You are not successful in Singapore unless you do this.

In retirement, I have become totally slothful. 

I go to bed late. I wake up late. 

I spend time getting my hands dirty in my planter and also staring into my aquarium.

Make simple meals. 

Do some housework. 

Watch some TV and do lots of online gaming. 

Of course, I still blog and interact with readers but everything is OTOT lah. 

Don't know what is OTOT? 

Ask anyone who has done NS. 

Don't know what NS is? 

Never mind.

Oh, did I say I also take a nap whenever I want in the day?

What about my social life? 

Very little because I rather prefer my own company.

It should come as no surprise that I have avoided going to large gatherings for a while.

(Did someone say Singapore's doors are always open to welcome the rich in the video?)

C:

I just moved into a bigger condo recently. 
I am going to keep my old condo for rental income.

B:
We are thinking of upgrading too.

C:
Your condo is nice and big. 
Why must upgrade?

B:
You know where I stay, right? 
We thought of moving somewhere central.

C:
Central will cost a lot more for the same size




B:

With our combined income, we can just about make it. Now, still looking.

C:
AK, what about you?

AK:
Me? 
I stay in a shoebox apartment.

C:
OMG! 
Why such a small apartment?

B:
It is OK lah. 
Can always upgrade.

AK:
I cannot because no bank would lend me any money...

When I mentioned this incident to my banker, he gave me some advice.

Banker:
Didn't you tell them you have retired?

AK:
I usually tell people I am unemployed.

Banker:
No, no. You mustn't tell people that. 
They will look down on you. 
You must always show people you are successful.

AK:
Really? How do you do that?




Banker:

They are usually impressed by how I have a luxury condo and a luxury car at such a young age. 

You must have visible signs of success and don't be afraid to flaunt it.

I have been so wrong for so long. 

Alamak.

How liddat? 

I so cham liddat.

Related post:

If we are not rich...

Standard Chartered Bank's Bonus Saver.

When I shared on Facebook why OCBC 360 has gone from the top to the bottom of my list of "jumping through hoops" savings accounts, a reader suggested Standard Chartered Bank's Bonus Saver as an alternative.




Coincidentally, my sister started a Bonus Saver account recently and I did look at it before junking it. 

Please take note that I junked it because it didn't suit me. I will share who it is good for later.

SCB announces plans to slash 15000 jobs.

The headline interest rate is always attractive:

Up to 3.88% per annum!

How to get this?

OK, start jumping through hoops.

Base interest rate (for the first $200,000 in the account) is 0.1%.

Spend $2,000 on a SCB credit card each month to get 1.78%. 

Alamak! Now, I am already struggling with spending $500 with the UOB One Card. 

How like that?




What if I spend only $500 a month? OK, I will get 0.78% per annum. 

A big difference.

Monthly salary crediting gets an extra 1% per annum. 

I don't meet this requirement, of course.

Invest or insure with SCB to get an extra 0.75% per annum. 

What do you think I will say to this?

Pay 3 bills via Giro or online banking each month to get an extra 0.25% per annum. 

This, I can do.




Bonus interest will apply to the first $100,000 in the account only.

So, let's see. What is the interest rate from SCB Bonus Saver for me?

0.1% + 0.78% + 0.25% = 1.13%. 

This is after jumping through 2 hoops.

OK, quite clearly, if I must jump through hoops to get higher interest rate on my savings, SCB Bonus Saver beats OCBC 360 which would give me a miserable 0.6% per annum. 

Read the blog on why I junked OCBC 360: 
https://singaporeanstocksinvestor.blogspot.sg/2017/03/ocbc-360-updated-and-downgraded-again.html




However, if your circumstances are like mine, UOB ONE account is still the number one choice. 

An interest rate of 2.43% beats the competition flat. 

Unfortunately, it is for the first $50,000 in the account only.

Now, most people my age are not retired like me. So, let us see what they will get if they have a salary to credit monthly:

SCB Bonus Saver: 2.13%

OCBC 360: 1.8%

UOB ONE account: 2.43%

Alamak. I am not a UOB shareholder. 

