tag:blogger.com,1999:blog-7944902213075756335.post5469567715812698273..comments2024-03-29T19:12:08.223+08:00Comments on A Singaporean Stocks Investor (ASSI): "Purpose of CPF is to make the rich richer."AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger25125tag:blogger.com,1999:blog-7944902213075756335.post-37244666531405400282018-09-16T20:19:05.332+08:002018-09-16T20:19:05.332+08:00Henry said...
Aiyo AK so humble. Humility is good....Henry said...<br />Aiyo AK so humble. Humility is good. You are already very successful to me.<br />"Very rich" or some call UHNWI means net worth of US$20 mil i think.<br /><br /><br />AK said...<br />I am just being honest. :)<br /><br />I am also very fortunate to be a Singaporean.<br /><br />When people ask if I am patriotic, I would tell them that I feel patriotic whenever I look AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-77165459716193088582018-05-31T12:56:38.664+08:002018-05-31T12:56:38.664+08:00Acer Lim says...
Hi AK
The MSTU is limited by the ...Acer Lim says...<br />Hi AK<br />The MSTU is limited by the prevailing minimum sum (MS) or what is now known as the full retirement sum (FRS).<br /><br />In this case, how we can achieve the ERS in our retirement account by 55 years old?<br /><br />AK says...<br />If we have enough money in the OA, can use to top up to ERS at 55 lor. <br /><br />The CPF is meant to help average members and not AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-67249116838492748882018-01-22T09:54:04.416+08:002018-01-22T09:54:04.416+08:00Hi breakaway,
A blog inspired by your comment:
S...Hi breakaway,<br /><br />A blog inspired by your comment: <br /><a href="http://singaporeanstocksinvestor.blogspot.com/2018/01/sensible-to-do-cpf-oa-to-sa-transfer.html" rel="nofollow">Sensible to do CPF OA to SA transfer?</a><br /><br />Gambatte! :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-12666594594205555642018-01-21T09:42:07.644+08:002018-01-21T09:42:07.644+08:00Hi AK,
Currently working, 31 years old.
Quick qu...Hi AK,<br /><br />Currently working, 31 years old.<br /><br />Quick question - My current SA sits at $40k and MA sits at $40K.<br />Based on current MA limit = $54,500, remaining money will go to my SA account.<br /><br />I have started contributing $7000 yearly into my SA account for tax relief. <br />Based on my calculation and projected increase of limit yield of 4.4% per annum on MA, my MA breakawayhttps://www.blogger.com/profile/05753505682725247596noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-71769593258253698362017-10-13T08:42:55.175+08:002017-10-13T08:42:55.175+08:00Hi P Lee,
Thanks for the perspective.
You might ...Hi P Lee,<br /><br />Thanks for the perspective.<br /><br />You might be interested in this blog:<br /><a href="http://singaporeanstocksinvestor.blogspot.sg/2017/06/planning-14m-legacy-but-be-aware-of-this.html" rel="nofollow">Planning a $1.4m legacy but be aware of this.</a><br /><br />Frankly, I do not think $1.4 million 55 years from now is going to be a big deal and probably doesn't make AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-23098669717011379202017-10-12T15:47:48.436+08:002017-10-12T15:47:48.436+08:00CPF is to make the rich richer without taking on r...CPF is to make the rich richer without taking on risks! If today the wealthy have a new born, he could easily top up his CPF Special to its max of 166k and by the time his kid turn 65, that's a cool $2m, assuming 4% compounded! I dont think anyone in that position will complain if our parents do that for us last time ...P Limhttps://www.blogger.com/profile/03340589613005409174noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-87405590750085657492017-10-12T15:38:42.668+08:002017-10-12T15:38:42.668+08:00Hi AK,
CPF scheme is to make the rich/wealthy rich...Hi AK,<br />CPF scheme is to make the rich/wealthy richer without taking any risks. Let assume I have a new kid now, the govt will credit 4k into the kid Medisave a/c and hence the kid already will have his CPF acc open once he/she is born. All the rich need to do is top top up the kid special acc to the Max of $166k as this amount to wealthy people is not considered a big sum. In this way, he P Limhttps://www.blogger.com/profile/03340589613005409174noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-15931685170581722682017-10-12T09:56:59.345+08:002017-10-12T09:56:59.345+08:00Hi MSA,
That's the spirit. Instead of complai...Hi MSA,<br /><br />That's the spirit. Instead of complaining and not doing anything, why not make the system work for us instead? :)<br /><br />My definition of "rich" is different. See:<br /><a href="http://singaporeanstocksinvestor.blogspot.sg/2013/12/becoming-millionaire-next-door.html" rel="nofollow">Becoming a millionaire next door.</a>AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-49494965666154960582017-10-11T22:28:01.924+08:002017-10-11T22:28:01.924+08:00Hi AK71,
I think the rich that the reader is refe...Hi AK71,<br /><br />I think the rich that the reader is referring to is middle class to me (PMETs who are graduated from tertiary education and earning about $6K a month). My definition of rich is those earning $200K per annum. Like I say, people who are earning $6K a month definitely having more comfortable life than those who earn $1500 a month. After setting aside 20% of $6K, there are still MSAPersonalFinancehttps://www.blogger.com/profile/07324602380510522364noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-69733620671453046762017-10-11T14:21:00.634+08:002017-10-11T14:21:00.634+08:00Hi 全自然,
Please see:
Remove CPF Annual Limit.
