Rushing CPF with only 11 years left to 55.

Reader says...
I am now 44. my SA is about 100k now. 

My MA has reached BHS. 

I am thinking of transferring some OA to SA to reach FRS. 

I understand that I can’t VC anymore to SA.





Now what happens with monthly mandatory contributions? 

Will all my monthly MC all go to OA?

So does this mean that once SA reaches FRS, there is no other way to grow SA other than the interest earned within SA?

If now, my monthly MC is all going to OA, what else can I do with the faster growing OA to grow my overall CPF funds?





I feel that I want to work smart to build up my nest egg before I hit 55. 

I only have 11 years of doing this. 

I should have done it much earlier.

AK says...
Your SA has $100K and this is below the prevailing FRS, you can continue to Top Up your SA using cash.

Read this blog on the options available:
http://singaporeanstocksinvestor.blogspot.sg/2017/08/investx-congress-and-cpf.html

Your mandatory contributions (MC) will go to your OA and SA but nothing to your MA since it has hit BHS.

Read this blog and refer to allocation rates:
http://singaporeanstocksinvestor.blogspot.sg/2017/08/cpf-sa-savings-10-years-from-now.html





If you have used your CPF-OA money to help purchase your home, you could consider doing a voluntary refund to your CPF-OA to help grow your OA savings.

Read this blog:
http://singaporeanstocksinvestor.blogspot.sg/2015/09/how-to-stop-accrued-interest-we-owe-cpf.html

Let the government work harder to help fund our retirement.

Read this blog:
http://singaporeanstocksinvestor.blogspot.sg/2015/01/how-did-ak-amass-so-much-money-in-his.html

Gambatte!





"What if I had done this too?"

Read this blog:
http://singaporeanstocksinvestor.blogspot.com/2014/12/if-i-had-done-this-i-would-have-hit.html

Cutting losses in REITs.

Reader says...
You have been very successful in investing in Reit.

May i ask if you have any cut loss plan for taking up reit position?






I know investing in reit is a long term investment, looking for distribution return.

As investing are about probability and there is no certainty, if the price of reit falling below the entry price, do you get out or continue holding your position?

Really hope to hear from you soon. Thank u Ak.

Your willingness to share help gain alot of knowledge for me.

AK says...
I have in the past sold down some of my investments in REITs.

Examples of such REITs were Lippo Malls and Sabana REIT.

In both instances, I sold because I thought they were no longer as good an investment for income and that the management was mediocre.






If I believe that a REIT is still a relatively good investment for income and that any price weakness is due to (seasonal or cyclical) externalities, unless structural, I won't sell.

You might be interested in the blog on Sabana REIT: HERE.

And the blog on Lippo Malls: HERE.

(I was lucky not to lose any money in both instances and made some money instead.)

I should have invested in Bitcoin.

Reader says...

I should have invested in Bitcoin when my brother in law told me years ago.

Really regret.

AK says...

I think you mean you should have "speculated" in Bitcoin. ;p

When we buy something with nothing more than the hope that we would make money from it (i.e. that its price would go up), we are speculating and not investing. :)

(Actually, the same goes for selling something. Think stock market. Think short sellers.)

It is like buying 4D, TOTO or Big Sweep.

Yup, if you have bought some Bitcoins, you would have won the lottery.

That is what it is.

A lottery.

I don't mind a bit of speculation but we have to know what we are doing.

We have to know that we are speculating and not investing.

I see even financial bloggers getting a bit mixed up sometimes.

Sometimes, we see a blend of investing and speculating going on which isn't anything wrong per se.

We just have to know what is going on.




Anyway, read this blog to have an idea what I am talking about:
Centurion Corporation to double in price!


(And also this blog:
Investment philosophy and property market.)

ComfortDelgro's massive short interest.

Reader says...

Many are concerned that shorting will continue to push the share price down.

What do you say to this?

AK says...
Definitely, ComfortDelgro has been a favorite for short sellers.

There is now a massive amount of short positions in ComfortDelgro.





I see this as a good thing because it has created a buying opportunity.

Short positions have to be covered eventually and, unless ComfortDelgro's fundamentals are rubbish, short covering together with genuine buying interest would send the stock price up.






All else being equal, I would welcome more aggressive shorting as it would let me accumulate at even lower prices.

As I do not believe that ComfortDelgro's fundamentals are rubbish, I believe that the larger the short interest, the stronger the eventual price recovery would be. :)




Related posts:
1. ComfortDelgro's FA.
2. ComfortDelgro's TA.