They chose financial independence over home ownership.

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Government helping to fund my retirement.

Wednesday, January 3, 2018

AK is a lazy fellow but AK likes to eat fruits.

When he goes to the orchard to pluck fruits from fruit trees, he would pluck those low hanging fruits first.

They require the least amount of effort and they also pose the least amount of risk.





When all the low hanging fruits have been plucked, then, he has no choice but to start climbing up the trees to reach fruits higher up.

Climbing trees, there is always a risk of falling.

The higher he climbs, the harder the fall.

Risky business.




Low hanging fruits for the win!

Thank goodness for low hanging fruits, he says.

At the end of 2017, the low hanging fruits harvest was pretty good:






OA interest: 
$11,958.68

SA interest: 

$9,464.79


MA interest: 
$2,063.23






I have shared my story many times before and by spinning it differently this time, I hope it is still an interesting one.

Related posts:
1. A lot of money in my CPF.
2. Upsizing our CPF savings.

10 comments:

Laurence said...

Coincidentally, the three-toed sloth is exactly like this. Lol.

Quote:
AK is a lazy fellow but AK likes to eat fruits.
When he goes to the orchard to pluck fruits from fruit trees, he would pluck those low hanging fruits first.
They require the least amount of effort and they also pose the least amount of risk.
Unquote.

AK71 said...

Hi Laurence,

I am sure we can learn a thing or two from the sloths. ;)

Ming-jie Chai said...

Thanks for sharing AK. I also strongly recommend keeping funds in CPF untouched and letting it grow. For those who are skeptical (and I'm not saying I'm not!), there is always the option of pledging one's own property and cashing the balance out at age 55. That might seem like a long time away to some people, but trust me, time flies! :)

AK71 said...

Hi MJC,

I am not recommending that we leave our CPF money untouched all the time.

I also treat my CPF-OA savings as a war chest which I can use to invest with when opportunities knock like during the Global Financial Crisis.

Investminds said...

Hi AK Shifu,

Your blog has taught me many useful CPF tips such as transferring OA funds to SA. I did the OA to SA transfer for my home maker wife and myself two years ago to max out the SA ceiling. It was a tough decision at first because it was an irreversible action and it took me a few days before i decided to proceed the transfer with the goal of growing more retirement funds. I am happy to see additional $$ for my wife and my SA accounts. Our CPF accounts are growing steadily through compounding. Thank you Shifu for the sharing.

AK71 said...

Hi IM,

You made the decision after a few days. That's pretty fast. :)

Some people I know are still sleeping on it after I shared the idea with them years ago...

AK71 said...

Reader said...
My take is that the best approach is to assume that CPF is non-existent and not part of the retirement funding. Focus on the own investment portfolio as a basis for the retirement plan.

AK said...
It would be irrational to treat my CPF savings (which is quite substantial) as non-existent. ;p

For someone who has very little in his CPF account, maybe. :)

AK71 said...


Jackson Yang says...
I enjoy my tax relief 1st with RSTU... that's an advantage that totally cannot ignore.

Savings on tax and let government work harder for my money is one stone kill 2 birds.

AK71 said...

Siew Mun says...
My CPF forms a large percentage of my overall wealth. I reckon I am going to hit $1m in 4 years time when I hit 57. I will continue to grow my CPF as long as possible.

AK71 said...

Siew Mun says...
Putting in money in CPF is a no brainer and super lazy way to earn returns. Only need to look at the account once every year on around 4-5 Jan when interest is deposited. Most happy day to me. ๐Ÿ˜„

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