I think it is good you are concerned for your parents retirement and want to help them out. This is a step in the right direction. I also sense you are seeing a dilemma of "investing" your money now so as to get a bigger payout for your parents future. So let me offer a BIG tip that i applied to myself .
If you want to combine "investing" and giving to your parents , do voluntary cash contribution to THEIR
CPF. This will help achieve good returns of 4% (and more since they are below the min sum and will earn extra 1%)
The 4-5% savings interest rate is really fair in this low interest rate environment. And because you contribute, you get income tax relief as well !
By putting in their
CPF, it also prevent "frivolous" spending as they have to meet
CPF withdrawal requirements ie beyond 55 etc.
Of course, your parents may disagree- because cash at hand is better and they may have negative sentiments about government etc,
One thing here you must watch, i note your
mom has no
CPF, so whatever she has will go into the purchase of
CPF life.
CPF life is essentially what you wish to give her as it means getting an monthly sum in exchange for the lump sum. Do more research and calculations to plan so that she can meet the basic retirement sum (ideally)
i recommend reading this blog as well to get the idea .
A Singaporean Stocks Investor (ASSI)
2. After you do all the research on the above point, i like you consider giving a small cash amount (maybe start small say $10 per week) to your parents.
This gesture while small , will mean a lot to your parents. (while the bigger payout starts to grow)
3. In terms of considering other forms of investing for your parents, i will say dont bother. Just do the
CPF. Cos their time is short, and there is no guarantee of success. You can do the other forms of investing for your own retirement and take the risk as it comes. If it works, good for you. If it doesnt, at least you dont face additional stress for providing for your parents
All the best, and wish you success.
Quote:
Originally Posted by Unregistered
Currently, we are still able to get by and i feel that giving my parents more money wont help matters in the long run.
I am living a very simple and frugal lifestyle (almost always eating at hawker centres, food courts, cooking at home, taking only MRT, rarely take taxi, never buy any luxury goods etc)
Just need some advice here on how to plan forward for my parent's retirement so that there is a sum of money that they can use when they could not work anymore. Thanks in advance! |