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 teena...
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I had some leftover waffle made by my sister but instead of having them with maple syrup and butter, a style more in keeping with breakfast, I decided to prepare a savory version instead for lunch:
Heat up both sides of the waffle on a frying pan.
Layer on cheese, cucumber slices and cherry tomatoes.
Voila! A warm and savory waffle sandwich is served!
Bon appetit!
Now, what should I do for dinner? Hmmm... I wonder.
"Big money prefers practicality over opulence." This is my reply to a recent email from a reader approaching the big 4 in life:
Welcome to my blog. :)
I have to say that I am not a financial advisor. So, I can only share with you what I think makes sense to me.
There are a few issues here:
1. Emergency fund - Generally, people keep 6 to 12 months worth of routine expenses in this fund. Personally, I keep a lot more, about 24 months. So, ask if your emergency fund is excessive. Could the amount actually be lower?
2. 2 room BTO flat - I gather from your email that you are a single. So, I think this is a super choice for a home. Good value for money and most practical. You will be paying for this with your CPF-OA funds, I guess. Of course, you want to set aside some money for furnishing and stuff. Call this your renovation fund or something. For me, I think $10K is probably enough.
3. Endowment policies - These sound like they are going to behave like annuities (for you). Sounds like good retirement income tools although without further details, it is hard to tell if the returns are attractive. If the returns are attractive enough for you and they give you peace of mind, just keep them.
4. Take a look at your CPF-SA. You can do minimum sum top ups yearly up to $7,000 a year. Try to hit the MS ceiling as soon as possible. Let the magic of compounding do the rest. It will ensure that you have a meaningful monthly income from your CPF Life annuity from age 65. It could be as much as $1,300 a month (for now).
5. As for investments, the first rule is that you must only use money you can afford to lose. This means that you should be able to suffer short term losses on paper without having to worry. Money that has been earmarked for specific purposes or might be needed in an emergency should not be used. Then, you have to read up. Pick up some knowledge. If you do not have the inclination to do this, you could consider regular investment plans offered by OCBC or POSB.
Many of the things I have mentioned in this reply are found in my blog. So, just do a search and you will find them. ;)
Best wishes,
AK
I was invited to a buffet dinner and a movie treat complete with popcorn and Pepsi.
The movie was educational and entertaining at the same time. Although Biblical, I believe that there are certain lessons here which have universal value.
We should treat every human being equally. It doesn't matter what is the color of our skins.
Efforts to enrich ourselves or to make our lives better should not be at the expense of fellow human beings. Unfortunately, examples of "beggar thy neighbour" are rather common and I am sure all of us have tales to tell.
On 22 October, I did an incomplete analysis of Wing Tai Holdings Limited to arrive at what I thought would be a nice entry price. Any reader who might have missed that and would like to read it, please see the related post at the end of this blog.
Today, I became a shareholder of Wing Tai Holdings Limited. Entry price is $1.655, a 56% discount to NAV and a few bids higher than the $1.64 per share that I mentioned on 22 October. At this price, I am basically paying for their investment properties at book value, their development properties at a huge discount to valuation and I am basically getting their retail businesses for free. I shared some of these numbers in my incomplete analysis mentioned earlier.
Technically, the downtrend is intact but the momentum oscillators are forming higher lows. So, it seems that the stock could be forming a base and further downside could be limited. The chart shows stronger supports are to be found at $1.59 and $1.55 a share. $1.55 also happens to coincide with the low formed more than 2 years ago on 15 November 2012. Related post: An incomplete analysis of Wing Tai Holdings.
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