I am also a super strong advocate for
CPF and because i am one, i also know the journey to build $250 k
CPF portfolio.
I just want to clarify why i said it is a bluff to have 250k at age 28.
It is not impossible as the poster set to clarify after my post. In addition, he made a screenshot of the contribution to
CPF at age 18 somewhere as he clarified after JC
I just wish to say- at age 18, you are able to "contribute" approx 900 to
CPF.
Annual limit for
CPF as mentioned by other 37.74k.
So it is possible to hit S$250k . But this limit also means it cannot be easily done at one go.
But to build $250k portfolio in
CPF means you must have sufficient means to contribute significantly over the 10 years period. so lets do some rough maths . Lets assume the full balance of the contribution was earning 4% across the full 10 years. So if the poster had 250k after 10 years, what was the size of investment at year 0 ?
Simple financial maths will let you know the initial capital was S$168k.
Again, just to make things simple assume this capital sum was contributed over 10 years, it means 16k per year. I dont even wish to talk about moving OA to SA or how if you contribute later, then the total amount at the back end years will need to be more etc?
I just wish to state
Age 18 - contributing 16 k per year to
CPF all the way to 28 on average.
Has to complete study and maybe
NS , degree , then work 3-4 years.
is not a normal kid. Somemore , never touch his
CPF even to pay for university . Wah - i wish i started my life like you.
Hence i can only conclude-
The poster must have a lot of financial help in other areas or has a way of making money more than what he is saying.
Flipping property can increase because your
cpf especially if you dont touch your
cpf for your next property. this is especially true for downgraders.
As said, i am strong advocate for
CPF. Some poster here, i dont know if saying such large number means more people will say
CPF is a real retirement plan. But for me, i have done it and it is working nicely. I am already on track with those whom are like me to get my yearly 20k interest dividend... and i have a few years more to work so should hit some of the target that other have said. but it is not so easy to do it when young.
I also think young people have higher risk tolerance so if you can make money and have already so much, then should take more risk to get better returns. i didnt have much when younger so couldnt take the investment risk so i find myself doing an inverse thing ie taking more equity risk when i am older since my portfolio has enough stable ones . And now i do this equity risk now to build more income stream.
Anyway, i am just an old man rambling...
Quote:
Originally Posted by Unregistered
No reason for bluff. As previous poster has mentioned, based on the CPF contribution limit, it is possible to achieve this amount.
Just consistent and diligent CPF contributions and top ups. I also do transfer from OA to SA so that helps in compounding at higher interest rate. Below is my CPF balance as of today. I have maxed out MA and almost hit FRS in SA. The reason that I have some amount in OA is to act as a buffer for my upcoming property purchase and I intend to transfer the OA funds to SA if I do not need it for my property (highly likely).
As an additional fun fact, I have attached my first CPF contribution in Jun 2008  prior contribution was from my part time job in JC. Lol. Based on my projection, I should be able to reach 1mil CPF by 50 (albeit a conservative estimate). Being able to reach such an amount like the previous poster is one of my retirement goals.
PS: I am a strong advocate of using CPF for retirement planning. That being said, I think I have got some room to brush in terms of my portfolio as I am holding on to too much safe assets which may impede my portfolio growth.
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