1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teenager would wait in line for a cup of bubble tea.

Do you know that bubble tea is wealth and health destruction incarnate?

Expensive carbohydrate and sugar.

Expensive empty calories.

Oops, I digress.

So, what does my CPF pie look like?

It looks different from previous years.

I shouldn't say "it" because this year we get more than one pie.

I prefer the old pie because it looked cheerful with bright colors.

These new ones look really dull.

Anyway, I will just show the first pie:

Are you disappointed?

Oh, you are but not with the colors of the pie but with the numbers?

Right, where is the one million dollars AK hinted at in the blog title?

Well, this is where AK got tricky.

Some of you might have guessed it.

Voluntary contribution of $37,740 this month to my CPF account means I have more than one million dollars in CPF savings now!

Maybe, AK is an overgrown hobbit. 

"Stupid hobbitses, tricksy hobbitses."

Gollum reads Donald Trump's tweets:

Yes, I know.

Bad AK! Bad AK!

My CPF savings in January 2021:

Total:

$1,012,703.70

Hurrah!

We know of 1M65 which is to have one million dollars in CPF savings by age 65.

We might also have heard of people who have accumulated one million dollars in CPF savings before age 65 and now AK is one of them.

AK is 50 this year.

So, AK is a 1M50 CPF millionaire!

Technically, AK is a 1M49 CPF millionaire as he is a year end baby but 1M50 looks more wholesome.

So, 1M50 it is.

Anyway, 49 or 50, eh, who cares?

Indeed, I would argue that it doesn't really matter if it is 1M50, 1M55, 1M60 or 1M65.

I said before that the journey to financial freedom is not a race and as long as we achieve financial freedom, we win.

See:
Journey to financial freedom is not a race.

The same spirit should be applied to growing our CPF savings as just like the quest to achieve financial freedom, each of us could go at a different speed because each of us have our own circumstances to deal with.

Think of it as a rewarding journey that should provide some pleasure along the way.

No pressure, just pleasure.

As long as we are doing the right things as much as we can, we should give ourselves a pat on the back.

Growing my CPF savings over the years has been very satisfying and although I can only see the pie now, I will get to eat it one day.

Growing old is definitely not all doom and gloom if we are well prepared and we should help the CPF to help ourselves.

If we have not done so, start now.

Stay the course and, over time, we will see results.

Remember, compound interest might seem like magic but it really is simple math.

We don't have to be talented like Harry Potter to make it work for us.

If AK can do it, so can you!

AK says one hor. ;)

Related posts:

1. Retirement adequacy.

2. VC to CPF in January.

3. 2019 CPF savings in a pie.

Recently published:

1. 4Q 2020 passive income.

2. Interest income from CPF in 2020.

Reference:
Saving $1m through CPF, The Straits Times.

Interest income from CPF in 2020.

When most people think about passive income, they think about investing in income producing assets like stocks and properties.

Most wouldn't think of interest income from saving money in a bank account given the very low interest rate environment we have been in and the even lower interest rate environment we are in today. 

This isn't wrong, well, if you are not a Singaporean. 

This is because we have the CPF in Singapore and all Singaporeans are CPF members. 

Whenever I have conversations with foreigners about retirement funding, they are always in awe of the CPF system in Singapore. 

Actually, they are envious. 

The CPF pays relatively attractive interest rates of 2.5% to 5% to those of us who are younger and up to 6% for members who are more senior in age. 

I just heard the jaws of some foreign friends hitting the floor. 

Jaw droppingly good.

Source: CPFB.

Anyway, regular readers know that I am a strong advocate of the CPF and I put my money where my mouth, er, CPF account, is. 

As a retiree, I have not had mandatory contributions to my CPF account in the last few years. 

However, I have been making voluntary contributions to max out the annual limit allowed per CPF member. 

Yes, there is a CPF annual contribution limit which we cannot exceed. 

Want to contribute more? 

Sorry but the CPF system is not designed to help the rich. 

So, how much interest did CPF pay AK in 2020?

 OA interest: 

 S$ 15,191.75

 SA interest: 

 S$ 11,647.46

 MA interest: 

 S$ 2,380.98

If we are new to wealth building and if our mandatory CPF contributions leave room for voluntary contributions, consider doing so. 

Not only does the CPF offer attractive interest rates, the CPF is as risk free and volatility free an instrument as we can find as Singaporeans. 

We should take full advantage of it. 

If people tell you that CPF is a PONZI scheme, read this: 

A river called "CPF" and the stubborn horses.  

If people tell you that our CPF money is fake money, read this:

CPF interest earned in 2019. 

Rumours and gossip about friends can be fun but it isn't the way if we want to keep our friends. 

Why do I say this? 

You might want to read this:

CPF: Our best friend in retirement.

That's all for now but I promise to blog about my CPF pie (chart) soon.

Related posts: 

1. Purpose of the CPF is to make the rich richer. 

2. CPF is all we need unless we are very rich.

3. CPF fake news and financial prudence.

Recently published:
4Q 2020 passive income.