CPF to help fund our retirement but what about our parents'?

Reader says...
I am a new reader to your blog and have benefitted greatly from the nuggets of wisdom that you have shared within these first 2 weeks of reading your blog.

I have transferred money from my ordinary account to special account and managed to convince my Husband to do the same as well! Hopefully, we will be able to help the gov help us hit the minimum sum by the time we reach 55. We are in our mid 30s now : )





Because of your blog, it got us started thinking abt our parent’s cpf as well. We realised that our parents cpf balances are very dismal. Each one has less than $10,000.

We are hoping to top up their RA until it hits $30k eventually. However, they have the option of choosing between the old retirement sum scheme or the current cpflife.





The draw of the retirement sum scheme for me is that the 6% earn still belongs to my parents but under cpflife, once it is under the annuity, the 6% goes to a common pool for the gov to maintain this plan.

Could you talk to yourself and share what your through process would be in such a scenario?

AK says...
Welcome to my blog.

CPF Life is attractive because it pays us a monthly income for as long as we live but it is an insurance product and, so, it is about sharing risk.

Some people think they won't have a long life and brush aside CPF Life but, statistically, people are living longer.

How like that? ;p





You might also be interested in this blog:
How younger CPF members get 6% a year?

Related post:
When to get a private annuity?

1Q 2018 passive income from non-REITs.

I feel that I should mention a non-REIT here which might not be considered an investment by most people.

I should mention it because, logically, it should be considered a part of my portfolio.

Of course, I am talking about the CPF.

If we would include bonds in our portfolio, then, we should also include money in our CPF accounts in our portfolio which I have said before is like a AAA rated sovereign bond.

I have also mentioned that, lacking mandatory contributions, I would voluntarily contribute to my CPF account and that was what I did in January.

The CPF is a risk free and volatility free component of my portfolio which pays a reasonably good coupon and to promote peace of mind, I would like for it to stay a meaningful size.

Regular readers might remember that I talked about it before but if you don't, you might want to read the blog: The AK passive income strategy after making $1 million.

Related to this, I also bought some Singapore Savings Bonds.

If you are interested in the reason why, read the blog: HERE.

As for investments in equities, what did I do in 1Q 2018?

I added to my investment in SingTel at under $3.40 a share.

I added to my investment in Wilmar at under $3.00 a share.

I added to my investment in ComfortDelgro at under $2.00 a share.

1Q 2018 passive income from non-REITs:

$ 10,871.45

Or about $3,623.00 per month.

Enough or not?

Enough for me but I don't know if it is enough for you.

Related posts:
1. 1Q 2018 income from S-REITs.
2. Largest investments updated.

UBER and GRAB why you so like that?

Reader says...
Hi Ak! I'm sure you'll be getting this a lot now. What do you make of the news that uber is giving up sea? What does this mean for cdg should the purchase of lcr go through or not?

Seems like there will be less promos from grab, but they will also have larger market share than cdg post merger.

Can't seem to decide if it's positive or negative!!

AK says...
The move to purchase a stake in LCR was not even a consideration when I decided to invest in ComfortDelgro.

I looked at the numbers and decided that the dividend was sustainable.

Of course, what I did suit my purpose.

It probably does not suit everybody and, I am willing to hazard a guess, the speculators. :p

(I try to keep things simple because I am not a very smart guy.)

Bad AK! Bad AK! ;p





Related post:
Analysis of ComfortDelgro.

1Q 2018 passive income from S-REITs.

If you have read my last blog on S-REITs, you would know where I stand when it comes to the issue of whether they are still relevant investments for income. 

If you cannot remember the blog, you might want to read it: HERE.

In 4Q 2017, my S-REIT portfolio grew a little and if you cannot remember why, read the blog: HERE.

What about 1Q 2018?

If you are a regular reader of my blog, you shouldn't have to worry about making a guess.

Yes, the size of my S-REIT portfolio shrank in 1Q 2018 and if you have followed the links above to read my past blogs, you would know that it isn't because I have lost faith in S-REITs as a class of investments for income.

Specifically, in 1Q 2018, I sold my investments in Soilbuild REIT (HERE) and ESR REIT (HERE).

The top 3 contributors in 1Q 2018 are:

AIMS AMP Cap. Ind. REIT

FIRST REIT

IREIT Global

Regular readers and even newer readers would be quite familiar with my narrative on the first two.

If you are a newer reader or if you are forgetful (like me) and cannot remember why I invested in IREIT Global, you might want to read a blog: HERE.

How much did I receive in 1Q 2018?

$19,461.07

Or $6,487.00 per month.

There will be different reactions to this number but, remember, everyone's circumstances are different. 

Some might find that what I have is still insufficient and some might think it is more than enough.

To achieve financial freedom, how much passive income do you need?

Don't look to me for the answer.

The answer is within you.

Related post:
Largest investments updated.