Wou...Hi 全自然,<br /><br />Please see:<br /><a href="http://singaporeanstocksinvestor.blogspot.sg/2017/10/remove-cpf-annual-limit-and.html" rel="nofollow">Remove CPF Annual Limit.</a><br /><br />Would be interesting to have more perspectives on this. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-54489458316230706462017-10-11T12:54:16.485+08:002017-10-11T12:54:16.485+08:00Hi AK
I am not convinced how can more money by co...Hi AK<br /><br />I am not convinced how can more money by contributors in CPF be burdening the system. While the return of CPF is higher than fixed deposits or bonds, the money is locked almost permanently, well you get what i meant.<br /><br />To give a comparison, a whole life insurance can give a compound return of 4%, the insurance company will welcome more money if you are willing to put in.全自然https://www.blogger.com/profile/07079506006936474372noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-18536112519859472932017-10-10T22:49:15.839+08:002017-10-10T22:49:15.839+08:00Tong Xiang Yap on my FB wall:
I think the reader...Tong Xiang Yap on my FB wall: <br /><br />I think the reader did not consider the employer contribution portion, if there is no cap on salary ie means the employer would have to fork out a lot more say for example for an employee that earn 10k a month vs, cap at 6k a month employee. <br /><br />Not to burden the CPF system (yes i agree!) because probably high income earner would have other ways AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-71454274693259978452017-10-10T22:01:42.471+08:002017-10-10T22:01:42.471+08:00Hi 全自然,
The CPF system is not meant to help high ...Hi 全自然,<br /><br />The CPF system is not meant to help high flyers and the rich. These people have greater financial ability to prepare for a comfortable retirement and they should not burden the system.<br /><br />The CPF does not contribute to our country's reserves. The money is used to buy special bonds issued by our government and our sovereign wealth fund has to generate returns to AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-31985775508816418732017-10-10T18:17:22.765+08:002017-10-10T18:17:22.765+08:00Just to add on, someone may say that if i earn 200...Just to add on, someone may say that if i earn 200k a month, i don need cpf to help retirement, but who is that to say i need cpf to help if i earn 6k a month?<br />Removing the ceiling also goes a long way in helping the cpf to boost up its reserves which in turn benefits every one, so is not just about fairness, it is also social responsibility. Those who made the policy will also can better 全自然https://www.blogger.com/profile/07079506006936474372noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-46971008625753682482017-10-10T18:00:35.117+08:002017-10-10T18:00:35.117+08:00Hi AK and readers
Let me have your views on this;...Hi AK and readers<br /><br />Let me have your views on this;<br /><br />Currently cpf ceiling is 6000. Why based on an absolute amount? If i earn 6000 and less, 20% of my salary goes to cpf, it is a lot to me. So any policy changes made to cpf , i will be paying a lot attention.<br /><br />Now, they are a lot people, high income earning people who make a few tens even hundreds of thousands a 全自然https://www.blogger.com/profile/07079506006936474372noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-17893130206405110722017-10-10T17:41:24.902+08:002017-10-10T17:41:24.902+08:00I would say CPF benefit the middle working class(3...I would say CPF benefit the middle working class(30-70%) population the most as they will have little problem in meeting either BRS-FRS-ERS plus MS ceiling. <br />Those towkays and rich ppl like OHL don't even bother - he actally donated all($1.6m)to charities some years ago.iwimsaslhttps://www.blogger.com/profile/10446339986884258399noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-22509818180949298252017-10-10T14:02:08.993+08:002017-10-10T14:02:08.993+08:00Ervin Ong on my FB wall:
Don't understand wh...Ervin Ong on my FB wall: <br /><br />Don't understand why people would claim that CPF is for the rich, when the return is not really high for the rich. <br /><br />CPF is really for the masses, who don't know how to invest to get higher return.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-87698632067589558972017-10-10T14:01:30.630+08:002017-10-10T14:01:30.630+08:00Simeon Kong on my FB wall:
