blogger.com/profile/14179837615156355097noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-87418612122758047932014-06-13T14:30:24.940+08:002014-06-13T14:30:24.940+08:00Dear Ray....
Our endearing AK71 has emphasised ti...Dear Ray....<br /><br />Our endearing AK71 has emphasised time and again financial prudence and helping the system to help ourselves, so what if MS is $500,000 or more? You're working and contributing already, I presume, and if you think the rate of growth in your cpf funds is not enough, there's always the other option of making yearly voluntary contribution of up to $7,000 and let AK63https://www.blogger.com/profile/06563753793531702914noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-29937542088575181282014-06-13T13:41:32.092+08:002014-06-13T13:41:32.092+08:00I thought we already resign to the fact that CPF a...I thought we already resign to the fact that CPF alone is not enough for retirement. My take is that it is a bonus pool and a basic baseline for everyone. And a "security" to the society to fund oneself. So whether i ever meet the min. sum is not essential as I prefer to leave them there till monthly withdrawal age. I will be tempted to withdraw if given the choice but that's the Coryhttps://www.blogger.com/profile/18166646368324976318noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-38717694174308900242014-06-13T13:15:44.916+08:002014-06-13T13:15:44.916+08:00Since I'm reduced to my idling self and being ...Since I'm reduced to my idling self and being a very unproductive element of our society again, let me work my hurting head and fingers abit just for mobility sake.... :)<br /><br />Dear Lim LS....Right On! My sentiments exactly!! This government has hits and misses with all its policies, but the ones that irked me most are not the policies themselves, but the ridiculous and generalising AK63https://www.blogger.com/profile/06563753793531702914noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-22074662514365726292014-06-13T10:39:16.484+08:002014-06-13T10:39:16.484+08:00Hi Ray,
You missed out the SA which attracts 4% t...Hi Ray,<br /><br />You missed out the SA which attracts 4% to 5% in risk free rates, compounded, no less. At 4%, the SA pays 60% more than the 2.5% in the OA. :)<br /><br />Remember that the SA's purpose is to help us meet our retirement needs better. The OA has a multitude of purposes. It is never going to be able to do what the SA does in growing our CPF funds for use in our retirement.<br AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-44430703400680912002014-06-13T08:29:31.605+08:002014-06-13T08:29:31.605+08:00To Lim LS>>
PRC girlfriends is just an exam...To Lim LS>><br /><br />PRC girlfriends is just an example. An exhaustive list is not possible given that everyone is different. But the thing they try to prevent is squandering your retirement money prematurely. It could be gambling, buying prada, buying cars that you don't need, holidays etc. You get the point?<br /><br />They won't shut casinos because they generate ALOT of Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-6937116867666303132014-06-13T08:24:11.136+08:002014-06-13T08:24:11.136+08:00At the rate the minimum sum is climbing, by the ti...At the rate the minimum sum is climbing, by the time I hit 55, the minimum sum would be $500K. <br /><br />It is very difficult to meet the min sum when it's growing at a rate of 6%+ but we can only invest a small part of the CPF through investment in stocks/bonds and the rest of the money are growing at a miserable 2.5%<br /><br />If govt wants to raise min sum at this rate, they must help Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-66887251175869153142014-06-13T05:43:21.611+08:002014-06-13T05:43:21.611+08:00Ok. To be honest, I don't think cpf is a bad s...Ok. To be honest, I don't think cpf is a bad scheme. But it doesn't work for everyone. Worse is that many people don't know how it works. And I would like to voice out how it doesn't work so that the govt can think about it. Its not all or nothing. I don't know why some people are discussing to win something. Win what?<br /><br />I don't see why we need to get into so muchpfhttps://www.blogger.com/profile/07201135543092422698noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-38923123635360293372014-06-12T14:50:34.323+08:002014-06-12T14:50:34.323+08:00While I agreed with no full withdrawal at 55 will ...While I agreed with no full withdrawal at 55 will be a more sensible choice given that the financial literacy in Singapore is low, but I get ticked off whenever I see people mentioning the Government is protecting us from getting cheated by the PRC or whatever nationalities ladies.<br /><br />Why cherry pick that few cases and used it to justify your policy? What is the statistics of such cases? Anonymoushttps://www.blogger.com/profile/03576053644484759245noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-37728000480087489282014-06-12T12:12:28.314+08:002014-06-12T12:12:28.314+08:00Hi betta man,
GIC doesn't manage CPF money. M...Hi betta man,<br /><br />GIC doesn't manage CPF money. More accurately, it borrows money from the CPF to invest. GIC bears all the risk of investment while CPF members are paid risk free rates of 2.5% to 5% per annum.<br /><br />If we want a floor of 4% to 5% in risk free rates for the money we have in our SA, we cannot ask for more in the years that GIC do better but are unwilling to AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-40852680386933414062014-06-12T11:47:33.967+08:002014-06-12T11:47:33.967+08:00Since GIC manages the CPF monies, GIC could have a...Since GIC manages the CPF monies, GIC could have a dividend policy whereby a certain % of each year's earnings is paid out to CPF members' SA account.<br /><br />Hence, on top of of the 4-5% interest on the SA, anything about is a bonus and varies from year to year. <br /><br />Hence, the govt need not be stressed by promising a higher interest rate as suggested by some folks.Betta manhttps://www.blogger.com/profile/02597553932202096004noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-44821911577720088902014-06-12T11:02:46.950+08:002014-06-12T11:02:46.950+08:00Hi Ray,
