tag:blogger.com,1999:blog-7944902213075756335.post3479724529450360895..comments2024-03-29T10:22:24.187+08:00Comments on A Singaporean Stocks Investor (ASSI): CPF or SGS?AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-7944902213075756335.post-21175019984226149712014-07-08T21:18:56.673+08:002014-07-08T21:18:56.673+08:00Wong Sui Jau, general manager of Fundsupermart.com...Wong Sui Jau, general manager of Fundsupermart.com (Singapore), said: “The hunt for yield actually hasn't reduced, not until interest rates rise to a level where even fixed deposit rates or rates from savings accounts are decent.<br /><br />“But I don't think we're anywhere near that yet, so there'll always be the hunt for better yield. Bonds and bond funds are able to provide AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-76237075877469247092013-12-14T09:23:20.934+08:002013-12-14T09:23:20.934+08:00Vasu Menon, vice president of Wealth Management Si...<b>Vasu Menon, vice president of Wealth Management Singapore at OCBC Bank, said: "Investors are sitting on cash and will be seeking higher returns because interest rates will stay low even though the Fed tapers in 2014.<br /><br /><br />“The search for higher yields, higher returns, will result in investors searching, going towards equity markets which have produced and can produce pretty AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-47177109482447648112013-12-13T13:26:54.375+08:002013-12-13T13:26:54.375+08:00Singaporeans will continue to enjoy an interest ra...<b>Singaporeans will continue to enjoy an interest rate of 4 per cent on their Central Provident Fund (CPF) Special and Medisave Accounts from Jan 1 to March 31, and on their Retirement Account from Jan 1 to Dec 31, the CPF board announced on Friday.<br /><br />Savings in the Special and Medisave accounts currently earn either 4 per cent or the 12-month average yield of 10-year Singapore AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-38787564200972313302013-07-13T22:14:40.968+08:002013-07-13T22:14:40.968+08:00"You shouldn’t be 40% in bonds…. Anybody I wo...<i>"You shouldn’t be 40% in bonds…. Anybody I would [advise], I would have them having enough cash on hand so they would feel comfortable, and then the rest in equities…. I would have productive assets, I would favor those enormously over fixed-dollar investments….<br /><br />Stocks are reasonably priced. They were very cheap a few years ago. They’re reasonably priced now. But stocks grow inAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-52170308866465409932013-06-11T12:27:54.608+08:002013-06-11T12:27:54.608+08:00Singapore bonds slumped, pushing 10-year yields to...<i>Singapore bonds slumped, pushing 10-year yields to a 22-month high, after better-than-forecast U.S. jobs growth kept alive speculation the Federal Reserve will cut back on monetary stimulus.</i><br /><br />Source:<br />http://www.bloomberg.com/news/2013-06-10/singapore-bonds-decline-as-10-year-yields-climb-to-22-month-high.htmlAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-27119748442547051462013-04-06T11:49:23.834+08:002013-04-06T11:49:23.834+08:00Hi IzyData,
Thanks for taking the time to make su...Hi IzyData,<br /><br />Thanks for taking the time to make such a well thought out comment. I truly appreciate it and I am sure some other readers do too. :)<br /><br />People will believe what they want to believe. It is just like how some people who do not have to pay a single cent of income tax because they qualify for a host of reliefs still feel that they have been wronged by the government.<AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-17553270084026970372013-04-06T09:17:00.207+08:002013-04-06T09:17:00.207+08:00What you say is right. I am a big fan of the CPF s...What you say is right. I am a big fan of the CPF system too. The alternative where you let everyone save whatever they want and invest however they want with no government intervention (providing the safe long-term assets) will be a disaster for most, although it will be very lucrative for the financial industry. In the US, there are trillions invested in 401(k)s and IRAs and the industry lzyDatahttps://www.blogger.com/profile/15048717550148913082noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-37079503602305813372013-04-03T21:33:31.438+08:002013-04-03T21:33:31.438+08:00Hi IzyData,
The Singapore government has AAA cred...Hi IzyData,<br /><br />The Singapore government has AAA credit rating. There is no risk of default, of course. However, the risk of losing money in the bond market is very real in the coming years.<br /><br />As for the CPF, there is no risk of losing money, so to speak, even as it pays almost the same "coupon" as a long term SGS.<br /><br />Also, I do not see why it is such a bad thingAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-46680810689326113932013-04-03T20:32:14.924+08:002013-04-03T20:32:14.924+08:00I suppose your friend is worried that the governme...I suppose your friend is worried that the government will feel free to change the laws around CPF so that he cannot get his money when he expects to and all of it, but the government will not feel free to default on SGS interest and principal because that will have repercussions for our credit rating.<br /><br />In theory that would make sense because the latter has not happened but the former lzyDatahttps://www.blogger.com/profile/15048717550148913082noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-13351160111008338432013-04-03T11:59:29.323+08:002013-04-03T11:59:29.323+08:00Hi Kent,
While I wait for investment opportunitie...Hi Kent,<br /><br />While I wait for investment opportunities to present themselves, I like the idea that money in these war chests are enjoying way better returns than what is offered by the banks on S$ savings.<br /><br />Of course, the fact that this works for me does not mean that it would work for everyone else.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-84190043259513537172013-04-03T11:54:25.322+08:002013-04-03T11:54:25.322+08:00Hi HPB,