The CPF’s mechanism i...Simeon Kong on my FB wall: <br /><br />The CPF’s mechanism is ready meant for the lower income who will have difficulty retiring. If it’s for the rich it will have no ceiling for contribution, the rich will then be “richer”. <br /><br />Do you think company is ready “happy” to pay CPF, if not forced by the Gov we will not have forced saving even to purchase housing or basic health care insurance AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-31693719849476914302017-10-10T12:06:49.804+08:002017-10-10T12:06:49.804+08:00Hi AK,
Honestly I do not believe rain or shine co...Hi AK,<br /><br />Honestly I do not believe rain or shine common folks like me almost living by paycheck is willing to contribute 20% to their CPF monthly if not forced. That is why CPF is enforced. Buying a HDD WITHIN one means is important (eg: 2k salary, get a 3RM isntead of a 4/5RM)<br />I am sure many fellow Singaporeans have benefited from CPF's force save and slightly better than banksPotatoishhttps://www.blogger.com/profile/18408440404891909717noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-78445504064880565732017-10-10T08:41:25.882+08:002017-10-10T08:41:25.882+08:00Hi MSA,
Oh, that is for sure and I have been sayi...Hi MSA,<br /><br />Oh, that is for sure and I have been saying this since the early days of my blog too. :)<br /><br />See:<br /><a href="http://singaporeanstocksinvestor.blogspot.sg/2010/10/do-you-want-to-be-richer.html" rel="nofollow">Do you want to be richer?</a>AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-51665370370243874152017-10-09T20:26:11.938+08:002017-10-09T20:26:11.938+08:00Hi AK71,
I think in general, a person who earns $...Hi AK71,<br /><br />I think in general, a person who earns $1500 and spends $500 a month as compared to a person who earns $3000 and spends $500 a month, the latter will definitely has easier life. The point is it is in general but not specific to CPF only.<br /><br />No matter how hard you try, a person who earns $1500 a month can only save <$700 but a person who earns $3000 can save <$MSAPersonalFinancehttps://www.blogger.com/profile/07324602380510522364noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-44813655011393778722017-10-09T19:52:06.260+08:002017-10-09T19:52:06.260+08:00Hi Spur,
Well said.
The CPF makes a difference t...Hi Spur,<br /><br />Well said.<br /><br />The CPF makes a difference to a peasant millionaire like me but not to the truly rich.<br /><br />They don't need it. :p<br />AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-17657802209804172482017-10-09T19:08:05.544+08:002017-10-09T19:08:05.544+08:00CPF helps the rich, land & capital owners beco...CPF helps the rich, land & capital owners become richer ... but not directly :)<br /><br />Thanks to CPF & the whole idea of self-reliance:<br />1) Taxes both personal & corporate can be kept low --- CPF funds act as relatively cheap float for govt to finance higher-return investments, from industrialization (e.g. Jurong Industrial Park) & GLCs in the early years to current Spurhttps://www.blogger.com/profile/11824813457786462446noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-46871198801329771782017-10-09T11:15:55.633+08:002017-10-09T11:15:55.633+08:00Jack James:
Somehow in a way , yes .
It is a priv...Jack James: <br />Somehow in a way , yes .<br />It is a privilege for those who are able to max out the CPF contribution for themselves , parents and children . And of course you need quite a fair bit of 💰!<br /><br />Raymond Ng: <br />CPF mission has stated clearly.<br />Sometime somehow some people just read it differently. ;)<br /><br />Jimmy Ng: <br />Actually, on the surface, he is correct.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-88470881799219109812017-10-09T10:54:40.712+08:002017-10-09T10:54:40.712+08:00Well, he is correct that it helps the Rich that th...Well, he is correct that it helps the Rich that they know what CPF can do for them. Most below average do not have financial sense to know that CPF helps them most. :) Ops Sorry is by no mean trying to be sarcastic if it helps.<br /><br />I am always amaze the returns I got from CPF for the relative small amount of money inside CPF.<br /><br /><br />Cory<br /><br /><br />Coryhttps://www.blogger.com/profile/18166646368324976318noreply@blogger.com