Posts
There is always some risk when it comes to investing in stocks and there will always be some degree of price volatility.
Not everyone is able or willing to take risk when it comes to their money and not everyone is able to stomach price volatility well.
Some get sick from the volatility and some even die from it.
This is why we are fortunate in Singapore to have the CPF.
CPF members should take full advantage of this risk free and volatility free instrument that pays reasonably attractive coupons.
Yes, I say coupons because I look at my CPF savings as the risk free and volatility free investment grade bond component of my investment portfolio.
Having a meaningful amount of CPF savings will give most of us peace of mind as we cannot reasonably expect every year to be a good year for our investments.
In my retirement, lacking mandatory contributions to my CPF account, I have been voluntarily contributing to my CPF account and here is what it looks like at the end of 2018:
$845,373 at the end of 2018 and that was at the ripe old age of 47 too.
By age 55, more likely than not, my CPF savings will be in excess of $1 million.
To the very rich, $1 million might not be a lot of money but to the vast majority of us, I am sure it will make a meaningful difference in funding our retirement.
This is why I share my CPF story.
Unless we are handicapped in some way, I believe that if we put in enough effort, we can become CPF millionaires.
If you are a CPF member and have yet to max out the benefits of your membership (think FRS and BHS), read this blog:
CPF is all we need unless we are very rich.
Many or most Singaporeans do not realise what a good thing the CPF is.
Haven't reached the prevailing Full Retirement Sum (FRS) in your CPF account and thinking of buying a bond fund?
If you have yet to hit the Full Retirement Sum, why bother with bond funds?
Want a financially more secure retirement?
It is really as easy as ABC, er, I mean as easy as CPF.
Believe me when I say:
If AK can do it, so can you!
If you haven't listened to the song, listen, there is a hidden message.
Related posts:
1. Voluntary contribution to CPF MA (2019).
2. CPF interest earned in 2018.
3. Financial security plain and simple.
Bloggy Award