SGS stands for Singapore Government Secur...Hi HPB,<br /><br />SGS stands for Singapore Government Securities. The longer term ones are bonds. :)<br /><br />My parents are beyond retirement age but they are still working. They have rather good experience with the CPF and, in fact, did VCs last year too.<br /><br />OK, I think I just saved my blog from being gazetted. ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-83343940020103627632013-04-02T23:31:59.052+08:002013-04-02T23:31:59.052+08:00AK,
You are right to build up OA war chests. Whe...AK,<br /><br />You are right to build up OA war chests. When Mr market decided to turn and everyone rush for the exit, your OA $$ could potentialy gains in multiples of 4%.<br /><br />Should the draw down age increase beyoung 70, you still have 3rd and 4th war chests to tide thru...<br /><br />Best Rgds ....... KentAnonymoushttps://www.blogger.com/profile/01307717364973988626noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-91551264227701499572013-04-02T21:32:13.986+08:002013-04-02T21:32:13.986+08:00Hi AK,
I don't know what is SGS, but I agree ...Hi AK,<br /><br />I don't know what is SGS, but I agree with you on the correlation between bonds and interest rates.<br /><br />But for CPF, I will not put my money in there where possible. I had recent dealings with CPF to help elder members of my family. It just proves a point that it is a coin box which has no key and cannot be broken.<br /><br />Shhh...I don't want to turn your blog Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-39969892874523609742013-04-02T13:25:54.858+08:002013-04-02T13:25:54.858+08:00Hi Ray,
The CPF is a useful tool in my efforts to...Hi Ray,<br /><br />The CPF is a useful tool in my efforts to grow and preserve my wealth but not directly so. If I think of the CPF as the ultimate tool in wealth preservation, I must be bonkers.<br /><br />We must have cash on standby at all times. Without ready cash, we could miss out on possibly fantastic wealth building opportunities. Where do we keep our standby cash?<br /><br />A regular AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-20231431683076370572013-04-02T12:28:18.473+08:002013-04-02T12:28:18.473+08:00Well, if we are talking about preserving capital, ...Well, if we are talking about preserving capital, then CPF interest is still below inflation rate right?<br /><br />Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-30804468739227149462013-04-02T12:21:29.462+08:002013-04-02T12:21:29.462+08:00Hi SMOL,
Indeed so. Interesting times.
A reversi...Hi SMOL,<br /><br />Indeed so. Interesting times.<br /><br />A reversion to the mean is what any reasonable person would expect but Mr. Market is hardly reasonable. So, what are we to do?<br /><br />Think the 8 Immortals. ;pAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-60471813936239465562013-04-02T11:03:55.680+08:002013-04-02T11:03:55.680+08:00Hi Ray,
I hope I will not have to draw on my CPF ...Hi Ray,<br /><br />I hope I will not have to draw on my CPF savings in my old age and if I should do so, it would only be because all else failed.<br /><br />I am more concerned about growing and preserving my wealth in what should be a meaningful way now. The CPF is a useful tool in my efforts. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-52379844731353844972013-04-02T10:34:53.418+08:002013-04-02T10:34:53.418+08:00AK,
We are living in interesting times.
US 10 ye...AK,<br /><br />We are living in interesting times.<br /><br />US 10 year treasury is yielding 1.84% while US equity markets near all time high.<br /><br />Both markets can't be right; but here we are! <br /><br />All of sudden, CPF 2.5% not so bad afterall ;)<br /><br />Singapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-2617857495486209072013-04-02T10:19:42.379+08:002013-04-02T10:19:42.379+08:00but AK. at the rate the age limit is being increas...but AK. at the rate the age limit is being increased, you may never get to see your "additional savings" until you are 70 years old. Rayhttps://www.blogger.com/profile/16883833861386039879noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-27696766915613112152013-04-02T09:52:50.981+08:002013-04-02T09:52:50.981+08:00Hi Cory,
Thank you. :)
Money should go to where ...Hi Cory,<br /><br />Thank you. :)<br /><br />Money should go to where it is treated best but the definition of "best" could differ from person to person. <br /><br />There are so many sets of assumptions we can adopt, after all. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-23550976289277608922013-04-02T09:49:19.912+08:002013-04-02T09:49:19.912+08:00Hi Kim,
Not too long ago, I had a very good excha...Hi Kim,<br /><br />Not too long ago, I had a very good exchange with Serendib and Bill on the subject. You want to see the comments section of the following blog post:<br /><br /><a href="http://singaporeanstocksinvestor.blogspot.sg/2013/03/make-more-money-do-good-and-pay-less.html#comments" rel="nofollow"> Make more money, do good and pay less income tax.</a><br /><br />To answer your questions:AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-85103289684639869852013-04-02T09:10:58.739+08:002013-04-02T09:10:58.739+08:00Logical and well said.Logical and well said.Coryhttps://www.blogger.com/profile/18166646368324976318noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-82708473021573389922013-04-02T06:39:00.109+08:002013-04-02T06:39:00.109+08:00Hi AK
If your SA already reached the limit, can yo...Hi AK<br />If your SA already reached the limit, can you still do a VC? <br />And does the VC enjoys tax relief as SRS contribution?Kimhttps://www.blogger.com/profile/01177731631862556104noreply@blogger.com