How like that? 

I am a shareholder of the giamsiap bank and, of course, another giamsiap bank which didn't even get a mention here. 




Maybe, the moral of the story is to invest in giamsiap banks. 

Aiyoh! Bad AK! Bad AK!

For who does the SCB Bonus Saver make sense?

If we have much more than $50,000 in savings and if we have a monthly salary to credit, it could make sense to migrate to SCB Bonus Saver because of the much higher cap at $100,000. 




Lower interest rate compared to UOB ONE but SCB Bonus Saver will pay more interest income in absolute dollar terms then.

Related post:
UOB ONE, OCBC 360, CIMB Starsaver and BOC Smart Saver.

Should invest (more) in SPH now?

Reader:
Hi ak, I like to hear your view on SPH. 

I have hold the stocks which I bought few years ago avg price 4.1. 

With this recent big drop, do u think it make sense to buy more to avg down the cost? 

The business seems to cutting more div in coming future 😟





AK:
Whenever you are thinking of investing more, ask yourself if you were not already an investor, would you invest now. 

You will have your answer. 

Quite simple. 😉

Reader:
My feeling is telling me not to buy if I do not have any.. thanks

Regular readers might remember my blogs on QAF Limited and why a higher share price might not mean that the stock is more expensive. 

In actual fact, QAF Limited's stock could actually be cheaper even though the price was higher.

(For those who are new to my blog or are growing forgetful, read this:
http://singaporeanstocksinvestor.blogspot.sg/2015/04/qaf-limited-114-share-is-cheaper-than.html)





Along the same line of thought, a lower share price might not mean that a stock is cheaper. 

The stock could actually be more expensive.

It has to do with earnings.





Related posts:
1. Fate of my investment in SPH.
2. Sizing my investment in SPH.

CPF LIFE Payout Estimator and questions. (UPDATED 11 JAN 2022)

UPDATED 25 FEB 2019:

A reader sent this to me:

And he asked me:
"Shocking or expected?"

What did I tell him?
"If people don't make good use of the CPF to help plan for retirement, well, they won't get much out of it. 😉"

If AK says so, it must be so.



--------------

Ronnie Wan says...
Any advice or comments on the forum article above?

AK says...
I don't bother calling CPFB for things like that because I use the CPF LIFE Payout Estimator online.

Notice that the payout estimated falls in a range.

It is just an estimate.

The sky is not falling.







Reader:
I would like to ask you about transferring from OA to SA. 

Currently my mother is under CPF life. According to CPF board, I am able to withdraw the OA and SA. 

Is there anything I should look at before transferring OA to SA? Thanks!




AK:
OA to SA transfer is not allowed for those 55 years and older.

You qualify for CPF Life if:

Reader:
oh damnnn XD ok
the RA amount that is not deducted for CPF life, what can we do with that balance?

AK:
RA is meant to fund our retirement. 

Cannot be withdrawn unless the member passes on.

That is if there is anything left.

Reader:
but how does it fund our retirement? 

Since the CPF life's premium is alr deducted and the payout wont touch the remaining balance

AK:
All the RA money will be depleted by age 85 (under the LIFE Standard Plan).

UPDATED on 11 JAN 2022.

Use CPF LIFE Payout Estimator: HERE
Find out more: CPF LIFE.




Reader:
may I ask how will it be depleted?

AK:
It is used to fund the payouts.

Even after all the funds have been depleted at 85, CPF LIFE continues to pay until the day we die.


Reader:
I got another qn
say the FRS is 166k
A has 166k in RA and B has 180k in RA
they will deduct 166k to buy CPF life right

AK:
Will not have more than FRS in RA
Unless u opt for ERS
So, A and B will have FRS $166K in RA. 
Same same.

UPDATED on 11 JAN 2022.

Use CPF LIFE Payout Estimator: HERE
Find out more: CPF LIFE.

Latest CPF calculators: HERE.

Related posts:
1. Changes to the CPF.
2. Worry about retirement adequacy the right way.