I have to come back to the point about co...Hi Ray,<br /><br />I have to come back to the point about comparing apple with apples. ;p<br /><br />The OCBC 360 is a deal that has quite a few conditions attached. Must credit salaries monthly, spend using OCBC credit cards etc. If I don't do these and I just want to leave the money in a fixed deposit, they won't give 3% in interest payment to me.<br /><br />People say that we should beAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-67971665265556027072014-06-12T10:28:55.554+08:002014-06-12T10:28:55.554+08:00I understand your view too and I also think the se...I understand your view too and I also think the sentiments from the ground is very hostile. This is actually to be expected as the population gets more educated and vocal and with internet as a medium to propagate ideas, we are in an era like never before.<br /><br />What I feel could be done by the govt is they share more of the money they earn from utilizing our CPF as their investment funds.<Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-76739917850519395442014-06-12T10:21:07.221+08:002014-06-12T10:21:07.221+08:00Hi Ray,
Yes, I hear you and I tend to agree with ...Hi Ray,<br /><br />Yes, I hear you and I tend to agree with you too. :)<br /><br />Unfortunately, there will always be those who are not financially prudent, there will always be those who are irresponsible and there will always be those who are easily swayed by populist ideas.<br /><br />However, it is also true that there is more tension on the ground now then I have ever felt in my adult life AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-83812578681076067872014-06-12T10:07:09.998+08:002014-06-12T10:07:09.998+08:00hi AK,
Of course not all men have PRC girlfriends...hi AK,<br /><br />Of course not all men have PRC girlfriends but as a policy maker, you have to set the standard that will catch all scenarios. Erring on the side of caution is almost always needed.<br /><br />As for educating, sure we can do that but there will always be irresponsible people and those innovative enough to game the system. Who's to say they won't gamble the money away Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-91722367978322484812014-06-12T10:02:39.223+08:002014-06-12T10:02:39.223+08:00Hi Ray,
I am against the idea of allowing people ...Hi Ray,<br /><br />I am against the idea of allowing people to withdraw all their CPF savings at age 55 too although I am not sure that every guy at that age would have a girlfriend from PRC with a weakness for old (and gullible) gentlemen. ;p<br /><br />As for the idea on micro-tapping which I proposed, it is either this or we give more help via social services to people who need help genuinely.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-7504607532215661692014-06-12T08:59:35.609+08:002014-06-12T08:59:35.609+08:00Actually the whole issue with locking away the CPF...Actually the whole issue with locking away the CPF was the prevent those lecherous uncles from being conned of all their CPF money by the PRC girlfriends. <br /><br />Happened all around us few years back which prompted govt to locked down the CPF and only allow draw downs for monthly usage. <br /><br />Regarding the open letter on assessing individually how responsible the applicants are before Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-68295937832616997532014-06-12T08:02:39.088+08:002014-06-12T08:02:39.088+08:00Hi Unknown,
We have to compare apple with apples....Hi Unknown,<br /><br />We have to compare apple with apples. We cannot compare the CPF which is like a bond with an ETF based on a basket of stocks.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-54478277610181651422014-06-12T02:02:14.044+08:002014-06-12T02:02:14.044+08:00Yes, we have been short changed. The interest is t...Yes, we have been short changed. The interest is too low. If we vest ourselves in the sti eft, it return some 8% it is much better than what the govt are giving.Unknownhttps://www.blogger.com/profile/03697748904859515763noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-5603965822907717812014-06-11T23:43:20.131+08:002014-06-11T23:43:20.131+08:00Hi Anuenue H,
I still have no idea how to really ...Hi Anuenue H,<br /><br />I still have no idea how to really send a letter to our PM. Hahaha... You are free to send to him on my behalf. ;p<br /><br />Actually, another reader PM our PM on FB regarding my open letter already. I am not sure if the PM will have the time to read it though. :)<br /><br />As for your friends who are overly reliant on the CPF, thinking that it is enough to fund their AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-35420304834033133632014-06-11T23:37:57.640+08:002014-06-11T23:37:57.640+08:00Hi Chan Yuan,
Anything to help us towards a more ...Hi Chan Yuan,<br /><br />Anything to help us towards a more secure retirement. ;)<br /><br />Well, to be fair, although an extra 1% on the first $60K might not seem like a lot to us, it is a huge burden on the government. Imagine having to guarantee a return of 6% year after year. Not easy. Of course, if they offer, I will take. ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-76658654078174994212014-06-11T23:26:10.754+08:002014-06-11T23:26:10.754+08:00Hi AK
Wa, the letter is very well written pls REA...Hi AK<br /><br />Wa, the letter is very well written pls REALLY send it to our PM! <br />The CPF scheme is great but personally i feel Singaporeans should be given the opportunity to learn how to be responsible for their own finances. Some may have to learn the hard way though. I have a preference for flexibility in money management, and believe that a mature individual will plan their finances! Anonymoushttps://www.blogger.com/profile/02020665129343910617noreply@blogger.com