The Dirty CPF-HDB Scheme To Trick Singaporeans?

I would like to share a few comments from a reader on my FB wall when we discussed a very hot article that has been circulating lately. 

Title of the article: "Truth Exposed: The Dirty CPF-HDB Scheme To Trick Singaporeans."



Wah! With a title like this, sure to become viral and it did.






So, what are the reader's comments?

"Well and we have a lot of Singaporeans complaining that they earn too little to make a living... 

"So many are being fanned by this CPF topic and arguing about it everywhere. I would choose to drive a taxi or do some carpentry work instead of arguing over those facts.

"Additional 30 to 50 dollar per day over 1 or 2 years will be a big deal to me..."







And

"A lot of Singaporean are just too spoilt and are unable to see a picture even 5 minutes before them. Lazy and shallow minded, overly comfortable.

"I won't be surprise they and their children remain in the current society status 50 years from now. Children's success are often parent's upbringing and child's willingness for achievement.

"With such mentality, I believe they would and personally feel they should just remain where they are or go lower."





Too harsh but, from my observations, there could be some truth in the comments.

As for what I think about the article, I don't think that it is saying anything new.

The "what" is the same.

It is the "how" that is different.

A new angle on some familiar material.






Make the PAP government look bad and it will excite a whole lot of fellow Singaporeans and probably quite a few foreigners as well.

I made a few comments in FB regarding this and I want to share a couple of them here with readers who don't follow me on FB:

"The CPF provides a minimum safety net for Singaporeans who stay employed for much of their adult lives. 

"The money is primarily meant for retirement use.





"We are allowed to use it for some other purposes including housing in the meantime but please remember that the money is primarily meant for retirement use.

"So, if we take out all the money for whatever reasons, we have to bear in mind the opportunity cost involved although some people might not look at it this way."

AND

"In an environment of very low interest rates in Singapore, the current CPF rates are acceptable. 

"However, if interest rates were to be as high as those in Indonesia or Malaysia, then, it would be totally unacceptable.

"This is the reason for the CPF to be pegged to long term SGS rates. It addresses the issue."


There are always two sides to a coin. 






We can either choose to use the system to help us achieve our goals or vilify it and imagine that it is beating us. 

Read the related posts below (and the very good comments that follow) if you are interested in the other side of the coin.

Related posts:
1. Young working Singaporeans, you are OK!
2. Build a bigger retirement fund with CPF-SA.
3. How to get free medical insurance in Singapore?

Priceless!

Hainanese curry pork chop dinner with my mom: $8.00.

The quality time spent together: Priceless!

Eh, sounds familiar. Oh, I borrowed the format from MasterCard (but not the price tag).

Aiyoh! How can like that?

Bad AK! Bad AK!

Note:
This is not an advertorial. AK did not receive any compensation from the Hainanese Pork Chop Rice store owner (nor MasterCard).

Related post:
Hainanese Pork Chop Rice.

TEA with ENZA: Total Debt Servicing Ratio (TDSR).

Another guest blog that is actually a collection of comments by a very bright fellow I got to know on FB. Reproduced with his permission:

Total Debt Servicing Ratio (TDSR) = Debt Repayments/Income (per month)

Many of our textbooks are based on western spending patterns, which I think isn't feasible for Asians. I would target 25% of TDSR.

IMO, a household cannot have more than 3 durable goods under instalment (because they are going to be a drag over long-run), whereas housing and vehicles cannot, in combination, exceed 20% of gross combined wage median. Always concentrate on paying off one thing at a time since we only have this much of resources.

You see, Asian parents normally pay for their children's university fees. That is a big chunk.

In the USA and Europe, most parents don't. That's why they can have a bigger TDSR. Of course, the most important thing is SG cars are TOTAL WASTE OF MONEY. Only if we can really waste the "excess money", then should we ever own them. So, if depreciation plus insurance plus road tax plus basic maintenance are below 10% of your wage income, no harm. (which is quite unlikely in SG, all because of the COE.)

Are you too much in debt?

Read other guest blogs by ENZA: here.

Related posts:
1. Don't think and grow rich.
2. Slaving to stay in a condominium.
3. The Millionaire Next Door.

So, $350,000 gets peanuts? Upsize the peanuts!

This is what Privilege Banking customers at UOB get:



Apologies for the bad quality.

These are some seriously small peanuts.

Money in our emergency funds (less than $350,000) if left in a savings account like this will get only 0.1% in interest payment per year! Imagine that.

Better leave the funds in fixed deposits. We will still be paid peanuts but these peanuts are at least bigger.

I suppose this is true not only for emergency funds but also for any money that has been earmarked for some specific purpose in the near future. Don't just leave the money in a savings account.

It is time to upsize the peanuts!

Related post:
A special chest for emergency funds.