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Reader:
I want to thank you... A friend shared your 4d pick at a gathering... I am a gambler and I bought the most... I have never won so much money gambling before... He told me to top up my CPF but I have been thinking of buying a car...
AK:
Welcome to my blog. I will not tell you not to buy a car if you are one of the following:
#1 If you NEED a car and if you have the money for the upkeep, buy it. Upkeep? Yes, road tax, insurance, maintenance. You know. Upkeep. Paying for fuel, parking and ERP are just the smaller expenses.
#2 If you are able to make more money from owning a car, why not? If you are an UBER driver renting a car now, for example, you could save (what an UBER driver told me) $70 a day in rental. That works out to be $2,100 in a 30 day month! That's a lot of money.
#3 If you have enough money today to last you till the day you die without having to work another day of your life, if you WANT a car, what's stopping you? Hey, Y.O.L.O. See? AK is not unreasonable nor extreme like what some people say.
Now, if you are none of the above, what do you do?
Don't buy a car!
Why not consider this instead?
The CPF Full Retirement Sum (FRS) is now $166,000. So, you are allowed to top up your CPF-SA to $166,000.
30 years from now even if there should be no more contribution to your CPF-SA from today (i.e. if you stop working today), compounding at 4% per annum, you would have $538,403.99 at age 55.
Then, after setting aside the prevailing FRS in your CPF-RA, you could withdraw the rest of the money if you like. 10 years from then, at age 65, you would also get a monthly income for life.
Oh, the calculation above did not take into consideration the additional 1% interest paid on the first $40K in your CPF-SA. Aiyoh, never mind lah. 1%? That is small money when you are rich, right? Kidding!
100% win rate. There is no easier way for a gambler to win money. Believe it!
Related posts:
1. Chinese New Year lucky 4D.
2. Don't have to be smart to be rich.
3. Showing off my CPF numbers!
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